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NEWSLETTER of June 21, 2024


The following content has been added at finexpert:


Studies > Performance

Citi
FAMILY OFFICE INVESTMENT REPORT: FLOWS AND INSIGHTS Q1 2024
Family office clients continue to put their liquid resources to work as had been the case last year. Developed Large Cap Equities remain a focus, while they also showed enthusiasm for Developed Small and Mid Cap Equities. They have proven slightly more ambivalent when it comes to Fixed Income, albeit still seeing value among investment grade segments. We explore these moves and what they may be thinking. >more

Studies > Alternative Investments

Coller Capital
PRIVATE CAPITAL BAROMETER: SUMMER 2024
Since 2004, Coller Capital’s Global Private Capital Barometer has provided a unique snapshot of the plans and opinions of institutional investors in private capital based in North America, Europe, and Asia-Pacific (including the Middle East). This 40th edition of the Barometer captured the views of 110 private equity investors from around the world. Its findings are representative of the LP population by: Investor location, Type of investing organisation, Total assets under management, and Length of experience of private capital investing. >more

Studies > Macro

KfW Research
KFW-GRÃœNDUNGSMONITOR 2024
Start-up activity in Germany increased slightly in 2023, as the KfW Start-up Monitor shows. The number of start-ups rose to 568,000 (+3%). However, the number of full-time start-ups fell to 205,000 (-8%), while the number of sideline start-ups rose again to 363,000 (+11%). Overall, start-up activity in 2023 lacked the overall economic impetus. Forecasts for the economy and labor market suggest similarly weak momentum in the current year 2024. >more

Studies > Macro

Bank for International Settlements
BIS QUARTERLY REVIEW: JUNE 2024
The BIS Quarterly Review examines developments in international banking and financial markets. In March, September and December, it comprises a review of market developments over the past quarter, and special features that analyse topical economic and financial issues. >more


Research Papers > Corporate Finance

THE ECONOMIC CONSEQUENCES OF SOCIAL UNREST: EVIDENCE FROM INITIAL PUBLIC OFFERINGS
Thomas J. Boulton, Philip Barrett, and Terry Nixon
2024
Prior research attributes negative stock market performance following episodes of social unrest to elevated uncertainty. However, social unrest does not solely increase uncertainty, but separately acts to decrease investor sentiment. To determine which effect dominates, we study initial public offering (IPO) underpricing, which responds differently to changes to uncertainty and investor sentiment. Consistent with the notion that social unrest dampens investor sentiment, we find robust evidence that IPO first-day returns are lower during times of greater social unrest. Limits to arbitrage intensify the negative relation between social unrest and underpricing. Notably, strong institutional frameworks mitigate the impact of social unrest on underpricing, suggesting that quality institutions weaken the link between investor sentiment and returns. >more

Research Papers > Corporate Finance

HOW FINANCIAL MARKETS CREATE SUPERSTARS
Spyros Terovitis, and Vladimir Vladimirov
2024
By aggregating information into prices, financial markets help guide the efficient allocation of resources. We show, however, that speculators without information about firms' fundamentals can exploit this relationship and profit from inflating firm valuations. Such speculation is profitable because high valuations attract employees, business partners, and investors, creating value at targeted firms at the cost of diverting resources away from better firms. Uninformed speculation is most profitable in "normal" (neither hot nor cold) markets and when targeted firms use performance pay or equity to compensate stakeholders. Investors, such as VCs, can profit from inflating firm valuations also in private markets. >more

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