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Calculating the Market Value of Leadership

Harvard Business Review

In recent years, investors have learned that defining the market value of a firm cannot just be based on finances. GAAP and FASB standards require financial reporting of earnings, cash flow, and profitability – all measures that investors have traditionally examined.

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A Blueprint for Digital Companies’ Financial Reporting

Harvard Business Review

On June 25, 2018, Facebook lost market capitalization of more than $100 billion in just two hours of trading after it announced its quarterly performance, despite exceeding analysts’ earnings forecasts. In a market like social media, a firm’s success can depend on the winner-take-all profits that come from market leadership.).

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Why Leaders Are Still So Hesitant to Invest in New Business Models

Harvard Business Review

Consider the dramatic shift in the types of assets that create market value. According to Ocean Tomo, a consulting firm focused on intellectual capital, physical assets (plant, property, and equipment) made up more than 80% of the market value of the S&P 500 in 1975. You can take our online leadership investment style assessment).

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How B2B Software Vendors Can Help Their Customers Benchmark

Harvard Business Review

Neustar’s MarketShare software makes it possible for customers to measure the effects of their marketing programs and compare them to other firms. At the same time that data mirrors and scoring have emerged in the corporate world, capital markets are becoming increasingly interested in the analysis of alternative data sets.