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
According to an article published in IESE Insight, the conventional approach of investing in stocks and bonds may help to preserve capital, but is not suitable for wealth creation; investment expenses, taxes and inflation all have a real impact, and a different and more innovative approach is necessary. Researchers from institutions including IESE Business School […]
Read More… from Investors – Strategies for Wealth Creation
Investment banking was once regulated mainly by ‘reputational incentives’: bankers were motivated to act in the client’s best interests by concern for the bank’s good name. It was a system that owed as much to pragmatism as integrity. Contracts relied on the honest exchange of information (about, for example, the quality of securities) and the […]
Read More… from Investment Banking: Technology and the Decline of Trust
In a popular article published by Harvard Business Review in 1999, the authors proposed that those who use stories as part of their management and strategy technique tend to become team leads, small business innovators, and CEOs. Whether the story is about the “two Steves” of Apple Computers who worked out of Steve Job’s parents’ […]
Read More… from Storytelling for Entrepreneurial Endeavour
Although global investment in renewable energy has grown significantly since the start of this century, it remains below the level needed to meet Kyoto Protocol targets for reducing CO2 emissions, according to renewable energy advocates. (Investment slightly decreased in 2012.) Portfolios that do include renewables tend to be weighted towards ‘mature’ technologies such as onshore […]
Read More… from The Green Investment Gap – And How to Close It
Survey data from 2011 suggests investment consultants are hired by more than 90 per cent of retirement plan sponsors and that they advise on institutional assets of more than $13 trillion in the US. The costs to plan sponsors are considerable: ‘transition management’ fees are incurred when they move between funds. Are they getting value […]
Read More… from Money for Nothing: The Truth About Investment Consultants
Investments in IT account for a large proportion of corporate discretionary spend and leaders need to understand the likely impact of such investments before allocating resources to it. The amount of ‘cash you splash’ on your IT systems has been a perennial problem for many leaders. What type of IT investment should I opt for? […]
Read More… from Computer Says ‘Yes’ – The Impact of IT Investment
Decision-making on the financial markets is driven by information and by trust. But trust can be flagrantly abused. This was amply demonstrated by the Bernard Madoff scandal, considered to be the biggest fraud in American history. Madoff, a former non-executive chair of the NASDAQ stock exchange, used a ‘Ponzi scheme’ to defraud investors, paying returns […]
Read More… from Trust, Fraud and the Financial Markets
Recently, faculty from Kenan-Flagler Business School and Robert H. Smith School of Business looked at the relationship between egotistic (or narcissistic) CEOs and firm performance by measuring ego by the size of signatures on yearly SEC filings. They looked at about 400 CEO signatures from the annual SEC filings from companies in the S&P 500, […]
Read More… from Narcissistic CEOs – A Signature for Poor Performance
