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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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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. high technology or pharmaceutical) that are investing in projects with uncertain long-range payoffs.

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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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6 Digital Strategies, and Why Some Work Better than Others

Harvard Business Review

Digital technology has been roiling markets and disrupting companies for more than two decades, but despite that lengthy history, incumbents are still struggling to enact and deliver on digital transformations. Sponsored by DXC Technology. How the best companies get up to speed. We clustered companies in two ways.

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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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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

The McKinsey Global Institute, in conjunction with FCLT Global, recently released research stating that long-term-oriented companies perform better than those that focus on short-term results. While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex.

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