NEWSLETTER of March 14, 2025

The following content has been added at finexpert:

FTI Consulting
2025 GLOBAL CFO REPORT
As we enter 2025, many CFOs worldwide are playing a critical role in steering their organizations through uncertainty and transformation. The CFO’s role has shifted beyond traditional financial stewardship, becoming more strategic in navigating technological advancements, economic challenges and evolving business models. This year, 56% of surveyed CFOs are prioritizing business model optimization, underscoring the importance of adapting to market shifts and maintaining competitiveness in a fast-paced global economy. The FTI 2025 Global CFO Survey endeavors to shed light on the key global trends for CFOs in 2025. Through in-depth analysis, expert insights, and forward-looking projections, we aim to equip financial leaders with the knowledge and perspective they need to navigate the year ahead with confidence in a time of promising potential and evolving uncertainty. >more

KfW Research
SCHLEICHENDER RÜCKZUG? IMMER MEHR UNTERNEHMEN IM MITTELSTAND VERZICHTEN AUF BANKKREDITE ZUR INVESTITIONSFINANZIERUNG
More and more SMEs in Germany are foregoing bank loans to finance their investments. The proportion of investing SMEs that have resorted to bank loans has almost halved over the past 20 years - from 40% in 2004 to 23% in 2023. The reasons for this decline lie more in a decline in demand than in restrictions on the supply of credit. Before the financial crisis in 2009, well over a third of SMEs with planned investment projects were still negotiating loans with banks and savings banks. In 2006, when the European Central Bank initiated a tightening of monetary policy, the figure was as high as 47%. Since 2014, however, fewer companies have been willing to negotiate loans at all. In 2023, the figure was at an all-time low of 25%. >more

European Investment Bank
EIB INVESTMENT REPORT 2024/2025
The annual EIB report on investment and investment finance is a product of the EIB Economics Department. The report provides a comprehensive overview of the developments and drivers of investment and investment finance in the European Union. It combines an analysis and understanding of key market trends and developments, with a thematic focus explored in greater depth. This year, the focus is Europe’s ability to marshal the investment needed for the green transition and to support innovation. The report draws extensively on the results of the annual EIB Investment Survey (EIBIS) and the EIB Municipalities Survey, combining internal EIB analysis with contributions from leading experts in the field. >more

Bank for International Settlements
BIS QUARTERLY REVIEW: MARCH 2025
Markets were pulled in different directions during the period under review. Long-term government bond yields in core markets rose despite easing monetary policies, tightening financial conditions. In contrast, corporate credit remained buoyant, equity valuations stayed elevated and US dollar appreciation halted. This resulted in easier conditions despite the uncertain outlook, which seemed not fully priced in financial markets. Sentiment towards emerging market economies (EMEs) remained subdued, as investors struggled to ascertain their outlook amid diverse domestic conditions and global policy uncertainty. While policy rates came down, long-term yields generally rose across major economies. The upward shift was initially driven by US yields and spilled over to other major markets. >more

DOES FINANCE BENEFIT SOCIETY? A LANGUAGE EMBEDDING APPROACH
Manish Jha, Hongyi Liu, and Asaf Manela
2024
We measure popular sentiment toward finance by applying a large language model to millions of books published in eight countries over hundreds of years. We extensively validate this measure both internally and externally. We document persistent differences in finance sentiment across countries despite ample time-series variation. Books written in the languages of more capitalist countries discuss finance in a more positive context. Finance sentiment is correlated with survey-based measures of financial market participation and income inequality. Finance sentiment declines one year before rather than after financial crises. Positive shocks to finance sentiment are followed by higher output and credit growth. >more

THE IMPACT OF THE OPIOID CRISIS ON FIRM VALUE AND INVESTMENT
Paige Ouimet, Elena Simintzi, and Kailei Ye
2024
We show a negative effect of opioid prescriptions on subsequent individual employment among employers in our sample, using doctor opioid prescribing propensity as our instrument. This has implications for firms that must now contend with lower local labor supply. We find a negative relationship between opioid prescriptions and subsequent establishment growth. However, firms respond to the labor shortage by investing more in technology, replacing the relatively scarcer labor with capital, especially when they are not financially constrained. We find positive abnormal returns upon the passage of state laws intended to limit opioid prescriptions-driven by firms more reliant on labor. >more