Credit and Collections Gain New Clout

Companies are turning to the latest credit and collections tools to evaluate risk, assess opportunities and determine how decisions impact the bottom line.

RiskCenter

RiskCenter is the first Web-based syndicated news service devoted exclusively to providing financial risk professionals with the inside scoop on breaking economic, political and financial stories, as well as the risk strategies required to measure and manage these risks. Acting as the eyes and ears for risk professionals, RiskCenter provides an information filter so that viewers do not have to search through a myriad of … [ Read more ]

The Real World of Finance: 12 Lessons for the 21st Century

Finance executives who still cling to lessons learned in MBA programs long ago, failing to grasp the realities of the new economy, may unwittingly expose their corporations to undue risk, says author James S. Sagner. He suggests that recent major accounting scandals and business failures are partly the result of finance’s failure to recognize that the new economy is destroying old-economy constants and to reexamine … [ Read more ]

The $33 Billion Phone Bill

Businesses are spending more on cellular services than ever before. Are they getting slammed?

The Effects of Dual-class Ownership on Ordinary Shareholders

When Google announced in April that it would go public this year, some investors’ eyebrows rose over the plan to issue a class of super shares to ensure that the founders keep control. Each of the Class B shares reserved for insiders will carry 10 votes; ordinary Class A shares sold to the public will have one vote. Yet shareholders-rights groups have long complained that … [ Read more ]

The Big Money for Big Projects

This isn’t your father’s venture capital. Amusement parks, satellite networks, oil fields, toll roads: HBS Professor Benjamin Esty studies financing of large projects. Q&A

Post-Acquisition Receivables Blues

Caught up in the hype of a merger or acquisition, senior executives often gloss over the challenges inherent in merging A/R portfolios. But problems with receivables can eat into the cash flow – and future revenues – of a newly formed company.

Letting Down Your Guard

With takeover defenses being increasingly dismantled, will a rise in hostile acquisitions be the result?

Transaction Structures in the Developing World: Evidence from Private Equity

Lerner and Schoar make available an interesting look at private equity financing. For instance, did you know that “in developing nations, the bulk of financings are private ones?” After examining 210 private equity transactions in developing countries, L&S report that in developing nations there is a much greater heterogeneity in private issuances. “The choice of security appears to be driven by the … [ Read more ]

Communicating with the marketplace

Ground breaking research by MIT examines the relationship between information disclosure and a company’s cost of capital.

CFO Insights : Achieving High Performance Through Finance Business Process Outsourcing

Outsourcing is no longer seen as merely a cost cutting exercise, but as a definitive strategy benefiting companies in such areas as quality improvement, increased efficiency, cost control, added value, and fulfillment of customer needs. This book features case studies and interviews with CFOs of leading blue chip companies, looking at the benefits and drawbacks of outsourcing the finance function, and offers insights into making … [ Read more ]

Socially Responsible Investing: The Eco-Efficiency Premium Puzzle

Does socially responsible investing (SRI) hurt (or help) returns on a risk adjusted basis? Of course theoretically it seemingly should lower pecuniary returns, but empirically it seems that every researcher has a different answer. Now Derwall, Guenster, Bauer, and Koedijk present their views on the argument. The authors form portfolios based on Innovest eco-efficiency scores. The finding? “After controlling for … [ Read more ]

Enron unravelled

This is an edited version of a new case study written primarily for classroom discussion. In this shortened form, supplemented by a commentary on the corporate governance implications by Matthew Allen, it provides insights for EBF readers into – among other things – financial engineering as a means of supporting the share price, the reporting of financial exposure, and the need for independent audit oversight … [ Read more ]

Acquired Tastes

Being CFO on the target end of a deal brings challenges — like having to coach “redundant” staffers.

Finance Breaks Out

Finance executives who develop effective relationships with external customers can add value by boosting sales, identifying new business opportunities and gathering performance feedback.

The Definitive Guide to Managing the Numbers

A very accessible guide to the financial information, tools, and techniques managers commonly face. Written for executives and managers-not financial professionals-chapters look at “How the Finance Director Thinks” and “Business Across Borders” as well as the nuts-and-bolts topics you would expect such as “Building Balance Sheets” and “How to Forecast Anything.” Each chapter covers a different financial topic and includes a list of “10 questions … [ Read more ]

Interpersonal Effects in Consumption: Evidence from the Automobile Purchases of Neighbors

Much research has been devoted to what is often called herding behavior. This is the idea that investors trade just because others are trading. This is often cited as evidence of irrationality by finance behavorialists. (Is that a word? It should be!) Grinblatt, Keloharju, and Ikaheimo examine this type of behavior by looking at car purchases. No, really. … [ Read more ]

Can ABM Outstay Its Welcome?

Creating one valid enterprisewide ABC/M model, developing a database and continuously feeding the model with current data isn’t enough to gain ABC/M’s maximum benefits. Companies also have to get people to accept this cost management strategy.