article thumbnail

Entrepreneurship Suffers When Well-Paid Jobs Are Plentiful

The Horizons Tracker

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. of physicians operating as independent owners in 2019, versus 48.5% Positive or negative?

article thumbnail

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.

CEO 8
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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

Harvard Business Review

” PE firms typically take three types of value increasing actions — financial engineering, governance engineering, and operational engineering. Private equity as we define it in this paper does not include venture capital investments.). Do PE investors do what the academy says are “best practices?”

CAPM 8
article thumbnail

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

Harvard Business Review

Another pervasive reason is that senior executives are trained as operators, not innovators. And there’s a fundamental conflict between innovation and optimizing an existing operation. To close the gap, we need to treat innovation differently than we do normal operations. Here are four things leaders can do.

article thumbnail

What Shareholder Value is Really About

Harvard Business Review

Companies that manage for shareholder value, the thinking goes, do whatever it takes to engineer an ever-higher market price. A CEO's job is about resource allocation with a goal of earning a return in excess of the opportunity cost of capital. That is a profound misunderstanding. This requires difficult trade-offs.