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End the Religion of ROE

Harvard Business Review

There is no more powerful question in a U.S. corporation than "what's the ROE on that?" Conversely, why market cigarettes? ROE justifies the means. To an extent not widely recognized, it was an equation in the first place that gave ROE the power to dominate not just investment decisions, but an entire business culture.

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How Companies Can Use Investors to Their Advantage

Harvard Business Review

Yet investors can be a powerful strategic resource, providing not only capital but also less-biased insight into the threats and opportunities that a company encounters. It would implement targets linked to shareholder value, including ROE and ROIC. What he heard was uncomfortable.

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Would You Want Carl Icahn to Run Your Company?

Harvard Business Review

During the last few years the market value of the common stock of companies that we were in, amazingly rose $55 billion and they were only $20 billion when we started buying." Icahn then goes on to contradict his assertion that "nobody can attack" corporate governance in the U.S. "We We can get a lot done as activists.

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Women Directors Change How Boards Work

Harvard Business Review

And while research about financial performance is still in its infancy — Catalyst has found a strong correlation between the number of women on boards and in the C-Suite and ROI and ROE of company returns — we’re starting to learn more about the important ways women are changing the inner workings of boards.

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Idle Funds are the Devil's Playground

Harvard Business Review

vision of financial world order; as Time magazine reported, he was "bursting with hubris over its booming equity markets and its just-announced 5.6% Mahathir stood his ground, not just at Davos but in the financial markets, by refusing the IMF's aid, reducing Malaysia's interest rates, and restricting currency trading.

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