1173 Posts Found

Strategically, intrinsic value is not maximized solely by the maximization of Current Operations Value (COV), but by the simultaneous maximization of the sum of its two components–COV and Future Growth Value (FGV), including the value of real options. Ultimately, this requires business leaders to address, in the context of value-based strategy, both the renewal of future growth value through investments in intangibles and the future, … [ Read more ]

Content: Quotation | Source: Ivey Business Journal | Subjects: Finance, Strategy

Traditionally, most companies allocate IT funds based on net present value (NPV) or ROI. The problem with this approach is it naturally favors projects that deliver productivity benefits, even when other projects with less tangible value may be more important to the overall business strategy. Projects with the highest NPV or ROI don’t necessarily create the most value. What really matters is whether an investment … [ Read more ]

Content: Quotation | Source: Optimize Magazine | Subjects: Finance, IT / Technology / E-Business

How much is your company worth? If you own a piece of a public company, you can pick up a newspaper every morning and see how your business is trading. But if you own part or all of a private company, there are very few places you can turn for similar information. To help you, Inc. and Inc.com have partnered with Business Valuation Resources to … [ Read more ]

Content: Online Resource | Sources: Business Valuation Resources, Inc. Magazine | Subjects: Finance, Market Research

Whether you’re buying whole companies or just a few shares, there’s no better investing how-to book than this. But don’t take my word for it; the book is famously revered by no less an intelligent investor than Warren Buffett. Graham’s advice is simple — any stock you buy should be worth more than it costs — and he provides a method for determining a stock’s … [ Read more ]

Content: Book | Authors: Benjamin Graham, Jason Zweig | Subjects: Economics, Finance | Industry: Investing

When used as a management tool, rolling forecasts have an edge over many other performance management systems. This excerpt from the new book Reinventing the CFO explains how to make forecasts realistic and effective.

Content: Article | Author: Jeremy Hope | Source: Harvard Business School (HBS) Working Knowledge | Subjects: Finance, Management

This content is restricted to site members. Please log in or register

This article discusses various business and procedural considerations relating to going private and provides an overview of some of the techniques that can be used to take a company private.

Content: Article | Author: Cristy Lomenzo Parker | Source: Rutan & Tucker LLP | Subjects: Finance, Legal

Return on capital measures the productivity of capital investments. How useful is this measure for businesses in which capital investments tend to be small and returns of more than 50 percent are common? For people-intensive businesses, it is more important to know about employee productivity than capital productivity.

Content: Quotation | Source: Ivey Business Journal | Subjects: Accounting, Finance

Conventional wisdom dictates that businesses invest in their best performing units, and sell, shutter, or siphon off resources from their worst performers. But what if the conventional thinking is wrong? Leading behavioral economists now believe that investing in your “dogs,” or poor performing units, could bring far better returns than investing in your “stars,” or best performing units. It’s a counterintuitive strategy that could lead … [ Read more ]

Content: Article | Authors: Harry Quarls, Kasturi Rangan, Thomas Pernsteiner | Source: strategy+business | Subjects: Finance, Strategy | Industry: Investing

Stock investing is a relatively recent phenomenon and the inventory of true classics is somewhat slim. When asked, people in the know will always list books by Benjamin Graham, Burton G. Malkiel’s A Random Walk Down Wall Street, and Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher. You’ll know you’re getting really good advice if they also mention Reminiscences of a … [ Read more ]

Content: Book | Author: Edwin Lefèvre | Subject: Finance | Industry: Investing

Manias, Panics, and Crashes is a scholarly but highly readable trip through the history of financial crises from the Mississippi and South-Sea bubbles to the June, 1974, failures of the Herstatt Bank of Cologne and the Franklin Bank of New York. Kindleberger’s goal is to illustrate the causes and consequences of mania (a bubble in asset prices driven by an irrational excitement about business possibilities), … [ Read more ]

Content: Book | Author: Charles P. Kindleberger | Subjects: Finance, History | Industry: Finance / Banking

In a 30-year career equally divided between academics (University of Chicago) and Wall Street, Black contributed seminal papers in almost every area of finance and many areas of economics, but few were published in major peer-reviewed journals and many were never published at all. He spent most of his time alone in a room thinking and writing, was uncomfortable in large groups, an undistinguished lecturer … [ Read more ]

Content: Book | Author: Perry Mehrling | Subjects: Finance, History

Emanuel Derman was one of the first physicists to move to Wall Street, and his career paralleled the growth of quantitative trading over the past twenty years. In My Life as a Quant , he traces his transformation from ambitious young scientist to managing director and head of the renowned Quantitative Strategies group at Goldman, Sachs and Co. Derman’s tale recounts his adventures with quants, … [ Read more ]

Content: Book | Author: Emanuel Derman | Subject: Finance | Industry: Investing

Real options analysis offers executives a new way to value large strategic projects that reduces risk and uncertainty by turning the unknown into the known.

Content: Article | Authors: Duane Dickson, Mike Matheis | Source: Kearney | Subject: Finance

Private equity firms score their biggest wins by helping the companies in their portfolios to outperform industry peers. Our research shows that these firms do so by governing their companies actively, offering focused incentives, investing lots of time during the first 100 days, developing plans to create value, and changing management teams early when necessary.

Content: Article | Authors: Conor Kehoe, Joachim Heel | Source: McKinsey Quarterly | Subjects: Finance, Venture Capital

We all live and die by the numbers-but do we really understand what they mean? Here’s how managers can help all employees understand cash flows and liquidity ratios.

Content: Article | Authors: Joe Knight, John Case, Karen Berman | Source: Harvard Business School (HBS) Working Knowledge | Subjects: Finance, Management

This content is restricted to site members. Please log in or register

While profit and loss can be measured easily enough, the emotional responses that determine whether results feel like success or failure are much more complicated. INSEAD’s Associate Professor of Decision Sciences, Philippe Delquié and Alessandra Cillo argue this response is not a factor of prior expectations, as suggested by previous studies. Instead, outcomes are valued relative to all missed outcomes, whether these alternatives were foreseen … [ Read more ]

Content: Article | Authors: Alessandra CILLO, Philippe Delquié | Source: INSEAD Knowledge | Subjects: Finance, Organizational Behavior

By moving from lagging practices to leading practices, organizations can plan their budgets faster and more effectively, resulting in better business outcomes. Based on APQC’s extensive benchmarking research, learn how best practice organizations take advantage of single-instance ERP, rolling forecasts, and activity-based management to improve their performance in financial planning.

Content: Article | Author: Lisa Higgins | Source: American Productivity & Quality Center (APQC) | Subjects: Best Practices, Finance

Once in Golconda is a dramatic chronicle of the breathtaking rise, devastating fall, and painstaking rebirth of Wall Street in the years between the wars. Focusing on the lives and fortunes of some of the era’s most memorable traders, bankers, boosters, and frauds, John Brooks brings to vivid life all the ruthlessness, greed, and reckless euphoria of the ’20s bull market, the desperation of the … [ Read more ]

Content: Book | Author: John Brooks | Subjects: Finance, History | Industry: Investing