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Sustainable Investment Funds Can Encourage Worse Behavior

The Horizons Tracker

To categorize these firms, the researchers segregated them into five distinct groups, accounting for greenhouse gas emissions while factoring in revenue to adjust for the inherent variance in emission levels between large and small companies.

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What’s Driving Superstar Companies, Industries, and Cities

Harvard Business Review

The debate about superstar firms and superstar effects has been intensifying, partly in response to the rapid growth of global US tech companies. To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To Apexphotos/Getty Images.

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The Case for Investing More in People

Harvard Business Review

.” There is a virtuous cycle between productivity and people: Higher levels of productivity allow society to reinvest in human capital (most obviously, though not exclusively, via higher wages), and smart investments result in higher labor productivity. Productivity in most developed economies has been anemic.

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What U.S. CEOs Should Do with the Money from Corporate Tax Cuts

Harvard Business Review

based companies by anywhere from 10% to 20% , depending on their current tax position. At a recent investor conference, one of us heard a CEO proudly state that the new law would have no effect at all on how his company views investments. Why are CEOs so reluctant to pursue bold new investments in growing their companies?

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The Comprehensive Business Case for Sustainability

Harvard Business Review

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. We exclude companies with a traditional CSR program that supports employee volunteering in the community – this does not by itself qualify as sustainability.

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How Banks Can Compete Against an Army of Fintech Startups

Harvard Business Review

Banks’ cost of capital is typically 50 basis points or less. These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window. ” Can banks out-compete the disruptors? Eastern Bank).

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Why Europe's Carbon Woes Matter to the Whole World

Harvard Business Review

Europe''s $100 billion carbon market, an innovative force in the powerful carbon-reduction approach known as cap and trade, has ceased to function the way it''s supposed to. Share prices for European utilities and industrial companies have fallen too, threatening a wave of credit downgrades and increasing companies'' cost of capital.

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