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NEWSLETTER of January 5, 2018

 

The following content has been added at finexpert:


Annual BETA REPORT
December 2017

Value Trust | finexpert

Beta Report 2017

The report contains cost of capital developments over the last year, 1 and 2 Year Beta estimates since 2015 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. We also provide an update about the newest academic research on cost of capital and related topics. The paper that we present discusses the use of gross versus net debt for unlevering/re-levering the beta factor. >more


Studies > M & A

White & Case

GERMAN PUBLIC M&A Q1–Q3 2017: OVERVIEW AND CURRENT ISSUES

A total of sixteen takeover offers were conducted in the first nine months of 2017, leading up to a lively quarter end in which three more offers were also announced. In 2016, only 22 WpÜG offer documents were issued in the entire year, with ten issued in the final quarter. Only three of the bids issued in 2017 were delisting compensation offers; the others were all non-mandatory takeover bids, and unlike in previous years, no mandatory offers at all have been made in the first three quarters of this year. >more

Studies > Alternative Investments

Ernst & Young

PRIVATE EQUITY - DER TRANSAKTIONSMARKT IN DEUTSCHLAND 2. HALBJAHR 2017

The German private equity market was characterized by a lot of activity in 2017: financial investors made a total of 210 transactions - more than ever before. Thanks to some mega-deals, the deal volume in the second half of the year increased to 13.8 billion euros, which is almost three times as much as in the first half of the year. >more

Studies > Performance

BNP Paribas

INVESTMENT OUTLOOK 2018: THE TIDE IS HIGH

The tide is high in financial markets. Non-conventional central bank policy since 2008 has sent waves of liquidity flooding through global asset markets. In 2017, these liquidities and a synchronised pick-up in global economic growth provided a favourable backdrop for risk asset. >more

Studies > Macro

J.P. Morgan

GUIDE TO THE MARKETS - Q1 2018

Updated each quarter, the Guide to the Markets illustrates a comprehensive array of market and economic trends and statistics for Europe. This includes information about equities, fixed income and other asset classes as well as macroeconomic analyses. >more


Research Papers > Corporate Governance

BOARD DIVERSITY, FIRM RISK, AND CORPORATE POLICIES

Gennaro Bernile, Vineet Bhagwat, and Scott E. Yonker
2017
We examine the effects of diversity in the board of directors on corporate policies and risk. Using a multi-dimensional measure, we find that greater board diversity leads to lower volatility and better performance. The lower risk levels are largely due to diverse boards adopting more persistent and less risky financial policies. However, consistent with diversity fostering more efficient (real) risk-taking, firms with greater board diversity also invest persistently more in R&D and have more efficient innovation processes. Instrumental variable tests that exploit exogenous variation in firm access to the supply of diverse nonlocal directors indicate that these relations are causal. >more

Research Papers > Corporate Finance

TOO BIG TO IGNORE? HEDGE FUND FLOWS AND BOND YIELDS

Olga Kolokolova, Ming-Tsung Lin, and Ser-Huang Poon
2017
This paper investigates the information content of aggregate hedge fund flow and its predictive power with respect to bond yields. Using a sample of 9,725 hedge funds from 1994 to 2012, we find that fund flow is negatively related to the changes in 10-year Treasury and Moody's Baa bond yields one month ahead. The relation is still pronounced after controlling for other determinants of yield changes, including the amount of arbitrage capital available in the economy, suggesting a non-trivial effect of flow-induced hedge fund trading on bond yields. Flow impact on corporate bonds is further amplified during periods of decreasing market liquidity, consistent with a fire-sale hypothesis. Hedge fund flow also predicts convergence between constant maturity swap rate and constant maturity Treasury rate, as well as between the TIPS and Treasury bond yields, suggesting that hedge funds exploit arbitrage opportunities in these fixed-income markets. >more