Knowledge and Training for Financial Decision Making!

NEWSLETTER of February 1, 2019

 

The following content has been added at finexpert:


Studies > Performance

Oliver Wyman

THE STATE OF THE FINANCIAL SERVICES INDUSTRY 2019

For an industry whose product – the movement and storage of money and the management of risk – is electronic, financial services processes are manually intensive. Surveys show that customers are rarely inspired by the service and yet the consensus is that a digital overhaul of legacy systems will be the work of many years. At the same time, new businesses underpinned by digital capabilities are gaining traction. Imagine if you could combine what is possible in a new build with the business model advantages of an existing firm. In the 2019 edition of our State of Financial Services report we examine the potential for the industry to start again and point to the first steps in the journey – "go build!" >more

Studies > Performance

PwC

22ND ANNUAL GLOBAL CEO SURVEY: CEO'S CURBED CONFIDENCE SPELLS CAUTION

The optimism of top managers is curbed: last year, CEOs worldwide were more optimistic than ever before. Now, one year later, 29 percent expect global economic growth to decline in the next twelve months (previous year: 5 percent). This year, 42 percent (previous year: 57 percent) are confident that the global economy will grow faster than in the previous year. >more

Studies > Corporate Finance

KfW

DIE FINANZIERUNG VON INNOVATIONEN UND INVESTITIONEN IN MITTELSTÄNDISCHEN UNTERNEHMEN IM VERGLEICH

Many companies complain that high costs, high risks and financing difficulties hamper their innovation activities. This study examines whether there are differences in the financing of innovation and investment and whether these differences result from limited financing opportunities. In fact, the financing of innovation differs significantly from that of investment. The findings confirm theoretical considerations that specific features of innovation (such as uncertainty about success, difficulties in valuation, lack of collateral) prevent external financing, particularly through bank loans. >more

Studies > M & A

PwC

M&A IN THE TRANSPORT & LOGISTICS INDUSTRY

2018 was a mixed year for mergers and acquisitions in the transport and logistics industry. A total of 219 deals were announced. This was significantly less than in the previous year 2017 (283 deals). The second half of the year was particularly weak: While 127 mergers & acquisitions were initiated in the first half of the year, only 92 transactions were added between July and December. However, the Brexit and investments from China could reignite M&A activity in Europe in 2019. >more


Research Papers > Corporate Governance

BOARD QUOTAS AND DIRECTOR-FIRM MATCHING

Daniel Ferreira, Edith Ginglinger, Marie-Aude Laguna, and Yasmine Skalli
2018
We study the impact of board gender quotas on the labor market for corporate directors. We find that the annual rate of turnover of female directors falls by about a third following the introduction of a quota in France in 2011. This decline in turnover is more pronounced for new appointments induced by the quota, and for appointments made by firms that regularly hire directors who are members of the French business elite. By contrast, the quota has no effect on male director turnover. The evidence suggests that, by changing the director search technology used by firms, the French quota has improved the stability of director-firm matches. >more

Research Papers > Corporate Finance

THE INFORMATION CONTENT OF DIVIDENDS: SAFER PROFITS, NOT HIGHER PROFITS

Roni Michaely, Stefano Rossi, and Michael Weber
2018
Contrary to signaling models’ central predictions, changes in profits do not empirically follow changes in dividends, and firms with the least need to signal pay the bulk of dividends. We show both theoretically and empirically that dividends signal safer, rather than higher, future profits. Using the Campbell (1991) decomposition we find that cash-flow-volatility changes follow dividend and repurchase changes (in opposite direction), and that larger volatility changes come with larger announcement returns consistent with our model's predictions. The data support the prediction that the signaling cost is foregone investment opportunities. We conclude payout policy conveys information about future cash-flow volatility. >more