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NEWSLETTER of June 22, 2018

 

The following content has been added at finexpert:


Studies > Corporate Finance

Deutsche Bank Research

UNDERSTANDING THE BLOCKCHAIN REVOLUTION!

When reporting on bitcoin, blockchain and cryptocurrencies these days, the speaker is faced with the question: Shall he discuss the technology or move directly to the presentation of the social and economic implications? Conveying a complex technology in just a few minutes is risky. In Alice's rabbit burrow, the speaker and his audience quickly lose track of each other. But the audience may also be left clueless by the direct presentation of the potentially revolutionary implications. In the face of this dilemma and the complexity of cryptosystems, we will try to shed light on the issue by means of metaphors. >more

Studies > Alternative Investments

Invest Europe / KPMG

PRIVATE EQUITY TAX BENCHMARK STUDY 2018

In contrast to the period preceding the publication of the last edition of the Tax Benchmark Study where little progress was made on EU tax initiatives, the period from 2013-2018 has seen several tax proposals agreed at EU level with several more still under discussion. In particular, there has been a strong push towards transparency and disclosure of tax information with added momentum coming from high-profile revelations such as Panama Papers and Paradise Papers, in 2016 in 2017 respectively. >more

Studies > Alternative Investments

Coller Capital

GLOBAL PRIVATE EQUITY BAROMETER: SUMMER 2018

Limited Partners taking stakes in GP management companies via specialist funds is becoming a mainstream dynamic in private equity, according to Coller Capital’s latest Global Private Equity Barometer. One in six LPs already invests in this strategy, and this is likely to rise to over a third of LPs. >more

Studies > Macro

Ernst & Young

GAME CHANGERS: EUROPE ATTRACTIVENESS SURVEY

EY’s Europe Attractiveness Survey has been tracking FDI decisions since 2000. This year it reveals an inflexion four powerful undercurrents of change. We think these are true game changers because sweeping in from different directions, they are remaking the European rulebook on cross-border investment. >more


Research Papers > Corporate Finance

CORPORATE RESILIENCE TO BANKING CRISES: THE ROLES OF TRUST AND TRADE CREDIT

Ross Levine, Chen Lin, and Wensi Xie
2017
Are firms more resilient to systemic banking crises in economies with higher levels of social trust? Using firm-level data in 34 countries from 1990 through 2011, we find that liquidity-dependent firms in high-trust countries obtain more trade credit and suffer smaller drops in profits and employment during banking crises than similar firms in low-trust economies. The results are consistent with the view that when banking crises block the normal banking-lending channel, greater social trust facilitates access to informal finance, cushioning the effects of these crises on corporate profits and employment. >more

Research Papers >     M & A

VOTE AVOIDANCE AND SHAREHOLDER VOTING IN MERGERS AND ACQUISITIONS

Kai Li, Tingting Liu, and Julie Wu
2018
We examine whether, how, and why acquirer shareholder voting matters. We show that acquirers with low institutional ownership, high deal risk, and high agency costs are more likely to bypass shareholder voting. Such acquirers have lower announcement returns and make higher offers than those who do not. To avoid a shareholder vote, acquirers increase equity issuance and cut payout to raise the portion of cash in mixed-payment deals. Employing a regression discontinuity design, we show a positive causal effect of shareholder voting concentrated among acquirers with higher institutional ownership. We conclude that shareholder voting mitigates agency problems in corporate acquisitions. >more