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NEWSLETTER of January 6, 2023


The following content has been added at finexpert:


Studies > Performance

Coinbase Institutional
2023 CRYPTO MARKET OUTLOOK
The dramatic events of 2022 will shape the crypto landscape for years to come. Yet, despite the uncertainty surrounding the potential fallout, there are important characteristics that distinguish this market from the previous crypto winter. For one, institutional crypto adoption remains firmly entrenched. Many investors take a long-term perspective and recognize the cyclical nature of these markets. Rather than stepping back, they are using this environment to hone their knowledge and build the infrastructure to prepare for the future. >more

Studies > Performance

PGIM
PORTFOLIO IMPLICATIONS OF A POSITIVE STOCK-BOND CORRELATION WORLD
US stock-bond correlation has been negative for much of the past 20y. However, regime change – related in part to fiscal and monetary policies and the broader macroeconomic landscape – can occur, with implications for portfolio performance and construction. Indeed, US stocks and bonds fell sharply in tandem during the first three quarters of 2022, damaging the performance of balanced public-market portfolios. While simultaneous large declines in stock and bond prices are likely temporary, a positive stock-bond correlation regime may persist. In this paper, we consider the portfolio management challenges of a positive stock-bond correlation world – a world unfamiliar to many CIOs. >more

Studies > Macro

The Oxford Institute for Energy Studies
WINTER IS COMING: CAN THE GERMAN INDUSTRY OVERCOME THE LOOMING GAS SCARCITY?
Germany has the largest industrial sector in the European Union, and the largest industrial gas consumption in Europe. It is by far the largest European importer of Russian gas, and the interruption of Russian deliveries has forced Germany to review its supply and demand outlook. Given that households and other smaller consumers are protected by European and German regulation, industrial customers are most likely to have to bear the brunt of a looming gas tightness this winter. This paper examines the situation of the German industry at the beginning of winter 2022/23. It discusses the role of gas in Germany’s industrial sector; provides an outlook on the gas supply situation for winter 2022/2023 as well as an overview of the current legal and institutional framework governing the gas emergency plan. >more

Studies > Macro

KfW Research
KFW-IFO-FACHKRÄFTEBAROMETER DEZEMBER 2022
According to the new KfW-ifo Skilled Workers Barometer, a shortage of skilled workers hampered the business activities of 46% of companies at the beginning of the 4th quarter. The shortage of skilled workers has worsened compared with the previous year despite the Ukraine crisis. Skilled workers are lacking in all sectors of the economy, most frequently in the service sector, where almost half of companies are hampered by a lack of skilled workers. Open positions are now vacant for an average of 5 months. The time taken to fill vacancies is rising steeply. One reason for this is the weak growth in labor productivity. Labor productivity per employee has almost stagnated in the last 5 years. >more


Research Papers > Corporate Governance

PRIVATE SANCTIONS
Oliver Hart, David Thesmar, and Luigi Zingales
2022
We survey a representative sample of the U.S. population to understand stakeholders’ desire to see their firms exit Russia after the invasion of Ukraine. 61% of respondents think that firms should exit Russia, regardless of the consequences. Only 37% think that leaving Russia is a purely business decision. If a firm does not conform with these desires, 66% of the respondents are willing to boycott it. This desire diminishes with the costs they face in boycotting. At $500, 43% would want to boycott. This propensity to boycott is high, even for participants who are told they have no impact, suggesting strong deontological concerns. Nevertheless, it is difficult to separate deontological and consequentialist motives to boycott, because subjects’ beliefs about “impact” are highly correlated with their willingness to act “whatever the consequences”. When we randomize beliefs about impact, we find a clear effect for shareholders, but not for the other stakeholders. We discuss what are the geopolitical and economic implications of a world where private corporations may discontinue profitable business relationships for moral or political reasons. >more

Publications > Corporate Governance

WHAT DO FINANCIAL EXECUTIVES SAY ABOUT CORPORATE CULTURE AND STRATEGY?
John R. Graham, Jillian Grennan, Campbell R. Harvey, and Shivaram Rajgopal
2022
We present interview evidence from financial executives that highlights how thinking about culture in a quantitative way and making continuous investments in culture can amplify success, improve firm value, and help employees thrive in the new world of work. By reporting financial executives’ views of when, how, and why strategy and culture matter for performance, we provide novel insights for scholars looking to improve their theories of strategy and culture and for practitioners looking to build better businesses. Among the many insights, financial executives insist that culture can be quantified and even optimized, and that firm characteristics are of central importance to determining the interaction between culture and strategy. We conclude by sharing ideas for building an effective corporate culture. >more

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