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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic. However, firms can efficiently increase margin growth without much revenue growth by managing to squeeze out their fixed costs to service the same level of output.

EPS 8
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A Refresher on Price Elasticity

Harvard Business Review

In fact, determining price is one of the toughest things a marketer has to do, in large part because it has such a big impact on the company’s bottom line. As she explains in her “ Marketing Analysis Toolkit: Pricing and Profitability Analysis ,” there are five zones of elasticity. What is price elasticity?

Price 8
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What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

We also know that private equity funds have outperformed public equity markets over the last three decades , even after the fees they charge are accounted for. What have been less explored are the specific actions taken by private equity (PE) fund managers. At the same time, debt puts pressure on managers not to waste money.

CAPM 8
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The Comprehensive Business Case for Sustainability

Harvard Business Review

Today’s executives are dealing with a complex and unprecedented brew of social, environmental, market, and technological trends. These require sophisticated, sustainability-based management. ” Improving risk management. Investing in sustainability is not only a risk management tool; it can also drive innovation.

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

Companies deliver superior results when executives manage for long-term value creation and resist pressure from analysts and investors to focus excessively on meeting Wall Street’s quarterly earnings expectations. Collectively, our sample accounts for about 60%–65% of total U.S. This has long seemed intuitively true to us.