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Are Bosses Always Over-Confident?

The Horizons Tracker

Strategic nonconformity was measured on any deviation from industry-level means across six categories, including inventory levels, advertising intensity, R&D intensity, and financial leverage. By contrast, when these bosses operate in environments that are not dynamic, they’re more likely to follow the pack.

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How To Really Measure a Company's Innovation Prowess

Harvard Business Review

Who is the world's most innovative company? Last year , number crunchers at Forbes found that Salesforce.com is the company with the highest "Innovation Premium" baked into its stock price. Perhaps a company's ability to innovate doesn't last long. There's no doubt: measuring "innovation" is a fuzzy business.

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How To Really Measure a Company's Innovation Prowess

Harvard Business Review

Who is the world's most innovative company? Last year , number crunchers at Forbes found that Salesforce.com is the company with the highest "Innovation Premium" baked into its stock price. Perhaps a company's ability to innovate doesn't last long. There's no doubt: measuring "innovation" is a fuzzy business.

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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

These “buy, fix, manage, and then sell” PE firms were essentially umbrella holding companies while the acquired firms would become better managed before returning to the public market. KKR, BlackRock, Blackstone) became publicly traded holding companies exploiting capital markets to expand their reach.

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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. We measured their firm’s value by Tobin’s Q, a ratio between market value of assets to book value of assets. If this was the case, then we would expect the firm to demonstrate greater innovation.