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NEWSLETTER of January 18, 2019

 

The following content has been added at finexpert:


Annual finexpert Capital Market Report

finexpert | Value Trust

Capital Market Report 2018

The capital market report contains cost of capital developments over the last year, 1 and 2 Year Beta estimates since 2016 for the Prime All Share indices as well as Yield Curve estimates. The report is meant to be a comprehensive reference for cost of capital estimates where finexpert users can find sector-specific information for valuation purposes. >more

Content
3 Cost of Capital: Q1-Q4 2018 (DAX, MDAX, TecDAX, 18 Sectors)
8 CAPM: Beta Factor Development 2016-2018 (DAX, MDAX, TecDAX, 18 Sectors)
30 Yield Curve: Svensson (1994) 

Capital Market Data

We updated the capital market data

(Multiples, Betas and Returns) as to January 15, 2019 >more


Tutorials
QoD20

Question of doubt in corporate valuation QoD#20: How does the debt policy affect the firm´s beta? (Bernhard Schwetzler)

A debt policy describes the adjustment sequence of the firm´s debt level towards the level according to the optimal leverage ratio. This video explains how this choice affects the link between the firm´s asset (unlevered) and the firm´s equity (levered) beta. It also highlights that the well known "Hamada" equation is almost never the correct link. (January 18, 2019) >more


Studies > Corporate Finance

Lazard

ANNUAL REVIEW OF SHAREHOLDER ACTIVISM - 2018

Lazard's Review of Shareholder Activism is a compilation and analysis of data on key activism trends globally. The review shows that 2018 was a record-breaking year for activism, both by number of companies targeted and number of first-time activists. >more

Studies > M & A

Baker & McKenzie

GLOBAL TRANSACTIONS FORECAST 2019: DEALING WITH THE UNCERTAINTY

The global transactions market remained remarkably robust in 2018 – despite all the macro uncertainty we read about every day. Dealmakers have been taking the long view, in a world where sitting on your hands and waiting for volatility to die down is no longer an option. As such, we are taking a cautiously optimistic view of the year as part of our fourth Global Transactions Forecast. >more

Studies > Alternative Investments

Ernst & Young

START-UP-BAROMETER DEUTSCHLAND: JANUAR 2019

German start-ups received more money in 2018 than ever before: a total of just under 4.6 billion euros was invested in German start-up companies last year - 7 percent more than in the previous year. The number of investments also reached a new high (615 compared with 507 transactions in the previous year). >more

Studies > Alternative Investments

KPMG

VENTURE PULSE Q4 2018

KPMG Enterprise’s Global Network for Innovative Startups launched the Q4’18 edition of the Venture Pulse Report. The report analyses the latest global trends in venture capital investment data and provides insights from both a global and regional perspective. This edition of the quarterly series provides in-depth analysis on venture capital investments across North America, EMA and ASPAC and will cover a range of issues such as financing and deal sizes, unicorns, industry highlights and corporate investment. >more

Studies > Alternative Investments

Invest Europe

2018 GLOBAL INVESTMENT DECISION MAKERS SURVEY

Europe’s attractiveness as an investment destination is on the rise compared to 2017, as the majority of global investors are more likely to invest in both the EU and the UK after Brexit, according to new survey findings. Nearly 90% of investors said Europe has become a more attractive investment destination over the last five years, according to Invest Europe’s Global Investment Decision Makers Survey 2018. >more


Research Papers > Alternative Investments

THE PERFORMANCE OF ANGEL-BACKED COMPANIES

Stefano Bonini, Vincenzo Capizzi, and Paola Zocchi
2018
We provide empirical evidence of the post-investment performance and survivorship profile of angel-backed companies, filling a long-standing gap within the entrepreneurial finance literature. Using a unique database of 111 angel-backed companies that received angel investments between 2008 and 2012 and at least 3 years of post-investment financial data, we develop an innovative performance metric and show that the performance and the probability of survival of investee companies are positively affected by the presence of angel syndicates and the hands-on involvement of business angels, while they are negatively related to the intensity of angel monitoring and the structure of equity provision. Our results are robust to several endogeneity tests and provide insights on the multifaceted contributions of angel investors to the performance and survival of new ventures. >more

Research Papers >     M & A

THE LONG-TERM CONSEQUENCES OF SHORT-TERM INCENTIVES

Alex Edmans, Vivian W. Fang, and Allen Huang
2018
This paper shows that short-term stock price concerns induce CEOs to take value-reducing actions. Vesting equity, our measure of short-term concerns, is positively associated with the probability of a firm repurchasing shares, the amount of shares repurchased, and the probability of the firm announcing a merger or acquisition (M&A). When vesting equity increases, stock returns are more positive in the two quarters surrounding both repurchases and M&A, but more negative in the two years following repurchases and four years following M&A. A potential driver of the negative longrun returns to M&A is subsequent goodwill impairment. These results are inconsistent with CEOs buying underpriced stock or companies to maximize long-run shareholder value, but consistent with these actions being used to boost the short-term stock price and improve the conditions for CEO equity sales. CEOs sell their own stock shortly after using company money to buy the firm’s stock, also inconsistent with the latter being motivated by undervaluation. >more