Harvard Corporate Governance

OCTOBER 24, 2023

To make progress on this question, our paper “ Good and Bad CEOs ” analyzes changes in firm value, performance, and behavior caused by deaths of incumbent CEOs. Unlike other CEO turnovers, most CEO deaths are randomly allocated to firms and are not a decision made by the board of directors.

Finance 243

Finance Firm Value Technology 243

Reynolds Holding

OCTOBER 17, 2022

Research shows that socially responsible activities enhance firm value while irresponsible social activities destroy value and that firms with more women directors tend to do better on social and environmental issues.

Firm Value 45

Firm Value Marketability 45

Harvard Corporate Governance

MARCH 13, 2024

For instance, drawing on survey data from 1,348 North American executives who represent many of the largest firms in the economy, we found a consensus among executives on the significant contribution of culture to long-term firm value.

Intangible Assets 211

Intangible Assets Corporate Finance Finance Firm Value 211

Reynolds Holding

JUNE 13, 2022

As a social-policy instrument, forced board-gender balancing is in principle unrelated to firms’ economic performance. Nonetheless, imposing such a policy may have unintended consequences (positive or negative) for firm value, which is important for all of a firm’s constituencies – not only shareholders – to understand properly.

Firm Value 45

Firm Value EBIT Marketability Compliance 45

Harvard Corporate Governance

OCTOBER 5, 2023

For instance, some investors may adjust their required rate of return because they derive utility from holding high ESG firms in their portfolios. Another possibility is that ESG activities affect firm value because they lead to higher cash flows. more…)

Finance 214

Finance Firm Value 214

Harvard Corporate Governance

APRIL 19, 2022

A substantial body of CG research studies the extent to which firm-level CG choices, often captured in CG indices, predict firm value, profitability and other outcomes. We also provide suggestive evidence that the likely root cause is poor construction of the ratings, rather than CG’s inability to predict Tobin’s q.

Marketability 223

Marketability Corporate Finance Finance Firm Value 223

Financial Times M&A

MAY 8, 2024

Investment by private equity firm values Danish group Hempel at more than $3.6bn

Private Equity Firm 99

Private Equity Firm Firm Value Equity 99

Harvard Corporate Governance

AUGUST 9, 2022

Or the performance-based grants might be poorly designed to be informative, such as the performance hurdles are set at unreasonably high (low) level or the performance measures used are unrelated to firm value. Hence, whether the disclosure of unearned shares is informative is an empirical question. more…).

Finance 213

Finance Firm Value Marketability Equity 213

IVSC

JUNE 28, 2023

In this paper we will: Define technology as it pertains to valuation; Examine the lifecycle of technology and the difficulty of realising certain benefits as commercial profits; List the salient features of technology that are critical in a valuation; Use Apple’s launch of the iPhone to contrast firm value and value of technology; Gauge investor reactions (..)

Technology 147

Technology Intangible Assets Firm Value Business Valuation 147

Reynolds Holding

NOVEMBER 16, 2022

A fundamental question in corporate governance research is whether the board of directors affects firm value. Some argue that directors contribute no additional value to the firm and may even lower its value if they act only as a rubber stamp on the CEO’s decisions. percent of variation in DSQ.

Firm Value 79

Firm Value Book Value Marketability 79

Harvard Corporate Governance

SEPTEMBER 14, 2022

CEO incentives embedded in equity compensation encourage risk taking that might or might not enhance firm value (Bolton, Mehran, and Shapiro 2015; Stulz 2015). In essence, equity compensation is an out-of-the-money call option whose value increases with risk, and may not provide incentives to constrain extreme risk taking.

Banking 202

Banking Equity Firm Value Marketability 202

The Guardian M&A

SEPTEMBER 14, 2023

British tech firm valued at $52.3bn before highly anticipated flotation on Nasdaq by private owner SoftBank The British chip designer Arm has secured a $52.3bn (£41.9bn) valuation in its initial public offering (IPO), before its highly anticipated return to the stock market in New York on Thursday.

Firm Value 93

Firm Value Marketability Technology 93

Harvard Corporate Governance

MARCH 18, 2024

Related research from the Program on Corporate Governance includes Universal Proxies (discussed on the Forum here ) by Scott Hirst; Does Shareholder Proxy Access Improve Firm Value? This post is based on his Broadridge memorandum.

