Shareholder activism is expected to decline in 2016
Thomson Reuters
Shareholder activism may decline next year (CFO.com)
Shareholder activism reached new highs in 2015, but that trend may not continue.
Analysts at Moody's believe activism may "level off" and "possibly decline in 2016." The report focuses specifically on North American nonfinancial corporates.
Moody's says factors that may slow investor activism include "declines in activist hedge fund inflows and the number of attractive targets, as well as the possibility of higher US interest rates."
A decline is already being seen, with the third quarter delivering $121.8 billion in activist hedge fund assets under management (AUM), according to Hedge Fund Research. That's down from $129.6 billion in the second quarter.
Top-performing companies have these digital attributes in common (CGMA Magazine)
Rapid revenue and profit growth are more likely to be achieved when a company's leadership adopts a strong digital initiative.
A global PwC report asked survey respondents how they define "digital." Most respondents define it as activities related to technology innovation. Others define digital as business-wide tech investments with customer-facing tech activities or as synonymous with information technology (IT).
Regardless of how the term is defined, the study found that organizations with a high digital IQ are twice as likely to achieve rapid revenue growth compared to competitors who have not adopted a digital first strategy.
The study defines 10 attributes that companies must have to lead with digital.
Warren Buffett's rail CFO says rivals are going to have a hard time merging (Bloomberg)
Julie Piggott, the CFO of BNSF Railway, which is owned by Buffett's Berkshire Hathaway, believes government regulators are going to be skittish when it comes to approving railroad company mergers.
"This is still very speculative, I think, and rumor-based, but in our view we think that the regulatory environment is still challenging," Piggott told Bloomberg. "So we'll see where this goes."
Piggott says she isn't prepared to discuss how a merger of two rivals would affect BNSF's competitive position.
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