Corporate board of directors are composed of executives (CEOs and CFOs) and non-executives. In the U.S. and the UK, the executives and non-executives are grouped on one board. In Europe, the executives form one board, and the non-executive members form a distinct ‘supervisory’ board. Together, the CEOs, CFOs and non-executive board members make up what […]
Read More… from Non-Executive Board Members More Risk Averse than Executives
When the most important asset of a company is human capital, attracting and retaining high-quality, motivated employees is the key to sustainable competitive advantage. High employee satisfaction makes the company attractive to the highest-quality potential employees, and keeps current employees motivated to do their best. The impact of employee satisfaction is found in the company’s results. […]
Read More… from Does Employee Satisfaction Improve Company Value? It Depends…
Neuroscientific research reveals that the brain reacts differently to negative vs. positive outcomes; recent research in finance shows that market participants (including investors and investment professionals) draw different lessons from market conditions depending on whether conditions are good or poor. Professor Camelia Kuhnen of University of North Carolina’s Kenan-Flagler Business School designed an experiment involving […]
Read More… from Overreacting to Bad Financial News Can Lead to Poor Investment Decisions
When overseas earnings by U.S. multinationals are brought back to the U.S., those earnings are taxed as income. However, multinational companies have the option of leaving those earnings abroad and for accounting purposes may designate all or some of those earnings as Permanently Reinvested Earnings or PRE. Tax policy makers and the U.S. Securities and […]
Read More… from The Good and Bad Reasons Corporate Cash Is Trapped Overseas
Through crowdfunding, investors choose to participate in new projects by becoming ‘pre-buyers’. The term ‘pre-buyer’ is used because no money changes hands until the venture has enough funds to start operations. If not enough money is raised in the allotted time, the venture fails. The investment occurs sequentially, so that new pre-buyers can see the […]
Read More… from How Crowdfunding Affects Product and Pricing Decisions
New research, focusing on accounting ethics and using a carefully controlled experiment, reveals the power of social influence on the ethical standards of managers. After seeing honest budget reporting from another manager — a peer — a manager is more likely to be honest: despite an incentive to inflate costs to secure a bigger budget, […]
Read More… from How Peers Influence Ethics: Good Eggs and Bad Apples
Academics and practitioners have long known that without tight monitoring, CEOs of large public companies may take actions that are against the interests of their shareholders. The consensus has been that a strong board of directors, independent from management, provides checks and balances for executive power. Academic literature confirms that board independence improves governance — […]
Crowdfunding is becoming an increasingly popular way to raise funding for a new venture or a new cause. Because it is relatively new, academic research on how crowdfunding works, and how well it works, is still in its early stages. Researchers Gordon Burtch of the University of Minnesota’s Carlson School of Management, Anindya Ghose from […]
Read More… from Crowdfunding: How a Slow Process Helps in the Long Run
Crowdfunding brings together the individuals or organizations that propose ideas with a ‘crowd’ of people who pool their money to support the projects. An online crowdfunding ‘platform’ links the project initiator and the crowd. In a business context, crowdfunding means the funding of a company through small amounts of debt or equity from many investors. […]
Do you want your business to operate sustainable, socially and environmentally friendly practices? Almost every business leader will answer with a “yes”. But if they are allowed to elaborate, most will talk about certain conditions that have to be met: “Yes, as long as these practices do not destroy firm value”, “Yes, as long as […]
