1173 Posts Found

Could Wall Street become the vanguard of environmental activism?

Content: Article | Author: William Greider | Source: GreenBiz.com | Subjects: Finance, Social Responsibility (ESG) | Industry: Investment Banking

Few companies know the true cost of their assets – from property, plant and equipment to intellectual capital. Some don’t even know what they own or where major assets are located. Here are suggestions that can help stop the insanity.

Content: Article | Author: Samuel Greengard | Source: Business Finance Magazine | Subjects: Finance, Operations

Market efficiency is a tough thing to beat. Go ahead, find an anomaly and then have it torn to bits in future papers. Lesmond, Schill, and Zhou come to the defense of market efficiency and find that the reported profits from momentum investing are minimally overstated and possibly non-existent because of the higher than normal transactions costs involved with the necessary trading. … [ Read more ]

Content: Article | Authors: Chunsheng Zhou, David A. Lesmond, Michael J. Schill | Source: Social Science Research Network (SSRN) | Subjects: Finance, Industry Specific | Industry: Investing

What amount of value creation can be assigned to the efforts of management for a particular time period? That is the essence of accounting. Otherwise, it’s simply an appraisal process.

Content: Quotation | Source: CFO Publishing | Subjects: Accounting, Finance

Not sure how to precisely gauge what every number in that financial statement represents? There’s no need to be insecure, according to Derrick Niederman and David Boyum. Numbers are merely a way to communicate and analyze a quantitative situation, and this volume provides guidelines to give you full comprehension and assurance. The book presents a series of pithy essays on various numerical analytical situations such … [ Read more ]

Content: Book | Authors: David Boyum, Derrick Niederman | Subjects: Finance, Personal Development

Everybody needs to make money, but CFOs may chafe if their bank puts its own profitability needs first. Here’s how to obtain the banking services you need with reasonable terms and conditions.

Content: Article | Author: Richard H. Gamble | Source: Business Finance Magazine | Subjects: Finance, Industry Specific | Industry: Finance / Banking

That the volatility of the equity risk premium and the risk-free rate are larger than most models predict has long been known and discussed (for example the seminal Mehra and Prescott 1985 paper). Bansal and Yahon try their hands at explaining why this puzzle exists (their paper will appear in an upcoming Journal of Finance (JF)). They model the “consumption and dividend … [ Read more ]

Content: Article | Authors: Amir Yaron, Ravi Bansal | Source: Journal of Finace (JF) | Subjects: Finance, Industry Specific | Industry: Investment Banking

According to the law of one price, identical assets should have identical prices. Driving this law is arbitrage, in which an investor buys and sells the same security for two different prices to make a profit. In a well functioning capital market, arbitrage prevents the law of one price from being broken, and in fact, violations of the law are rarely seen.

Content: Article | Authors: Owen A. Lamont, Richard H. Thaler | Source: Capital Ideas | Subjects: Finance, Industry Specific | Industry: Investment Banking

Will credit derivatives encourage more lending, or will they harm the interests of borrowers?

Content: Article | Author: Hilary Rosenberg | Source: CFO Publishing | Subjects: Finance, Industry Specific | Industry: Finance / Banking

Chen, Noronha, and Singal report in a forthcoming JF article that when stocks are dropped from the S&P 500, there is a temporary price decline. However when firms are added, the increase is seemingly permanent. This asymmetry is seemingly counter to most widely held views that demand curves for individual stocks are elastic. The authors suggest that this asymmetry is due to … [ Read more ]

Content: Article | Authors: Gregory Noronha, Honghui Chen, Vijay Singal | Source: Journal of Finace (JF) | Subjects: Finance, Industry Specific | Industry: Investment Banking

The worldwide trend toward defined contribution savings plans give individual employees more responsibility for their investment decisions. But are they up to the task?

Content: Article | Author: Richard H. Thaler | Source: Capital Ideas | Subjects: Finance, Human Resources

John Finnerty provides a very interesting look at the various ways of pricing employee stock options. Indeed it may be required reading for any class that covers pay issues. [FinanceProfessor.com Annotation]

Content: Article | Author: John Finnerty | Source: financial executives research foundation (ferf) | Subjects: Accounting, Finance

The rating agencies are under review for their failure to downgrade Enron more promptly. The only trouble is, proposed reforms might make things worse.

See related NYU STERNbusiness article by Lawrence J. White, “The Bond-Rating Game” at:
Content: Article | Author: Tim Reason | Source: CFO Publishing | Subjects: Finance, Industry Specific | Industry: Finance / Banking

How companies are maximizing the power of real options thinking without getting bogged down in complexity.

Content: Article | Author: Joanne Sammer | Source: Business Finance Magazine | Subject: Finance

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Four ways to scan for volatility in the mutual fund universe.

Editor’s Note: this is one article in the entire August issue of Fidelity Outlook, which is a .pdf document. So, you will have to scroll down to page 8 (page 6 of the magazine) to read it.

Content: Article | Author: Jeff Schlegel | Source: Fidelity Outlook | Subjects: Finance, Industry Specific | Industry: Investing

Internal and external monitoring have a strong complementary (synergistic) effect. That is the finding of Cremers and Nair who show that firms with both strong internal as well as external controls tend to outperform firms without the strong controls. To test this, the authors construct various portfolios and find that those firms who measure high on both categories outperform others in the sample. … [ Read more ]

Content: Article | Authors: K.J. Martijn Cremers, Vinay B. Nair | Source: Social Science Research Network (SSRN) | Subjects: Finance, Industry Specific | Industry: Investment Banking

Earnings have proven to be a poor tool for valuing companies, and not just because they are subjectively determined. Earnings also ignore the crucial consideration of the cost of capital.

Content: Quotation | Source: Accenture | Subjects: Finance, Investing

Why include a freeze-out provision in takeover contracts? Because if not, investors would not tender shares. How is that? Consider the Grossman-Hart (1980) view that if the takeover is in fact value maximizing, then shareholders would have an incentive to not tender their shares but to wait for the stock price to increase. Of course if shareholders knew this, then they … [ Read more ]

Content: Article | Authors: Marcel Kahan, Rangarajan K. Sundaram, Yakov Amihud | Subject: Finance | Industry: Investment Banking

Douglas K. Smith a critical analysis of the modern-day budgeting process and offers some ideas on how to improve it, namely by switching from activity-based to outcome-based goal setting.

Content: Article | Author: Douglas K. Smith | Source: Leader to Leader | Subjects: Finance, Management