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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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Entrepreneurship Suffers When Well-Paid Jobs Are Plentiful

The Horizons Tracker

A few years ago I wrote about innovation and entrepreneurship in Norway and Qatar. The author believes that while lower costs of capital would certainly help raise the entrepreneurship rate, it would be most beneficial to entrepreneurs with lower skills. Positive or negative?

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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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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. CFOs should always think about strategic cash within the context of a company's allocation priorities.

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Even for Companies, the U.S. Is Split Between Haves and Have-Nots

Harvard Business Review

Companies in the top one-fifth of profitability earn, in aggregate, about 70 times more economic profit (accounting profit less cost of capital) than those in the middle three-fifths combined, according to McKinsey’s database of 3,000 large, publicly listed, nonfinancial U.S. An increasing number of U.S.

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The Case for Investing More in People

Harvard Business Review

Beyond wages, other forms of investment in human capital include education and training, improved healthcare, and other, less obvious investments, such as the time and space to explore new ideas and professional development opportunities. Small and large companies alike are experimenting with these concepts.

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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?