Harvard Business Review

APRIL 4, 2016

What is Return on Equity (ROE)? Unlike ROA, you want the ROE to be as high as possible, but there are limitations. Knight explains that “one company may have a higher ROE than another company because it borrowed more money and therefore has greater liabilities and proportionately less equity invested in the company.

ROE 8

ROE Banking Industry Comparison 8

Harvard Business Review

MARCH 29, 2012

What exactly this balance of power between shareholders, boards, and managers should look like is one of those eternal questions to which we will never come up with a definitive answer (don't just take my word for it; read Mark Roe's " The Inevitable Instability of American Corporate Governance ").

Company 9

Company ROE Price CEO 9

Harvard Business Review

MAY 1, 2017

So, in real terms, debt financing is essentially free. Equity cash flows, in turn, are a function of a company’s long-term return on equity (ROE), growth, and the value of shareholders’ equity on its books. But in most other sectors, ROEs are much greater than the cost of equity capital.

ROE 14

ROE Long-term GDP Six Sigma 14

Harvard Business Review

AUGUST 15, 2011

The result has been an economic system built increasingly around the maximization of ROE. This put financiers in the strong position they have enjoyed since, since seekers of capital have been willing to bend to their wills.

Banking 11

Banking ROE Proposal Self-aware 11

Harvard Business Review

OCTOBER 20, 2011

corporation than "what's the ROE on that?" ROE justifies the means. 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. There is no more powerful question in a U.S. Social media spending? Wellness checkups?

ROE 12

ROE Debt to Equity Ratio Innovation Incentives 12