NEWSLETTER of December 20, 2024
The following content has been added at finexpert:
Studies > Corporate Finance
Deutsche Bank Research
KREDITGESCHÄFT UND KONJUNKTUR TRETEN IM GLEICHSCHRITT AUF DER STELLE
The lending business with companies and the self-employed also stagnated in the third quarter and was up just 0.6% on the previous year. Loans to industry continued to shrink significantly, while they grew moderately in the service sector. All maturities and bank groups are affected, with financing alternatives performing similarly weakly. Falling interest rates have contributed to a slight upturn in demand for credit, which could intensify in 2025. >more
Studies > Alternative Investments
Deutsche Bank Research
PROPERTY MARKET IN 2025: NO NEW BOOM BUT HIGHER PRICES AHEAD
After the interest rate shock-induced price correction in 2022 and 2023, all asset classes stabilized or began recovering in 2024. We anticipate this positive price trend to continue, with nominal prices rising roughly in line with inflation. Falling interest rates are a particularly supportive factor, along with asset-class specific drivers. We expect a residential housing price recovery to be driven by a combination of a growing housing shortage resulting in rising rents and the prospects of a less disruptive regulatory impact on the heating market. In the office market, we expect the recent price stabilization to transition into an outright recovery, with increasing demand driven by reduced remote work and limited new supply. In the retail sector, the substantial market correction over the last six years already turned into first green shoots in 2024. We also expect slightly higher prices in 2025 and beyond. >more
Studies > Alternative Investments
KfW Research
BETEILIGUNGSGESELLSCHAFTEN NUTZEN KI FÜR SOURCING, SCREENING UND DUE DILIGENCE
Around one in six financial investors uses AI tools. The planned values for the coming years clearly exceed the current use of AI. VC investors are more open to the use of AI than later-stage investors. AI is mainly used for sourcing, screening and due diligence. The main benefit of AI currently appears to lie primarily in reducing complexity. >more
Studies > Macro
Institut der deutschen Wirtschaft Köln
DIE MIGRATION ENTSCHEIDET ÜBER DIE ZUKUNFT DEUTSCHLANDS
According to the IW population forecast, Germany is likely to gain around 4.8 million people of working age between 15 and 66 through immigration by 2040. If this were not the case, the retirement of the baby boomers from the workforce in the coming years would have much more dramatic consequences. >more
Research Papers > Corporate Governance
HOW LARGE IS THE PAY PREMIUM FROM EXECUTIVE INCENTIVE COMPENSATION?
Ana M. Albuquerque, Rui A. Albuquerque, Mary Ellen Carter, and Qi (Flora) Dong
2024
We estimate the pay premium associated with CEO incentive compensation. Using explicit detailed U.S. CEO compensation contract data and simulation analysis, we find that CEOs with riskier pay packages receive a premium for pay at risk that represents 13.5 percent of total pay. The premium is positively correlated with proxies for CEO risk aversion, but implied risk aversion values suggest that the premium is economically smaller than suggested by prior studies. We perform our tests using a variety of proxies to measure the variance of pay and find consistent evidence of economically small pay risk premiums. These results are consistent with recent findings suggesting that risk may have a more limited influence over the level of pay than previously thought. >more
Research Papers > Alternative Investments
PRIVATE EQUITY FUND REPORTING QUALITY, EXTERNAL MONITORS, AND THIRD-PARTY SERVICE PROVIDERS
Peter D. Easton, Stephannie Larocque, Paul Mason, and Steven Utke
2024
We describe variation in the reporting quality (i.e., accuracy and bias of reported net asset values) of private equity (PE) funds across types of external monitors (investors and auditors) and third-party service providers (valuation specialists, marketers, and administrators). In contrast to public markets, we find only limited evidence that reporting quality varies with the composition and types of investors in PE funds. We observe, however, that reporting quality varies with auditor involvement and the use of third-party service providers; these associations often differ across buyout and venture capital funds and from those observed in public markets. Our evidence is important to investors and regulators, especially now that PE supersedes public markets as the main vehicle to raise capital and as regulators increase their focus on private markets. >more