NEWSLETTER of June 11, 2021

The following content has been added at finexpert:

Morgan Stanley | Oliver Wyman
WEALTH & ASSET MANAGEMENT: COMPETING FOR GROWTH
Our 2021 edition of the wealth and asset management report with Morgan Stanley offers an overview of industry trends and analysis of the industry. The outlook for the industry shows that wealth and asset managers face a common set of challenges and opportunities. This is driven by the macroeconomic environment, shifts in client demand and the continued evolution of technology to deliver improved investment and advisory solutions. >more

BCG
BCG GENDER DIVERSITY INDEX GERMANY 2020
Diversity is considered an important success factor for companies. And yet the 100 largest listed German companies have some catching up to do in terms of gender parity: After nine percent in the previous year, the proportion of women on the executive boards has risen to ten percent. At both levels below the board, the proportion of women is on average twice as high as in the top management body, at 19 and 23 percent respectively. Read the report to find out which companies are our "Diversity Champions" - and why diversity is a transformation that is self-reinforcing. >more

PwC
PAYMENTS 2025 & BEYOND
The financial services industry is in the midst of a significant transformation, accelerated by the COVID-19 pandemic. And given the key role digitisation plays in the financial lives of more and more of the world’s population, electronic payments are at the epicentre of this transformation. Payments are becoming increasingly cashless, and the industry’s role in fostering inclusion has become a significant priority. Payments also are supporting the development of digital economies and are driving innovation — all while functioning as a stable backbone for our economies. >more

CMS Hasche Sigle
UPDATE ARBEITSRECHT JUNI 2021
The entrepreneurial decision to spin off business units can have various reasons. In any case, labor law considerations are of considerable importance at an early stage. In our focus article, we highlight, for example, what you need to know with regard to the assignment of employees, the harmonization of working conditions and the co-determination of the works council. Our current blog posts are dedicated to the whole variety of labor law: For example, you will find numerous posts dealing with COVID-19 topics. One focus this time is on company vaccinations and testing. Closely related to this are questions about short-time work, such as how "short-time work zero" affects vacation entitlement. >more

EY
STANDORT DEUTSCHLAND 2021: AUSLÄNDISCHE DIREKTINVESTITIONEN
Foreign investors largely remained loyal to Germany as an investment location last year despite the Corona crisis and lockdowns: The number of investment projects announced by foreign companies in Germany fell by only four percent year-on-year to 930. The UK and France recorded much sharper declines: In France, the number of foreign investments fell by 18 percent to 985, and in the UK by 12 percent to 975. Nevertheless, the UK and France occupied the top two places in the European location rankings ahead of Germany. Across Europe, a total of 5,578 investment projects by foreign investors were announced, 13 percent fewer than in the previous year - there was no such slump even in 2009. >more

DIRECTOR APPOINTMENTS – IT IS WHO YOU KNOW
Jie Cai, Tu Nguyen, and Ralph A. Walkling
2020
Using 9,801 director appointments during 2003-2014, we document the dramatic impact of connections - 69% of new directors have professional ties to incumbent boards, a group representing 13% of all potential candidates. Consistent with facilitating coordination and reducing search costs, connections help boards bring in new skills and diversity. More complex firms and firms in more competitive environments tend to appoint connected directors, experience better market reactions and higher shareholder votes. Connections to incumbent CEOs, however, result in lower announcement returns and shareholder votes. Educational or social ties have little effect. We use death (merger)-induced network loss (gain) as instruments. >more

THIRD-PARTY CREDIT GUARANTEES AND THE COST OF DEBT: EVIDENCE FROM CORPORATE LOANS
Mehdi Beyhaghi
2021
Using a comprehensive dataset collected by the Federal Reserve, I find that over one-third of corporate loans issued by U.S. banks are fully guaranteed by legal entities separate from borrowing firms. Using an empirical strategy that accounts for time-varying firm and lender effects, I find that the existence of a third-party credit guarantee is negatively related to loan risk, loan rate, and loan delinquency. Third-party credit guarantees alleviate the effect of collateral constraints in credit market. Firms (particularly smaller firms) that experience a negative shock to their asset values are less likely to use collateral and more likely to use credit guarantees in new borrowings. >more