6 Strategies for Payroll Best Practices

Integrating and streamlining payroll systems helps companies build efficiency and improve business strategy.

Blinded with Silence

Firms about to go public zip up and hide during a so-called “quiet period” — but don’t blame the SEC.

Questions of Value

Is fair-value accounting the best way to measure a company? The debate heats up.

Charles Elson

…restricted stock forces you to ride the stock’s rise and the stock’s fall. An option is an expectancy of a future profit. It can be worth a lot, or it can be worth nothing. There are no negative wealth implications to you of owning an option; the worst that happens is that you walk off with no more than you walked in. On the other … [ Read more ]

Stock Option Repricing: Employees Benefit But What about Investors?

When the stock price of computer networking equipment maker Brocade Communications Systems skidded in late 2002, the pain was widespread. But it did not fall equally on all investors. Like other companies in similar situations, Brocade protected one class of investors – employees with stock options whose strike, or exercise price, had fallen below the market value – by simply issuing new stock options at … [ Read more ]

Charles Elson

The problem has not been the use of options in themselves but the ability of someone to exercise options and sell the stock in the short term…Remove the short-term incentive-that’s the real cure.

Market Mechanics: A Guide to U.S. Stock Markets

Although the inner workings of the stock market are fascinating, few introductory texts have the space to describe them in detail. Furthermore, the U.S. stock markets have been changing so rapidly in recent years that many books have not yet caught up with the changes. This quick note provides an up-to-date view of how the U.S. stock markets work today. This note will teach you … [ Read more ]

The Real Cost of Cybersecurity

Protecting information systems is as much a financial issue as a technical one. Understanding risks, benefits and costs is a key concern.

Guess Again

Baruch Lev want companies to come clean on missed estimates.

CFO Magazine

Discounted cash flow (DCF) techniques such as NPV and internal rate of return (IRR) work well with traditional capital budgeting problems, such as replacement decisions or alternative production methods. Where they fall down is on strategic investments, such as evaluation of new product lines or investment in R&D.

Trash The Budget

The annual budget cycle is out of synch with the real-time world of business.

Creating Value Through E.V.A.- Myth or Reality

“Economic value added” has received a great deal of attention as a management tool. It is effective, but are all E.V. A.’s alike? And how do companies employ the technique to achieve their goals?

Editor’s Note: I found the value creation grid to be especially insightful…

Regulatory Challenges Facing U.S. Equity Markets

The issues that confront the SEC and the U.S. equity markets are highly complex. While the SEC has not set a timetable to resolve these issues, it is clear that speedy resolution is imperative for the survival of many markets.

The Warren Buffett Business Factors

Cesar Labitan, Jr. MD (an MBAE student at Purdue University – Calumet) has assembled a collection of selected passages from the letters of Warren E. Buffett to the Shareholders of Berkshire Hathaway Inc. The idea was borrowed from Professor Lawrence Cunningham’s 1997 book, “The Essays of Warren Buffett: Lessons for Corporate America” but differs from that book in the manner and order the sections are … [ Read more ]

Accounting For Higher Profits

Forget the benchmarks of the past. Here’s a way to improve processes by studying not what was, but what can be achieved.

Using Football To Teach Finance

Creating student interest is an important, sometimes difficult, task facing all instructors. One way to stimulate students’ interest is through the use of examples that are interesting and relevant to the students. As the most popular sport in the United States, football provides numerous opportunities for presenting potentially dry, intimidating, academic financial concepts in terms that undergraduate students may find more relevant, understandable, and interesting. … [ Read more ]