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Collaboration as an Intangible Asset

Harvard Business Review

Interestingly, intangible assets are all the rage these days on Wall Street. Investors grapple daily in an effort to figure out how to value companies whose accounting assets — things like land, capital, products, and licenses — don't adequately express their true market value.

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business Review

In contrast, industrial giant GE’s stock price has declined by 44 % over the last year, as news emerged about its first losses in last 50 years. However, digital companies often have assets that are intangible in nature, and many have ecosystems that extend beyond the company’s boundaries.

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The Answer to Short-Termism Isn’t Asking Investors to Be Patient

Harvard Business Review

Take a company that is thinking about cutting investment to boost earnings, hoping to inflate its stock price. An informed shareholder, who looks beyond earnings numbers and analyzes the company’s intangible assets, would notice that the firm has mortgaged its future. So how can we ensure the latter?

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The Case for Stock Buybacks

Harvard Business Review

Conventional wisdom is that CEOs buy back stock to manipulate the short-term stock price. It boosts prices in the short run, but the real way to boost the value of a corporation is to invest in the future, and they are not doing that.” They fund the buyback by cutting investment, and so firm value suffers in the long-term.

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A Novel Idea for Putting Sidelined Cash to Work

Harvard Business Review

With interest rates at historic lows, market volatility, political uncertainty, the European crisis, severe commodity price fluctuations, and other unpredictable market conditions, corporate brands and executives have been understandably inclined to sit on the sidelines. Estimates range from $1.5 trillion to $2.8

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CVS’s Lesson: Carpe Diem

Harvard Business Review

When CVS/Caremark announced that it would forego some $2 billion in sales of tobacco and related products recently, CEO Larry J. And finally, highly reputed companies are more stable, which means they have higher market valuation and stock price over the long term and greater loyalty of their investors, which leads to less volatility.

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The U.S. Corporate Tax Code Is Broken. How Should We Fix It?

Harvard Business Review

and the allocation of corporate talent and efforts (away from productive uses and toward rent-seeking). Consider the ratio of transport costs to product value for a steel bar, an automobile, a semiconductor chip and a piece of software. Cook squarely placed the blame on a U.S.