Harvard Business Review

OCTOBER 25, 2018

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 To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)

Industry 12

Industry Company GDP Bottom-up 12

Harvard Business Review

NOVEMBER 4, 2014

Proponents argue that divestment is a symbolic statement that can discourage fossil fuel consumption by stigmatizing the industry. Both of us have done work on sustainable development and are keen to see a transition away from fossil fuels in order to limit climate change. Finance Sustainability'

Finance 8

Finance Cost of Capital Constraint Price 8

Harvard Business Review

NOVEMBER 4, 2014

Proponents argue that divestment is a symbolic statement that can discourage fossil fuel consumption by stigmatizing the industry. Both of us have done work on sustainable development and are keen to see a transition away from fossil fuels in order to limit climate change. Finance Sustainability'

Finance 8

Finance Cost of Capital Constraint Price 8

Harvard Business Review

MARCH 10, 2011

It's the opening paragraph of a Harvard Business Review article called "What's Your Real Cost of Capital?" The motivation behind it, as with many, many articles published over HBR's nearly 90-year history, was to take an effective practice developed in one corner of industry and spread it to managers everywhere.

CAPM 14

CAPM Cost Discounted Cash Flow Cost of Capital 14

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.

CEO 8

CEO ROIC Cost of Capital Merton 8

Harvard Business Review

JUNE 18, 2015

The private equity industry has grown markedly in the last 20 years and we know more than we used to about its effects on the economy. In particular, we are interested in how many of their responses correlate with what academic finance knows and what it teaches. Do PE investors do what the academy says are “best practices?”

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

NOVEMBER 25, 2013

This lack of an analytical approach has traditionally formed a barrier between marketing and finance. Only when they began to really analyze their marketing costs did the company realize that it was spending three times the industry benchmark on coupons and 50 percent more on research.

CFO 8

CFO Short-term Long-term Benchmarking 8