Harvard Corporate Governance

FEBRUARY 3, 2025

Posted by Arthur Korteweg (USC), Stavros Panageas (UCLA), and Anand Systla (UCLA), on Monday, February 3, 2025 Editor's Note: Arthur Korteweg is an Associate Professor of Finance and Business Economics at USC Marshall School of Business, Stavros Panageas is a Professor of Finance at UCLA Anderson School of Management, and Anand Systla is a Ph.D.

Equity 159

Equity Risk Premium Finance Marketability 159

Musings on Markets

FEBRUARY 8, 2025

In the first five posts, I have looked at the macro numbers that drive global markets, from interest rates to risk premiums, but it is not my preferred habitat. The second set of inputs are prices of risk, in both the equity and debt markets, with the former measured by equity risk premiums , and the latter by default spreads.

Risk Premium 72

Risk Premium Beta Start-ups Equity 72

Musings on Markets

JANUARY 28, 2025

It was an interesting year for interest rates in the United States, one in which we got more evidence on the limited power that central banks have to alter the trajectory of market interest rates. In 2022, the rise in rates was almost entirely driven by rising inflation expectations , with the Fed racing to keep up with that market sentiment.

Banking 69

Banking Treasury Risk Premium Start-ups 69

Musings on Markets

JANUARY 31, 2025

For those of you who have been tracking the market, the AI segment in the market has held its own since September, but even before the last weekend, there were signs that investors were sobering up on not only how big the payoff to AI would be, but how long they would have to wait to get there.

Start-ups 133

Start-ups Marketability Technology Risk Premium 133

Musings on Markets

FEBRUARY 18, 2025

While I was working on my last two data updates for 2025, I got sidetracked, as I am wont to do, by two events. The Market Launch Assume now that the owners of both businesses (A and B) list their businesses in the market, disclosing what they expect to generate as net income in perpetuity.

Equity 52

Equity Book Value Marketability Start-ups 52

Reynolds Holding

MARCH 25, 2025

The 40 Acts Prior to the 1929 stock market crash, a budding asset management industry was taking shape smaller investors were invited to pool their assets with the assets of others, mostly in closed-end funds. [3] 17] Markets are built on trust. Then Ill turn to some observations about the state of affairs as I see them today.

Corporate Finance 45

Corporate Finance Finance Banking Marketability 45

Reynolds Holding

FEBRUARY 23, 2025

Effective and well-designed laws governing investment and financial markets are the single most important foundation for financial markets to allocate capital efficiently while providing optimal reassurance to investors and lenders. capital markets depends upon the regulatory certainty that U.S.

Systematic Risk 45

Systematic Risk Marketability Equity Risk Premium 45

Musings on Markets

FEBRUARY 23, 2025

Corporate control : There are companies that choose to borrow money, even though debt may not be the right choice for them, because the inside investors in these companies (family groups, founders) do not want to raise fresh equity from the market, concerned that the new shares issued will reduce their power to control the firm.

Equity 75

Equity EBITDA Risk Premium Gross Debt 75

Musings on Markets

FEBRUARY 6, 2025

The Indian and Chinese markets cooled off in 2024, posting single digit gains in price appreciation. The Indian and Chinese markets cooled off in 2024, posting single digit gains in price appreciation. I converted all of the market capitalizations into US dollars , just to make them comparable.

Risk Premium 67

Risk Premium Start-ups Enterprise Value Equity 67

Musings on Markets

MARCH 15, 2025

Thus, my estimates of equity risk premiums, updated every month, are not designed to make big statements about markets but more to get inputs I need to value companies. Many of these hiring firms have supply chains that stretch across the world and sell their products and services in foreign markets.

Start-ups 130

Start-ups Risk Premium Marketability Equity 130

Global Finance

OCTOBER 29, 2024

Data has been better than we expected, not only in the labor market but also consumer spending remains very resilient. The market still expects that the Fed will be able to continue rate cuts at a regular cadence into next year. The risk looks a lot better, and all those reasons support the soft-landing thesis.

Start-ups 98

Start-ups Finance Equity Private Equity Firm 98