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Entrepreneurship Suffers When Well-Paid Jobs Are Plentiful

The Horizons Tracker

This ready supply of stable income made the inherent uncertainty of entrepreneurship a difficult sell. 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. Better alternatives.

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Should Companies Retain "Strategic" Cash?

Harvard Business Review

Many shareholders, however, believe that excess cash should not be retained as a long-term corporate finance strategy, citing uncertainties about its eventual use and the relatively low returns on investment. Arguments Against Strategic Cash. They emphasize that it can: Lead to Undisciplined Spending. How Should You Approach Strategic Cash?

Company 13
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Providing Earnings Guidance? Think Again

Harvard Business Review

Although the empirical evidence is mixed, this argument has intuitive logic: Because investors abhor uncertainty, knowing management's expectations is a valuable data point that can strengthen their confidence in the investment.

CFO 11
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When "Creative Destruction" Destroys More than It Creates

Harvard Business Review

Repeatability was based on a three-year Bain & Company study of enduring profit and relative competitive ability to adapt in a world of increasing velocity and uncertainty. real revenue and profit growth and earning their cost of capital has steadily declined. In the past decade, the percentage of companies achieving even 5.5%

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Why Data Breaches Don’t Hurt Stock Prices

Harvard Business Review

Delays in disclosing information security incidents often contribute to shareholders’ hesitation and uncertainty with regard to how to factor in the effects of the breaches. In most cases, at the time a security breach is disclosed, it is almost impossible for shareholders to assess its full implications.

Price 8
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Why Europe's Carbon Woes Matter to the Whole World

Harvard Business Review

Share prices for European utilities and industrial companies have fallen too, threatening a wave of credit downgrades and increasing companies'' cost of capital. But the worst effect of the vote is the uncertainty it injects into global carbon-reduction initiatives.

Price 8
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Case Study: A Short-Seller Crashes the Party

Harvard Business Review

Even more important from a strategic perspective, creditors would balk at further loans until the uncertainty was resolved, making it harder for the company to raise money. With the company’s share price sinking and its cost of capital rising, those deals might have to be put on hold.