NEWSLETTER of November 13, 2020

The following content has been added at finexpert:

Lazard
REVIEW OF SHAREHOLDER ACTIVISM - Q3 2020
Lazard's quarterly review of shareholder activism compiles and analyzes data on key activism trends globally. Q3 2020 represented the lowest level of quarterly activist activity since 2013. 24 campaigns were launched globally in Q3 2020, down 41% from Q2 2020 and 54% lower than Q3 2019 levels. >more

Skadden
EUROPEAN HIGH-YIELD MARKET RESPONDS TO COVID-19
While the outbreak of COVID-19 brought primary issuances of high-yield in Europe to a standstill starting in late February 2020 (lasting close to two months), in June the markets resumed the brisk pace of primary issuances that took place in January and February. Total European high-yield issuances by volume in the first half of 2020 were only slightly below the same period in 2019. >more

ZEW
M&A-REPORT OKTOBER 2020
The M&A report is jointly prepared by ZEW and Bureau van Dijk. Every six months, it provides information on current topics and developments in global mergers and acquisitions based on the Zephyr database. Zephyr provides daily updated detailed information on more than one million M&A, IPO and private equity transactions worldwide. >more

Goldman Sachs
MACRO OUTLOOK 2021: V(ACCINE)-SHAPED RECOVERY
With the US election largely settled, Goldman Sachs Research has updated its economic outlook for 2021. See why above-consensus growth in most major countries is expected in the new year. But just as the global economy rebounded quickly (albeit partially) from the lockdowns in the spring, GS expects the current weakness to give way to much stronger growth when the European lockdowns end and a vaccine becomes available. >more

CORPORATE IMMUNITY TO THE COVID-19 PANDEMIC
Wenzhi Ding, Ross Levine, Chen Lin, and Wensi Xie
2020
We evaluate the connection between corporate characteristics and the reaction of stock returns to COVID-19 cases using data on over 6,700 firms across 61 economies. The pandemic-induced drop in stock returns was milder among firms with (a) stronger pre-2020 finances (more cash and undrawn credit, less total and short-term debt, and larger profits), (b) less exposure to COVID-19 through global supply chains and customer locations, (c) more CSR activities, and (d) less entrenched executives. Furthermore, the stock returns of firms controlled by families (especially through direct holdings and with non-family managers), large corporations, and governments performed better, and those with greater ownership by hedge funds and other asset management companies performed worse. Stock markets positively price small amounts of managerial ownership but negatively price high-levels of managerial ownership during the pandemic. >more

INSTITUTIONAL INVESTORS AND HEDGE FUND ACTIVISM
Simi Kedia, Laura T. Starks, and Xianjue Wang
2020
Hedge fund activists have ambiguous relationships with the institutional shareholders in their target firms. While some support their activities, others counter their actions. Due to their relatively small holdings in target firms, the activists typically need the cooperation of other institutional shareholders that are willing to influence the activist’s campaign success. We find the presence of “activism-friendly” institutions as owners is associated with an increased probability of being a target, higher long-term stock returns, and higher operating performance. Overall, we provide evidence suggesting the composition of a firm’s ownership has significant effects on hedge fund activists’ decisions and outcomes. >more