Accounting Firms 133

Accounting Firms Firm Value Banking 133

Reynolds Holding

MARCH 22, 2023

Though the pill’s deterrence of hostile takeovers may seem beneficial at first glance, a hostile takeover may in some cases benefit shareholders by allowing the acquirer to run the firm more efficiently, thereby increasing shareholder value. Therefore, the impact of poison pills on firm value requires empirical study.

Intangible Assets 77

Intangible Assets Firm Value Book Value Marketability 77

Reynolds Holding

MAY 18, 2022

In a recent paper , my coauthors and I examine voting on corporate policies when investors care about both maximizing firm value and achieving one or more social objectives. For example, under some technical conditions, corporate voting is effective when all investors share the same general goal (like maximizing firm value).

Firm Value 49

Firm Value Finance 49

Benzinga

JULY 23, 2024

Embecta’s share price has plummeted nearly 70% since its April 2022 spin-off, leaving the Nasdaq-listed firm valued at $2.1 The medical technology company, which supplies approximately 8 billion syringes and needle pens annually across more than 100 countries, has engaged advisers from Centerview Partners to explore a sale.

Firm Value 59

Firm Value Technology 59

Reynolds Holding

MAY 10, 2022

His incentives as controller of Meta are thus clear: Maximize firm value and private benefits of control, irrespective of the effect that might have on other firms. Its incentives are equally clear: Maximize the value of its portfolio, irrespective of what happens to any given firm therein.

Firm Value 94

Firm Value Marketability 94

Law 360 M&A

MARCH 26, 2024

I in a deal built by six firms, valuing the two businesses at a combined $340 million. Precision medicine company OmnigenicsAI Corp. on Tuesday announced it and artificial intelligence-enabled preventative medicine company MultiplAI Health Ltd.,

Firm Value 52

Firm Value 52

Benzinga

FEBRUARY 29, 2024

Fiserv, Inc (NYSE: FI ) and Amadeus IT Group are in the race to acquire Shift4 Payments Inc (NYSE: FOUR ), a payment processing firm valued at nearly $7 billion. These two leading contenders are preparing their final bids in the upcoming weeks, although the outcome of these negotiations remains uncertain, Reuters reports. million.

Firm Value 52

Firm Value 52

Reynolds Holding

MARCH 19, 2024

If this were the only channel of influence, pursuing ESG might simply collapse into maximizing shareholder value, raising no new analytical issues. Second and more important, we identify a novel set of strong personal incentives for CEOs to promote ESG, separate from firm value. The net result of these pressures is ambiguous.

Firm Value 78

Firm Value Marketability 78

Startup Valuation Blog

MARCH 13, 2023

"The bankruptcy of banks can have a ripple effect on the value of companies that work with the bank, and it's an aspect of valuation that cannot be ignored." A firm's value and the risk of the financial crisis that banks must deal with can have complicated and diverse relationships. Says Tamir Levy, Ph.D.,

Banking 100

Banking Firm Value Finance Equity 100

Reynolds Holding

FEBRUARY 1, 2024

Few topics in the corporate and securities law literature are as controversial as securities class actions – that is, actions in which shareholders of public firms seek to collectively obtain compensation for damages resulting from false or misleading statements in corporate disclosures.

Marketability 45

Marketability Firm Value Banking 45

Harvard Corporate Governance

MAY 20, 2024

Posted by Lily Fang (INSEAD) and Sterling Huang (SMU), on Monday, May 20, 2024 Editor's Note: Lily Fang is a Professor of Finance at INSEAD and Sterling Huang is an Associate Professor of Accounting at Singapore Management University. This post is based on their recent article forthcoming in the Journal of Financial Economics.

Finance 140

Finance Firm Value 140

Reynolds Holding

MAY 26, 2022

Likewise, judges in cases involving corporate governance matters such as anti-takeover devices and fiduciary duties have cited those studies when assessing the consequences of different governance mechanisms for firm value. The second is to evaluate what happens to firms’ values after they adopt or remove a governance provision.

Firm Value 61

Firm Value Data Analysis Finance Marketability 61

Peak Business Valuation

AUGUST 12, 2023

When valuing an accounting firm , a business appraiser determines the best valuation approach for your firm. This can include using a combination of valuation methods to value an accounting firm. To know which multiple is most suitable for an accounting firm, receive a business valuation.

