NEWSLETTER of January 19, 2024

The following content has been added at finexpert:

PwC
27TH ANNUAL GLOBAL CEO SURVEY
CEOs worldwide are more optimistic than in the previous year: 38% of business leaders expect global economic growth to increase. Just one year ago, the figure was only 18%. However, the mood remains gloomy: 45% of CEOs believe that global economic growth will decline this year (previous year: 73%). 16% stated "unchanged". >more

Allen & Overy
GLOBAL M&A INSIGHTS: DEAL-MAKING PREDICTIONS FOR 2024
Continued volatility in the debt markets has resulted in another subdued year for M&A, with global deal value and volume down 33% and 18% respectively compared with 2022. However, Q2 was the strongest quarter for M&A in 12 months – and October the biggest month by value and volume since May 2022  – as inflationary pressures finally started to recede. If this dynamic is sustained we expect the upward trajectory to continue. >more

Allianz Research
ALLIANZ RISK BAROMETER: IDENTIFYING THE MAJOR BUSINESS RISKS FOR 2024
Cyber incidents such as ransomware attacks, data breaches, and IT disruptions are the biggest worry for companies globally in 2024, according to the Allianz Risk Barometer. The closely interlinked peril of Business interruption ranks second. Natural catastrophes (up from #6 to #3 year-on-year), Fire, explosion (up from #9 to #6), and Political risks and violence (up from #10 to #8) are the biggest risers in the latest compilation of the top global business risks, based on the insights of more than 3,000 risk management professionals. >more

World Economic Forum
THE GLOBAL RISKS REPORT 2024
The Global Risks Report explores some of the most severe risks we may face over the next decade, against a backdrop of rapid technological change, economic uncertainty, a warming planet and conflict. As cooperation comes under pressure, weakened economies and societies may only require the smallest shock to edge past the tipping point of resilience. >more

ESG-LINKED PAY AROUND THE WORLD -TRENDS, DETERMINANTS, AND OUTCOMES
Sonali Hazarika, Aditya Kashikar, Lin Peng, Ailsa Röell, and Yao Shen
2023
We conduct a large-scale global study of ESG-linked pay for major firms that make up 85% of the market capitalization across 59 countries. We find that the pay adoption is higher for firms in extractive and utility industries, in countries that value individualism and femininity, have stronger shareholder protections, and are of civil legal origin, and for large firms or firms with high return to assets. The adopters experience better future social and financial performances. Exploiting a regulatory shock that mandates corporate ESG disclosure, we show that the effect of ESG-linked pay on performances is likely causal and suggest employee satisfaction as a channel. >more

ARE ALL ESG FUNDS CREATED EQUAL? ONLY SOME FUNDS ARE COMMITTED
Michelle Lowry, Pingle Wang, and Kelsey D. Wei
2022
ESG funds are not all equal: there is significant heterogeneity in incentives of fund managers to engage with portfolio firms. We argue that differences in incentives affect ESG-related information acquisition, investment strategies, engagement activities, and impact of ESG funds. Our findings support these predictions. Conditional on similarly large ESG investments, those funds with higher incentives to engage with portfolio firms, which we refer to as committed ESG funds, differ significantly from other ESG funds along each of these dimensions. Moreover, committed ESG funds have outperformed other ESG funds on their ESG holdings, particularly those with longer duration. Our findings highlight that committed ESG funds view ESG as a value driver. >more