NEWSLETTER of July 5, 2019

The following content has been added at finexpert:

Oliver Wyman / Deutsche Bank Research

GLOBAL WEALTH MANAGERS: OUT OF THE PIT STOP - INTO THE FAST LANE

Oliver Wyman and Deutsche Bank have released their fourth annual wealth management report, in which they provide an overview of recent industry trends and the outlook for future developments. Wealth managers faced growing headwinds in 2018, with global high-net-worth wealth growth slowing to 4 percent. Lower AuM growth, more challenging markets and continued fee compression led to declining wealth management business valuations. The revenue pressure felt by wealth managers in late 2018 highlights the continued vulnerability of operating models to market stress. The rebound in early 2019 brought short-term relief for some but further pressure is inevitable as the end of the cycle approaches – wealth managers must take action. >more

Deloitte

DIE ZUKUNFT DER FINANZFUNKTION IN BANKEN

The advancing digitalisation increasingly influences our daily routine, our communication behaviour and the networking of markets, companies and customers. At the same time, new competitors are entering the market who are agile and data-based in order to offer customers a positive and comprehensive experience with new services and products. Banks must therefore adapt their strategies and business models. What consequences will this have for the future of the finance function in banks? >more

Ernst & Young

GLOBAL IPO TRENDS: Q2 2019

After a very weak start to the year, the global market for IPOs recovered significantly in the second quarter. While in the first three months of the year only 205 IPOs were counted, bringing in just 15 billion US dollars, the number of IPOs rose to 302 in the second quarter. The issue volume even increased to 57 billion US dollars thanks to several IPOs of large corporations and strongly growing technology start-ups. >more

CMS Hasche Sigle / FINANCE

M&A PANEL FRÜHJAHR 2019

For the FINANCE M&A Panel, the FINANCE editorial staff, together with the law firm CMS Hasche Sigle, interviews M&A managers in companies and investment banks anonymously three times a year about their current market assessment. The report compiles the most exciting statements on deal drivers, deal breakers and the financing environment. >more

THE BALANCE OF POWER BETWEEN CREDITORS AND THE FIRM: EVIDENCE FROM GERMAN INSOLVENCY LAW

Frédéric Closset, and Daniel Urban
2019
In 2011, German legislators passed the latest reform to German Insolvency Law (ESUG). ESUG mandates that creditors of larger firms can exert more influence on the appointment of the insolvency administrator, resulting in a shift of power from shareholders to creditors. Based on difference-in-differences estimation, we find that larger firms reduced financial leverage by about 4 to 7 percentage points relative to control firms. Furthermore, after the enactment of ESUG, larger firms spend less money on investment and pay higher interest rates. Overall, the evidence is consistent with the view that German creditor protection has become too strong. >more

REPUTATIONAL CONCERNS IN THE MARKET FOR CORPORATE CONTROL

Audra L. Boone, and Vahap Bülent Uysal
2018
This paper explores whether corporate acquirers consider environmental reputations when planning and structuring takeovers. We find that firms with an environmentally toxic reputation, which have the greatest potential for negative spillovers to their merger partners, have a lower associated probability of being both acquirers and targets. Acquirers are more likely to pair with similar reputation firms and are less likely to acquire firms with lower reputations. Most notably, green firms in our sample never acquire toxic firms. Acquirers that buy firms with differing environmental reputations use a higher percentage of stock in their acquisition offers. We further show that the returns to acquirers are lower when they acquire firms outside of their area. Collectively, these findings suggest that managers account for potential negative spillover effects in acquisition decisions. >more