Calculating the Market Value of Leadership

Harvard Business Review

GAAP and FASB standards require financial reporting of earnings, cash flow, and profitability – all measures that investors have traditionally examined. We believe that a next step for investors is to analyze the predictors and drivers of these intangible factors, which means focusing on leadership. Wise, long term investors recognize that leadership affects firm performance. But too often, assessments of leadership are haphazard and narrow.

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