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NEWSLETTER of September 6, 2019

 

The following content has been added at finexpert:


Studies > Performance

Deloitte

WACHSENDER DRUCK UND NEUE ANSÄTZE: DELOITTE–STUDIE 2019 ZUR STRATEGISCHEN KOSTENTRANSFORMATION IN DEUTSCHLAND

Restructuring, job cuts, divestments: German companies are increasingly reacting to the gloomy economic situation with cost-cutting measures. But the will to save is not enough. As the current Deloitte study on cost management shows, the measures only achieve the savings targets they have set themselves in 11% of the cases. One explanation for this problem lies in the conservative, incremental approach to cost reduction in many companies in Germany. For an effective and at the same time forward-looking cost transformation, on the other hand, it is advisable to take the step towards courageous, disruptive measures.  >more

Studies > M & A

ValueTrust

DACH CAPITAL MARKET STUDY

Now in its fifth version, the DACH Capital Market Study provides a comprehensive data compilation of the capital market parameters as of 30 June 2019 to enable proper enterprise valuation in Germany, Austria and Switzerland. The study serves as a data source and shows trends of the analyzed parameters. It was launched by ValueTrust in cooperation with finexpert and the Institute of Auditing and Sustainability Accounting at the Johannes Kepler University Linz. >more

Studies > Alternative Investments

PwC

THE TRUTH LIES IN THE EXIT: CREATING VALUE IN PE ASSETS IN EUROPE IN TIMES OF MULTIPLE CONTRACTION

After years of upswing, the European private equity market could be affected by negative price effects in the coming years: According to a recent PwC analysis, the rapid rise in multiple arbitrage may decline sharply in the coming years - or even become negative. Steve Roberts, Head of Private Equity at PwC in Germany, explains exactly what this means and what investors can do to keep their returns stable.  >more

Studies > Accounting

Ernst & Young

PROGNOSEÄNDERUNGEN IM PRIME ALL SHARE 2011 BIS 2019

The weakening economy and increasing international trade conflicts are causing more and more German companies to struggle, so that they have to adjust their own sales or profit forecasts: In the first half of the year, the 308 companies listed in the Prime Standard issued a total of 54 profit or sales warnings - an increase of 38 percent over the same period last year and a new high. For the first time since the first half of 2014, the number of companies that missed their own targets was higher than the number of companies that developed better than announced: A total of 51 so-called profit expectations were published - slightly more than in the previous year (43), but only half as many as in the first half of 2017.  >more


Research Papers > Corporate Governance

BUSY DIRECTORS AND SHAREHOLDER SATISFACTION

Kevin D. Chen, and Wayne R. Guay
2019
Prior research has examined the firm-level performance implications of “busy” boards. Firm-level analysis, however, masks important heterogeneity in the time constraints and expertise of individual busy directors. We develop and validate shareholder voting as a proxy for shareholders’ satisfaction. Our director-specific tests provide compelling evidence that the potential costs of busy directors outweigh their benefits. At the same time, we uncover new sources of heterogeneity among busy directors. For example, the downsides are more pronounced for directors who sit on boards where fiscal year-ends cluster in the same month. Our analysis highlights the role of shareholder voting in board composition research. >more

Research Papers > Corporate Finance

DO UNDERWRITERS PRICE-UP IPOS TO PREVENT WITHDRAWAL?

Walid Y. Busaba, Zheng Liu, and Felipe Restrepo
2019
We examine whether underwriters price-up weakly-demanded IPOs to prevent withdrawal. Our empirical strategy exploits a discontinuity in the distribution of IPO prices around the low boundary of the filing range. Offerings with a high ex-ante withdrawal probability that are priced at this boundary are likely priced-up to meet issuers’ reservation prices. We compare the aftermarket returns of these IPOs to the returns of other weakly-demanded offerings where issuers’ reservation prices were likely not binding, and identify a negative 8.4-percentage point differential attributable to the aggressive pricing inherent in setting the price at the low boundary when withdrawal risk is high. >more