1173 Posts Found

Here are notes from a Q&A session with Buffett hosted for students from Emory’s Goizueta Business School and McCombs School of Business at UT Austin.

Content: Thought Leader | Authors: Dang Le, Warren Buffett | Subjects: Market/Investment, Miscellaneous

Dave Naffziger offers food for thought about startup stock options and when/whether they should be exercises. There are also links to related useful posts (like the difference between ISO and NSO option) and some useful information has been posted in the comments section. [Hat Tip to Ask The VC]

Content: Article | Author: Dave Naffziger | Subjects: Entrepreneurship, Finance

Why the risk of wrongdoing has migrated from senior executives to middle management — and what to do about it.

Content: Article | Author: David M. Katz | Source: CFO Publishing | Subjects: Accounting, Finance, Management, Risk Management

Content: Related Content | Source: Kearney | Subjects: Finance, International

An investigation shows that investors suffer when firms stop giving quarterly earnings guidance.

Content: Article | Authors: Baruch Lev, Jennifer Tucker, Joel F. Houston | Source: STERNbusiness (NYU) | Subjects: Finance, Market/Investment | Industries: Finance / Banking, Investing

Now open to public scrutiny, FASB’s codification tool is a one-stop shop for both accounting experts and newbies.

Content: Article | Author: Sarah Johnson | Sources: CFO Publishing, FASB | Subjects: Accounting, Finance

Behavioral finance argues that some financial phenomena can plausibly be understood using models in which some agents are not fully rational. The field has two building blocks: limits to arbitrage, which argues that it can be difficult for rational traders to undo the dislocations caused by less rational traders; and psychology, which catalogues the kinds of deviations from full rationality we might expect to … [ Read more ]

Content: Article | Authors: Nicholas Barberis, Richard H. Thaler | Source: Social Science Research Network (SSRN) | Subject: Finance

What is a company worth? The answer to this question can vary depending on who you ask and the purpose of the valuation. As a result, figures derived by an options trader, credit liquidator, and an acquiring firm will not only differ in amount but, more interestingly, in the methods used to reach them. While discounted cash flow methods are widely accepted as the most … [ Read more ]

Content: Article | Author: Pablo Fernández | Source: IESE Insight | Subjects: Accounting, Finance

At a time when many barriers to global trade have fallen, countries all over the world are taking steps to harmonize their accounting standards and develop a truly global language of business. Under the lead of the International Accounting Standards Board (IASB), more than 100 countries have either implemented International Financial Reporting Standards (IFRS) or plan to do so. Yet while proponents of accounting harmonization … [ Read more ]

Content: Article | Authors: Christian Leuz, Holger Daske, Luzi Hail, Rodrigo Verdi | Source: Knowledge@Wharton | Subjects: Accounting, Finance

Socially responsible investing is neither as profitable nor as responsible as advertised. But if you insist, here’s how to do it right.

Content: Article | Author: Henry Blodget | Source: The Atlantic Monthly | Subjects: Finance, Social Responsibility (ESG) | Industry: Investing

You probably lend your customers more money than you realize. Have you checked lately?

Content: Article | Author: Norm Brodsky | Source: Inc. Magazine | Subjects: Finance, Small Business

After posting “Financial Models for Underachievers: Two Years of the Real Numbers of a Startup” about the two years of actual costs of Redfin, many people asked for a generic version of the financial model that Redfin used to project costs. Here it is.

Content: Online Resource | Author: Guy Kawasaki | Source: How to Change the World | Subjects: Finance, Free Stuff / Tools

In the U.S. in 1906, the prominent private bank Kuhn Loeb – prompted by the scandal of the Armstrong Investigation – withdrew from the boards of all non-bank corporations. This historical announcement changed the course of corporate governance, and ultimately prevented private banks from being activist shareholders in the United States. In the paper “The Value of Private Banks in Corporate Governance: Evidence From the … [ Read more ]

Content: Article | Author: Miguel Cantillo | Source: IESE Insight | Subjects: Finance, History | Industry: Finance / Banking

In the short term, emotions influence market pricing. A simple model explains short-term deviations from fundamentals.

Content: Article | Authors: Bin Jiang, Marc H. Goedhart, Tim Koller | Source: McKinsey Quarterly | Subject: Finance

Many companies believe that they incur no incremental costs when they add just one more feature to a product or one more term or condition to a contract. Yet these seemingly minor changes accumulate over time into significant financial costs; IBM research has found that they can account for 15 percent to 20 percent of total business costs. The rule of thumb across industries is … [ Read more ]

Content: Quotation | Source: Business Performance Management | Subjects: Finance, Operations

But relationships that seem causal and permanent in one market era often vanish in the next, taking many “superior investment strategies” down with them. Today’s markets are also annoyingly efficient. The more studies that demonstrate that socially responsible stocks do better than regular stocks, the more investors will rush to buy them (and not just for “the greater good”). The resulting torrent of money flowing … [ Read more ]

Content: Quotation | Source: The Atlantic Monthly | Subjects: Finance, Social Responsibility (ESG) | Industry: Investing

The first problem with labeling a particular style of investing “socially responsible” is that it suggests that other kinds of investing are not. So it’s no wonder many people find the concept silly or offensive.

At some level, after all, our very economic system is socially problematic. The benefits accrue disproportionately to owners (investors, this means you), who make fortunes off the labor of rank-and-file employees. … [ Read more ]

Content: Quotation | Source: The Atlantic Monthly | Subjects: Investing, Social Responsibility (ESG) | Industry: Investing

It has long been suspected that fear of competition spurs managers to hide better-than-average business unit profit performance. However, a new study instead finds evidence that fear of increased oversight leads managers to hide less-than-average business unit performance.

Content: Article | Author: Philip G. Berger | Source: Capital Ideas | Subjects: Accounting, Finance

Professor, author and prominent economic advisor Silber chronicles an era when the U.S.’s reliance on the gold standard was leading it head-on into its first major financial crisis. The outbreak of WWI in 1914 yielded the biggest gold outflow in a generation, jeopardizing America’s reputation with creditor nations and sending the world market value of the dollar into a tailspin. Enter Treasury Secretary William McAdoo, … [ Read more ]

Content: Book | Author: William L. Silber | Subjects: Finance, History | Industry: Finance / Banking

To the beginner investor and most noninvestors, it seems as though the Federal Reserve System acts in a cloak-and-dagger manner. Eight times a year, the Federal Open Market Committee issues its determination for policy on the federal funds rate, and this tends to be the most covered and visible action that comes out of the Fed. But as recent events show, there is more that … [ Read more ]

Content: Article | Author: Scott Rothbort | Source: thestreet.com | Subjects: Economics, Finance