Calculating the Market Value of Leadership
Harvard Business Review
APRIL 3, 2015
GAAP and FASB standards require financial reporting of earnings, cash flow, and profitability – all measures that investors have traditionally examined. To gain more insights into a specific firm, investors have shown more interest in intangibles like strategy, brand, innovation, systems integration, collaboration, and so on. We believe that a next step for investors is to analyze the predictors and drivers of these intangible factors, which means focusing on leadership.