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NEWSLETTER of November 15, 2019

 

The following content has been added at finexpert:


Tutorials
QoD23

Questions of doubt in corporate valuation QoD#23: Is there something wrong with unicorn valuation?

Bernhard Schwetzler
This video highlights potential flaws from applying simple post money valuation metrics on growth companies in VC financing rounds: Ignoring special cash flow rights like liquidation preferences yields significant overvaluation.(November 10, 2019). >more (videoarchiv QoD#1-23)


Studies > Performance

KfW Research

EUROPEAN SME SURVEY 2019

More than one in two European SMEs consider the use of new digital technologies necessary to secure their competitiveness. Many small and medium-sized enterprises have not yet made much progress here due to a number of digitalisation hurdles, including insufficient digital infrastructures and a lack of digital competency, both in the business itself and on the external labour market. >more

Studies > Performance

Ernst & Young

MIXED COMPENSATION BAROMETER 2019

The management boards of German listed companies suffered salary losses in 2018. On average, they earned 2.09 million euros - 0.5 percent less than in the previous year. Their remuneration has thus reached a six-year low and is around 30,000 euros below the 2013 peak. Over the period from 2013 to 2018, there was a decline of 1.5 percent across all DAX segments. >more

Studies > Corporate Finance

J.P. Morgan

2019 PROXY SEASON REVIEW

Activism activity continued to be robust during the recently concluded 2019 proxy season, the 12-month period ending June 30. Almost 600 new campaigns were initiated globally in addition to the focus some activists gave campaigns announced in prior proxy seasons that had yet to be resolved. >more

Studies > Macro

Deutsche Bank Research

2020: AN INFLECTION POINT IN GLOBAL CORPORATE TAX?

Just as the world has a debt problem, it also has a corporate tax problem. State finances are becoming increasingly precarious and yet while companies are in great shape, the tax rates they pay have steadily fallen over the last few decades. >more


Research Papers > Corporate Governance

AS CALIFORNIA GOES, SO GOES THE NATION? THE IMPACT OF BOARD GENDER QUOTAS ON FIRM PERFORMANCE AND THE DIRECTOR LABOR MARKET

Felix von Meyerinck, Alexandra Niessen-Ruenzi, Markus Schmid, and Steven Davidoff Solomon
2019
On September 30, 2018, California became the first U.S. state to introduce a mandatory board gender quota for all firms headquartered in California. We find that the introduction of the quota is associated with significantly negative announcement returns for these firms. Consistent with the quota imposing frictions, the effect is larger for firms requiring more female directors to comply with the quota and for firms with poor corporate governance. We also document negative spillover effects to non-Californian firms. They are larger for firms operating in industries in which Californian firms lack more female directors, suggesting that valuable female directors may migrate from non-Californian to Californian firms. We also document negative spillover effects for firms headquartered in states that are more likely to follow California’s lead. These are firms headquartered in states dominated by the Democratic Party and states which followed California’s lead in legalizing cannabis consumption and raising minimum wages exceeding the federal rate. Finally, we show that, already as of month-end December 2018, female representation on the boards of Californian firms increased. Newly appointed female directors are younger, less experienced, and less independent than incumbent and leaving directors. >more

Research Papers > Corporate Finance

INITIAL COIN OFFERINGS: FINANCING GROWTH WITH CRYPTOCURRENCY TOKEN SALES

Sabrina Howell, Marina Niessner, and David Yermack
2019
Initial coin o?erings (ICOs) have emerged as a new mechanism for entrepreneurial ?nance, with parallels to initial public o?erings, venture capital, and pre-sale crowdfunding. In a sample of more than 1,500 ICOs that collectively raise $12.9 billion, we examine which issuer and ICO characteristics predict successful real outcomes (increasing issuer employment and avoiding enterprise failure). Success is associated with disclosure, credible commitment to the project, and quality signals. An instrumental variables analysis ?nds that ICO token exchange listing causes higher future employment, indicating that access to token liquidity has important real consequences for the enterprise. >more