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NEWSLETTER of December 21, 2018

 

The following content has been added at finexpert:


Studies > Performance

Ernst & Young

GERMAN FINTECH LANDSCAPE 2018

Germany’s FinTech ecosystem remains on a healthy development path – the number of FinTechs is growing, investment volumes in FinTechs are expanding, the deal flow is rising and the average deal size is increasing. In response to the growing presence of FinTechs in the market, financial institutions in Germany have been ramping up their activities aimed at dealing with the FinTech challenge. >more

Studies > Alternative Investments

CMS Hasche Sigle / FINANCE

PRIVATE EQUITY PANEL OKTOBER 2018

For the Private Equity Panel, the FINANCE editorial team, together with the law firm CMS Hasche Sigle, interviews senior investment managers from more than 50 leading private equity houses in Germany three times a year about their current market assessment. The report compiles the most exciting statements on the business prospects of their portfolio companies, the attractiveness of certain sectors and the financing environment. >more

Studies > Macro

The Economist

GLOBAL OUTLOOK JANUARY 2019

The Economist Intelligence Unit has revised its US monetary policy forecast. They have also made a slight revision to the US dollar-euro exchange-rate forecasts in 2019-20 as a result of fewer US rate increases in that period. The slower pace of monetary tightening in the US will also reduce the pressure faced by some emerging markets as a result of tightening global liquidity conditions, as has already been illustrated by the strengthening of many emerging markets' exchange rates against the US dollar over the past month. >more


Research Papers > Corporate Governance

INSTITUTIONAL INVESTOR CLIQUES AND GOVERNANCE

Alan D. Crane, Andrew Koch, and Sebastien Michenaud
2017
We examine the impact of investor coordination on governance. We identify coordinating groups of investors ("cliques") as those connected through the network of institutional holdings. Clique members vote together on proxy items: a one-standard-deviation increase in clique ownership more than doubles votes against low quality management proposals. We use the 2003 mutual fund trading scandal to show that this effect is causal. These findings suggest coordination strengthens governance via voice. Coordination, however, also weakens governance via threat of exit. Clique owners exit positions more slowly and firm value responds negatively to liquidity shocks when clique ownership is high. >more

Research Papers > Corporate Finance

DO SHAREHOLDERS BENEFIT FROM GREEN BONDS?

Dragon Yongjun Tang, and Yupu Zhang
2018
The green bond market has been growing rapidly worldwide since its debut in 2007. We present the first empirical study on the announcement returns and real effects of green bond issuance by firms in 28 countries during 2007-2017. After compiling a comprehensive international green bond dataset, we document that stock prices positively respond to green bond issuance. However, we do not find a significant premium for green bonds, suggesting that the positive stock returns are not driven by the lower cost of debt. Nevertheless, we show that institutional ownership, especially from domestic institutions, increases after the firm issues green bonds. Moreover, stock liquidity significantly improves upon the issuance of green bonds. Overall, our findings suggest that the firm’s issuance of green bonds is beneficial to its existing shareholders. >more