Strategy Driven

JANUARY 17, 2014

Those making this shift will gain a significant ROE – Return on Empathy. Our inability to influence the outcome of an event is deeply unsettling. You just finished reading Moving on from ROI to ROE, a Return on Empathy ! The post Moving on from ROI to ROE, a Return on Empathy appeared first on StrategyDriven.

ROE 50

ROE ROI Letter Airlines 50

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

SEPTEMBER 20, 2017

In Japan several factors combine to help insulate managers from outside influence, including cross-holdings where the company owns shares in a partner firm, docile boards mostly composed of company executives, and a court system historically biased against investment funds.

ROE 8

ROE Construction Hedge Policies 8

Harvard Business Review

MAY 28, 2018

Directly influenced by investor input, Nikon developed a restructuring plan that would carry a onetime cost of ¥48 billion ($460 million) but generate ¥20 billion ($190 million) in annual savings. It would implement targets linked to shareholder value, including ROE and ROIC.

Company 9

Company ROIC CFO Restructuring 9