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Entrepreneurship Suffers When Well-Paid Jobs Are Plentiful

The Horizons Tracker

They believe that their findings add additional nuance to the current narrative that suggests that the decline in entrepreneurship is largely a consequence of higher startup costs, labor constraints, or even the aging population. Opportunity costs. of physicians operating as independent owners in 2019, versus 48.5% in 2012.

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What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

In particular, we are interested in how many of their responses correlate with what academic finance knows and what it teaches. ” PE firms typically take three types of value increasing actions — financial engineering, governance engineering, and operational engineering.

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CEOs Don’t Care Enough About Capital Allocation

Harvard Business Review

” 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.

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4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

One reason for the paltry performance is that while other business areas, like sales or finance, are considered to be core functions, innovation is often considered to be something that’s “nice to have” rather than essential. Google’s “20% time” acts as a human-powered search engine for new problems.

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Case Study: A Short-Seller Crashes the Party

Harvard Business Review

He renamed his company and put a team of engineers to work solving the product’s mechanical, food safety, cost, and design flaws. With the company’s share price sinking and its cost of capital rising, those deals might have to be put on hold. When the Express finally emerged, it was a peach: simple, speedy, and elegant.

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Why Those Guys Won the Economics Nobels

Harvard Business Review

He got his PhD at Yale under Shiller’s supervision in 1984, but since then he has also done a lot of work expanding on Fama’s ideas about risk and return, some of it co-authored with Fama’s son-in-law and University of Chicago finance colleague, John Cochrane. He draws on an engineering literature called robust optimal control.

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