NEWSLETTER of December 10, 2021

The following content has been added at finexpert:

European Investment Bank
EIB INVESTMENT SURVEY 2021 - EU OVERVIEW
This unique insight into the corporate investment landscape in the European Union examines companies' finance needs and the constraints they face. The 2021 edition delves into the massive shock produced by the COVID-19 crisis, and the response and recovery programmes put in place by the European Union and by national governments. The report assesses the extent to which European firms are addressing the need make their businesses more green and digital. The survey is based on interviews with 12 000 companies across the 27 European Union countries, and it includes a benchmark sample from the United Kingdom and United States. This overview provides the aggregated results for the European Union. Results for individual countries will be published in January 2022. >more

BlackRock
GLOBAL INSURANCE REPORT 2021
As many economies make a strong restart following mass vaccinations and unparalleled financial stimulus from central banks, 362 senior insurance executives across the globe have shared with BlackRock their experiences and perspectives on the global insurance industry. Our interactive report charts key themes and global and regional implications. >more

PwC
VENTURE CAPITAL MARKET STUDY 2021
In the second edition of our market study, we were able to confirm various findings from the previous year; there is a clear trend toward a more mature market. As a result, a picture of the German venture capital ecosystem emerges that is consistent with the 2020 study in terms of, for example, desired share ratios, design of employee stock ownership options (ESOP) and preferred valuation methods. Based on a broad, in-depth survey of investors, the study provides a unique data basis for Germany that enables benchmarking and contributes to better decision-making. It enables conclusions to be drawn about negotiation processes and their underlying motives, with the aim of contributing to greater transparency in the ecosystem. >more

DZ Bank
MITTELSTANDSUMFRAGE HERBST 2021
After gross domestic product in Germany had already increased by 1.9% in the second quarter compared with the previous quarter, the German economy also grew significantly in the third quarter, by 1.8% compared with the previous quarter and by 2.5% compared with the prior-year quarter. Our latest VR SME survey also shows that sentiment among SMEs and the assessment of the current business situation have both already exceeded their long-term averages. >more

EXECUTIVE COMPENSATION: THE TREND TOWARD ONE SIZE FITS ALL
Felipe Cabezon
2021
This paper reports the prevalence of a "one-size-fits-all" trend in the structure of executive compensation plans. The way firms distribute total compensation across different pay components -salary, bonus, stock awards, option awards, non-equity incentives, pensions, and perquisites- has become more similar since 2006. In particular, 25% of the variation across firms disappeared in the last thirteen years. Using close votes surrounding Say-on-Pay implementation, I find that shareholders' influence on management decisions causes part of this convergence. This finding is robust in both difference-in-difference and RDD estimations. Additional evidence suggests that proxy advisors play a role by pushing towards standardization. Finally, I find evidence suggesting that standardization leads to a sub-optimal design of contracts. The more similar a firm's compensation structure becomes to the others, the lower its market value. Additionally, I find a negative impact on delta and vega and a positive impact on total compensation and financial misstatements. >more

CEO ACTIVISM AND FIRM VALUE
Anahit Mkrtchyan, Jason Sandvik, and Vivi Zhu
2021
We investigate the impact of CEO activism, the increasingly common practice of CEOs speaking out on social and political issues, on firm value. CEO activism may be beneficial for shareholders, as it can bolster firms’ relationships with employees and customers. Alternatively, CEO activism may be detrimental if it alienates stakeholders with opposing views. Consistent with the former, we find that CEO activism results in positive market reactions and higher valuations. These results can be explained by increased employee productivity, greater innovation, and a reduced likelihood of employee-related litigation. Notably, activist CEOs are less likely to be fired and benefit from more future directorships. >more