Accounting Firms 52

Accounting Firms Discounted Cash Flow Business Valuation Appraisal 52

Equilest

JULY 12, 2022

In that case, the firm's profit margin will diminish and, as a result, the firm's value. In that case, the value can increase or decrease - depending on the question - at what rate can the firm raise the prices? Suppose you are looking for a business valuation report.

Business Valuation 52

Business Valuation Start-ups Firm Value 52

Reynolds Holding

SEPTEMBER 9, 2022

Thus, investors cannot distinguish between firms that intentionally remain silent and those that have no information to disclose. Assuming that the latter firms are not fundamentally different from the other firms in the market, their expected firm value equals the average firm value.

Firm Value 45

Firm Value Compliance Marketability 45

Appraisal Rights

MARCH 22, 2018

The author ultimately argues for a “shareholder voice in situations of high importance to firm value and share price.”. . For instance, while target shareholders can bring appraisal proceedings in some transactions, bidder shareholders do not receive any appraisal rights even in transactions where they have the right to vote.

Appraisal 40

Appraisal Firm Value 40

Reynolds Holding

OCTOBER 26, 2022

Third, a large pay gap could simply reflect inadequate internal governance of the firm, which will benefit the entrenched CEO but is detrimental to firm value. VP pay differentials are associated with firms’ strategy, as strategy is a significant consideration when a firm decides to promote or otherwise reward its executives.

Equity 45

Equity Firm Value Marketability 45

Startup Valuation Blog

OCTOBER 12, 2021

How is it measured, and how is the value of the company maximized? We, therefore, added a pitch deck creator, a cap-table management software, investment proposal letters, Early-Stage Firm Value Enhancer, and more. Today Equitest helps solve most of the startup’s problems with valuation management and value enhancement.

Business Valuation 100

Business Valuation Start-ups Finance Firm Value 100

Reynolds Holding

NOVEMBER 6, 2023

Further, regardless of their merit, whistleblower claims may alert auditors and directors to the risk of potential misconduct, prompting them to spend more effort monitoring the firm’s financial reporting. Consistent with prior literature, we find a negative effect of meritorious whistleblower claims on firm value.

Firm Value 40

Firm Value Finance Marketability 40

Equilest

JANUARY 8, 2023

According to the Modigliani-Miller theorem, in a world without taxes - the value of Firm A should be the same as the value of Firm B. . . . . Suppose each firm produces an annual cash flow of 10 million USD. In the real world, taxes do exist and can impact a firm's value. . Why is that?

Weighted Average Cost of Capital 40

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

Equilest

JULY 19, 2022

For example, suppose a firm is valued at $ 1 million. Suppose an investor also purchased the firm for $ 1.1 In our example, the difference between the purchase price and the firm's value equals $ 0.1 If the price to be paid for the firm is $ 0.9 million and is called the acquisition premium.

Business Valuation 40

Business Valuation Firm Value 40

Andrew Stolz

AUGUST 6, 2020

This process helps the management invest in the assets that can maximize the firm’s value. It brings to light a potentially bad investment option, which, if avoided, helps to maximize the firm value. There are other internal factors that firms have to take into considerations. Capital Budgeting in Practice.

Net Present Value 52

Net Present Value Discounted Cash Flow Firm Value Business Valuation 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. The burn rate is when a new corporation uses up its venture capital to finance overhead before generating apparent cash movement from operations.

Start-ups 100

Start-ups Business Valuation Firm Value Marketability 100

Reynolds Holding

OCTOBER 9, 2022

On the one hand, it prevents managers from taking opportunistic actions against shareholders, resulting in higher firm value. In theory, it is unclear what the effect of the takeover market should be on credit ratings. Therefore, both shareholders and debtholders are better off as a result.

Net Present Value 81

Net Present Value Marketability Firm Value Equity 81

Reynolds Holding

DECEMBER 17, 2024

We find that both the costs and benefits vary depending on the firm being engaged. basis point expected increase in firm value. Yet institutional investors engage less with smaller firms because they hold smaller positions in those firms, limiting the potential payoff.

Firm Value 45

Firm Value Market Capitalization Marketability 45