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Providing Earnings Guidance? Think Again

Harvard Business Review

By helping to fill this analytical void, CFOs can make it more likely that the market will develop expectations that are grounded in reality. Less Volatility in Stock Price: The net effect of providing guidance is arguably a less volatile stock price, which can result in a lower beta and a lower cost of capital. FD) constraints.

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

It started with developing a proprietary Corporate Horizon Index. The data for this index was drawn from 615 nonfinance companies that had reported continuous results from 2001 to 2015 and whose market capitalization in that period had exceeded $5 billion in at least one year. In this case its capital charge is $800 times 8%, or $64.

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Why Europe's Carbon Woes Matter to the Whole World

Harvard Business Review

In Europe, the emissions-reduction targets were set prior to the 2008 financial crisis, which as we all know presaged a deep recession and a eurozone debt crisis. 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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