Entries tagged with “corporate”
Articles
22 articles found for corporate:
- Disinflation – The How and Why of it
In economics, fluctuations in inflation rates can significantly influence the financial landscape of businesses. While inflation tends to erode purchasing power, disinflation – a slowdown in the rate of price increases – presents a different set of challenges, particularly for companies seeking financing. As disinflation alters market dynamics, it can have positive and negative repercussions for businesses. Understanding these implications is crucial for navigating the intricacies of corporate finance and strategizing for sustainable growth.
- Role of Technology in Building Resilient Companies of the Future
In a volatile world, with economic recessions, technological disruptions, and global crises like COVID-19, many businesses falter, unable to adapt. Resilience emerges as the cornerstone of corporate strategy, distinguishing between mere survival and thriving. It's about bouncing forward, integrating resilience into a company's DNA. Anticipating threats, withstanding shocks, and adapting are key. Technology plays a pivotal role in bolstering adaptability, streamline operations, and foster innovation. In essence, resilience coupled with advanced technology defines the blueprint for thriving amidst uncertainty.
- Exploring Web3: Applications and Use-Cases
In this technology-driven world, centralization has enabled billions of people to become familiar with the world wide web or the internet, making way for the advent of many emerging technologies such as AI, blockchain, and machine learning. The increasing implementation of blockchain has necessitated the interoperability and seamless integration of blockchain platforms. Web3 embraces decentralization and gives more power to individuals than corporate giants, thus providing interesting use cases.
- Integrating ESG in Real Estate
Environmental, Social, and Corporate Governance (ESG) is slowly gaining prominence across industries. Real estate has been a late adopter of this concept, but global warming concerns and net zero commitments have accelerated its acceptance within the industry. Real estate companies across regions are embedding ESG practices within their processes. Investors and financial firms also consider it important. ESG is set to become an essential requirement and become an integral part of Real Estate processes.
- Navigating Tomorrow: Proactively Track Slow-Moving Changes
Proactively navigating slow-moving technological changes is a vital strategic need for companies seeking sustained success in today’s dynamic business landscape. These changes, often gradual, have the power to shape or disrupt industries and companies, influence consumer behavior, and redefine competitive landscapes over time. Businesses should be attentive to these shifts and adopt proactive measures to track and understand them. From strategic planning to risk mitigation, there are various reasons why staying ahead of slow-moving changes is essential for corporate resilience and competitiveness.
- The Other Side of ESG Investing
Environmental, social, and governance (ESG) factors play a critical role in investment analysis, actions, and recommendations. Globally, investors are looking at different methods such as positive or negative screening, green finance, thematic investing, shareholder engagement, and activist ownership to include ESG factors. Sustainable investing is the new buzzword for successful investing. However, various private ESG data providers use inconsistent scoring approaches or inappropriate constraints and assumptions. Lack of standardization and transparency makes it tough for investors and analysts to determine the effectiveness of ESG scoring. Additionally, companies having a low environmental score, owing to uncertain emissions reduction targets, but a high social and governance score may not be considered ESG compliant by a few market participants. This lack of uniformity has given rise to issues such as greenhushing and greenwashing.
- Tokenization: From Brick to Blockchain
The real estate industry is swiftly adopting tokenization, and conventional real estate institutions are working with technology suppliers to investigate the tokenization of loan or equity. Increasing investor access to high-quality real estate assets is anticipated to revitalize real estate investment as more technology-driven real estate initiatives come to fruition.
- The Current Real Estate Turmoil in China
China’s real estate sector is in turmoil due to various factors, ranging from low investment to declining trade numbers. It has far-reaching implications and is threatening the country’s economic growth. Therefore, the government has undertaken certain policy measures to limit the damages. However, a more extensive plan is needed to deal with this issue effectively.
- Harnessing Patent Landscapes across Departments
Patent landscapes, once the exclusive domain of Intellectual Property (IP) teams, have evolved into a goldmine of information shaping decisions beyond protecting innovations. This case study unveils the pivotal role patents play in steering business strategy and innovation, with 45% of projects executed in the past five years at Aranca focusing on insights for non-IP functions.
- Metaverse in Hospitality Industry
The metaverse will soon become a parallel universe, which cannot be ignored. Various industries have recognized its relevance and are exploring its immense potential. The hospitality industry, which includes hotels, restaurants, and eateries, has also taken steps in this direction. Some well-known hotel brands are designing their presence in the virtual world, while restaurants and eateries are integrating related technologies in their services. However, as the metaverse develops, numerous opportunities will be available for the hospitality industry.
- 5 Reasons why CFOs Like (and Dislike) Goodwill
Purchase price allocation (PPA) and goodwill assessment is a must-have for any acquirer following an M&A deal to report the correct value of the assets on its financials. Assessing goodwill has always been a complex process and could create a fair amount of issues if not handled correctly. CFOs usually have a love-hate relationship with goodwill as it relates to their specific situation. The article provides a brief overview of the two sides of a goodwill assessment.
