NEWSLETTER of September 25, 2020

The following content has been added at finexpert:

CFA Institute
ARTIFICIAL INTELLIGENCE IN ASSET MANAGEMENT
Artificial intelligence (AI) has grown in presence in asset management and has revolutionized the sector in many ways. It has improved portfolio management, trading, and risk management practices by increasing efficiency, accuracy, and compliance. In particular, AI techniques help construct portfolios based on more accurate risk and return forecasts and more complex constraints, as this e-book documents. >more

CMS
WHO DARES WINS: EUROPEAN M&A OUTLOOK 2020
Mergermarket is pleased to present Who dares wins: European M&A Outlook 2020, published in association with CMS. This report provides invaluable insights into the M&A landscape in Europe in 2020, and the opportunities and challenges facing dealmakers. >more

FINANCE Think Tank
M&A BERATUNG IM DIGITALEN ZEITALTER
Thought Leadership in its purest form: Several times a year, the FINANCE Think Tank gathers the masterminds in the market for a structured exchange of ideas. They discuss relevant topics of today and tomorrow. The findings are summarized in this white paper. >more

Invest Europe
PRIVATE EQUITY AT WORK
With this ‘Private Equity at Work’ report, Invest Europe is, for the first time, providing detailed evidence and analysis of the European private equity industry’s contribution to employment and job creation in Europe. Over time, our data will expand to create a comprehensive picture of our industry’s contribution to jobs, and the economy that those jobs support. >more

FENCING OFF SILICON VALLEY: CROSS-BORDER VENTURE CAPITAL AND TECHNOLOGY SPILLOVERS
Ufuk Akcigit, Sina Ates, Josh Lerner, Richard Townsend, and Yulia Zhestkova
2020
The treatment of foreign investors has been a contentious topic in U.S. entrepreneurship policy in recent years. This paper examines foreign corporate investments in Silicon Valley from a theoretical and empirical perspective. We model a setting where such funding may allow U.S. entrepreneurs to pursue technologies that they could not otherwise, but may also lead to spillovers to the overseas firm providing the financing and the nation where it is based. We show that despite the benefits from such inbound investments for U.S. firms, it may be optimal for the U.S. government to raise their costs to deter investments. Using as comprehensive as possible a sample of investments by non-U.S. corporate investors in U.S. start-ups between 1976 and 2015, we find evidence consistent with the presence of knowledge spill-overs to foreign investors. >more

LAW FIRM EXPERTISE AND SHAREHOLDER WEALTH
Denis Schweizer, and Ge Wu
2020
This paper examines the impact of law firm expertise on bidder and target shareholder wealth gains during mergers and acquisitions. After controlling for endogeneity in the matching between the mandating firm (bidder or target firm) and the law firm, we find that top-tier law firms increase the wealth of bidder shareholders by an average of 0.98% ($15.09 million), but not that of target firm shareholders. Interestingly, we also find no evidence that the reputation of the investment bank that neither advises the bidder nor the target firm is related to shareholder wealth gains. Our findings are consistent with Krishnan and Masulis (2013), and suggest that top-tier lawyers are effective “transaction cost engineers.” They create value for their clients by structuring deals to minimize transaction and regulatory costs, and by achieving a higher completion probability. >more