...Three ----------------------- Comments What is the book about? Steve Zaffron and Dave Logan take us on a journey through personal and corporate transformation, explaining the theory and approaches, and showing that the seemingly impossible can be achieved. Vividly presented cases (for example Reebok, New Zealand Steel & Polus Group of Japan) make this real, and we are invited to go on our own journey through carefully constructed practical exercises. Who would this book be suitable for? The Three Laws of Performance is relevant to a wide variety of people ranging from individual contributors, managers, and executives. The book provides a map to rewrite the future, transform situations, and dramatically improve personal or organizational performance. Throughout the book, case studies are provided to reinforce core concepts. Book review by: Nivedita Wagh Title: The Three Laws of Performance Author: Steve Zaffron and Dave Logan Text book Reference book Book Review “The Three Laws of Performance: Rewriting the Future of Your Organization and Your Life” is a book that will show you how ordinary business leaders were placed in unbelievably difficult conditions and made changes and improvements that were not only performance changing for the organization, but LIFE CHANGING for everyone involved in the process. If you’re a self-improvement junkie, and love reading anything having to do with how you think and how your brain works, you will love...
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...Equity Valuation and Negative Earnings: The Role of Book Value of Equity ABSTRACT: This study provides an explanation for the anomalous significantly negative price-earnings relation using the simple earnings capitalization model for firms that report losses. We hypothesize and find that including book value of equity in the valuation specification eliminates the negative relation. This suggests that the simple earnings capitalization model is misspecified and the negative coefficient on earnings for loss firms is a manifestation of that misspecification. Furthermore, we provide evidence on three competing explanations for the role that book value of equity plays in valuing loss firms. Specifically, we investigate whether the importance of book value in cross-sectional valuation models stems from its role as (1) a control for scale differences (Barth and Kallapur 1996), (2) a proxy for expected future normal earnings (Ohlson 1995; Penman 1992), or (3) a proxy for loss firms’ abandonment option (Berger et al. 1996; Barth et al. 1996; Burgstahler and Dichev 1997). Our results do not support the conjecture that the importance of book value in cross-sectional valuation stems primarily from its role as a control for scale differences. Rather, the results are consistent with book value serving as a value-relevant proxy for expected future normal earnings for loss firms in general, and as a proxy for abandonment option for loss firms most likely to cease operations and...
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...a corporation Prepare your response to the three questions. Before submitting your response, your manager would like to know a little bit more about the request. She has asked you to tell her what your professional responsibilities are as a CPA, and the difference between a review and an audit. Provide draft responses to the above questions. Additionally, provide your manager with a summary of your responsibilities in an internal memo (no more than 1,050 words). 1. The methodology used to determine deferred taxes Because tax reporting and financial reporting are based on two sets of assumptions, they create temporary differences between the amounts reported on the financial statements and income tax statements. A modified cash basis is used for tax reporting and accrual basis is used for financial reporting (Intermediate book, 966). A company will recognized deferred tax assets and liabilities on their balance sheet based on the differences between the financial statement carrying values and the tax basis (Book1,166). Deferred tax asset and deferred tax liability are two different types that result from taxable temporary differences. “A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year”( Intermediate book, 967). “A deferred tax asset represents the increase in taxes refundable (or saved) in future years as a result of deductible temporary differences...
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...In 2007, Three Cups of Tea had signaled much confusion. One individual, Greg Mortenson, helped publish Three Cups of Tea and his fabrication could be seen throughout the book. A few individuals had seen the lies and took action. CBS and Jon Krakauer reported about Greg Mortenson’s lies in 60 Minutes. After that, NBC had interviewed Mortenson, confirming that he lied in his book. Greg Mortenson fabricated his story, he also built schools for children in the Middle East. Mortenson should be punished for his lies in Three Cups of Tea. When Three Cups of Tea was published, much controversy, about Greg’s schools, was raised. Mortenson, according to the argument, lied about the number of schools he built. In 2011, Jon Krakauer had written Three Cups of Deceit, claiming that much of Mortenson’s experiences regarding his adventures in making his schools are highly exaggerated. Krakauer uses Mortenson’s acquaintances to support his claims, against Mortenson (Krakauer). CBS, also, launched an investigation on Mortenson. CBS had aired in 60 Minutes that he did lie. In 60 Minutes, Krakauer claimed that Mortenson did create schools, but Three Cups of Tea is over exaggerated....
