Knowledge and Training for Financial Decision Making!

NEWSLETTER of November 23, 2018

 

The following content has been added at finexpert:


Tutorials
QoD18

Question of doubt in corporate valuation QoD#18: How can I distinguish between promised and expected yields when deriving the cost of debt?

Bernhard Schwetzler
The cost of debt take potential default into account and relate to the expected yield/return of the debtholder. This video shows how promised and expected yields can be derived based on a simple one-period binomial option pricing model. It requires some basic knowledge in option pricing theory.

(November 23, 2018) >more


Studies > Performance

PwC

OUTSOURCING IN DER FINANZINDUSTRIE

Outsourcing is an important part of the strategy of many financial institutions - not only as an instrument to reduce costs, but also to gain access to the expertise and knowledge of external service providers and FinTechs. The new PwC study analyses the framework conditions and identifies the most important trends in the outsourcing market. It surveyed 124 companies, including 32 banks, 53 service providers and 39 FinTechs. >more

Studies > Corporate Finance

Roland Berger Strategy Consultants

FINANZIERUNG VON FAMILIENUNTERNEHMEN IN DEUTSCHLAND

German family businesses have less debt, longer planning horizons and are more risk-averse than non-family businesses. This is the conclusion of the current study by Euler Hermes and Roland Berger. At the same time, however, they have worse financial ratios in some areas. In the upcoming years, they will need fresh capital to innovate and invest in digitization. >more

Studies > Corporate Finance

Skadden, Arps, Slate, Meagher & Flom

ACTIVIST INVESTING IN EUROPE 2018

In this report, attorneys from Skadden's European offices provide an overview of the state of activism in the U.K., Germany, France and Italy. Thus far in 2018, the number of activist campaigns in most markets has declined slightly, while the value of activists' stakes has increased significantly. >more

Studies > Alternative Investments

AssetMetrix

READY FOR THE CHANGE? PRIVATE CAPITAL OPERATIONS IN THE DIGITAL AGE

Digital transformation has meanwhile reached the private capital industry. Automated data capture, centralized data storage, customized reports, and integrated workflows are absolutely essential for conducting efficient operations. That is the main finding of the study carried out by AssetMetrix recently. In the course of the study, over 100 customers and market participants were surveyed to find out more about how they organize their back- and middle-office activities and the systems they deploy. >more


Research Papers > Corporate Governance

HOW VALUABLE ARE INDEPENDENT DIRECTORS? EVIDENCE FROM EXTERNAL DISTRACTIONS

Ronald W. Masulis, and Emma Jincheng Zhang
2018
We provide new evidence on the value of independent directors by exploiting exogenous events that seriously distract independent directors. Approximately 20% of independent directors are significantly distracted in a typical year. They attend fewer meetings, trade less frequently in the firm’s stock and resign from the board more frequently, indicating declining firm-specific knowledge and a reduced board commitment. Firms with more preoccupied independent directors have declining firm valuation and operating performance and exhibit weaker M&A profitability and accounting quality. These effects are stronger when distracted independent directors play key board monitoring roles and when firms require greater director attention. >more

Research Papers >     M & A

MANAGEMENT PRACTICES AND MERGERS AND ACQUISITIONS

John (Jianqiu) Bai, Wang Jin, and Matthew Serfling
2018
We provide new empirical evidence on the sources of value creation in mergers and acquisitions by using a dataset of establishment-level management practices from the U.S. Census Bureau. We find that firms with better management practices tend to acquire establishments with worse management practices, and following the acquisition, improve the target’s management practices. These improvements are larger when acquirers have a greater incentive and ability to make these changes and are also followed by increases in establishment performance. Overall, our findings suggest that spillovers of good management practices constitute an important source of synergies from mergers and acquisitions. >more