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Financing Year in Review: Evolving Markets and New Trends

Harvard Corporate Governance

Widely held concerns about inflation, rising interest rates, and a possible recession combined to slow debt financing and deal activity in the first half of 2023. Private equity sponsors, in particular, held back on debt-financed leveraged buyouts while watching to see whether interest rates (or business valuations) would fall.

Finance 133
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How Revenue-Based Financing and Venture Capital Work Together

Lighter Capital

As non-dilutive funding solutions attract more interest from SaaS entrepreneurs, venture capital (VC) investors are seeing an increasing number of startups who have used them for their growth and working capital needs, many times combining revenue-based financing (RBF) with a term loan, or other types of debt financing. Who gets RBF?

Finance 98
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Dissecting the Long-Term Performance of the Chinese Stock Market

Harvard Corporate Governance

Posted by Jun Qian (Fudan University), on Tuesday, April 16, 2024 Editor's Note: Jun Qian (QJ) is Professor of Finance and Executive Dean at the Fanhai International School of Finance (FISF), Fudan University. The second most popular external IPO destination for Chinese firms is the US.

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The Oscillating Domains of Public and Private Markets

Harvard Corporate Governance

Gözlügöl is an Advanced Researcher of the Cluster Law and Finance, Julian Greth is a Ph.D. Student and a Junior Researcher of the Cluster Law and Finance, and Tobias H. Time and again, market developments seemed to corroborate Jensen’s hypothesis with various trajectories of growing private markets and lagging public markets.

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Sony's Bold $26B Paramount Bid Raises Eyebrows: Can They Finance It?

Benzinga

Despite the concerns, market analysts suggest that more apparent financing plans could shift focus to the deal’s potential benefits, Bloomberg reports. The offer has sparked concerns about Sony’s financial capacity to handle the acquisition, as the proposed deal exceeds Sony’s current cash reserves.

Finance 96
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Share Repurchases on Trial: Large-Sample Evidence on Market Outcomes, Executive Compensation, and Corporate Finances

Harvard Corporate Governance

Kothari is the Gordon Y Billard Professor of Accounting and Finance at MIT Sloan School of Management; and Parth Venkat is an Assistant Professor of Finance at the University of Alabama Culverhouse College of Business. This post is based on their recent paper.

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Secret and Overt Information Acquisition in Financial Markets

Harvard Corporate Governance

Investors may have incentives to keep secret these activities to maintain their trading advantage over the market. This post is based on their paper forthcoming in The Review of Financial Studies. Site visits are considered costly and significant activities for investors to acquire information.