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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?" 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. Social media spending?

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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.

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Idle Funds are the Devil's Playground

Harvard Business Review

Regarding the latter, we point to some well-documented and broadly perceived shifts in the geography, demography, and technology of global economic activity. And at the time, as industrial technology appeared, it afforded many good opportunities to invest in such assets at high expected returns.

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