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Idle Funds are the Devil's Playground

Harvard Business Review

The conflict between the IMF and Malaysia was a sign of a tipping point in the developed economies, shifting from a world of capital scarcity to one of abundance. The result has been an economic system built increasingly around the maximization of ROE.

Banking 11
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Stop Focusing on Profitability and Go for Growth

Harvard Business Review

Equity cash flows, in turn, are a function of a company’s long-term return on equity (ROE), growth, and the value of shareholders’ equity on its books. If a company’s long-term ROE is anticipated to be the value created by improving pre-tax margins will exceed the value created by accelerating growth.

ROE 14