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The Type of Socially Responsible Investments That Make Firms More Profitable

Harvard Business Review

We find that firms making investments and improving their performance on environmental, social, and governance (ESG) issues exhibit better stock market performance and profitability in the future. For investors, this suggests that there is substantial value from analyzing non-financial data and incorporating it into their decisions.

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Private Equity’s New Phase

Harvard Business Review

The types of private equity firms and the approaches to managing these firms has evolved over the last 40 years through three general phases. This phase was loosely called leverage buy out (LBO) from about 1979 to 1990 and included over 2,000 LBOs. In this phase, the acquired property is not just managed, but transformed.

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Research: CEOs with Diverse Networks Create Higher Firm Value

Harvard Business Review

We also found that this greater firm value comes from better corporate innovations and successful diversified M&As. These connections had to be at least senior managers or higher positions to be considered. We measured their firm’s value by Tobin’s Q, a ratio between market value of assets to book value of assets.