1173 Posts Found

In today’s stock-market environment, companies need to take advantage of the full range of levers available to generate shareholder value. In particular, they must identify and manage the key tradeoffs across the three chief components of a comprehensive value-creation strategy: improving fundamental value, exploiting differences in industry valuation multiples, and setting priorities for the use of free cash flow. The report, the sixth in BCG’s … [ Read more ]

Content: Article | Authors: Daniel Stelter, Eric E. Olsen, Pascal Xhonneux | Source: Boston Consulting Group (BCG) | Subjects: Finance, Strategy

Public dissatisfaction with the mismatch between industrial rules of disclosure and post-industrial realities has surged in the last decade and a half, especially recently in the wake of well-publicized corporate swindles. In response, the American Institute of Certified Public Accountants (AICPA) convened a special committee on enhanced business reporting (EBR), asking it to develop a strategy that would “make better information available to investors, creditors … [ Read more ]

Content: Article | Authors: Eric R. Noren, John J. Ballow, Scott G. Burgoz | Source: Accenture | Subjects: Accounting, Finance

Content: Online Resource | Source: National Association of Personal Financial Advisors | Subjects: Associations / Organizations, Finance | Industry: Finance / Banking

Content: Online Resource | Source: Financial Managers Society | Subjects: Associations / Organizations, Finance | Industry: Finance / Banking

How much is the Coca-Cola brand or trademark worth? $50 billion? $ 100 billion? In August 2003, in an article in BusinessWeek, Interbrand included it in their table of “The 100 Top Brands” at a value of $70.45 billion. How would you check whether you agreed with their assessment?

In this article, Caroline Woodward-of PricewaterhouseCoopers’ Valuation & Strategy practice-offers some interesting answers to these, and other … [ Read more ]

Content: Article | Author: Caroline Woodward | Source: PwC | Subjects: Accounting, Finance

The World Bank (at least since 1991) has used NPV and IRR to study the environmental impact of its decisions. While finding the true cost and benefit of environmental questions is notoriously difficult, it is something that must be done. [FinanceProfessor Annotation]

Content: Article | Source: FinanceProfessor.com | Subjects: Finance, Social Responsibility (ESG)

Business people need to know how to recognize the signs should a deflationary spiral begin and how to prepare ahead of time with practical relevant business plans and strategic initiatives.

Content: Article | Author: Donald M. Atwater, Ph.D. | Source: Graziadio Business Report | Subjects: Economics, Finance

Jay Ritter finds that shareholder returns are negatively correlated with economic growth.

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

The inventor of a new valuation model claims to have a roadmap for value creation that includes signposts on how to set, track, and meet growth goals.

Content: Article | Author: Marie Leone | Source: CFO Publishing | Subject: Finance

The real options approach can help company leaders make much better decisions than they would if they employed the traditional DCF method alone. But in practice, even the use of these two techniques together does not give enough visibility to issues that should be paramount for executives who have to decide about funding innovative projects. In addition, these evaluation tools do not indicate how initiatives … [ Read more ]

Content: Article | Author: Jane C. Linder | Source: Accenture | Subject: Finance

If you spend a lot of time creating reports that nobody seems to value, you may be suffering a case of information overkill. Here are some common performance-reporting pitfalls and simple solutions, such as reducing the size of reports and focusing on the key measures that best support organizational objectives.

Content: Article | Author: Tad Leahy | Source: Business Finance Magazine | Subject: Finance

The Financial Analyst Journal has an editorial designed to stir up controversy. The title? “Is Our Industry Intellectually Lazy?” In it the editor Robert Arnott references numerous cases where people who know better either make use of unrealistic assumptions or forget their fundamentals, and subsequently make erroneous conclusions. Interesting and disturbing. [FinanceProfessor.com Annotation]

Content: Article | Author: Robert D. Arnott | Source: Financial Analyst Journal | Subject: Finance

*** Abstract ***
Using a unique dataset of private equity funds over the last two decades, this paper analyzes the cash flow, return, and risk characteristics of private equity. Unlike previous studies, we have detailed cash flow data for each fund, rather than aggregate or accounting returns. We also know the exact timing of investments and capital returns to investors and the number and types … [ Read more ]

Content: Article | Authors: Alexander Ljungqvist, Matthew Richardson | Source: NYU Stern School of Business | Subjects: Finance, Venture Capital

The fields of finance and accounting are well established, with numerous well-written articles and books available on how to understand financial statements (FS). However, the availability of information is not the real problem: there is too much information for people to absorb. Not only do you need to understand how financial statements are created, but what critical and essential information you can glean from the … [ Read more ]

Content: Article | Author: Kathleen Kerwin | Source: Competitive Intelligence Magazine | Subjects: Competitive Intelligence, Finance

The battle between proponents of the Efficient Markets Hypothesis and champions of behavioral finance has never been more pitched, and there is little consensus as to which side is winning or what the implications are for investment management and consulting. In this article, I review the case for and against the Efficient Markets Hypothesis, and describe a new framework – the Adaptive Markets Hypothesis … [ Read more ]

Content: Article | Author: Andrew W. Lo | Source: Social Science Research Network (SSRN) | Subject: Finance

The rise and fall of Krispy Kreme is a cautionary tale of ambition, greed, and inexperience.

Content: Case Study | Author: Kate O’Sullivan | Source: CFO Publishing | Subject: Finance | Company: Krispy Kreme

This article describes the concept of hedge funds/alternative investments, many of the different strategies they employ, and their relationship to Modern Portfolio Theory.

Content: Article | Author: Darrol J. Stanley | Source: Graziadio Business Report | Subjects: Finance, Industry Specific | Industry: Investing

As a firm’s cash flow increases, it is expected that its investment in potential revenue-generating opportunities will also increase. However, recent research examining the auctions of oil and gas leases shows that greater cash flow does not lead to investment in a greater number of tracts, a larger amount of acreage, or more productive, revenue-generating tracts. Instead, greater cash flow leads to paying more for … [ Read more ]

Content: Article | Author: Marianne Bertrand | Source: Capital Ideas | Subjects: Finance, Management

Public companies have been criticized for granting stock options to employees without adding chits to the corporate expense pile. As regulators and some shareholders argue for new rules, Stanford Business School researchers Jeremy Bulow and John Shoven try to follow the money-and the logic.

Content: Article | Author: Frederick Rose | Source: Stanford University | Subjects: Accounting, Finance

Traditional budgets are odious to business managers and, worse, can undermine a company’s strategic objectives. Here’s how progressive companies are reengineering budgeting into a value-added process.

Content: Article | Author: Tad Leahy | Source: Business Finance Magazine | Subject: Finance