Harvard Business Review

AUGUST 3, 2018

On June 25, 2018, Facebook lost market capitalization of more than $100 billion in just two hours of trading after it announced its quarterly performance, despite exceeding analysts’ earnings forecasts. This example illustrates that investors consider information beyond just earnings as value-relevant. What caused this slump?

Report 8

Report GAAP Company Proposal 8

Harvard Business Review

DECEMBER 1, 2011

Moreover, I fail to see any argument why such short-term traders, by themselves, destroy value for the economy as a whole. Clearly, some of these traders could get very rich even while others lose money, but these trades — unless they influence operators within companies — amount to little more than robbing Peter to pay Paul.

Short-term 14

Short-term Hostile Takeover Long-term Management 14

Harvard Business Review

NOVEMBER 19, 2015

This can be quantified by analyzing the extent to which the share prices of S&P 500 firms are driven by a firm’s present value of future growth options (PVGO) rather than cash flow from current operations. Eventually the company is likely to be out of touch with changing market requirements.

Company 8

Company Succession Maturity Long-term 8

Harvard Business Review

OCTOBER 3, 2011

First, he or she needs to internalize the true meaning of creating shareholder value. Second, he or she needs to understand how capital markets work. Creating Shareholder Value. Critics imply that managing for shareholder value is all about maximizing the short-term stock price. Understanding Capital Markets.

Short-term 12

Short-term Long-term Price CEO 12

Strategy Driven

SEPTEMBER 9, 2011

Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. With Discovery-Driven Growth , Rita and Ian offer managers everywhere a time-tested blueprint for planning and executing a strategic growth agenda with confidence – in any market.

Innovation 50

Innovation NPV Business Model Constraint 50