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NEWSLETTER of December 28, 2018

 

The following content has been added at finexpert:


Studies > Performance

Roland Berger Strategy Consultants

DIGITALISIERUNG LÄUTET ZEITENWENDE IN DER RESTRUKTURIERUNG EIN

In corporate restructuring, "analogue" practices have been in place for more than 30 years, but with the advent of the digital age, it is now time for the restructuring industry to leave traditional paths and look for new approaches. Consistent digitalization makes it possible to double efficiency by halving the process time for restructuring. >more

Studies > Alternative Investments

CMS Hasche Sigle / FINANCE

M&A PANEL OKTOBER 2018

For the FINANCE M&A Panel, the FINANCE editorial staff, together with the law firm CMS Hasche Sigle, interviews M&A managers in companies and investment banks anonymously three times a year about their current market assessment. The report compiles the most exciting statements on deal drivers, deal breakers and the financing environment. >more

Studies > Macro

Bank for International Settlements

BIS QUARTERLY REVIEW: DECEMBER 2018

Financial markets swung widely, eventually netting a sharp correction, during the period under review, which started in mid-September. Asset prices fell across the board and US government yields widened in October before retracing that increase and dropping further as the selloff of risk assets spread. Volatility and term premia jumped. A further round of turbulence, this time accompanied by lower yields, hit markets in December. >more


Research Papers > Corporate Finance

CREDIT RATINGS AND ACQUISITIONS

Nihat Aktas, Nikolaos Karampatsas, Dimitris Petmezas, and Henri Servaes
2018
There is a curvilinear relation between credit ratings and acquisitions. Non-investment grade firms make more acquisitions as their ratings improve, consistent with the relaxation of financial constraints. However, this pattern reverses for investment grade firms, supporting the view that such firms want to preserve their rating and are concerned about acquisition-related downgrades. Abnormal returns first decrease and then increase as ratings improve. In support of these findings, acquisitions have a negative impact on future ratings only for highly-rated firms. These results indicate that the level of a firm’s credit rating has a significant impact on the acquisition process. >more

Research Papers >     M & A

END-OF-DAY PRICE MANIPULATION AND M&AS

Douglas J. Cumming, Shan Ji, Sofia Johan, and Monika Tarsalewska
2018
Based on M&As over 45 countries from 2003-2014, we show that the presence of end-of-day (EOD) target price manipulation prior to M&As increases the probability of an M&A deal withdrawal, and decreases the premium paid. More detailed exchange trading rules that govern manipulation across countries and over time lower the probability of withdrawal, mitigate the negative impact of EOD manipulation on withdrawal, and raise premiums paid. Finally, while there are fewer cases of acquirer price manipulations prior to M&As, the data indicate positive acquirer price manipulation in share M&As increases the probability of deal withdrawal. >more