NEWSLETTER of October 2, 2020

The following content has been added at finexpert:

ECIIA
RISK IN FOCUS 2021: HOT TOPICS FOR INTERNAL AUDITORS
For the past five years Risk in Focus has sought to highlight the key risk areas identified by Chief Audit Executives (CAEs). The purpose of this publication is to help the internal audit profession prepare its independent risk assessment work, annual planning and even audit scoping by sharing the insights and learnings from the research. >more

BCG
THE 2020 M&A REPORT: ALTERNATIVE DEALS GAIN TRACTION
The 2020 M&A Report takes stock of an eventful first nine months of the year and looks ahead to how the COVID-19 crisis might shape a new reality for M&A. In this context of disruption and uncertainty, we examine the increasing popularity of alternative deals. In these deals, rather than acquiring control of and integrating a target, companies acquire minority stakes or establish cooperative arrangements—such as through joint ventures, strategic alliances, or corporate venture capital investments. >more

HHL | BVK | KfW
PRIVATE EQUITY ALS ANLAGEKLASSE FÜR INSTITUTIONELLE INVESTOREN UND FAMILY OFFICES IN DEUTSCHLAND
With this joint study, the Bundesverband Deutscher Kapitalbeteiligungsgesellschaften (BVK) and the Center for Corporate Transactions and Private Equity (CCTPE) of HHL Leipzig Graduate School of Management, supported by KfW Capital, provide an overview of the investment behavior and strategies of German investors in their private equity investments. >more

Bundesverband Deutsche Startups
DEUTSCHER STARTUP MONITOR 2020
1,946 startups, 4,745 founders, 25,966 employees: this is what the 8th German Startup Monitor (DSM) stands for. Thanks to the support of more than 300 network partners throughout Germany, the DSM's database continues to grow this year and the chosen focal points - the corona crisis and the topic area of migration - provide new impetus in current debates. >more
 

CEO NON-COMPETE AGREEMENTS, JOB RISK, AND COMPENSATION
Omesh Kini, Ryan Williams, and David Yin
2020
Using hand-collected data on chief executive officer (CEO) non-compete agreements (NCAs), we find that NCAs are less likely when CEOs expect to incur greater personal costs from reduced job mobility and more likely when firms expect to suffer greater economic harm if departing CEOs work for competitors. Additionally, turnover–performance sensitivity is stronger when CEOs have NCAs. Finally, total compensation and incentive pay are higher if CEOs have more enforceable NCAs. Our identification strategy exploits staggered state-level changes in NCA enforceability. Overall, our findings suggest that restrictions on job mobility have important implications for how CEOs are monitored and compensated. >more

RISKS AND RETURNS OF CRYPTOCURRENCY
Yukun Liu, and Aleh Tsyvinski
2018
We establish that the risk-return tradeoff of cryptocurrencies (Bitcoin, Ripple, and Ethereum) is distinct from those of stocks, currencies, and precious metals. Cryptocurrencies have no exposure to most common stock market and macroeconomic factors or to the returns of currencies and commodities. In contrast, we show that the cryptocurrency returns can be predicted by factors which are specific to cryptocurrency markets – there is a strong time-series momentum effect and proxies for investor attention strongly forecast cryptocurrency returns. Finally, we create an index of exposures to cryptocurrencies of 354 industries in the US and 137 industries in China. >more