NEWSLETTER of September 13, 2024

The following content has been added at finexpert:

ValueTrust
EUROPEAN CAPITAL MARKET STUDY
This study provides the relevant parameters used to calculate the cost of capital for European enterprises, including risk-free rate, market risk premium and beta. It also provides implied and historical market/sector returns, capital structure-adjusted implied sector returns, which serve as an indicator for the unlevered cost of equity, and an analysis of empirical (ex-post) cost of equity in the form of total shareholder returns consisting of capital gains and dividends. >more

ValueTrust | finexpert | WU Vienna
DACH CAPITAL MARKET STUDY
In this Study, we provide cost of capital inputs required to perform an enterprise valuation in Germany, Austria and Switzerland, including the relevant parameters used to calculate the cost of capital under the CAPM. In addition, we provide a trading multiples overview and an anaylsis of total shareholder returns. >more

KfW Research
GERMAN VENTURE CAPITAL BAROMETER Q2 2024
The VC business climate continues on its path to recovery. In the second quarter of 2024, the business climate indicator for the early-stage segment gained 10.6 points and now stands at -8.9 balance points. The climate traffic light is therefore about to change from red to amber. Once again, both sub-components of the business climate, the current business situation and business expectations, are increasing at a similar rate. >more

Roland Berger
DIE DEUTSCHE KONJUNKTUR IN DER ZWEITEN HÄLFTE VON 2024
The hoped-for turnaround in the German economy in the middle of the year does not seem to be materializing - relevant indicators point to continued economic weakness. After a year of negative growth in 2023, there is a threat of stagnation in 2024. High interest rates and (geo)political uncertainty continue to weigh on the German economy, even though the European Central Bank has initiated a turnaround in interest rates and further interest rate cuts are expected by the end of the year. >more

THE WORKING CAPITAL CREDIT MULTIPLIER
Heitor Almeida, Daniel R. Carvalho, and Taehyun Kim
2024
We provide novel evidence that funding frictions can limit firms’ short-term investments in receivables and inventories, reducing their production capacity. We propose a credit multiplier driven by these considerations and empirically isolate its importance by comparing how a similar firm responds to shocks differently when these shocks are initiated in their most profitable quarter (“main quarter”). We implement this test using recurring and unpredictable shocks (e.g., oil shocks) and provide extensive evidence supporting our identification strategy. Our results suggest that funding constraints and credit multiplier effects are significant for smaller firms that heavily rely on financing from suppliers. >more

MONETARY POLICY TRANSMISSION THROUGH ONLINE BANKS
Isil Erel, Jack Liebersohn, Constantine Yannelis, and Samuel Earnest
2024
Financial technology has the potential to alter the transmission of monetary policy by lowering search costs and expanding banking markets. This paper studies the reaction of online banks to changes in the federal funds rate. We find that a 100 basis points increase in the federal funds rate leads to a 30 basis points larger increase in the deposit rates of online banks relative to traditional banks. Consistent with the rate movements, online bank deposits experience inflows, while traditional banks experience outflows. Results are similar across markets with differing competitiveness and demographics, but vary with the stickiness of depositors. >more