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NEWSLETTER of October 11, 2019

 

The following content has been added at finexpert:


Studies > Performance

Ernst & Young

A VIEW ON THE CURRENT AND FUTURE ROLE OF AUDIT COMMITTEES - IMPACT FOR GERMANY, SWITZERLAND, AND AUSTRIA

In view of digitalization, new regulatory requirements and a public focus on sustainability, companies are increasingly facing new challenges - and the demands on management and supervisory bodies are changing accordingly. This is the result of the current study "A view on the current and future role of Audit Committees" by the auditing and consulting firm EY. Audit committee members in Germany, Austria, Switzerland, France, Italy, the Netherlands, Sweden and the United Kingdom as well as corporate governance experts were surveyed. >more

Studies > Performance

Deloitte

2020 COMMERCIAL REAL ESTATE OUTLOOK

Deloitte sees a great urgency for the Commercial Real Estate (CRE) sector to prepare itself technologically and conceptually for the coming decade, despite optimistic market sentiment. In the face of increasingly demanding tenants, investors and owners, real estate companies should strive for exceptional rental experience and make more intensive use of digital technologies. Using these technologies intelligently, responsibly and security-consciously is becoming a competitive standard for CRE professionals - as is the generation and analysis of data and the use of data-supported AI applications to identify developments, risks and opportunities even earlier and more reliably. >more

Studies > M & A

I-Advise

IMPLIED MARKET RISK PREMIA AND EXPECTED IMPLIED MARKET RETURNS

The empirical study for the period 2008 to 2018 derives implied market risk premia on the basis of market values and earnings estimates as well as expected implied market returns with a range of assumptions for the sustainable growth rate. The high correlation between implied market returns and the risk-free rate suggests a stable market risk premium rather than a stable expected market return, so that decreases in the risk-free rate are not fully  compensated by an increasing market risk premium. >more

Studies > M&A

Mergermarket

FINTECH M&A: ACQUIRING A COMPETITIVE EDGE IN FINANCIAL SERVICES

Mergermarket is pleased to present Fintech M&A: Acquiring a competitive edge in financial services, published in association with Ropes & Gray. This report takes the temperature of today’s fintech M&A market, including the pace at which deals are taking place, the key areas of focus, the challenges and opportunities identified by core market participants, and their expectations of what lies ahead. >more


Research Papers > Corporate Valuation

THE EQUITY PREMIUM AND THE ONE PERCENT

Alexis Akira Toda, and Kieran James Walsh
2018
We show that in a general equilibrium model with heterogeneity in risk aversion or belief, shifting wealth from an agent who holds comparatively fewer stocks to one who holds more reduces the equity premium. Since empirically the rich hold more stocks than do the poor, inequality should predict subsequent excess stock market returns. Consistent with our theory, we find that when the income share of top earners in the U.S. rises, subsequent one year excess market returns significantly decline. This negative relation is robust to (i) controlling for classic return predictors such as the price-dividend and consumption-wealth ratios, (ii) predicting out-of-sample, and (iii) instrumenting with changes in estate tax rates. Cross-country panel regressions suggest that the inverse relation between domestic inequality and returns also holds outside of the U.S., with stronger results in relatively closed economies than in ones with low home bias (in which U.S. inequality predicts returns). >more

Research Papers > Corporate Finance

DESTRUCTIVE CREATION AT WORK: HOW FINANCIAL DISTRESS SPURS ENTREPRENEURSHIP

Tania Babina
2017
Using US Census employer-employee matched data, I show that employer financial distress accelerates the exit of employees to found start-ups. This effect is particularly evident when distressed firms are less able to enforce contracts restricting employee mobility into competing firms. Entrepreneurs exiting financially distressed employers earn higher wages prior to the exit and after founding start-ups, compared to entrepreneurs exiting non-distressed firms. Consistent with distressed firms losing higher-quality workers, their start-ups have higher average employment and payroll growth. The results suggest that the social costs of distress might be lower than the private costs to financially distressed firms. >more