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NEWSLETTER of June 14, 2019

 

The following content has been added at finexpert:


Studies > Performance

Strategy&

GETTING THE BALANCE RIGHT: HOW EUROPEAN BANKS CAN MAXIMIZE THEIR FULL POTENTIAL IN RETAIL

A decade after the financial crisis, many European banks are still struggling in their retail businesses with an environment of low interest rates, a shrinking branch network, stiff competition and high acquisition costs for new customers. Such pressures have banks focused largely on maintaining a low cost-to-income ratio (CIR) – that is, keeping costs as low as possible while trying to grow market share. This approach has led banks to focus insufficiently on “per customer” performance metrics, which are a better measure of profitable long-term customer relationships with staying power. That is important, because doing higher margin business with existing customers is the most promising path to profitable growth over the long term. >more

Studies > Performance

Ernst & Young

TOP 1.000 WELT: DIE WELTWEIT UMSATZSTÄRKSTEN UNTERNEHMEN

While the largest North American companies were able to increase their sales by an average of 9.0 percent last year, the sales growth of major European companies averaged only 4.3 percent. Asia's large companies achieved growth of 8.4 percent. And Europe's top companies are also losing ground in terms of profit growth: in 2018, they were only able to increase their operating profit by 3.9 percent, while the US and Asian groups grew more than twice as fast at 8.1 and 9.8 percent, respectively.  >more

Studies > Alternative Investments

European Fund & Asset Management Association

TRENDS IN THE EUROPEAN INVESTMENT FUND INDUSTRY IN THE FIRST QUARTER OF 2019

The EFAMA Trends in the Investment Fund Industry quarterly release focuses on net assets and net sales of investment funds domiciled in Europe, whilst also presenting a commentary on the trends in the industry during the quarter. This release provides a country breakdown of the net assets and net sales of UCITS during the quarter. Aggregated data on non-UCITS funds, as well as the number of UCITS and non-UCITS funds are also presented in this release. >more

Studies > Macro

Barclays

OIL IN 3D: THE DEMAND OUTLOOK TO 2050

The United Nations’ Intergovernmental Panel on Climate Change (IPCC) recently warned that a 2015 pledge by governments to restrict global warming to 2 degrees Celsius above pre-industrial levels will not be enough. It recommended that average temperature rises be capped at 1.5 degrees to avoid irreversible environmental damage. To achieve the global emissions pledge by 2050 and limit temperature rises to agreed targets, oil demand may need to fall 30%. Our Research team investigated whether the globe’s estimated oil needs for the next few decades could be compatible with such a drop. >more


Research Papers > Corporate Finance

CAPITAL GAINS TAX, VENTURE CAPITAL, AND INNOVATION IN START-UPS

Lora Dimitrova and Sapnoti Eswar
2019
We examine the effect of staggered changes in state-level capital gains tax rates on Venture Capital (VC)-backed start-ups and show that an increase in tax rates reduces patent quantity and quality. The results are consistent with a reduction in VC incentives to provide effort: VC-level tax increases lead to incrementally lower patent production by start-ups located out-of-state, and not linked by a direct flight to the VC investor. We also find evidence of a change in entrepreneurs' incentives: after a tax increase, entrepreneurs decrease innovation risk, and stay invested for longer (the lock-in effect). >more

Research Papers  > M&A

A BIT GOES A LONG WAY: BILATERAL INVESTMENT TREATIES AND CROSS-BORDER MERGERS

Vineet Bhagwat, Jonathan Brogaard, and Brandon Julio
2017
We examine whether an external governance mechanism, Bilateral Investment Treaties (BITs), remove impediments to cross-border mergers by protecting the property rights of foreign acquirers. We find that BITs have a large, positive effect on cross-border mergers. The probability and dollar volume of mergers between two given countries more than doubles after the signing of a BIT. Most of this increase is driven by deals flowing from developed economies to developing economies. The effect of BITs is concentrated in target countries with medium levels of political risk, consistent with views that BITs are ineffective for countries with very high country risk and unnecessary for countries with low country risk. Overall the results suggest that some countries outsource legal protection when institutions are not fully developed. >more