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...Handout 1 — LOL Draft Income Statement and Excerpt From Tax Footnote as of December 31, 2010 |LOL Corporation | |CONSOLIDATED STATEMENT OF OPERATIONS | |Years ended December 31, 2010, 2009, and 2008 | |(in thousands) | | |2010 |2009 |2008 | | | | | | |Revenues, net | 2,000,000 | 1,900,000 | 1,800,000 | |Cost of goods sold | 1,400,000 | 1,250,000 | 1,200,000 | |Gross profit | 600,000 | 650,000 | 600,000 | |Selling, general, and administrative expense | 500,000 | 500,000 | 400,000 | |Goodwill impairment | 750,000 | - | - ...
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...Palepu & Healy Key Concepts in Chapter 7 • Forecasts (Ch. 6) are converted into estimates of value. • Discounted future dividends, cash flows, and abnormal earnings may be used to estimate value. • Price-based multiples may also be used as value estimates. • No method by itself dominates any of the others. Copyright (c) 2008 Thomson South-Western, a part of the Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Chapter 7: Prospective Analysis: Valuation Theory and Concepts Palepu & Healy Discounted Dividends Valuation • The present value of future cash flows to shareholders is the basis of the discounted dividends method. • This method is the basis for most theoretical approaches to stock valuation, including the other methods discussed in this chapter. Where re is the cost of equity capital Copyright (c) 2008 Thomson South-Western, a part of the Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Chapter 7: Prospective Analysis: Valuation Theory and Concepts Palepu & Healy Discounted Abnormal Earnings • Abnormal earnings are those that differ from the expected return: NIt – re * BVE0 • The discounted dividends method can be modified to yield the following relationship: Equity value = BVE0 + PV expected future abnormal earnings Copyright (c) 2008 Thomson South-Western, a part of the Thomson Corporation. Thomson, the Star...
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...Analysts' Selective Coverage and Subsequent Performance of Newly Public Firms ABSTRACT This study examines the ability of analysts to forecast future firm performance, based on the selective coverage of newly public firms. We hypothesize that the decision to provide coverage contains information about an analyst’s underlying expectation of a firm’s future prospects. We extract this expectation by obtaining residual analyst coverage from a model of initial analyst following. We document that in the three subsequent years, IPOs with high residual coverage have significantly better returns and operating performance than those with low residual coverage. This evidence indicates analysts have superior predictive abilities and selectively provide coverage for firms about which their true expectations are favorable. ∗ Das and Guo are at the University of Illinois at Chicago, and Zhang is at the University of Hong Kong. We thank Eli Amir, Gilbert Bassett, Oleg Bondarenko, Konan Chan, Hsiu-lang Chen, Tim Kruse, Chao-Shin Liu, Malcolm McClelland, Roni Michaely, Tom Nohel, Ram Ramakrishnan, Cathy Schrand, Abbie Smith, Lenny Soffer, WeiLing Song, Robert Stambaugh (Editor), Steve Todd, Beverly Walther, Nan Zhou, an anonymous referee, and seminar participants at the City University of Hong Kong, Indiana University at Indianapolis, the London Business School, Nanyang Technological University, the Office of Economic Analysis at the U. S. Securities and Exchange Commission, Singapore...
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...head after reading Being The Boss was that I wish I had found this book years ago when I started this journey into management. The book was thought-provoking and sometimes difficult to comprehend because of the notion that I may be stagnating in my own professional development was quite unnerving. What was even more concerning to me was the fact that I may be missing some key relationship- building, as well as managing myself, network, and team. What this book has made me do is take stock of all of the work that it takes to hone a skill set to become an effective leader and to continue to develop that skill set no matter how daunting the task may seem. I had never really considered the ideas of the three imperatives and I would say honestly there are some ideas in this book that I do currently understand and utilize. That being said, I learned these skills through making mistakes, which for me was a very humbling experience to say the least. This is not the way to become a great leader, but I think it is the reality in many cases. After reading the book Being The Boss it has given me a road map of what I need to work on and how to work on it. I believe that after reading this book this will make me consider management in a different light and will change the way that I work on a day-to-day basis, as well as planning into the future. There are three major imperatives that the authors discuss throughout the book and they require you to think about your own situation and rate yourself...
