NEWSLETTER of June 25, 2021

The following content has been added at finexpert:

KfW Research
UNTERNEHMENSBEFRAGUNG 2021: CORONA-KRISE BELASTET UNTERNEHMEN - FINANZIERUNGSKLIMA TRÜBT SICH EIN
KfW Group has conducted its 20th business survey on bank behaviour and financing in collaboration with 18 business associations. The most important findings: The financing situation of enterprises has worsened. The proportion of enterprises reporting difficulties in accessing credit was 26.5%. Around 60% of the surveyed enterprises conducted loan negotiations in 2020. Long-term loans were particularly sought-after. >more

EY
DAS TAX OPERATING MODEL: WAS IST DER SCHLÜSSEL ZUR ZUKUNFT DER STEUERABTEILUNG
Much has been written and spoken about the digitization of the tax function. But apparently only very few are making headway, and then only for individual tax types and processes. This is shown by the results of our EY Tax Innovation Survey. A maximum of 207 people took part in the survey. The survey was conducted in January/February 2021 among readers of our eNewsletter Tax and Tax & Law Magazine. >more

McKinsey & Company
KREATIVE ERNEUERUNG: DEUTSCHLAND 2030
Germany needs creative renewal. Transformation of companies in all segments of the economy and the creation of supporting structures is required to cope with the upheavals in the economy and society. More than two-thirds of Germans expect radical change by 2030; younger people are particularly positive. Via six fields of action, Germany can double its average growth to 2% by 2030. >more

Bank for International Settlements
BIS QUARTERLY REVIEW: JUNE 2021
The BIS Quarterly Review examines developments in international banking and financial markets. Published in March, June, 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

Roland Berger
TREND COMPENDIUM 2050: BEVÖLKERUNG UND GESELLSCHAFT
In Trend 1 of our Trend Compendium 2050, we look at the basis of all other megatrends: population and society. We look at the various aspects of population development and migration as well as at values and education, the core elements of the development of modern societies. >more

CORPORATE CLIMATE RISK: MEASUREMENTS AND RESPONSES
Qing Li, Hongyu Shan, Yuehua Tang, and Vincent Yao
2021
This paper constructs a novel measure of climate risk at the firm level by adopting a textual analysis method. The measure captures the share of conversations on earnings conference calls that center on climate- and weather-related keywords, allowing us not only to construct a total climate risk measure but also to obtain disaggregated climate risk measures, such as those related to long- versus short-run factors, as well as corporate functions affected by climate risk. We analyze the determinants of firm-level climate risk using natural disasters and firm attributes and find that 60% of its variation is due to within-firm variation, and thus it mostly captures idiosyncratic risk at the firm level. We also examine the relation between climate risk and stock price volatility, as well as firm responses to climate risk. The results suggest that firms with higher unexpected climate risk significantly increase their investment while decreasing their employment in subsequent years. >more

THE EVOLUTION OF CEO COMPENSATION IN VENTURE CAPITAL BACKED STARTUPS
Michael Ewens, Ramana Nanda, and Christopher Stanton
2020
We document new facts on the evolution of founder-CEO compensation in venture capital-backed startups. Having a tangible product (“product market fit”) is a fundamental milestone in CEOs’ compensation, marking the point where liquid cash compensation increases significantly – well before an IPO or acquisition. “Product market fit” also coincides with key human capital in the startup becoming more replaceable. Although increases in cash compensation over the firm lifecycle improves the attractiveness of entrepreneurship relative to a contract with flat pay, we find that low cash compensation in the early years can still deter entrepreneurial entry. >more