NEWSLETTER of December 13, 2019

The following content has been added at finexpert:

Roland Berger

PSD2: HOLPRIGER START FÜR OPEN BANKING

The vast majority of European financial institutions (81 percent) see the second Payment Services Directive (PSD2), which came into force in the EU on September 14, as an opportunity. However, most banks are still reluctant to take advantage of the new opportunities: only around one third (35 percent) of banks have so far positioned themselves to take on the role of a third-party provider. These are the key findings of Roland Berger's study "Adapt or die? Why PSD2 has so far failed to unlock the potential of Open Banking". The publication included interviews with over 40 leading banks, third-party providers and large technology companies in twelve European markets. >more

Deutsche Börse

ZUM RÄTSEL DER GERINGEN TEILNAHME AM AKTIENMARKT IN DEUTSCHLAND

The Frankfurt School of Finance and Goethe University were commissioned by Deutsche Börse to examine the background to why the number of shareholders in Germany is particularly low by international standards. The results of the study "Zum Rätsel der geringen Teilnahme am Aktienmarkt in Deutschland" are now available and show that fear of an economic catastrophe, general fear of loss, too little wealth, too little financial knowledge as well as a lack of confidence in the stock market and fear of fraud are the most widespread concerns of non-shareholders about a stock investment. >more

KfW Research

GRÜNDUNGSFINANZIERUNG IM WANDEL: FINANZIERUNGSMIX VERÄNDERT SICH DEUTLICH

On a long-term average, 20 to 25 % of start-ups regularly use funds from external investors. However, there has been a visible change in the sources of financing used. Banks and savings banks are less likely to act as investors, family and friends more likely. This development was not to be expected. The composition of the founding activity shifted towards more equal opportunities for start-ups, i.e. start-ups that were more likely to use credit more frequently. The changes in the financing mix therefore indicate that the financing of start-ups in the coming years will become more challenging. >more

CMS Hasche Sigle

UPDATE ARBEITSRECHT DEZEMBER 2019

Winter time is sick time. Sickness-related absenteeism often presents companies with real challenges, especially when staffing levels are already low. According to the AOK, the average absence of employees insured there in 2017 was 19.6 days. This is an impressive figure. There are now numerous strategies and considerations as to how illnesses can be reduced in advance through company health management. In the following article we highlight the rights and opportunities that an employer has if its employee is already ill. >more

UBS

2020 OUTLOOK: EXPECTING THE UNEXPECTED

The global economy is slowing while the list of potential market surprises grows. We look at the opportunities this could create for investors in 2020. Our senior asset class experts assess the investment landscape for 2020 and highlight what this means for investors going forward. >more

CLIMATE CHANGE, OPERATING FLEXIBILITY, AND CORPORATE INVESTMENT DECISIONS

Chen Lin, Thomas Schmid, and Michael S. Weisbach
2019
Extreme temperatures lead to large fluctuations in electricity demand and wholesale prices of electricity, which in turn affects the optimal production process for firms to use. Using a large international sample of planned power plant projects, we measure the way that electric utilities’ investment decisions depend on the frequency of extreme temperatures. We find that they invest more in regions with more extreme temperatures. These investments are mostly in flexible gas and oil-fired power plants that can easily adjust their output, to improve their operating flexibility. Our results suggest that climate change is becoming a meaningful factor affecting firms’ behavior. >more

PUBLIC VERSUS PRIVATE EQUITY

René M. Stulz
2019
The last twenty years or so have seen a sharp decline in public equity. I present a framework that explains the forces that cause the listing propensity of firms to change over time. This framework highlights the benefits and costs of a public listing compared to the benefits and costs of financing with private equity. With this framework, the decline in public equity is explained by the increased supply of funds for private equity and changes in the nature of firms. The increase in the importance of intangible assets makes it costlier for young firms to be public when the alternative is funding through private equity from investors who have specialized knowledge that enables them to better understand the business model of young firms and contribute to the development of that business model in contrast to passive public equity investors. >more