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NEWSLETTER of July 20, 2018

 

The following content has been added at finexpert:


Tutorials
QoD2

Question of doubt in corporate valuation: Relevering/delevering beta factors: gross debt or net debt leverage?

Bernhard Schwetzler has started a Youtube channel titled „questions of doubt in corporate valuation”.
When transfering industry betas on individual firms in the same industry a standard adjustment, called "de-levering and re-levering" is performed to account for potential differences in the capital structure. This video tackles the question on whether this adjustment should be made based on the net debt to equity ratio or based on the gross debt to equity ratio. >more


Capital Market Data

We updated the capital market data

(Multiples, Betas and Returns) as to July 15, 2018 >more


Studies > M & A

Ernst & Young

CHINESISCHE UNTERNEHMENSKÄUFE IN EUROPA: EINE ANALYSE VON M&A DEALS 2006-2018

The number of Chinese acquisitions in Europe continues to decline: In the first half of this year, there were 12 percent fewer takeovers and investments in Europe than in the same period last year. The absolute number fell from 126 to 111, and the investment volume even more than halved: From 31.6 to 14.9 billion US dollars. >more

Studies > Corporate Finance

The Boston Consulting Group | HHL

WHAT REALLY MATTERS FOR A PREMIUM IPO VALUATION?

Planning for an initial public offering is a lot like planning a wedding. Some factors that affect success, such as investor sentiment, are beyond a company’s control, while others, such as the offer price, can only be dealt with shortly ahead of the big day. But many others should be addressed proactively with thorough planning over an extended period. Indeed, new research by BCG finds that some of the most important factors driving a premium IPO valuation are those for which preparation should begin well before the opening bell rings. >more

Studies > Corporate Finance

Ernst & Young

START-UP-BAROMETER DEUTSCHLAND: JULI 2018

German start-ups raised a total of 2.4 billion euros from investors in the first half of 2018 - seven percent less than in the previous year, when the IPO of Delivery Hero set a new record. By contrast, the transaction volume of pure risk capital investments - excluding IPOs - rose by 3.5 percent to a new high of EUR 2.2 billion in the first half of the year. >more

Studies > Performance

Bain & Company

WOLF IN SHEEP'S CLOTHING: DISRUPTION AHEAD FOR TRANSACTION BANKING

Many banks and fintechs are placing big bets on transaction banking. But as competition intensifies and technology firms offer alternatives, prices are bound to fall, and the numbers won’t add up for everyone. To succeed, incumbent banks will need to overhaul most aspects of their operating models, including legacy technology systems. >more


Research Papers > Corporate Finance

CORPORATE ESG PROFILES AND INVESTOR HORIZONS

Laura T. Starks, Parth Venkat, and Qifei Zhu
2017
Questions and debate surround institutional investor preferences regarding the Environmental, Social and Governance (ESG) profiles of their portfolio firms. To address these issues, we examine changes in their portfolios and find that preferences for corporate ESG depend critically on investor horizons: Investors with longer horizons tend to prefer higher-ESG firms, while short-term investors prefer the opposite. Consistent with the importance of horizon, we find that investors behave more patiently toward high ESG firms, selling less after negative earnings surprises or poor stock returns. We further support these findings using changes in the FTSE4Good Index as shocks to firms' ESG reputations. >more

Research Papers  > Alternative Investments

HEDGE FUND ACTIVISM, FIRM VALUATION AND STOCK RETURNS

Martijn Cremers, Erasmo Giambona, Simone M. Sepe, and Ye Wang
2018
This paper studies the association between hedge fund activism and firm value, using matching procedures to incorporate the nonrandom selection of firms targeted by activist hedge funds. We find that targeted firms improve less in value (Q) subsequent to activism starts than ex-ante similarly poorly performing control firms that are not subject to activist campaigns. Further, long-term abnormal stock returns of both target and control firms are similarly positive and significant. However, activist hedge funds have strong stock selection skills as well as strong trading skills that allow them to outperform. >more