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NEWSLETTER of June 8, 2018

 

The following content has been added at finexpert:


Studies > Corporate Finance

The Boston Consulting Group

ANATOMY OF AN IDEAL IPO CANDIDATE

This article — the first in a series exploring the practicalities of going public — looks at the anatomy of an ideal IPO candidate and explores what is needed to prepare for life in the glare of the capital markets. Subsequent articles will examine what drives a high IPO valuation, what percentage of equity to float, whether and how to raise fresh capital, and other questions surrounding a decision to go public. >more

Studies > Alternative Investments

CMS Hasche Sigle / FINANCE

PRIVATE EQUITY PANEL MAI 2018

More and more private debt funds are operating in the German private equity market. It is estimated that more than 50 firms are seeking business in Germany, while in the first quarter of the year they financed half of all private equity deals. But despite the increasing hype, these financing competitors to the banks in the private equity space have not gained as much ground as is often supposed. That is the key finding of this year’s second private equity panel survey, which is conducted every four months by CMS Germany and FINANCE magazine. >more

Studies > Macro

A.T. Kearney

INVESTING IN A LOCALIZED WORLD: THE 2018 A.T. KEARNEY FOREIGN DIRECT INVESTMENT CONFIDENCE INDEX

In an environment marked by stronger economic growth and elevated political risks, investors’ pursuit of localization raises the importance of FDI for business strategies. >more

Studies > Macro

PGIM

THE END OF SOVEREIGNTY? GLOBALIZATION, NATIONALISM AND THE IMPLICATIONS FOR INSTITUTIONAL INVESTORS

The escalating tussle between globalization and nationalism could have profound implications for global financial markets, traditional investment frameworks and developed market geopolitical risk analysis, says a new report from PGIM, Inc., the investment management business of Prudential Financial, Inc. >more


Research Papers > Corporate Finance

FEATURES OF A LIFETIME PD MODEL: EVIDENCE FROM PUBLIC, PRIVATE, AND RATED FIRMS

Sajjad Beygiharchegani, Uliana Makarov, Janet Zhao, and Douglas Dwyer
2018
With the new CECL and IFRS 9 requirements, we see an increased need for lifetime probability of default models. In this document, we formally investigate and summarize the term structure properties consistently seen across public, private, and rated ?rms. We observe that the default rate for “good” ?rms tends to increase over time, while the default rate for “bad” ?rms decreases over time, an indication of the mean-reversion effect seen with ?rms' default risk. >more

Research Papers > Corporate Finance

WHAT IS THE IMPACT OF SUCCESSFUL CYBERATTACKS ON TARGET FIRMS?

Shinichi Kamiya, Jun-Koo Kang, Jungmin Kim, Andreas Milidonis, and René M. Stulz
2018
We examine which firms are targets of successful cyberattacks and how they are affected. We find that cyberattacks are more likely to occur at larger and more visible firms, more highly valued firms, firms with more intangible assets, and firms with less board attention to risk management. These attacks affect firms adversely when consumer financial information is appropriated, but seem to have little impact otherwise. Attacks where consumer financial information is appropriated are associated with a significant negative stock market reaction, an increase in leverage following greater debt issuance, a deterioration in credit ratings, and an increase in cash flow volatility. These attacks also affect sales growth adversely for large firms and firms in retail industries, and there is evidence that they decrease investment in the short run. Affected firms respond to such attacks by cutting the CEO’s bonus as a fraction of total compensation, by reducing the risk-taking incentives of management, and by taking actions to strengthen their risk management. The evidence is consistent with cyberattacks increasing boards’ assessment of target firm risk exposures and decreasing their risk appetite. >more