Knowledge and Training for Financial Decision Making!

NEWSLETTER of July 6, 2018

 

The following content has been added at finexpert:


Studies > Corporate Finance

Ernst & Young

GLOBAL IPO TRENDS: Q2 2018

The risks and uncertainties from geopolitical frictions and shifting trade policies have contributed to declines in global IPO activity in Q2 2018, resulting in 660 IPOs in H1 2018, a 21% decrease from H1 2017. However, despite this slowdown, global IPO markets raised US$94.3b in the first half of 2018, a 5% year-on-year increase and the highest proceeds for the first half of a year since H1 2015. >more

Studies > Corporate Finance

KfW

CREDIT MARKET OUTLOOK JUNE 2018

KfW Research has calculated that new lending to businesses and self-employed persons in Germany grew at a faster rate in the first quarter of this year than at any time since the third quarter of 2008. But now the economy has shifted down a gear. That should soon affect the momentum of new lending business as well. >more

Studies > Alternative Investments

Baker & McKenzie

GLOBAL PRIVATE EQUITY INSIGHTS 2018: DISCOVERING OPPORTUNITIES IN AN UNCERTAIN WORLD

The 2018 edition of Global Private Equity Insights looks at some of the trends in the global private equity market and how industry leaders are finding opportunities in an uncertain world. The goal is to share perspectives from a diverse set of market participants in order to help you navigate through rough waters and stay on top of market developments. >more

Studies > Performance

PwC

EUROPEAN PRIVATE BUSINESS SURVEY 2018

PwC surveyed 2,447 entrepreneurs from 31 European countries for the European Private Business Survey, including 371 from Germany. The results indicate that the shortage of skilled workers is slowing down European economic growth and is becoming an ever greater problem for SMEs. And not only that: Overwhelming regulation and bureaucracy, the sluggish expansion of the digital infrastructure, the uncertainties caused by the Brexit and increasing protectionism are big concerns for medium-sized companies. >more


Research Papers > Corporate Governance

ON LONG-TENURED INDEPENDENT DIRECTORS

Stefano Bonini, Justin Deng, Mascia Ferrari, and Kose John
2017
Recent surveys show that 24% of independent directors in Russel 3,000 firms have continuously served on their boards for fifteen years or more. Based on a sample of S&P 1500 firms over the period 1998-2012, we document strong positive effects on financial performance for firms with one, very long-tenured independent director. We show that long-tenured independent directors are highly skilled individuals, and over time they accumulate information and knowledge valuable to the companies they serve in, even when the cost of acquiring information is high. Long-tenured directors also decrease the likelihood of (1) corporate scandals, and (2) motions by hedge funds requiring changes in board composition. Our results are robust to several endogeneity tests including instrumental variable and dynamic regressions. >more

Research Papers > Corporate Finance

UNDERWRITER COMPETITION AND BARGAINING POWER IN THE CORPORATE BOND MARKET

Alberto Manconi, Ekaterina Neretina, and Luc Renneboog
2018
We develop a new measure of underwriter bargaining power and a novel empirical approach, based on underwriters’ comparative ability to place bonds. When an issuer has few “outside options” to take her bond to the market, the underwriter enjoys a stronger bargaining power over her. The key feature of our approach is that bargaining power varies for a given underwriter at a given point in time across different issuers, allowing us to separate the effects of bargaining power from those of reputation and certification with a fixed effects strategy. Using our measure, we document that powerful underwriters are able to extract rents at the expense of bond issuers. For issues with the highest underwriter bargaining power, fees and bond offering yields increase by a combined cost of USD 1.5 million, or about 7% of the average costs for the issuer. We rule out alternative mechanisms based on issuer-underwriter “loyalty”. Our findings suggest that lack of competition increases underwriter bargaining power, resulting in material costs for corporate bond issuers. >more