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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic. What would better measures be?

EPS 8
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Should Companies Retain "Strategic" Cash?

Harvard Business Review

To enhance financial flexibility, companies have been retaining unprecedented amounts of cash on their balance sheets, calling it "strategic" cash to distinguish it from the "operating" cash that is needed to run the business. high technology or pharmaceutical) that are investing in projects with uncertain long-range payoffs.

Company 12
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When "Creative Destruction" Destroys More than It Creates

Harvard Business Review

Would shareholders of Kodak — which had some of the earliest digital photography technology — agree that its destruction made evolutionary sense, or would they echo Harvard Professor John Kotter's remark that it was the result of "complacency"? real revenue and profit growth and earning their cost of capital has steadily declined.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

Today’s executives are dealing with a complex and unprecedented brew of social, environmental, market, and technological trends. Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits.

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Why Europe's Carbon Woes Matter to the Whole World

Harvard Business Review

In fact, they''re operating at such a comparatively low level that as things stand now, many of them, including utilities, will be able to emit as much carbon as they want for the next decade without hitting their limits. There''s no way to determine precisely how much effect the postponement would have had on carbon prices.

Price 8