Harvard Business Review

APRIL 16, 2015

It’s been more than 50 years since Nobel prizewinners Franco Modigliani and Merton Miller identified return on investments as a major component of value creation (and value destruction). Unless your company’s return on capital exceeds its cost of capital, no amount of revenue growth can create value.

CEO 8

CEO ROIC Cost of Capital Merton 8

Harvard Business Review

SEPTEMBER 29, 2014

In the 1900s, French mathematician-economist Leon Walras envisioned prices in a market economy being set by an auctioneer (since known as the “Walrasian auctioneer”) conducting continuous auctions for all kinds of commodities. Economists and market design. Economics and logistics. But there are some very important exceptions.

Strategy 12

Strategy Black-Scholes Airlines Price 12

Harvard Business Review

NOVEMBER 29, 2010

In slightly more formal terms, Id suggest that they were able to take on, at least in tiny part, five of Robert Merton and Zvi Bodies six standard functions of a financial system: settling payments, providing information, setting incentives, pooling resources, and transferring resources. But perhaps the costs have risen, too.

Banking 15

Banking Crisis Merton Guidelines 15

Harvard Business Review

FEBRUARY 3, 2011

I was thinking about that story by Thomas Merton during a recent board meeting. Recent market updates, a technical deconstruction of various trends, then product frameworks — all in quick succession. Or perhaps we have wondered, as others have , if it's worth the cost of speaking up. Because silence does have a cost.

Merton 15

Merton Groupthink CFO Cost 15