NEWSLETTER of July 9, 2021

The following content has been added at finexpert:

World Economic Forum
DIGITAL ASSETS, DISTRIBUTED LEDGER TECHNOLOGY, AND THE FUTURE OF CAPITAL MARKETS
This report highlights the results of a series of virtual global workshops and expert interviews held with financial services and technology experts in 2020. It looks at the urgent need for digital transformation in capital markets, with a view to providing strategic insights that will improve client service delivery, achieve greater efficiency and enable new services. >more

Baker Tilly
THE RISE OF ESG IN THE M&A PROCESS
Dealmakers are more focused on ESG than ever before. In large numbers, many confirm that ESG issues are critical both to their own organizations and also to the way they approach potential transactions. Most say they have even walked away from at least one deal on ESG grounds; many say their view on valuation has been materially affected by ESG considerations that have emerged during due diligence. >more

Pantheon
MACHINE LEARNING: THE VALUATION EDGE
Pantheon’s latest research paper explores machine learning and how private equity investors could gain an edge in secondary transactions by utilizing the latest data analysis techniques to get more accurate estimates of real-time portfolio valuations. >more

Aon | Mergermarket
RISK IN REVIEW 2020-21: GLOBAL M&A AND TRANSACTION SOLUTIONS
Mergermarket is pleased to present Risk in Review 2020-21, published in association with Aon. This report explores investors’ M&A expectations for the next 12 months, the sectors they believe will outperform, the strategies employed to mitigate key risks beyond COVID, and how and why the suite of available M&A insurance products are being used. >more

CEO HEALTH AND CORPORATE GOVERNANCE
Matti Keloharju, Samuli Knüpfer, and Joacim Tåg
2020
Boards hire and fire CEOs based on imperfect information. Using comprehensive data on 28 cohorts in Sweden, we analyze the role of a potentially important attribute—CEO health—in corporate governance. Boards hire CEOs who are healthier than other high-skill professionals, in particular in mental health. After hiring, CEOs’ health develops similarly to a control group of executives. Health predicts turnover, measured at appointment and during tenure. These results are consistent with boards appointing CEOs with health robust enough to withstand the pressures of the job, correcting mismatches occurring at the time of appointment, and responding expediently to health shocks. >more

IT'S NOT SO BAD: DIRECTOR BANKRUPTCY EXPERIENCE AND CORPORATE RISK-TAKING
Radhakrishnan Gopalan, Todd A. Gormley, and Ankit Kalda
2020
We show that firms take more (but not necessarily excessive) risks when one of their directors experiences a corporate bankruptcy at another firm where they concurrently serve as a director. This increase in risk-taking is concentrated among firms where the director experiences a shorter, less-costly bankruptcy and where the affected director likely exerts greater influence and serves in an advisory role. The findings show that individual directors, not just CEOs, can influence a wide range of corporate outcomes. The findings also suggest that individuals actively learn from their experiences and that directors tend to lower their estimate of distress costs after participating in a bankruptcy firsthand. >more