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NEWSLETTER of May 18, 2018

 

The following content has been added at finexpert:


Studies > M & A

ZEW - Zentrum für Europäische Wirtschaftsforschung

M&A REPORT - APRIL 2018

The M&A Report is compiled jointly by the Centre for European Economic Research (ZEW) and Bureau van Dijk. The M&A Report semi-annually informs about current topics and developments in the field of worldwide mergers and acquisitions drawing on the Zephyr database. Zephyr provides detailed information on more than one million M&A, IPO and Private Equity transactions worldwide. >more

Studies > Alternative Investments

Debevoise & Plimpton

PRIVATE EQUITY REPORT: SPRING 2018

With record amounts of dry powder chasing a finite number of deals and continued pressure from investors for returns, private equity funds are facing a highly competitive market on all fronts. General partners are responding by finding innovative ways of offering attractive terms at auction, meeting investor needs for liquidity and investing further in high-growth industries. >more

Studies > Performance

Ernst & Young

GLOBAL ETF RESEARCH 2017: RESHAPING AROUND THE INVESTOR

EY expects the ETF industry to continue its rapid global expansion, outgrowing the wider asset management industry. According to this report, the prevailing conditions remain favorable, and the industry retains its many innovative characteristics. >more

Studies > Performance

Allen & Overy

COMMODITY FINANCE MARKET REPORT 2017

Amidst this flurry of constant change, a new commodities model has begun to emerge. While market practitioners almost invariably have their ear to the ground with a number of market intelligence sources, there has remained a need for an independent, authoritative report on the condition of the commodity finance market. This was the driving force behind TXF and Allen & Overy’s launch of a survey that would reach out to market practitioners in a bid to accurately capture the pulse of the industry and provide useful data to its participants. >more


Research Papers > Corporate Governance

EXECUTIVE COMPENSATION: A SURVEY OF THEORY AND EVIDENCE

Alex Edmans, Xavier Gabaix, and Dirk Jenter
2017
This paper reviews the theoretical and empirical literature on executive compensation. We start by presenting data on the level of CEO and other top executive pay over time and across firms, the changing composition of pay; and the strength of executive incentives. We compare pay in U.S. public firms to private and non-U.S. firms. We then critically analyze three non-exclusive explanations for what drives executive pay -- shareholder value maximization by boards, rent extraction by executives, and institutional factors such as regulation, taxation, and accounting policy. We confront each hypothesis with the evidence. While shareholder value maximization is consistent with many practices that initially seem inefficient, no single explanation can account for all facts and historical trends; we highlight major gaps for future research. We discuss evidence on the effects of executive pay, highlighting recent identification strategies, and suggest policy implications grounded in theoretical and empirical research. Our survey has two main goals. First, we aim to tightly link the theoretical literature to the empirical evidence, and combine the insights contributed by all three views on the drivers of pay. Second, we aim to provide a user-friendly guide to executive compensation, presenting shareholder value theories using a simple unifying model, and discussing the challenges and methodological issues with empirical research. >more

Research Papers  > Alternative Investments

ESTIMATING PRIVATE EQUITY RETURNS FROM LIMITED PARTNER CASH FLOWS

Andrew Ang, Bingxu Chen, William N. Goetzmann, and Ludovic Phalippou
2017
We introduce a methodology to estimate the historical time-series of returns to investment in private equity funds. The approach requires only an unbalanced panel of cash contributions and distributions accruing to limited partners, and is robust to sparse data. We decompose private equity returns into a component due to traded factors and a time-varying private equity premium. We find strong cyclicality in private equity returns that differs according to fund type. The time-series estimates allow us to directly test theories about private equity cyclicality, and we find evidence that capital market segmentation helps to determine private equity returns. >more