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NEWSLETTER of July 30, 2021


The following content has been added at finexpert:


Capital Market Data

We updated the capital market data

(Multiples, Betas and Returns) as to July 15, 2021 >more


Studies > M & A

ValueTrust
EUROPEAN CAPITAL MARKET STUDY: JUNE 30, 2021
We are pleased to release our eighth edition of the ValueTrust European Capital Market Study. With this study, we provide a data compilation of capital market parameters that enables an enterprise valuation in Europe. The purpose of the study is to serve as a tool and data source as well as to show trends in the parameters analysed. >more

Studies > M & A

PwC
TRANSPORT & LOGISTICS BAROMETER
132 deals were announced in the transport & logistics industry in the first half of 2021, indicating a return to business as usual. After the strong catch-up effect in the second half of 2020, M&As have levelled off close to pre-crisis levels. Total deal value has been largely driven by the biggest deal of H1 2021, but also by the relatively high number of megadeals overall. >more

Studies > M & A

EY
GLOBAL CORPORATE DIVESTMENT STUDY 2021
Groups around the world are divesting ever larger corporate units. In the first five months of the current year, the volume of divestments worldwide more than doubled compared with the same period last year: Between January and May, the companies surveyed sold off parts of their businesses worth a total of 828 billion US dollars. This represents an increase of a good 123 percent compared with the prior-year period, when divestments were worth just 371 billion US dollars. >more

Studies > Alternative Investments

EY
TRENDBAROMETER IMMOBILIENANLAGEN DER ASSEKURANZ 2021
Insurance companies in Germany continue to rely on real estate investments. At 11.5 percent, the real estate ratio in their portfolios is higher than ever before. 63 percent of the insurance companies surveyed want to further increase their real estate ratio, while the remaining 37 percent want to keep it constant. Thus, there is no sign of a reversal of the trend in the real estate ratio, which has now been rising continuously for a decade. >more


Research Papers > Corporate Finance

BIG FISH IN SMALL PONDS: HUMAN CAPITAL MOBILITY AND THE RISE OF BOUTIQUE BANKS
Janet Gao, Wenyu Wang, and Xiaoyun Yu
2021
We document a rise of boutique banks in the M&A advisory industry that is traditionally dominated by bulge bracket banks. Using novel data on banker career paths, we show that high-performing individuals are more likely to migrate to boutique banks, and their clients and colleagues tend to follow. The performance of gaining banks in the transitioning bankers’ specialized industries subsequently improves, potentially contributing to the prosperity of boutique advisors. To establish causality, we exploit the cross-department subsidization within bulge bracket banks that exogenously affects skilled labor supply to boutique advisors. Our findings highlight how human capital mobility shapes industry structures. >more

Research Papers > Corporate Finance

TAXES DEPRESS CORPORATE BORROWING: EVIDENCE FROM PRIVATE FIRMS
Ivan Ivanov, Luke Pettit, and Toni M. Whited
2020
We re-examine the relation between taxes and corporate leverage, using variation in state corporate income tax rates. In contrast with prior research, we document that corporate leverage increases following tax cuts for both privately held and publicly listed firms. We use an estimated dynamic equilibrium model to show that tax cuts result in lower default spreads and more distant default thresholds. These effects outweigh the loss of benefits from the interest tax deduction and lead to higher leverage, especially for privately held firms. Overall, debt tax shields appear to be a secondary capital structure consideration. >more

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