- Rise of Metaverse Real Estate
Real estate is rapidly developing in metaverse as more and more corporations are buying land in the virtual world. The main real estate companies in this segment are witnessing exponential growth and have potential for further development. Land prices in metaverse are connected to the experiences that can be created within this space. Therefore, corporations, retailers, hospitality companies, and banks are marking their territory in the virtual world and vying to create the most interesting experiences.
- Veterinary Medicine – An Emerging Segment
The global veterinary market is benefitting from the growing trend of pet adoption and is witnessing increased demand. Some interesting trends are changing this industry and key players in this space must be aware of these factors. These trends will change the face of veterinary medicine and bring about advancement in animal healthcare.
- The Dual Effect of Private Equity
Private equity (PE) investments help and support companies with promising prospects, which have several positive impacts on society as they help create jobs and build successful businesses. PE firms provide capital for companies, encouraging them to grow and become more competitive. However, critics argue that these investments typically force small companies out of business and can be detrimental to them in some respects. Overall, PE has both positive and negative implications and can be a boon to society, but a threat to startups in certain situations.
- Nurturing Sustainability Across the Supply Chain
It has become increasingly imperative for companies to embed sustainability throughout the supply chain. Companies are recognizing the need to connect with their tier-1 and tier-2 suppliers, adopting measures such as decarbonization initiatives and incorporating green packaging materials. By doing so, they aim to reduce their environmental impact and create a more sustainable value chain. Through collaborative approaches and the involvement of experts, organizations are better positioned to navigate the complexities of sustainability and make meaningful progress in embedding sustainability across their entire supply chain.
- Thematic Investing on the Rise
Disruptive technology is constantly reshaping the world. Despite the pandemic-induced lockdown, seamless internet connectivity enabled access to a virtual world where we could work, shop, and even meet people. Due to mobility restriction, labor shortage, and supply chain disruption, manufacturers have turned to robotics. Breakthrough treatments and medical advances in healthcare have helped combat the pandemic crisis. Climate change has shed light on vehicle electrification and the shift to renewable energy. Consequently, technological advancements such as AI, machine learning, blockchain, robotics, and data analytics are gaining popularity. The benefits of these disruptions, or rather “trends” and “themes,” are manifold. These trends are increasingly changing the way investors manage their portfolios.
- Can ChatGPT Disrupt Financial Services?
Generative artificial intelligence (AI) tools, including ChatGPT, have led to increased adoption of AI in financial advisory and risk management. These tools have the potential to address issues related to operational inefficiencies, fraudulent activities, and the need for personalized services. However, it is important to recognize that ChatGPT has limitations, and human intelligence and judgment will continue to be crucial for decision-making.
- Buy Now Pay Later: The Latest FinTech Disruption in Payments
BNPL is a FinTech option that allows buyers to buy now and pay over a period of time. Unlike the regular loans, BNPL does not involve paperwork – customers can access it almost instantly using their smartphones. Besides helping customers raise credit easily and boosting the sales of consumer goods and other white goods, BNPL helps merchants to explore new borrowers. Accessing credit via BNPL is easy and hassle-free compared to a traditional loan; however, consumers must exercise utmost caution before using the BNPL facility as it is also a type of loan which must be repaid. The sector has faced intense scrutiny from regulators recently over awareness concerns. Nonetheless, BNPL’s future appears very bright.
- Shifting Tides: The Silent Rise of De-Dollarization
The US dollar has been the world's dominant reserve currency for decades, with countries around the globe holding large amounts of it to facilitate international trade and investments. However, the trend toward de-dollarization has been growing recently, as countries seek to curtail their dependence on the US dollar and diversify their reserve holdings. Will the dollar be replaced as the global currency?
- Virtual Estate - An Illusion?
Metaverse is a next-generation system that delivers content and services, probably why it is referred to as the evolution of the internet. Just as radio served as a platform for music and audio content, metaverse will be the foundation for web browsers with organized data and information on web pages and platforms.
- Forging a Sustainable Future: A Look at Steel Companies' ESG Initiatives
In 2022, worldwide production of crude steel totaled 1,885.02 million metric tons (mmt), and demand for steel is anticipated to increase significantly to meet future requirements. However, the steel industry is a major contributor to global greenhouse gas (GHG) emissions due to its reliance on fossil fuels and energy-intensive production processes. Currently, the industry accounts for approximately 8% of the global final energy demand and 7% of the energy sector’s CO2 emissions. Hence, there is pressure on the industry to reduce its carbon footprint. Consequently, it has been exploring various strategies, such as using renewable energy sources, adopting more efficient production methods, and implementing carbon capture and storage technologies to mitigate the environmental impact.
