Harvard Business Review
APRIL 16, 2015
” A quarter century later, not much seems to have changed: fewer than five out of the 100 CEOs on HBR’s 2014 list of best-performing CEOs even mention “return on capital” on their official biography — and none of those five lead companies listed in the Dow Jones Industrial Average (DJIA) or in the EuroStoxx50.
Harvard Business Review
FEBRUARY 2, 2012
An example was a discussion session of tired-looking European finance ministers, defensive and elusive about the speed of acting on the Euro crisis. Today, complexity has become the silent killer of profitable growth in business, and sometimes of CEO careers.
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Harvard Business Review
JUNE 18, 2015
In a survey of 79 PE firms managing more than $750 billion in capital, we provide granular information on PE managers’ practices and how firms’ strategies relate to the characteristics of their founders. In particular, we are interested in how many of their responses correlate with what academic finance knows and what it teaches.
Harvard Business Review
APRIL 26, 2017
As JPMorgan Chase’s CEO, Jamie Dimon, warned in a June 2015 letter to the bank’s shareholders, “Silicon Valley is coming.” Banks’ cost of capital is typically 50 basis points or less. Sometimes David can triumph over Goliath. ” Can banks out-compete the disruptors?
Harvard Business Review
OCTOBER 11, 2013
I refuse to dignify this attack with a response,” said Henry Guillart, the CEO, just hours after Hughes had given his initial negative presentation at an investor conference in New York. sensed a deep discomfort in the CEO, as if Henry was afraid to tangle publicly with Hughes. That decision turned out to have serious consequences.
Harvard Business Review
SEPTEMBER 8, 2014
The goal of strategy is profitable growth, meaning economic value above the firm’s cost of capital. In my experience, most CEOs, CFOs, and other C-suite executives involved in strategy formulation know these finance basics. Or, they learn fast after a few investor meetings.) But consider the basics.
Harvard Business Review
DECEMBER 13, 2017
Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.
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