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NEWSLETTER of March 23, 2018

 

The following content has been added at finexpert:


Studies > Corporate Finance

Ernst & Young

GLOBAL CORPORATE DIVESTMENT STUDY 2018

The 2018 Global Corporate Divestment Study results are based on interviews with 900 senior corporate executives. The one theme that stands out in the survey results is digital transformation. It’s one of the biggest influences on the C-suite in 2018, both in terms of capital strategy and operating model decisions. Digital disruption, transformational shifts in customer preferences and sector convergence are forcing companies to make bets on future technology now. >more

Studies > Alternative Investments

PwC

PRIVATE EQUITY TREND REPORT 2018: THE COMING OF AGE

The latest trend analysis of PwC shows: Europe’s financial investors are adopting a much more cooperative approach than five or ten years ago. The European market continues to boom and deal volumes have achieved new heights. >more

Studies > Jobs | Opportunities

CMS Hasche Sigle

UPDATE ARBEITSRECHT MÄRZ 2018

CMS Hasche Sigle regularly publishes updates and news concerning the German labor law. Amongst others, this edition features updates on the general equality law and on dismissal protection issues. >more

Studies > Macro

Bank for International Settlements

BIS QUARTERLY REVIEW: MARCH 2018

The current edition of the BIS Quarterly Review finds that volatility returned to markets in February, puncturing a long period of unusual calm and highlighting the tricky task central banks face in normalising accommodative monetary policies. The sharp correction in stock markets was sparked by anxiety about the US inflation outlook and its likely impact on interest rates, and shows how much risk market participants have taken on during the recent period of extraordinarily low volatility. >more


Research Papers > Corporate Finance

WHY HAS THE VALUE OF CASH INCREASED OVER TIME?

Thomas W. Bates, Chinghung Chang, and J. Daniel Chi
2017
The value of corporate cash holdings has increased significantly in recent decades. On average, one dollar of cash is valued at $0.61 in the 1980s, $1.04 in the 1990s, and $1.12 in the 2000s. This increase is predominantly driven by the investment opportunity set and cash-flow volatility, as well as secular trends in product market competition, credit market risk, and within-firm diversification. We document a secular decrease in the speed of adjustment in cash holdings, particularly for financially constrained firms with cash deficits, suggesting that capital market frictions can account for the trend in the value of cash holdings. >more

Research Papers > M & A

MANAGERIAL RISK-TAKING INCENTIVES AND MERGER DECISIONS

Chen Lin, Micah S. Officer, and Beibei Shen
2017
We provide evidence concerning the effect of managerial risk-taking incentives on merger and acquisition (M&A) decisions and outcomes for different types of mergers: vertical, horizontal, and diversifying. Using chief executive officer (CEO) relative inside leverage to proxy for the incentives of risk-averse managers, we find that CEOs with higher inside leverage are more likely to engage in vertical mergers, and those mergers generate lower announcement returns for shareholders. This effect of CEO relative inside leverage on returns for shareholders in vertical acquisitions is more pronounced when the acquirer has a higher degree of informational opacity, weak governance, and excess cash. >more