NEWSLETTER of April 9, 2021

The following content has been added at finexpert:

PwC
24TH ANNUAL GLOBAL CEO SURVEY
For business, 2021 will be a year of reinvention. One year into the COVID-19 pandemic, we surveyed 5,050 CEOs around the world about their plans to respond to new threats, transform their operating model and create a more sustainable future. The pandemic’s dual role as accelerator of transformation and amplifier of disruptive forces is the thread that runs through our 24th Annual Global CEO Survey. Most of the CEOs responding to the survey are bullish about a global economic comeback. It will be enabled by a continuation of companies’ pandemic-induced digital acceleration, which promises productivity and other business benefits, but also increases the threat of cyberattack and the spread of misinformation. >more

Roland Berger
THE FUTURE OF SME LENDING
In the market for financing, small and medium-sized enterprises (SME) represent a very attractive segment for banks and other lenders. But the business environment is changing dramatically: More and more SME customers are turning to alternative financing providers such as manufacturers, digital brokerage platforms or alternative (direct) lenders. They offer them better conditions, less complicated processes and promise more individualized offers. The traditional bank loan, on the other hand, is losing importance. Banks and other traditional lenders must therefore now adapt their business model to the changed needs of SMEs, otherwise they risk the irreparable loss of an entire business segment. >more

Bain & Company
GLOBAL M&A REPORT 2021
In 2020, global M&A business recovered comparatively quickly from the deep slump at the beginning of the year. The robust development in the midst of the Corona crisis underscores the strategic importance that mergers and acquisitions now have for companies. M&A business is also expected to gain further momentum in 2021. >more

T. Rowe Price
WHY THE EUROZONE WILL NOT MIRROR CHINA’S POST-COVID RECOVERY
China’s success in quickly getting its economy back on track in the wake of the coronavirus will be studied closely by other regions hoping to achieve the same. The eurozone in particular, which faces the possibility of extended lockdowns as the European Union (EU) struggles with its vaccination program, will be hoping that China’s experience offers a template for its own path to recovery. However, while China’s experience contains some lessons for the EU, the economic and political differences between the two regions mean that, after a strong initial rebound, the EU’s recovery is likely to take longer and be more painful. >more

FROM PLAYGROUND TO BOARDROOM: ENDOWED SOCIAL STATUS AND MANAGERIAL PERFORMANCE
Fangfang Du
2021
Using U.S. Census Survey data on CEOs’ residence in their formative years, I document a negative relation between CEOs’ endowed family wealth and managerial performance. Consistent with the view that CEOs born into poor families face higher barriers of entry but may possess greater levels of ability that enable them to become CEOs, I find that CEOs born into less-privileged families outperform those from higher-wealth families. The outperformance of CEOs from less-wealthy families is not driven by risk-taking or omitted variables. Overall, my results suggest that the level of CEOs’ social endowment provides a useful signal for their managerial ability. >more

DO PRIVATE EQUITY MANAGERS HAVE SUPERIOR INFORMATION ON PUBLIC MARKETS?
Oleg Gredil
2020
Using cash flows from a large sample of buyout and venture funds, I show that private equity (PE) distributions predict returns in the industries of funds' specialization. My tests distinguish timing skill from reactions to market conditions and spillover effects of PE activity. Fund managers tend to sell at the industry peaks only when they have performance fees to harvest and foresee public firms' future earnings rather than the variation in discount rates. These results help better understand the performance of PE funds and have implications for manager selection, contract design and the PE role in modern capital markets. >more