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CEOs Don’t Care Enough About Capital Allocation

Harvard Business Review

It’s been more than 50 years since Nobel prizewinners Franco Modigliani and Merton Miller identified return on investments as a major component of value creation (and value destruction). Financial analysis Financial management' This failure to even mention return on capital seems perverse.

CEO 8
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What an Economist Brings to a Business Strategy

Harvard Business Review

In the 1900s, French mathematician-economist Leon Walras envisioned prices in a market economy being set by an auctioneer (since known as the “Walrasian auctioneer”) conducting continuous auctions for all kinds of commodities. Economists and market design. Admittedly, better pricing of options has been a mixed blessing.