1173 Posts Found

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The first objective of corporate strategy is protection of the cash generators. In almost every company a few products and market sectors are the principal source of net cash generated.

Content: Article | Author: Bruce D. Henderson | Source: Boston Consulting Group (BCG) | Subjects: Finance, Strategy

Valuation is at the heart of every investment decision, whether that decision is to buy, sell, or hold. But the pricing of any financial asset has become a more complex task in modern financial markets. Now completely revised and fully updated to reflect changing market conditions, Investment Valuation, Second Edition, provides expert instruction on how to value virtually any type of asset-stocks, bonds, options, futures, … [ Read more ]

Content: Book | Author: Aswath Damodaran | Subject: Finance

Showing that leverage leads to underinvestment is standard fare for any corporate finance class. However, as Lyandres and Zhdanov point out, it might be better to say that leverage influences investment, but that the direction of the bias is firm-dependent.

Content: Article | Author: James Mahar Jr. | Source: FinanceProfessor.com | Subject: Finance

CFOs have long suspected a link between a successful BPM initiative and increased profitability. New research connects the dots.

Content: Article | Author: Tad Leahy | Source: Business Finance Magazine | Subjects: Finance, IT / Technology / E-Business

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You think you’ve got problems? Amtrak’s got an overpaid workforce. Its trains and tracks are falling apart. Worse, the carrier’s balance sheet is a flat-out mess.

Content: Case Study | Author: John Goff | Source: CFO Publishing | Subjects: Finance, Industry Specific | Industry: Transportation | Company: Amtrak

The notion that the Federal Reserve and the movement in interest rates will motivate or demotivate the economy is one of the fantasies of economic life…It may have a little effect on the housing industry, but its larger economic effect is one of the great hoaxes and errors of the time. And it only shows how little the financial community has to think about, that … [ Read more ]

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

Managers in every business are expected to use financial data to make decisions, allocate resources, and budget expenses. But the truth is, many are uncomfortable applying the most basic financial tools in their day-to-day work. Even managers who consider themselves financially savvy may not understand what goes into a financial statement, and so may take the numbers as gospel when they should be questioning them.

In … [ Read more ]

Content: Book | Authors: Joe Knight, John Case, Karen Berman | Subjects: Finance, Management

12 techniques used to value intangible assets.

Content: Article | Source: Montague Institute Review | Subject: Finance

This site is a companion to the textbook Corporate Finance by Vernimmen, Quiry, Le Fur, and Salvi. It contains lots of useful info for finance students and professionals, including:
– detailed info about the book (outline, extracts and chapter summaries, graphs/statistics, etc.)
– a newsletter
– downloadable formulas and spreadsheets
– recent useful/interesting statistics
– a glossary
– resources
– 3 quizes to … [ Read more ]

Content: Online Resource | Source: Vernimmen.com | Subject: Finance

Intellectual capital – the knowledge, information, intellectual property and experience that can be used to careate wealth – may revolutionize business reporting. But how can such intangibles be measured, and how can those measures be used without opening the door to potential abuse and litigation?

Content: Article | Author: Carol Orsag Madigan | Source: Business Finance Magazine | Subject: Finance

At many companies internal P&Ls (Organizational, Product and Customer) have been completed satisfactorily except for expense distributions. Revenue accounting, internal funds accounting, risk adjustments and capital allocations are basically in place. While there may be some user discord about particulars, the overall methodology is in place. This is not the case with expense distributions. Expense distributions are the most contentious area remaining and one that … [ Read more ]

Content: Article | Author: Gregory J. Nolan | Source: BetterManagement.com | Subject: Finance

In order to evaluate projects, value firms, optimize capital structures and implement investment strategies, companies and investors need to know the risk variables that ultimately determine expected returns. While in developed markets there is at least a “model to beat,” the CAPM, in emerging markets there is no standard, widely accepted way of estimating required returns on equity. In this article, the authors perform a … [ Read more ]

Content: Article | Authors: Ana Paula Serra, Javier Estrada | Source: IESE Insight | Subjects: Finance, International

For those entrepreneurial types who aren’t keen on starting a company from scratch, creating a search fund to buy an existing business may be the way to go.

Content: Article | Author: Meredith Alexander | Source: Stanford University | Subjects: Entrepreneurship, Finance

Companies are increasingly using business performance management software to slice and dice their profitability and improve decision-making.

Content: Article | Author: Meg Waters | Source: Business Finance Magazine | Subjects: Finance, Marketing / Sales

What gets measured gets done for better or worse. Too many companies chase growth in earnings per share, only to find themselves employing too much capital at too low a rate of return and thereby eroding shareholder value. Economic Value Added(1) offers a beguiling solution: an easy-to-understand measure that recognizes improvements in earnings only to the extent that they exceed the cost of the capital … [ Read more ]

Content: Article | Author: Eric E. Olsen | Source: Boston Consulting Group (BCG) | Subjects: Finance, Management

Good accounting results and rising share prices can mask trouble ahead, and companies can create substantial value despite falling share prices. Developing a holistic picture of the health of a company-its ability to generate and sustain value-is difficult but doable.

Content: Article | Authors: Richard Dobbs, Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management

Economic Value Added (EVA) and Value Based Management (VBM) are today’s hottest management buzzwords. But written information has often been biased and clouded by the authors’ hidden agendas. EVA and Value-Based Management is the first book to unflinchingly discuss the pros and cons of EVA and VBM. Covering both implementation and conceptual issues, with a strong emphasis on performance measurement, value drivers, and management compensation, … [ Read more ]

Content: Book | Authors: S. David Young, Stephen F. O’Byrne | Subject: Finance