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Sustainable Investment Funds Can Encourage Worse Behavior

The Horizons Tracker

Subsequently, leveraging historical data, the researchers evaluated the responses of the highest and lowest polluting groups to fluctuations in their capital costs, an impact similar to the objectives of the sustainable investing movement.

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The Rise of FinTech in Supply Chains

Harvard Business Review

A new type of services company could transform global supply chains: Financial technology companies that act as intermediaries in facilitating transactions between a company and its suppliers. The use of FinTechs allows suppliers to access funding at the multinationals firm’s lower cost of capital.).

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Should Companies Retain "Strategic" Cash?

Harvard Business Review

This raises the question of whether retaining strategic cash makes economic sense and should be viewed as a legitimate corporate finance tool in today's environment. Strategic cash also can be used to finance long-term reinvestment programs in the business—which is especially valuable to companies in capital-intensive industries (e.g.,

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How Banks Can Compete Against an Army of Fintech Startups

Harvard Business Review

banks are going to survive the coming wave in financial technology (fintech), they’ll need to finally take digital transformation seriously. Small businesses are starting to demand banking services that have engaging web and mobile user experiences, on par with the technologies they use in their personal lives.

Banking 12
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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. Here are four things leaders can do. Don’t Get Trapped in Your P&L.

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Case Study: A Short-Seller Crashes the Party

Harvard Business Review

With the company’s share price sinking and its cost of capital rising, those deals might have to be put on hold. ExSolv claimed to have a technology for extracting oil from sand. Terranola had been moving forward with A.J.’s s plan to acquire all six of the licensees that made Express machines and pods.

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The Real Reasons Companies Are So Focused on the Short Term

Harvard Business Review

Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.