NEWSLETTER of November 15, 2024

The following content has been added at finexpert:

Quirin Privatbank
FINANZIERUNGSMONITOR KAPITALMARKT 1. HALBJAHR 2024
Overall, issuing activity on the German stock exchanges is historically low. However, despite the difficult capital market environment, small and medium-sized enterprises (SMEs) are particularly active and are successfully placing shares in order to finance themselves via the capital market. They also owe this to simplifications, particularly with regard to the exemption from the prospectus requirement for transaction volumes of up to EUR 8.0 million. >more

Deutsche Bank Research
EUROPÄISCHER VERBRIEFUNGSMARKT: BEREIT FÜR EINEN NEUANFANG?
The European securitization market has stagnated since the financial crisis. Growing political support, stronger push factors in the form of looming higher capital requirements for banks and the expiry of central bank refinancing programs as well as a more favourable macroeconomic environment are all providing a tailwind for the securitization market. However, without targeted regulatory measures, a significant increase in the securitization volume is unlikely to be achieved. >more

Arthur D Little | Invest Europe
THE INSIGHT: STATE OF THE EUROPEAN PRIVATE EQUITY INDUSTRY 2024
The survey of more than 250 managers and investors highlights improving optimism about activity over the coming 12 months – and in the medium term – as the macro backdrop stabilises and new technologies create new opportunities for evolution and expansion. >more

Invest Europe
H1 2024 EUROPEAN PRIVATE EQUITY ACTIVITY
A detailed analysis of private equity and venture capital fundraising, investment, and divestment across Europe in the first half of the year. Green shoots in exits, VC investment turns corner, amid ongoing challenges in H1 activity. >more

CORPORATE SUSTAINABILITY AND SCANDALS
Anna Vasileva, Jan Anton van Zanten, and Laurens Swinkels
2024
Corporate scandals can lead to loss of stakeholder confidence and trust and may have long-term reputational or financial consequences. Our study evaluates the link between corporate sustainability, measured by the extent to which a company contributes to the Sustainable Development Goals (SDGs), and scandals. We find that companies with higher alignment with the SDGs have a lower probability of being involved in scandals, and they are involved in fewer scandals that are less severe. If they are involved in scandals, they afflict fewer controversial topics or SDG themes. These findings are driven by companies active in highly scrutinized sectors, whereby SDGs related to climate change are particularly strongly related to scandal involvement. These results point to corporate sustainability being an indicator of corporate legitimacy and enabling investors to improve their sustainability and financial objectives. >more
 

RISK, THE LIMITS OF FINANCIAL RISK MANAGEMENT, AND CORPORATE RESILIENCE
René M. Stulz
2024
Existing evidence shows convincingly that expected cash flows of non-financial firms can be negatively affected by their total risk, so that non-financial firms can create shareholder wealth by managing their total risk. After reviewing theories that demonstrate links between firm value and total risk, I examine how financial risk management is used to manage firm total risk. I conclude from the evidence that the use of financial risk management is mostly limited to near-term risk in non-financial firms. I offer explanations for this limited role of financial risk management. I argue that the limitations of financial risk management make it important for firms to also focus on resilience and call for more research on the costs and benefits of resilience. >more