1173 Posts Found

As investors home in on business fundamentals and credible accounting, the CFO’s traditional oversight of planning and performance takes on new urgency.

Content: Article | Authors: Jonathan Peacock, Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management

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It takes more than simple payback to justify major IT projects: The new value-realization metric features a nontraditional focus on finance and delivery of benefits.

Content: Article | Author: Brian Sommer | Source: Optimize Magazine | Subjects: Finance, Management

Disillusioned investors are demanding stronger links between executive pay and long-term performance.

Editor’s Note: for a related, though more topical piece, see
The CEO Trap
Content: Article | Author: Kris Frieswick | Source: CFO Publishing | Subjects: Corporate Governance, Finance

This is the crux of the fair-value debate: each side agrees both qualities are important, but fair-value advocates emphasize relevance, while historical-cost advocates place greater weight on reliability.

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

Jung and Shiller have an interesting paper that looks at Samuelson’s dictum: that is that the market is more efficient pricing individual stocks than getting the overall price level (i.e. the market) correct. In English it means that while we can price stocks relative to one another reasonably well, we can not price the overall market as well. [FinanceProfessor Annotation]

Content: Article | Authors: Jeeman Jung, Robert J. Shiller | Source: Social Science Research Network (SSRN) | Subjects: Economics, Finance | Industry: Investment Banking

The internal audit landscape may never be the same — and the picture is looking very different from one company to the next.

Content: Article | Author: Eric Krell | Source: Business Finance Magazine | Subjects: Accounting, Finance

Accounting has historically not defined income as change in wealth, or change in net worth or value. It has defined it by thousands and thousands of conventions that measure allocations of historical costs.

…if accounting prompts strange behavior solely because of the accounting, that’s not a good answer.

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

Customer financing seemed like a smart move when times were good. Now, it’s wreaking havoc on corporate balance sheets.

Content: Article | Author: Ronald Fink | Source: CFO Publishing | Subject: Finance

What is the goal of Moentary policy? It should be price stability according to Fed Governor Edward Gramlich who made his views known in a recent speech at the ASSA conference (AKA the AFAs) in Washington DC. “The long-run anchor is clearly price stability. Following Milton Friedman, inflation in the long run is a monetary phenomenon, as is deflation. Hence, the long-term goal … [ Read more ]

Content: Article | Author: Edward M. Gramlich | Source: The Federal Reserve Board | Subjects: Economics, Finance

Investors generally subscribe to the conventional wisdom that growth stocks outperform value stocks. But a study of international portfolios by professors at the University of Chicago Graduate School of Business and the Yale School of Management has shown that in reality the reverse is true: Value stocks reap higher returns than growth stocks in markets around the world.

Editor’s Note: this is an old article … [ Read more ]

Content: Article | Author: Eugene F. Fama | Source: Capital Ideas | Subjects: Economics, Finance | Industry: Investment Banking

We always assume rationality of our market participants, but are they? Are you? One argument against this rationality is the way humans are “wired.” As a result of this wiring homo sapiens have developed a fight or flight response that while may serve us well in the event of physical danger, may be counter productive when facing financial risks. That is … [ Read more ]

Content: Article | Authors: Kristen Bartholdson, Michael J. Mauboussin | Source: FMA | Subject: Finance | Industry: Investing

Best practices in business performance management often start as a grassroots movement. The companies most likely to succeed take five basic actions.

Content: Article | Author: Tad Leahy | Source: Business Finance Magazine | Subjects: Finance, Management

Companies have walled off valuable assets in subsidiaries for decades. Are those walls starting to crack?

Content: Article | Author: Kris Frieswick | Source: CFO Publishing | Subjects: Finance, Legal

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In one of the least widely reported stories I have stumbled upon, Wilber Ross is purchasing the assets of steel operations that have gone bankrupt and is potentially in the position to make a lot of money. How? By purchasing the assets of the firms and leaving the so-called legacy costs (example pension and heath-care costs) out. It is a great example of several important … [ Read more ]

Content: Article | Author: Daniel Gross | Source: Slate | Subjects: Finance, People

Expense Management Automation (EMA) software helps companies control spending by automating the filing, approval and payment of employee expense reports.

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

Valuing stock-option grants with Black-Scholes may cause some confusion on the income statement.

Content: Article | Author: Tim Reason | Source: CFO Publishing | Subjects: Accounting, Finance

Stop missing sales and earnings estimates by putting a unified forecasting process in place that’s based on industry best practices.

Content: Article | Authors: Darius Vaskelis, John Kelleher, Philip Bligh | Source: Optimize Magazine | Subjects: Finance, Management

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