NEWSLETTER of December 9, 2022

The following content has been added at finexpert:

PwC
GLOBAL INVESTOR SURVEY 2022: THE ESG EXECUTION GAP
Economic uncertainty, political upheaval, and environmental and social concerns have left a deep mark on today’s business landscape, affecting consumers and companies alike. In PwC’s Global Investor Survey 2022, we sought to get a picture of how those tensions weigh upon today’s decisions and to gain insights into how this might play out. Our survey probed investors closely on the critical issue of sustainability, with an eye to how the current landscape affects their own priorities, decisions and strategies, as well as their views on how companies are responding. >more

Neuberger Berman
ASSET ALLOCATION COMMITTEE OUTLOOK: 4Q 2022
By the time the Committee reconvened in late September, the yield on two-year U.S. Treasuries had been on an epic climb above 4.25% and equities had slumped back to 2022 lows. But if investors appear to have accepted that central banks are serious about fighting inflation, many still seem reluctant to acknowledge that corporate earnings forecasts are likely to be downgraded further, given the tightening financial conditions and economic slowdown. As a result, we anticipate further volatility and downside for global stock markets. >more

Alix Partners
AUFSICHTSRATS-RADAR 2022
For several years, we have been using the AlixPartners Supervisory Board Radar together with supervisory boards to investigate the question of how boards of directors and managing directors should work together with their boards. The AlixPartners Supervisory Board Radar 2022 now looks at the topic from the other side: We surveyed 100 board members and mirrored the results with supervisory boards. The survey shows: In the disruptive market environment, a broader role for the supervisory board as a sparring partner is essential. Previously established processes and supervisory board work developed from the original control function are not sufficient to fully exploit the potential of effective supervisory board work. >more

Deloitte
2023 COMMERCIAL REAL ESTATE OUTLOOK
Following a pandemic-fueled course correction, the global real estate industry faces transformational shifts in how buildings will be used, valued, and transacted in 2023 and beyond. Ongoing uncertainty in the global economy could impact the industry even more. In the near term, the potential for regional or global recession or stagnation looms – and these impacts would be felt across financial services sectors. Deloitte surveyed 450 chief financial officers of major commercial real estate owners and investors to get their opinions about organizational growth and their plans for workforce, regulatory compliance, and technology. We also asked about their investment priorities and anticipated structural changes in 2023. >more

DO FINANCIAL ADVISORS MATTER FOR M&A PRE-ANNOUNCEMENT RETURNS?
André Betzer, Jasmin Gider, and Peter Limbach
2022
This study documents economically meaningful and persistent financial advisor fixed effects in target firms' abnormal stock returns shortly prior to takeover announcements. Additional difference-in-differences analyses suggest that advisors are associated with lower pre-bid stock returns after their senior staff were defendants in SEC insider trading enforcement actions. Returns are higher for advisors with more previously advised deals and those located in NYC. The evidence helps explain the prevalent phenomenon of pre-bid stock returns. It contributes to the inconclusive literature on banks' exploitation of private information gained via advisory services, which is limited to disclosed, traceable activities indicative of information leakage. >more

AN ANATOMY OF CRYPTO-ENABLED CYBERCRIMES
Lin William Cong, Campbell R. Harvey, Daniel Rabetti, and Zong-Yu Wu
2022
While the advent of cryptocurrencies and digital assets holds promise for improving and disrupting financial systems by offering cheap, quick, and secure transfer of value, it also opens up new payment channels for cybercrimes. A prerequisite to solving a problem is understanding the nature of the problem. Assembling a diverse set of public, proprietary, and hand-collected data, including dark web conversations in Russian, we conduct the first detailed anatomy of crypto-enabled cybercrimes and highlight relevant economic issues. Our analyses reveal that a few organized ransomware gangs dominate the space and have evolved into sophisticated corporate-like operations with physical offices, franchising, and affiliation programs. Their techniques have also become more aggressive over time, entailing multiple layers of extortion and reputation management. Blanket restrictions on cryptocurrency usage may prove ineffective in tackling crypto-enabled cybercrime and hinder innovations. Instead, blockchain transparency and digital footprints enable effective forensics for tracking, monitoring, and shutting down dominant cybercriminal organizations. >more