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NEWSLETTER of October 19, 2018

 

The following content has been added at finexpert:


Tutorials
QoD14

Question of doubt in corporate valuation QoD#14: What is a debt policy and how does it affect DCF valuation? (Bernhard Schwetzler)

"Debt policies" describe standardized future financing policies assumed for the company to be valued. This video discusses the most common assumptions and shows how they affect corporate value. It also highlights the common case of DCF valuation without explicitly assuming a particular debt policy and potential pitfalls connected to this case.
(October 19, 2018) >more


Studies > Performance

McKinsey & Company

CLOSING THE GAP: LEADERSHIP PERSPECTIVES ON PROMOTING WOMEN IN FINANCIAL SERVICES

Where does the financial-services sector stand when it comes to gender equality? To answer the question, this article looks at the experiences of financial-services employees in North America, gathers insights from female senior leaders (those who have reached the level of vice president or above), and reviews best-practice policies and programs to promote diversity and inclusion. >more

Studies > Performance

Deutsche Bank Research

BIG DATA SHAKES UP ESG INVESTING

Investors have long attempted to incorporate ESG information into their stockpicking decisions, however, ESG funds have underperformed the market. This issue shows how the latest developments in artificial intelligence and machine learning are finally giving investors the upper hand. Big data catches out ‘greenwashing’ and provides forward-looking market signals that outperform the market. This is a boon for investors who want to determine how ESG issues affect the fair value of stocks. >more

Studies > M & A

Ernst & Young

CAPITAL CONFIDENCE BAROMETER: IN AN AGE OF M&A COMPLEXITY, DO YOU PAUSE OR PROCEED?

EYs latest M&A report notes that regulation, trade and tariffs may foster a deal hiatus for some, while many others move forward with acquisition plans. What does all this mean for the deal market? The speed of change is relentless and M&A has proven to be an effective means to move quickly to gain competitive advantage or defend against future disruptors. >more

Studies > Macro

BlackRock

GLOBAL INVESTMENT OUTLOOK Q4 2018

We see the steady global expansion rolling on, underpinned by above-trend U.S. growth. Yet the range of potential economic outcomes is widening. Gradual increases in U.S. rates are tightening financial conditions globally, and have contributed to bouts of volatility and sharply depreciating emerging market (EM) currencies. We also take a deep dive into the prospects for EMs after an unexpectedly drawn-out selloff. >more


Research Papers > Corporate Governance

THE SELECTION OF DIRECTORS TO CORPORATE BOARDS

David J. Denis, Diane K. Denis, and Mark D. Walker
2018
Corporate spinoffs present a unique opportunity to analyze the choice of directors from a pool of potential candidates. We find that post-spinoff unit and remaining parent firms are more likely to select pre-spinoff parent directors who have: i) relevant industry expertise; and ii) pre-spinoff parent board ties to the post-spinoff CEO. Using pre-spinoff firm performance as a proxy for director quality, the evidence also suggests that firms are more likely to retain high-quality directors. We conclude that firms select individual directors based on both their expertise relevant to firm assets and their ties to CEOs who possess specific information about their ability. >more

Research Papers  > Alternative Investments

ARE EARLY STAGE INVESTORS BIASED AGAINST WOMEN?

Michael Ewens, and Richard Townsend
2018
We examine whether male investors are biased against female entrepreneurs using a proprietary dataset from AngelList that allows us to observe private interactions between investors and fundraising startups. We find that male investors express less interest in female-led startups compared to observably similar male-led startups. Female investors do not exhibit the same behavior, despite appearing to have similar investment objectives; female investors agree with male investors when comparing founders who are all men, or all women. Finally, the male-led startups that male investors express interest in do not outperform the female-led startups they express interest in—they underperform. Overall, the evidence is consistent with some form of gender bias. >more