NEWSLETTER of January 7, 2022

The following content has been added at finexpert:

BlackRock
2022 GLOBAL OUTLOOK: THRIVING IN A NEW MARKET REGIME
We are entering a new market regime unlike any in the past half century: We see another year of positive equity returns coupled with a down year for bonds. But we have dialed back our risk-taking given the wide range of potential outcomes in 2022. >more

FTSE Russell
APPLYING ESG FACTORS TO GOVERNMENT BOND INDICES
As we move towards more sustainable government bond indices, it is important to bear in mind that the higher the tilt strength, the higher the increase in the Sustainability profile score. Applying ESG factors to government bond indices remains a challenge as it requires multiple trade-offs. The search for higher ESG performance can come at the expense of higher Active Share and tracking error. >more

PGIM
2022 OUTLOOK: REAL ESTATE TRENDS SET TO SHAPE THE NEXT 12 MONTHS
As worrying new COVID-19 variants emerge, the pandemic is still far from over, while concerns about higher inflation and rising market interest rates persist. Nevertheless, the backdrop for real estate markets in 2022 is one of transition to a new phase of recovery and expansion. Leading indicators are pointing upward, and even though the gap between the best- and worst-performing parts of the market remains wide, most sectors and regions are set for sustained or improved investment performance in the year ahead. >more

CMS
UPDATE ARBEITSRECHT 12/2021
Despite the Corona crisis, the shortage of skilled workers in Germany is acute. A recent study by the Bertelsmann Foundation states that two-thirds of companies are already suffering from staff shortages. According to the study, the problem is greatest at the middle qualification level. And the situation will continue to worsen. That's why we've taken up the issue in our focus article. In a first rough overview, we give you suggestions on how to recruit more effectively, both at home and abroad. We also show you how you can retain your employees in the long term once you have successfully recruited them. And you will learn which recruitment and poaching methods are actually permitted. >more

Roland Berger
WHAT IF - THE CURRENT INFLATION RATES ARE NOT A TRANSITORY PHENOMENON?
The adjective "transitory" has every chance of being chosen as one of the words of 2021. At least among central bankers and analysts. While Federal Reserve Chair Jerome Powell recently revised his view that the current inflation rate of 6.8% in the US is a "transitory" phenomenon, fueling speculation about an imminent tightening of monetary policy by the Fed, the ECB has so far stuck to its assessment that the current inflation rate is a transitory phenomenon. >more

CEO POLITICAL IDEOLOGY AND VOLUNTARY FORWARD-LOOKING DISCLOSURE
Ahmed Elnahas, Lei Gao, Md Noman Hossain, and Jeong-Bon Kim
2021
This study investigates whether and, if so, how the information disclosure preferences differ systematically between Republican CEOs and Democrat CEOs in the context of management earnings forecasts. We find that Republican CEOs tend to prefer a less asymmetric information environment than Democrat CEOs, and thus make more frequent, timelier, and more accurate disclosures than Democrat CEOs. Results using the propensity score matched sample and the difference-in-differences analysis show that our results are unlikely to be driven by potential endogeneity. Our results are robust to controlling for various CEO characteristics, including personal characteristics, compensation incentives, overconfidence, and managerial ability, and are stronger for firms with higher levels of institutional ownership and litigation risk. >more

HOW DO ACQUISITIONS AFFECT THE MENTAL HEALTH OF EMPLOYEES?
Laurent Bach, Ramin Baghai, Marieke Bos, and Rui Silva
2021
Using employer-employee level data linked to individual health records, we document that the incidence of stress, anxiety, depression, psychiatric medication usage, and even suicide increase following acquisitions. These effects are prevalent among employees from both targets and acquirers, in weak as well as in growing, profitable firms. Employees who experience negative career developments within the merging firms, 'blue-collar' workers, and employees with lower cognitive and non-cognitive skills are most affected. A variety of tests address endogeneity concerns, including an analysis exploiting failed mergers. Our findings point to mental illness as a significant non-pecuniary cost of acquisitions. >more