NEWSLETTER of June 19, 2020

The following content has been added at finexpert:

Oliver Wyman | Morgan Stanley
WEALTH MANAGEMENT: AFTER THE STORM
After 2019 capped a golden decade of growth for the Wealth Management industry, Covid-19 introduced a different reality. Our base case sees global high net worth (HNW) wealth lose more than a year of growth versus pre-Covid-19 forecasts before rebounding to growth in 2021. We see HNW wealth declining by 4 percent or $3.1 trillion in 2020, a major departure from the previous decade’s consistent annual growth trajectory. >more

Mergermarket
M&A IN THE FACE OF HISTORIC UNCERTAINTY
Mergermarket is pleased to present M&A in the face of historic uncertainty, published in association with Imprima. With the Covid-19 pandemic throwing the global economy into an unprecedented crisis, both M&A value and volume fell in Q1 2020 – by 39% and 25% respectively – with Q2 projected to record a much steeper decline. >more

BlackRock
PRIVATE MARKETS 2020
With private investments playing an increasingly important role in most institutional portfolios, the private markets have continued to evolve. They have grown deeper and more dynamic in terms of new strategies, new fund managers and geographies. They have also become more competitive in certain asset classes and regions, with their relative attractiveness and value shifting over time. >more

Coller Capital
GLOBAL PRIVATE EQUITY BAROMETER: SUMMER 2020
Coller Capital’s Global Private Equity Barometer is a unique snapshot of worldwide trends in private equity – a twice-yearly overview of the plans and opinions of institutional investors in private equity based in North America, Europe and Asia-Pacific including the Middle East. The Barometer – private equity’s first regular gauge of investor sentiment – has been published every six months since 2004. >more

PERFORMANCE-INDUCED CEO TURNOVER
Dirk Jenter, and Katharina Lewellen
2019
This paper revisits the relationship between firm performance and CEO turnover. We drop the distinction between forced and voluntary turnovers and introduce the concept of performance-induced turnover, defined as turnover that would not have occurred had performance been “good”. We document a close link between performance and CEO turnover and estimate that between 38% and 55% of all turnovers are performance induced, with an even higher percentage early in tenure. This is significantly more than the number of forced turnovers identified in prior studies. Compared to the predictions of Bayesian learning models of CEO turnover, learning by boards about CEO ability appears to be slow, and boards act as if CEO ability (or match quality) was subject to frequent and sizeable shocks. >more

THE ORIGINS AND REAL EFFECTS OF THE GENDER GAP: EVIDENCE FROM CEOS' FORMATIVE YEARS
Ran Duchin, Mikhail Simutin, and Denis Sosyura
2020
Male CEOs allocate more investment capital to male than female division managers. Using data from individual Census records, we find that this gender gap is driven by CEOs who grew up in male-dominated families — those where the father was the only income earner and had more education than the mother. The gender gap also increases for CEOs who attended all-male high schools and grew up in neighborhoods with greater gender inequality. The effect of gender on capital budgeting introduces frictions and erodes investment efficiency. >more