Corporate directors want more information about their companies and industries, and they say that investments by private-equity firms improve governance.
Companies shouldn't confuse the value created by returning cash to shareholders with the value created by actual operational improvements. After all, the market doesn't.
This article is adapted from a speech given by the author in the summer of 2007 at a conference at the Federal Reserve Bank of San Francisco. The text of this recording can be found at www.mckinseyquarterly.com.
Regulators may worry when Arab investors acquire stakes in western companies, yet vast reserves of petrodollars have kept down interest rates and buoyed financial assets. What's the broader effect of the surge in petrodollars?
M&A executives at the most successful US companies understand not only how acquisitions create value but also how to enlist the support of the organization.
Finance theory isn’t enough when companies set their expectations for reasonable returns on invested capital. A long-term analysis of market and industry trends can help.
Our data finds that reports of the demise of the M&A boom may be greatly exaggerated. But to keep it going, companies must work even harder to ensure that deals create value.
High price-to-earnings ratios are about more than growth. Understanding the ingredients that go into a strong multiple can help executives make the most of this strategic tool.
Investors and fund managers build entire portfolios around the premise that growth stocks grow faster than value stocks. The problem is that they don’t.
As investors demand that companies actively manage their business portfolios, executives must increasingly balance investment opportunities against the capital that’s available to finance them.