NEWSLETTER of April 21, 2023

The following content has been added at finexpert:

Strategy&
DEVELOPMENTS AND TRENDS IN THE GERMAN MARKET FOR COMMERCIAL INSURANCE BROKERS
Germany’s commercial insurance brokerage market is at the beginning of a consolidation phase similar to those that started in the US and UK around 20 years ago. Acquisitions of brokerage firms by rivals and the arrival of new consolidators, many backed by private equity, are becoming a regular occurrence. The three current “consolidation leaders” – Ecclesia, Gossler, Gobert & Wolters (acquired by HG Capital in 2021) and MRH Trowe (acquired by AnaCap in 2021) – are increasing their M&A activities. >more

Mazars
BOLD LEADERSHIP FOR A SUSTAINABLE FUTURE: C-SUITE BAROMETER: OUTLOOK 2023
The Mazars C-suite barometer is based on responses from more than 800 C-suite executives from 27 countries around the world. Conducted in late 2022, our research uncovered a sense of fighting spirit and boldness from leaders. Whilst recognising the significant challenges of 2022 - including ongoing inflation and economic instability, high energy prices, a war in Europe and geopolitical tensions in other parts of the world  as well as the lingering effects of the pandemic - respondents are optimistic about the future. >more

Bain & Company
HEALTHCARE PRIVATE EQUITY MARKET 2022: THE YEAR IN REVIEW
2022 was the second-biggest year on record for healthcare private equity by many measures, even though overall activity declined sharply from 2021’s record-breaking highs. The first half of 2022 saw a continuation of 2021’s record-setting pace for healthcare private equity deal volume and deal value, but geopolitical uncertainty, inflation, tight credit, and labor force pressures caught up to the market in the second half. >more

KPMG
VENTURE PULSE Q1 2023
Global VC investment fell to $57 billion in Q1’23 — a particularly low note when compared to the high of $200+ billion seen in the same quarter just one year ago. Myriad factors combined to buffet the global VC market, from the protracted war in the Ukraine and other geopolitical uncertainties to concerns about the global banking system following the sudden turbulence seen in Q1’23. Stubbornly high inflation and still-increasing interest rates have also posed their own challenges. >more

MANAGERS’ USE OF HUMOR ON PUBLIC EARNINGS CONFERENCE CALLS
Andrew C. Call, Rachel W. Flam, Joshua A. Lee, and Nathan Y. Sharp
2023
Despite the prevalence and importance of humor in interpersonal communication, the disclosure literature is silent on the use of humor in the context of corporate communication. Using a sophisticated machine learning algorithm, we identify managers’ successful uses of humor during public earnings conference calls. When managers use humor on an earnings call, stock market returns and analyst forecast revisions following the call are more positive, primarily because of a muted response to negative earnings news. Consistent with managers’ successful use of humor being a favorable signal of future firm performance, we find no evidence of a return reversal over the subsequent quarter, and managers’ use of humor predicts more favorable news at the subsequent quarter’s earnings announcement. Our study provides new evidence on the use of humor in corporate disclosures, and our findings indicate that humor can meaningfully influence the market response to public earnings conference calls. >more

WHAT'S IN YOUR WALLET? THE TAX TREATMENT OF CRYPTOCURRENCIES
Katherine Baer, Ruud A. De Mooij, Shafik Hebous, and Michael Keen
2023
Policymakers are struggling to accommodate cryptocurrencies within tax systems not designed to handle them; this paper reviews the issues that arise. The greatest challenges are for implementation: crypto’s quasi-anonymity is an inherent obstacle to third-party reporting. Design problems arise from crytocurrencies’ dual nature as investment assets and means of payment: more straightforward is a compelling case for corrective taxation of carbon-intensive mining. Ownership is highly concentrated at the top, but many crypto investors have only moderate incomes. The capital gains tax revenue at stake worldwide may be in the tens of billions of dollars, but the more profound risks may ultimately be for VAT/sales taxes. >more