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NEWSLETTER of March 1, 2019

 

The following content has been added at finexpert:


Studies > Corporate Finance

KfW Research

MITTELSTAND MIT GROßER TREUE ZUR HAUSBANK

The link between German SMEs and the banking sector has traditionally been strong. 93% of all enterprises have a primary credit institution. This relationship is very stable with an average duration of 20 years. Furthermore, the KfW SME Panel shows that companies seek personal contact: Around 65% of SMEs visited a bank branch personally at least once in 2017, the annual average being around once a quarter. In general, it is clear that diversification increases with company size. Larger SMEs maintain more banking relationships and are less focused on their house banks when looking for loans. >more

Studies > Alternative Investments

Bain & Company

GLOBAL PRIVATE EQUITY REPORT 2019

In 2018, the global private equity industry recorded another year of solid performance, closing with the strongest five-year period in its history. The buyout value increased by 10 percent to USD 582 billion and divestitures remained stable. During the year, $714 billion was invested by investors in private equity funds, bringing the total since 2014 to $3.7 trillion. >more

Studies > Alternative Investments

Roland Berger Strategy Consultants

EUROPEAN PRIVATE EQUITY OUTLOOK 2019

Optimism in the private equity (PE) industry is significantly down on previous years. This is one of the findings of the new European Private Equity Outlook 2019, Roland Berger's annual survey of PE experts across Europe: In 2019, less than one third of those polled anticipate an increase in the number of M&A transactions with PE involvement. And for the first time in many years, almost half (48%) of PE professionals expect the number of transactions to fall this year. Geopolitical uncertainties and concerns about the economy are behind their pessimism. >more

Studies > Alternative Investments

PwC

PRIVATE EQUITY TREND REPORT 2019: POWERING THROUGH UNCERTAINTY

2018 was another record year for the private equity industry. As the current "Private Equity Trend Report 2019" shows, financial investors, once viewed with scepticism, have established themselves as reliable partners for thousands of companies throughout Europe. In 2018 alone, they were involved in more than 2000 transactions. At the same time, the industry is sitting on record levels of uninvested funds worldwide and is therefore once again faced with the task of reinventing itself. >more

Studies > Accounting

Ernst & Young

PROGNOSEÄNDERUNGEN IM PRIME ALL SHARE 2011 BIS 2018: UPDATE FEBRUAR 2019

More and more listed companies in Germany have to correct their sales or profit forecasts: In 2018, companies listed in the Prime Standard issued a total of 144 profit or revenue warnings - an increase of 55 percent compared to 2017, when companies announced in 93 cases that they would not be able to achieve their targets. In 2016, only 63 of such warnings have been recorded. >more


Research Papers > Corporate Finance

CULTURAL PREFERENCES AND FIRM FINANCING CHOICES

Mascia Bedendo, Emilia Garcia-Appendini, and Linus Siming
2018
We document significant differences in the financing structure of small firms with managers of diverse cultural backgrounds. To isolate the effect of culture, we exploit cultural heterogeneity within a geographical area with shared regulations, institutions, and macroeconomic cycles. Our findings suggest that there exist significant cultural differences in the preference towards debt funding and in the use of formal and informal sources of financing (bank loans and trade credit). Our results are robust to alternative explanations based on potential differences in credit constraints and in the distribution of cultural origins across industries, trading partners, and headquarters location. >more

Research Papers  > Alternative Investments

BUFFETT'S ALPHA

Andrea Frazzini, David Kabiller, and Lasse Heje Pedersen
2018
Berkshire Hathaway has realized a Sharpe ratio of 0.79 with significant alpha to traditional risk factors. However, the alpha becomes insignificant when controlling for exposures to Betting-Against-Beta and Quality-Minus-Junk factors. Further, we estimate that Buffett’s leverage is about 1.7-to-1 on average. Therefore, Buffett’s returns appear to be neither luck nor magic, but, rather, reward for leveraging cheap, safe, quality stocks. Decomposing Berkshires’ portfolio into ownership in publicly traded stocks versus wholly-owned private companies, we find that the former performs the best, suggesting that Buffett’s returns are more due to stock selection than to his effect on management. >more