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NEWSLETTER of May 11, 2018

 

The following content has been added at finexpert:


Capital Market Data

We updated the capital market data

(Multiples, Betas and Returns) as to April 15, 2018 >more


Studies > M & A

I-Advise

STUDY ON GERMAN VALUATION PRACTICE IN SQUEEZE-OUTS, MERGERS AND OTHER LEGAL MEASURES ACCORDING TO GERMAN LAW

This new I-ADVISE study serves as a reference point for the most important parameters of valuations and offers an overview of solutions to a multitude of valuation questions by valuation professionals. The meanwhile fourth edition of the study has been complemented by reports with valuation dates in 2017 and analyses the development of valuation practice since 2010. >more (English | German)

Studies > Alternative Investments

eVestment

PRIVATE MARKETS DUE DILIGENCE SURVEY 2018

Now in its third year, eVestment’s annual private markets due diligence survey draws on a cross-section of the institutional investor and consultant market to explore the key components of their manager due diligence and selection processes. For the first time, eVestment also surveyed private funds managers to compare perspectives and experiences on various factors related to their investors’ due diligence process. >more

Studies > Alternative Investments

The Boston Consulting Group

PRIVATE EQUITY IS HOT BUT NOT OVERHEATING

In most news coverage about the private equity industry, one question recurs: After two decades of strong growth and high returns, is the industry overheating? Several indicators — including deal multiples, leverage ratios, and the amount of dry powder (that is, uninvested capital) — are at historically high levels, and new entrants continue to flood into the market. But BCG believes the PE industry still has significant room to grow. >more

Studies > Accounting

PwC

DIGITALISIERUNG IM FINANZ- UND RECHNUNGSWESEN UND WAS SIE FÜR DIE ABSCHLUSSPRÜFUNG BEDEUTET

Digitization is changing companies and other organizations more fundamentally than everything else before - including finance, accounting and auditing.
 PwC conducted the first survey on the digitization of audit in 2016 - at that time with 98 companies. The great popularity and relevance of digitization for respondents has motivated PwC to conduct a second survey among German companies and update the results. >more


Research Papers > Corporate Governance

LEARNING FROM DIRECTORS’ FOREIGN BOARD EXPERIENCES

Peter Iliev, and Lukas Roth
2017
We study the transfer of governance across countries through overlapping boards. Companies converge to the governance characteristics and board practices of foreign firms through their directors’ foreign board experiences. Learning from foreign firms’ governance practices is as important as learning from connected domestic firms, and increases with the number of directors with foreign board appointments. This learning is stronger in firms domiciled in less-developed governance markets, suggesting a potential channel through which better governance practices are propagated. Our results are also obtained when we use an exogenous shock to board practices, are present in the time series, and don’t exist in in placebo samples. >more

Research Papers > Corporate Governance

RECRUITING THE CEO FROM THE BOARD: DETERMINANTS AND CONSEQUENCES

Udi Hoitash, and Anahit Mkrtchyan
2017
We investigate an increasingly prevalent CEO succession strategy: recruiting CEOs from the board of directors (director-CEOs). Director-CEOs might be hired in a planned succession because they combine outsiders’ new perspectives with insiders’ firm-specific knowledge. Alternatively, directors may be recruited when the board is unprepared for a leadership change. We find that unplanned successions, in which director-CEOs are appointed as a “quick-fix” solution, result in a negative market reaction, deterioration in performance, and ill-fitting candidates with shorter tenures. Conversely, firms recruiting director-CEOs in planned successions perform similarly to other firms. We find no evidence that poor firm quality drives these results. >more

Research Papers  > Alternative Investments

FINANCIAL INTERMEDIATION IN PRIVATE EQUITY: HOW WELL DO FUNDS OF FUNDS PERFORM?

Robert S. Harris, Tim Jenkinson, Steven N. Kaplan, and Rüdiger Stucke
2017
This paper focuses on funds of funds (FOFs) as a form of financial intermediation in private equity (both buyout and venture capital). After accounting for fees, FOFs provide returns equal to or above public market indices for both buyout and venture capital. While FOFs focusing on buyouts outperform public markets, they underperform direct fund investment strategies in buyout. In contrast, the average performance of FOFs in venture capital is on a par with results from direct venture fund investing. This suggests that FOFs in venture capital (but not in buyouts) are able to identify and access superior performing funds. >more