Harvard Corporate Governance

AUGUST 9, 2022

Unearned shares are the number of shares that executives are expected to receive conditional on whether the firm meets predetermined performance hurdles by the end of the evaluation period. In our paper, Hidden Gems: Do Market Participants Respond to Performance Expectations Revealed in Compensation Disclosures? more…).

Finance 208

Finance Firm Value Marketability Equity 208

Equilest

JANUARY 8, 2023

Modigliani-Miller Theorem in the no-tax world states that the value of a firm is independent of its capital structure, meaning that the mix of debt and equity used by the firm has no effect on its overall value. . . . Suppose each firm produces an annual cash flow of 10 million USD. Why is that?

Weighted Average Cost of Capital 40

Weighted Average Cost of Capital Business Valuation Capital Structure Debt Financing 40

Musings on Markets

MAY 20, 2022

In my last post , I discussed how inflation's return has changed the calculus for investors, looking at how inflation affects returns on different asset classes, and tracing out the consequences for equity values, in the aggregate.

Price to Book 96

Price to Book Dividends Beta Equity 96

Brian DeChesare

SEPTEMBER 20, 2023

No Right or Wrong Answers – Some technical questions have correct answers, but many market and investment ones do not. We’ll explain each one and give a few examples along with model answers: “Fit” and Background Questions – Your resume, why venture capital, why this firm, your strengths and weaknesses, etc. Which market is attractive?

Start-ups 59

Start-ups Equity Marketability Terminal Value 59

Reynolds Holding

AUGUST 2, 2022

First, as many commentators and market participants have pointed out, non-price loan terms have loosened for leveraged borrowers. [2] Second, private equity sponsors have become the key strategic decisionmakers in the typical large, distressed business. Smith & Amir Sufi, Creditor Control Rights and Firm Investment Policy , 92 J.

Corporate Finance 83

Corporate Finance Equity Finance Enterprise Value 83

Reynolds Holding

AUGUST 9, 2023

companies to file their mandatory disclosures electronically through the EDGAR system, with the registered firms joining EDGAR in 10 separate waves between April 1993 and May 1996. In 1993, the SEC announced a plan to require all public U.S. REFERENCES Bebchuk, Lucian Arye, and Jesse M. Core, John E., Wayne Guay, and David F. Core, John E.,

Technology 52

Technology Firm Value Finance Equity 52

Startup Valuation Blog

DECEMBER 15, 2021

As the burn rate is lower, the company is expected to survive for a more extended period, and therefore the firm's value is expected to be higher. In that case, you should take the opportunity and protect yourself from the evident competitors in the market that offer the same products as you. 7. Cost Advantages.

Start-ups 100

Start-ups Business Valuation Firm Value Marketability 100

Value Scope

JULY 21, 2020

How do you justify making substantial investments and fundamental changes to corporate structures and culture without empirical evidence that it will make a direct impact on shareholder value, total shareholder return, net present value, and individual rates of return? Do ESG programs impact firm value?

Intangible Assets 130

Intangible Assets Beta Alpha Unlevered Beta 130

Reynolds Holding

MAY 4, 2023

Risk-return ESG investing…can be permissible on the same terms as any other kind of active investment strategy that seeks to exploit market mispricing (what we will call active investing) or shareholder control rights (what we will call active shareholding) for profit. [8] 3°C by 2100. [25] January 25, 2022). November 29, 2022.

Systematic Risk 117

Systematic Risk Finance Marketability Equity 117

Reynolds Holding

APRIL 18, 2022

We examine the trade-off between fostering innovation and protecting investors in the important context of young life-cycle firms, those whose current strategic priorities require significant capital investments financed through debt or equity issuances and whose operations are not yet profitable. Allen and Melissa F.

Intangible Assets 64

Intangible Assets Marketability Firm Value Finance 64

Musings on Markets

JANUARY 5, 2024

Thus, looking at only the companies in the S&P 500 may give you more reliable data, with fewer missing observations, but your results will reflect what large market cap companies in any sector or industry do, rather than what is typical for that industry.

Dividends 98

Dividends Risk Premium Equity Book Value 98

Valutico

AUGUST 17, 2022

As some recent start-up valuations are falling amidst investor caution, this new development comes at an opportune time to positively impact how effectively financial firms value young businesses. For demonstrations please contact Head of Marketing, Alex Harris. Have Questions About the VC Method? What is the VC method?

Start-ups 52

Start-ups EBIT Weighted Average Cost of Capital Discounted Cash Flow 52

Reynolds Holding

DECEMBER 11, 2022

Domestic passive funds and ETFs now manage more than half of all assets under management (AUM) of domestic equity mutual funds and ETFs, and the Big Three passive fund managers (BlackRock, State Street, and Vanguard) cast over a quarter of the votes in S&P 500 companies. Do Index Funds Monitor ? Fahlenbrach (2017). 4] Brav, A.,

Firm Value 122

Firm Value Finance Marketability Equity 122

Musings on Markets

JANUARY 6, 2023

Counter made-up numbers : It remains true that people (analysts, market experts, politicians) often make assertions based upon either incomplete or flawed data, or no data at all. Data universe : In my sample, I include all publicly traded firms with market capitalizations that exceed zero, traded anywhere in the world.

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52

Reynolds Holding

OCTOBER 9, 2022

Yet external governance – the market for corporate control, often known as the takeover market – is critical to determining how well a company is run. Managers are less likely to exploit shareholders when subject to the discipline of the takeover market, making it a governance instrument for reducing agency problems.

Net Present Value 105

Net Present Value Marketability Firm Value Equity 105

Reynolds Holding

APRIL 10, 2022

While investors play a critical role in engaging with company boards and are increasingly focused on social equity, the evidence is scant on how these reforms affect investors’ monitoring role. This gap also contrasts with regulators’ reliance on investors to help ensure firms’ faithful implementation of the reforms. mutual funds).

Firm Value 59

Firm Value Equity Technology Compliance 59

Reynolds Holding

JUNE 20, 2022

Over the past three decades, there has been increasing concern about how corporate governance structures such as classified boards and dual class stock entrench managers, reduce director effectiveness, and reduce firm value. Likely as a result, mature firms have increasingly eliminated these structures.

Equity 49

Equity Firm Value Marketability Technology 49

Value Scope

SEPTEMBER 24, 2020

How do you justify making substantial investments and fundamental changes to corporate structures and culture without empirical evidence that it will make a direct impact on shareholder value, total shareholder return, net present value, and individual rates of return? . Do ESG programs impact firm value? Technology.

Intangible Assets 130

Intangible Assets Alpha Beta Marketability 130