Knowledge and Training for Financial Decision Making!

NEWSLETTER of November 1, 2019

 

The following content has been added at finexpert:


finexpert seminars
New Seminar Topics

finexpert is expanding its range of seminars with 5 new seminar topics:

  • Introduction to financial planning with basic course
  • 2-days intensive course for detailed, monthly financial planning
  • Update in company valuation with Prof. Schwetzler
  • Simulation- and option-based valuation for growth-  and highly leveraged corporations
  • Holistic restructuring approach and restructuring planning for companies in crisis. >more

Studies > Performance

Bain & Company

AS BANKS PURSUE DIGITAL TRANSFORMATION, MANY STRUGGLE TO PROFIT FROM IT

Many banks spend enormous sums on digital initiatives without achieving the expected results. This is particularly true for the migration of customers to lower-cost digital channels. But technology alone will not solve the problem. Banks need to mobilize their customers. >more

Studies > Performance

Strategy&

OPEN BANKING

Although Europe is a leader in payment standards and data protection, several hurdles are preventing the breakthrough of open banking: a fragmented payments landscape, structural barriers, a strong focus on data protection and insufficient industry innovation. The opportunities for financial services companies have long been clear, but European banks and payment service providers have not yet taken advantage of them. >more

Studies > M & A

CMS Hasche Sigle / FINANCE

M&A PANEL OKTOBER 2019

For the FINANCE M&A Panel, the FINANCE editorial staff, together with the law firm CMS Hasche Sigle, interview M&A managers in companies and investment bankers anonymously three times a year about their current market assessment. In the evaluation they compile the most exciting statements on deal drivers, deal breakers and financing environment. >more

Studies > Alternative Investments

KPMG

VENTURE PULSE Q3 2019

Q3’19 saw global VC investment hold steady despite increasing levels of economic and geopolitical uncertainty and a lack of $1 billion+ megadeals during the quarter. A significant number of $100 million+ megadeals across the US, Americas, and Europe helped to buoy results. >more


Research Papers > Corporate Governance

CSR-CONTINGENT EXECUTIVE COMPENSATION CONTRACTS

Atif Ikram, Zhichuan Frank Li, and Dylan Minor
2019
Firms have increasingly started tying their executives’ compensation to CSR-related objectives. In this paper, we attempt to understand why firms offer CSR-contingent compensation and the conditions under which such compensation improves corporate social performance. Using hand-collected data from proxy statements, we find that this emerging compensation practice varies significantly across industries and across different CSR categories. Further, well-governed firms are more likely to offer CSR-contingent compensation, and such compensation does lead to higher corporate social standing. Such firms are more likely to offer formula-based, Objective CSR-contingent compensation. However, our results suggest that non-formulaic, Subjective CSR-contingent compensation also helps improve companies’ social performance when firm outcomes are more volatile and unpredictable, and therefore executives’ effort and performance are harder to evaluate, and when firms have better corporate governance. >more

Research Papers >     M & A

CORPORATE INNOVATION, LIKELIHOOD TO BE ACQUIRED, AND TAKEOVER PREMIUMS

Szu-Yin (Jennifer) Wu, and Kee H. Chung
2019
We analyze the effect of a firm’s innovation activities on its likelihood to be acquired and the takeover premium using a large sample of M&A transactions. We show that firms with larger innovation outputs and R&D investments are more likely to be acquired, receive unsolicited bids, and receive multiple bids. The takeover premium increases with the target firm’s innovation output, and this positive relation is stronger when there are more competing bidders, when acquiring firms’ product markets are competitive, and when technological proximity is lower in the acquiring firms’ industry. Both the acquirer’s cumulative abnormal return around the announcement date and post-acquisition operating performance are positively related to the target firm’s innovation output and R&D spending. >more