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NEWSLETTER of January 3, 2020

 

The following content has been added at finexpert:


Studies > Performance

Deutsche Bank Research

ETFS – A NICHE PRODUCT FOR PRIVATE INVESTORS (FOR NOW)

ETFs have gained in popularity among private investors who have expanded their ETF investment multiple times in recent years to approximately EUR 35 bn. Nonetheless, ETFs remain a niche product for private investors considering that their total mutual fund assets amount to EUR 622 bn. ETFs have been introduced as passive investment vehicles, but active ETF management is on the rise. The sustained low-interest rate environment could allow ETFs to tap into new client segments. In Q3, loans to German households were up by a record EUR 17.9 bn qoq, driven by a record surge of EUR 16.3 bn in mortgages. Deposits grew by EUR 13.6 bn – the smallest increase in seven quarters. The fact that some banks impose negative rates on deposits seems to create negative sentiment among German savers. >more

Studies > Performance

Bain & Company

DEUTSCHLANDS BANKEN 2019: ERST SANIEREN, DANN KONSOLIDIEREN

The sixth bain analysis of the development of German credit institutions reveals their structural weaknesses. In a market that remains highly fragmented, earnings tend to fall, while costs remain high despite all the savings programmes. As a result, profits do not cover even the significantly declining cost of equity. >more

Studies > Corporate Finance

Baker McKenzie

CROSS-BORDER IPO INDEX 2019: GLOBAL IPO MARKET CONTRACTS UNDER POLITICAL UNCERTAINTY

Geopolitical tensions combined with overoptimistic valuations on a number of high-profile listings have constrained activity in the global IPO market during 2019. This is according to our Cross-Border IPO Index 2019, which presents an evolving market. While listings were down this year, there were a number of bright spots in all regions. Most notable was a ramp-up in competition among stock exchanges, each vying for a bigger market share by creating bespoke products to tempt IPOs, which would otherwise have gone elsewhere. >more

Studies > Accounting

PwC / The World Bank

PAYING TAXES 2020

The implementation of innovative technologies leads to more efficient tax compliance. This is the core result of the "Paying Taxes Report 2020" by PwC and the World Bank. The report annually determines the most important key figures on corporate taxes in 190 economies. For this purpose, medium-sized companies are examined on a case-by-case basis. The data is based on the year 2018. >more


Research Papers > Corporate Finance

WHO’S PAYING ATTENTION? MEASURING COMMON OWNERSHIP AND ITS IMPACT ON MANAGERIAL INCENTIVES

Erik Gilje, Todd A. Gormley, and Doron Levit
2019
We derive a measure that captures the extent to which common ownership shifts managers’ incentives to internalize externalities. A key feature of the measure is that it allows for the possibility that not all investors are attentive to whether a manager’s actions benefit the investor’s overall portfolio. Empirically, we show that potential drivers of common ownership, including mergers in the asset management industry and, under certain circumstances, even indexing, could diminish managerial motives to internalize externalities. Our findings illustrate the importance of accounting for investor inattention when analyzing whether the growth of common ownership affects managerial incentives. >more

Research Papers > Corporate Finance

EXPECTATIONS MANAGEMENT AND STOCK RETURNS

Travis L. Johnson, Jinhwan Kim, and Eric C. So
2019
We establish a link between firms managing investors' performance expectations, earnings announcement premia, and cyclical patterns (i.e., seasonalities) in returns. Firms that are more likely to manage expectations toward beatable levels predictably earn lower returns before, and higher returns during, their earnings announcements. This pattern repeats across firms' fiscal quarters suggesting firms manufacture positive "surprises" by negatively biasing investors' expectations ahead of announcing earnings. We corroborate these findings using non-price-based outcomes indicative of expectations management. Together, our findings are consistent with the pressure for firms to meet earnings targets shaping the cross-section of firms' stock returns. >more