Harvard Business Review

NOVEMBER 4, 2014

Divestment can theoretically address this market failure by limiting investment by the fossil fuel industry by depressing company valuations and thereby increasing the cost of capital. For many companies, most of the capital expenditures are financed from internal cash flows and bank financing. Finance Sustainability'

Finance 8

Finance Cost of Capital Constraint Price 8

Harvard Business Review

MAY 14, 2013

Cap-and-trade systems are based on government-imposed targets for reducing greenhouse-gas emissions. Share prices for European utilities and industrial companies have fallen too, threatening a wave of credit downgrades and increasing companies'' cost of capital. Will the European debacle affect China''s plans?

Price 8

Price Energy Politics Marketing 8

Harvard Business Review

MARCH 31, 2015

bank in assets, JP Morgan Chase , announced that in August, hackers had accessed its security system and that approximately seven million small businesses and 76 million households had been affected by a data breach. In the beginning of October, 2014, the largest U.S.

Price 8

Price Long-term Banking Short-term 8

Harvard Business Review

APRIL 26, 2017

Banks’ cost of capital is typically 50 basis points or less. These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window. ” Can banks out-compete the disruptors?

Banking 11

Banking Credit Scoring Stage-Gate Competitive Advantage 11

Harvard Business Review

APRIL 9, 2015

Your company is ready to make a big purchase — a fleet of cars, a piece of manufacturing equipment, a new computer system. But before anyone writes a check, you need to calculate the return on investment (ROI) by comparing the expected benefits with the costs. Evaluate the investment. This is the final step.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

FEBRUARY 7, 2011

Any system that combines skill and luck will revert to the mean over time. Take, for instance, a group of companies that currently have high returns on invested capital (ROIC). If you follow that group over time, you would see their ROICs revert back toward the cost of capital. The same principle applies in business.

Skills 15

Skills ROIC Sports Cost of Capital 15

Harvard Business Review

OCTOBER 3, 2011

This blog post is part of the HBR Online Forum The CEO's Role in Fixing the System. A CEO's job is about resource allocation with a goal of earning a return in excess of the opportunity cost of capital. The challenge is figuring out how to allocate human and financial capital to its best and highest use for the long term.

Short-term 12

Short-term Long-term Price CEO 12

Harvard Business Review

OCTOBER 21, 2016

Nike embedded sustainability into its innovation process and created the $1 billion-plus Flyknit line, which uses a specialized yarn system, requiring minimal labor and generating large profit margins. The system also improves product quality by creating regulated growing conditions. Since its launch in 2012, Flyknit has reduced 3.5

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

SEPTEMBER 26, 2016

Jensen’s argument rang true to me and probably to anybody else who had ever worked on system optimization. My minimums would be: treating employees well, having a positive impact on the environment, living within the spirit (not just the letter) of the relevant laws, and earning a return above the cost of capital.

Objective 8

Objective Cost of Capital Bottom-up Environment 8

Harvard Business Review

FEBRUARY 7, 2017

To help provide a better factual base for this debate, MGI, working with McKinsey colleagues from our Strategy & Corporate Finance practice as well as the team at FCLT Global, began last fall to devise a way to systemically measure short-termism and long-termism at the company level.

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

APRIL 2, 2014

As we think about the stability of the financial system, large swings in asset prices and big changes in risk premia can be very important, and relatively hard to arbitrage away. The capital asset pricing model was supposed to allow companies to calculate their cost of capital in a consistent way. Absolutely.

CAPM 8

CAPM Discount Price Finance 8

Strategy Driven

SEPTEMBER 9, 2011

The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. For instance, intelligent failures can add more value than predictable successes, and low-cost experimentation trumps analysis. Net present value [NPV] is a case in point.

Innovation 50

Innovation NPV Business Model Constraint 50

Harvard Business Review

MARCH 1, 2017

Our global financial system moves trillions of dollars a day and serves billions of people. But the system is rife with problems, adding cost through fees and delays, creating friction through redundant and onerous paperwork, and opening up opportunities for fraud and crime. Transparency with Pseudonymity.

Finance 8

Finance IPO Banking Venture Capitalist 8