Understanding the True Cost of Sourcing
Global strategic sourcing evolved as a more sophisticated approach to selecting and managing the supply base and the procurement of direct materials. In strategic sourcing, the relationships are longer-term and there is a drive for continual improvement along many dimensions. Most companies that have adopted strategic sourcing practices have developed in-depth supplier scorecards for tracking performance and driving improvements. However, tools and methodologies for measuring … [ Read more ]
Content: Article | Authors: Bill McBeath, Colin Kessinger | Source: TechnologyEvaluation.com | Subjects: Finance, Operations
CFOs and the Board of Directors: Is finance doing all it can to improve oversight?
Intensified regulatory scrutiny requires new channels of communication among an organization’sdecision-makers. Here’s how finance can help directors keep the company out of trouble.
Content: Article | Author: Eric Krell | Source: Business Finance Magazine | Subjects: Corporate Governance, Finance
Stock Options and Long Term IPO Performance
A paper by Pukthuanthong and Walker that was presented at the European FMA Meetings examines the use of options in pay packages of IPO firms. It finds that “new public companies that have high use of stock options outperform those that have low use of stock options from the lock-up period until three years after the issue.” The authors find similar results when looking … [ Read more ]
Content: Article | Authors: Kuntara Pukthuanthong, Thomas Walker | Source: Social Science Research Network (SSRN) | Subject: Finance
Revealed Preferences for Corporate Leverage
Philippon examines firms’ capital structure empirically and theoretically. He finds that firm value does not exactly fit the static trade-off model. Specifically he finds that low levels of debt are not accompanied by as low of firm values as would be expected. However, in other areas, what we have been teaching seems exactly right: more growth options means less debt, highly profitable firms do have … [ Read more ]
Content: Article | Author: Thomas Philippon | Source: Social Science Research Network (SSRN) | Subject: Finance
Purchasing Department Roles
The Secrets of Great Due Diligence
Sealing the deal is the easy part. But first comes due diligence. Here’s how to calculate your target’s stand-alone value. A Harvard Business Review excerpt.
Content: Article | Authors: Geoffrey Cullinan, Jean-Marc Le Roux, Rolf-Magnus Weddigen | Source: Harvard Business School (HBS) Working Knowledge | Subject: Finance
The IT Asset Money Pit
Many companies grossly mismanage IT assets. Vendor invoicing errors, poorly enforced contracts and failure to track technology resources through their entire life cycle cause a hemorrhaging of dollars that could be put to better use. Here are some ways to stamp out the waste.
Content: Article | Author: Eric Krell | Source: Business Finance Magazine | Subjects: Finance, IT / Technology / E-Business
Numbers Investors Can Trust
What counts isn’t the bottom line but rather how it is calculated.
Content: Article | Author: Tim Koller | Source: McKinsey Quarterly | Subjects: Accounting, Finance | Industry: Investing
Is Finance Strategically Challenged?
Guide to Analysing Companies
The definitive guide to how to analyze and assess the strengths and weaknesses of any company.
How do you tell how well run a company is and how well it is doing? Which ratios and benchmarks should you use to assess performance? What can be done to massage company results? How do you recognize danger signs on the corporate horizon? How do you compare companies … [ Read more ]
Content: Book | Author: Bob Vause | Subject: Finance
So, Why Be Public?
Many observers have offered potential solutions. Some seek to address the issue of agency directly. Other prescriptions, including those embedded in the recently passed Sarbanes-Oxley bill, seek to increase transparency in financial reporting and strengthen the supervision of executives by boards. Although most of these provisions have merit, they raise more fundamental and often unasked questions: Can we solve the agency problem definitively and, if … [ Read more ]
Content: Article | Author: Joseph Fuller | Source: CFO Publishing | Subjects: Finance, Miscellaneous
Business Valuation Resources
Business Valuation Resources, LLC, is committed to providing you with the high-quality, valuation-related resources you need, at affordable prices. BVR strives to provide business appraisers, certified public accountants, merger and acquisition professionals, business brokers, lawyers, judges, and others involved in business valuation and professional practices with the resources they need to excel in their professions.
Content: Online Resource | Author: Shannon Pratt | Source: Business Valuation Resources | Subject: Finance
Accenture TRS Mapping Methodology
7 Ways to Ease Claims Pains
Business insurance claims are rising, with no end in sight. To help finance executives stem financial losses, we asked risk managers, insurance claims specialists, brokers and consultants what companies should do – and what they should avoid doing – when a loss occurs. Here is their advice.
Content: Article | Author: Richard H. Gamble | Source: Business Finance Magazine | Subjects: Finance, Risk Management | Industry: Insurance
The Great Divide
Or, what your CIO would really like to say to you if only the job market were better.
Content: Article | Author: Laton McCartney | Source: CFO Publishing | Subjects: Finance, IT / Technology / E-Business
Value reporting: it’s time to act
Companies today can no longer give a full picture of their value using traditional methods. There is now no excuse for failing to give the market what it wants.
Editor’s Note: see more details of the PwC ValueReporting framework at
Content: Article | Author: David Phillips | Source: European Business Forum (EBF) | Subjects: Accounting, Finance
Cash Forecast: Cloudy but Clearing
Ask five companies how to forecast cash, and you’ll get five different answers. Many companies don’t forecast cash at all. But better technology, changes in commerce and tightening credit are spurring more corporations to produce reliable forecasts.
Content: Article | Author: Richard H. Gamble | Source: Business Finance Magazine | Subject: Finance
Less Ado about Options
An alternative to the Black-Scholes valuation model (the binomial method) could dampen the controversy over expensing employee stock options.
Content: Article | Author: Craig Schneider | Source: CFO Publishing | Subjects: Accounting, Finance