Remove Debt to Equity Ratio Remove Globalization Remove Operations Remove ROE

End the Religion of ROE

Harvard Business Review

corporation than "what's the ROE on that?" Return-on-equity hurdles threaten them all. ROE justifies the means. We think there's more to business success — and that something as straightforward as a simple equation could put capitalism on a better path. To an extent not widely recognized, it was an equation in the first place that gave ROE the power to dominate not just investment decisions, but an entire business culture.

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