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NEWSLETTER of December 6, 2019

 

The following content has been added at finexpert:


Studies > Performance

Deloitte

THE FUTURE OF PAYMENTS

In just a few years, digitization in conjunction with the mobile revolution has fundamentally changed the market for payment methods in the retail business. Everywhere in the world, new companies have conquered the market with offers beyond the traditional payment instruments of the credit industry. Payment with cash, from a current account - for example by bank transfer or direct debit - or by card is increasingly losing out to these new alternatives. In a short period of time, hundreds of new offers have emerged worldwide, which are either already market leaders in their local markets or are preparing to become so soon. >more

Studies > Corporate Finance

European Investment Bank

EIB INVESTMENT REPORT 2019/2020: ACCELERATING EUROPE'S TRANSFORMATION

The Investment Report, issued annually by the European Investment Bank, provides a comprehensive overview and analysis of investment and the financing of investment in the European Union. It combines the exploration of investment trends with in-depth analysis, focusing especially on the drivers and barriers to investment activity. The report leverages on a unique set of databases and survey data, including EIBIS, an annual survey of 12 500 firms in Europe, which focuses on their assessment of investment and investment finance conditions, and which allows analysis with firm balance sheet information. The report provides critical inputs to policy debates on the need for public action on investment, and on the types of intervention that can have the greatest impact. >more

Studies > Alternative Investments

KfW

GERMAN PRIVATE EQUITY BAROMETER 3. QUARTAL 2019

The data for the business climate indices of the German Private Equity Barometer and the German Venture Capital Barometer are collected quarterly among the approximately 200 members of the Bundesverband Deutscher Kapitalbeteiligungsgesellschaften (BVK) and other German investment companies. The reports cover the market climate in the later stage segment on the one hand and the venture capital segment of the German equity capital market on the other. The sentiment data is based on the assessments of investment companies with a focus on mature, medium-sized companies for the German Private Equity Barometer and with a focus on investments in start-ups and young technology companies for the German Venture Capital Barometer. >more

Studies > Alternative Investments

Coller Capital

GLOBAL PRIVATE EQUITY BAROMETER: WINTER 2019-20

Coller Capital’s Global Private Equity Barometer is a unique snapshot of worldwide trends in private equity – a twice-yearly overview of the plans and opinions of institutional investors in private equity based in North America, Europe and Asia-Pacific including the Middle East. The Barometer – private equity’s first regular gauge of investor sentiment – has been published every six months since 2004. >more


Research Papers > Corporate Governance

DOES INDEPENDENT ADVICE TO THE BOARD AFFECT CEO COMPENSATION?

Tor-Erik Bakke, and Hamed Mahmudi
2019
This paper investigates the role external advice plays in the board’s determination of CEO compensation. We show that CEO incentive pay increases with the degree of compensation consultant independence using a quasi-natural experiment provided by the creation of an independent consultant after separation from an affiliated consultant. Specifically, switching to an independent consultant significantly increases Pay-Performance Sensitivity and Relative Performance Evaluation of CEO contracts. Despite the benefits of independent advice, independent consultants may not be hired due to the influence of powerful CEOs or because boards already possess adequate expertise. >more

Research Papers > Corporate Finance

EMPLOYMENT PROTECTION LAWS AND CORPORATE CASH HOLDINGS

Ahmet Karpuz, Kirak Kim, and Neslihan Ozkan
2019
We study how employment protection laws (EPLs) affect corporate cash-holding decision. By exploiting within-country changes in EPLs across 20 OECD countries as a source of variation in labor adjustment costs, we show that following an increase in the stringency of EPLs, firms’ cash holdings increase significantly. This relationship is stronger for firms with high labor turnover, no multinational presence, or financial constraints, indicating that labor adjustment cost raising distress risk is the mechanism in play. Cash buffers created by firms faced with stricter EPLs help them mitigate the underinvestment problem in subsequent episodes of industry-wide distress. Consistent with this precautionary motive, the market’s valuation of excess cash is positively associated with the EPL strictness. We further demonstrate that the response of cash policy to changes in EPLs is distinct from that of debt policy or investment policy. Our evidence highlights the role of interaction between labor-market and financial frictions in determining the level and the value of corporate cash. >more