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NEWSLETTER of September 13, 2019

 

The following content has been added at finexpert:


Studies > Performance

Roland Berger

HOW DEVELOPMENT BANKS CAN CLARIFY AND REALIGN THEIR MISSIONS

Development banks play an important role to combat the absence or failure of market mechanisms, advance specific public policy goals or support wider social and economic development in their countries. Although this model has a successful track record megatrends such as digitalization, globalization, climate change and migration giving rise to new priorities and change the market environment development banks operate in. Therefore they have to adapt too. Times are changing – and so are the challenges that development banks have to face. >more

Studies > Performance

The World Economic Forum

INCENTIVIZING RESPONSIBLE AND SECURE INNOVATION PRINCIPLES AND GUIDANCE FOR INVESTORS

This report proposes an innovative focus on cybersecurity incentives for the investment community. Investors in innovation and technology-driven companies have a responsibility to ensure that cybersecurity is given priority in the early stages of product development. By ensuring cybersecurity from the outset – including features like security-by-design and security-by-default – investors can increase the likelihood of company success in the long term, promote more durable technology and improve overall cyber resilience. This report proposes principles for investors that will raise their internal cybersecurity awareness and offers a complete framework enabling investors to assess the cybersecurity preparedness of their target company. >more

Studies > Performance

Oliver Wyman

PROFITABILITÄTSSTEIGERUNG IM BANKEN-, PRIVAT- UND GEWERBEKUNDENSEGMENT

The private and commercial customer segment in Germany will remain challenging for the majority of market participants in 2019. Parallel to the sustained change in market structures, the available revenue pool is stagnating at around EUR 60 billion and is forcing profitable bank participants, e.g. in the direct banking segment, to continuously develop their business and operating models. >more

Studies > Risk Management

Lazard

A SUSTAINABILITY FRAMEWORK: SOCIETAL SHIFTS AS INVESTMENT RISKS

Successful long-term investing depends upon the identification of sustainable companies. We believe traditional investment analysis tends to underestimate the risks faced by companies today and, specifically, to risk assessment. In particular, we see rising risks to sustainability from the potential breakdown of relationships between industries and companies with society. Each company and industry operates under a "societal license” that, if damaged or revoked, can ultimately impact the bottom line. >more

Studies > Jobs | Opportunities

CMS Hasche Sigle

UPDATE ARBEITSRECHT SEPTEMBER 2019

In the age of digitisation, many companies are losing traditional jobs. On the other hand, positions often have to be created and filled with new requirement profiles - both are often not easy to implement. In our main contribution we therefore deal in detail with the possibilities of employee qualification in the qualification company of the previous employer as well as in a qualification company after a corresponding change of employer. >more


Research Papers > Corporate Valuation

THINKING ABOUT PRICES VERSUS THINKING ABOUT RETURNS IN FINANCIAL MARKETS

Markus Glaser, Zwetelina Iliewa, and Martin Weber
2018
Prices and returns are alternative ways to present information and to elicit expectations in financial markets. But do investors think of prices and returns in the same way? We present three studies with subjects having various levels of expertise, amount of information, and different incentive schemes. The results are consistent across all studies: Asking subjects to forecast returns as opposed to prices results in higher expectations, whereas showing them return charts as opposed to price charts results in lower expectations. Experience is not a useful remedy but cognitive reflection mitigates the impact of format changes. >more

Research Papers > Corporate Finance

REACHING FOR YIELD IN THE ABS MARKET: EVIDENCE FROM GERMAN BANK INVESTMENTS

Matthias Efing
2019
If regulation fails to differentiate between priced and idiosyncratic risk, it incentivizes investors to reach for yield. Studying securitization exposures on the balance sheets of German banks, I show evidence consistent with this prediction. Banks with tight regulatory constraints (low capital adequacy ratios) invest more in higher yielding ABSs conditionally on rating-implied regulatory risk weights. ABS investments of constrained banks tend to perform worse ex post in terms of collateral delinquency and lose value. Differences in bank sophistication, market power, or incentives to retain securitizations are unlikely to explain the riskier ABS investments of constrained banks. >more