NEWSLETTER of November 24, 2023

The following content has been added at finexpert:

ifo
DIE DEUTSCHE WIRTSCHAFT NACH DREI HERAUSFORDERNDEN JAHREN – DROHT EINE PLEITEWELLE?
The German economy is struggling with the current economic and geopolitical situation. Rising prices and interest rates as well as cross-sector uncertainty are making day-to-day business difficult for many companies. Existential fears are evident in all areas of the German economy. >more

Creditreform
ZAHLUNGSVERHALTEN IN DEUTSCHLAND, 3. QUARTAL 2023
German companies had better payment practices in the third quarter of 2023 than in the same period of the previous year. Late payments have decreased significantly despite the numerous crises such as ongoing inflation, rising interest rates and an economic policy lurch. However, uncertainty plays a major role in this. >more

BlackRock
GLOBAL REAL ESTATE VIEWPOINT
Today’s macroeconomic environment has triggered a revaluation process in real estate globally. Higher interest rates, inflation and volatility has led investors to command higher risk premiums across asset classes. Private markets started to come under pressure in the second half of 2022 as investors globally are requiring higher risk premiums. Revaluations are occurring at difference paces across various regions and markets. >more

Institut für Mittelstandsforschung
ANALYSE ZUR BÜROKRATIEBELASTUNG IN DEUTSCHLAND – WIE KANN EIN SPÜRBARER BÜROKRATIEABBAU ERREICHT WERDEN?
This study examines the current bureaucratic burden on companies from a holistic, process-oriented (model) perspective - the so-called regulatory cycle. Based on quantitative company survey, an international comparison and an analysis of the literature, a holistic action plan is developed for the perceptible reduction of the bureaucratic burden. >more

Institut für Makroökonomie und Konjunkturforschung
IMK KONJUNKTURINDIKATOR: REZESSIONSGEFAHR BLEIBT HOCH
The probability that the German economy will be in recession in the next three months has risen slightly in recent weeks and stands at 75.9% at the beginning of November after 73% in the previous month. The forecasting uncertainty is currently 15.5%, down from 18.9% in the previous month. Against the backdrop of these barely changed results, the economic traffic light remains red (acute risk of recession). >more

CEO COMPENSATION: EVIDENCE FROM THE FIELD
Alex Edmans, Tom Gosling, and Dirk Jenter
2023
We survey directors and investors on the objectives, constraints, and determinants of CEO pay. We find that directors face constraints beyond participation and incentives, and that pay matters not to finance consumption but to address CEOs’ fairness concerns. 67% of directors would sacrifice shareholder value to avoid controversy, leading to lower levels and one-size-fits-all structures. Shareholders are the main source of constraints, suggesting directors and investors disagree on how to maximize value. Intrinsic motivation and reputation are seen as stronger motivators than incentive pay. Even with strong portfolio incentives, flow pay responds to performance to fairly recognize the CEO’s contribution. >more
 

OWNER INCENTIVES AND PERFORMANCE IN HEALTHCARE: PRIVATE EQUITY INVESTMENT IN NURSING HOMES
Atul Gupta, Sabrina T. Howell, Constantine Yannelis, and Abhinav Gupta
2023
Amid an aging population and a growing role for private equity (PE) in elder care, this paper studies how PE ownership affects U.S. nursing homes using patient-level Medicare data. We show that PE ownership leads to lower-risk patients and increases mortality. After instrumenting for the patient-nursing home match, we recover a local average treatment effect on mortality of 11%. Declines in measures of patient well-being, nurse staffing, and compliance with care standards help to explain the mortality effect. Overall, we conclude that PE has nuanced effects, with adverse outcomes for a subset of patients. >more