- Revamping R&D Strategies as Per the New Normal
While countries struggle with macroeconomic issues and geopolitical tension, companies need to revamp themselves to maintain business continuity. Businesses are already fighting to survive, with pressure from economic downturn, global inflation, supply chain disruptions due to war situations, and climate changes. Is there a game plan that can help them not only ride out this tough time but also thrive?
Special Reports
5 special reports found for corporate:
- High Yield – US Spotlight
After recording a plunge in the US high yield bond returns in 2022, the Federal Reserve’s aggressive monetary policy stance to tame inflation proved crucial in driving asset prices in 2023. The possibility of a soft-landing, where the US Fed could afford to slowdown economy and avoid a recession, has favored higher-beta fixed income assets such as the US speculative grade corporate bonds. We observed this in 9M’23, where the US high yield corporate bond Index generated returns at ~6% whereas the US Investment Grade Bond Index remained flat. Barring Equity and Energy, the US high yield corporate bonds outperformed other asset classes like the US treasuries, gold, and metals. As recessionary fears subsided, spreads across all rating categories of the US high yield bonds (i.e., BB, B, CCC and lower) have tightened. However, due to higher borrowing costs, the number of High Yield Corporate Bond issuances remains below the five-year average. Notably, consumer discretionary and healthcare sectors remain challenged by multiple headwinds, such as muted consumer demand, pricing pressures, high labor costs, and rising input costs. The impact is witnessed from the fact that a major chunk of bankruptcy protection filings has been in these sectors. Overall, bankruptcies in YTD Aug’23 have surpassed 2021 and 2022 levels. We still see value in the real estate, materials, and utilities sector, which recorded relatively lower bankruptcies in 2023.
- High Yield - Europe Spotlight
European HY bond market returns declined in YTD 2022, owing to heightened geopolitical tensions and rising interest rate risks. Issuers largely stayed on the sidelines in 2022 due to higher refinancing costs. Despite recession fears, the 10-year–2-year European spread steepened in 2022, in contrast to the US curve inversion. That said, the Eurozone recession is likely to stem from energy supply concerns owing to the Russia-Ukraine crisis and not from ECB tightening its monetary policy. Notably, S&P expects the European high yield corporate default rate to rise to 3.0% by March 2023 from 0.7% as of March 2022.
- US Buybacks: Identifying Winners Amid Slowing Momentum
Share buybacks have become the predominant means of corporate payout, surpassing dividends in the past two decades. The key driver for share repurchases include tax advantages, financial flexibility, and support for stock prices. In the last 15 years, the S&P 500 Buyback Index, which tracks companies with a high buyback ratio in the S&P 500, has outperformed the S&P 500 equal-weighted Index. However, buybacks fell by 22% in the first half of 2023 compared to the same period last year, as corporations reassess their capital allocation strategy in the face of slowing growth prospects. In this backdrop, we identify companies with a strong buyback track record, showcasing consistent free cash flows and a robust balance sheet that are likely to outperform the broader market in the current slowing repurchase momentum.
- HealthTech Decoded: 2021
HealthTech deal activity reached new heights in 2021 as new subsectors with innovative solutions emerged. Connected care maintained its position as a hotbed of investment activity, as consumers continued to seek virtual healthcare advice rather than in-person visits. As the pandemic prompted healthcare providers to modernize tech stacks, companies providing data management solutions saw a significant rise in demand. Similarly, the increase in corporate wellness initiatives encouraged investments in enterprise HealthTech solutions. As overall liquidity in the market remained high, 2021 also saw the number of megadeals surge 2x vis-à-vis 2020. In this edition of HealthTech Decoded, we bring you insights into the sector’s performance after the extended pandemic outbreak as well as notable funding trends across the globe in the HealthTech space in 2021.
- Q2 2023 Global Macro Report
Q2 posted a slowdown in global economic growth along with strong returns in risk assets. The IMF expects global growth to be lower in 2023 than 2022 for most advanced countries. It also expects headline inflation to decline owing to the aggressive monetary policies of major central banks, but core inflation may decline slowly. Chinese economic recovery seemed to have run out of steam after the initial reopening thrust, as shown by the decline in inflation, retail sales and PMI numbers.
Regarding asset class returns, equities rallied during Q2 due to strong corporate earnings in Q1, slowing inflation, a resilient US economy, and the AI theme. China’s sluggish recovery led emerging market equities to underperform developed market equities. Bonds gave a mixed performance with most yields increasing to price-in high rate expectations as central banks continued their hawkish policies. High yield bonds performed well despite their historically low yields. The US Dollar strengthened while gold price declined as the US Federal Reserve increased rates. Oil prices fell as expectations of a global economic slowdown loomed over investors.