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...subversive and politically dangerous and thus been banned by libraries in many countries.[1] Along with Brave New World, by Aldous Huxley, and Fahrenheit 451, by Ray Bradbury, it is among the most famous dystopias in literature.[2] In 2005, Time magazine selected it as one of the 100 best English-language novels since 1923. Probably the most important thing to remember while reading 1984 is that Orwell never intended the book to be a prediction of the future. It was more or less a satire of political fiction, however, I believe Orwell was on the right track concerning future possibilities of a New World Order, or total government control. An interesting quotation from the book is from the "thought police" when they say "If you want a picture of the future, imagine a boot stamping on a human face forever." I believe Orwell's hope in writing the book was to warn people of political warning signs he saw. Another interesting characteristic I noticed about the book, was the fact that he only revealed to the reader the full names of only three characters in the book. The book...
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...A Highly Unlikely Scenario The story starts out with a man named Leonard, whose job is to answer complaint calls for the company he works for called Neetsa Pizza. One day when Leonard was at work he received no complaint calls. Leonard gets a call from a named Milione and he is in prison in Genova. As the story continues, we meet Leonard’s sister Carol and his nephew Felix. We learn that Carol is against the food industry having to much control and is a part of a rebel group. Later in the story Leonard gets a call from Isaac the next day telling him to go to the University Library and there Leonard will meet his future wife. Leonard and Felix go to the University Library there they meet Sally. She takes them both on a tour to see the Voynich...
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...Weird sisters are seen in many novels, but two famous ones about three supernaturally evil sisters are Dracula and Macbeth. Bram Stoker’s Dracula is about an old vampire coming to London and some vampire hunters trying to track him down. After he kills someone they love, and turns her into a vampire, the hunters realize what is going on, and to try to save their precious woman, Mina, they go on a journey. Their journey is to rid the world of Count Dracula and his vampire girls. Dracula’s vampire girls are three sisters in the book seen in Dracula’s castle. Shakespeare’s Macbeth is about a Thane who gets greedy, and kills to get, and keep the throne. The play then shows and focuses on his guilt from those deeds. During the play, Macbeth becomes fascinated with three witch sisters seen in the beginning by him and Banquo. In...
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...past controls the future; who controls the present controls the past.” (Orwell, 211). History is not necessarily as it appears in history books. People just believe what has been printed in those books without a second thought, but history may have not actually happened that way. George Orwell explores this possibility in his novel 1984, where the main character Winston Smith questions this altered history. In Orwell’s world of 1984, the government changes history to fit their own purposes. This mutability of history is shown through the description of Winston’s job, the newspaper clipping and picture, and the Party’s policies. For a prime example, Winston Smith has a job within the government and his job description is to change history books, newspaper articles, and any other written records to fit the government’s new version of history. Orwell shows the true nature of Winston’s job when he writes, “It was therefore necessary to rewrite a paragraph of Big Brother’s speech in such a way as to make him predict the thing that had actually happened” (Orwell 34). This shows Winston rewriting a previously given speech to make it seem that Big Brother had correctly predicted what happened even though in reality he had been wrong. This is portraying the altering of history in order to fit the Party’s purposes. At one point Winston, who is questioning this alteration of history, finds proof of the history changing. He finds a newspaper clipping that tells of three Party officials...
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...air A random walk means that future steps or directions cannot be predicted on the basis of past history. In the stock market, this concept means short-term changes of stock prices are unpredictable. Burton, writer of the book, distinguishes between “investing” and “speculating” and I agree this conceptual difference. Investing is purchasing assets to acquire profit in the form of reasonably predictable income such as dividend, interest, rentals over the long term. On the other hand, speculator buys stocks hoping for a short-term gain over the next days or weeks. Traditionally, investment experts have used one of two approaches for asset valuation. One is “the firm-foundation theory”, and the other is “the castle-in-the-air theory”. The interesting point is, two theories appear to be mutually exclusive. The firm-foundation theory insists that each investment instrument has a firm anchor of something called “intrinsic value”, which can be determined by careful analysis of present conditions and future prospects. Williams, writer of “The Theory of Investment Value”, went on to argue that the intrinsic value of stock was equal to the present value of its entire future dividend. The theory is reasonable, because the greater present dividends and increasing rate, the greater the value of the stock. The castle-in-the-air-theory focuses on psychic values, professional investors analyze how the crowd of investors is likely to behave in the future and how during periods of optimism...
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...THE JOURNAL OF FINANCE • VOL. LVI, NO. 6 • DEC. 2001 The Stock Market Valuation of Research and Development Expenditures LOUIS K. C. CHAN, JOSEF LAKONISHOK, and THEODORE SOUGIANNIS* ABSTRACT We examine whether stock prices fully value firms’ intangible assets, specifically research and development ~R&D!. Under current U.S. accounting standards, financial statements do not report intangible assets and R&D spending is expensed. Nonetheless, the average historical stock returns of firms doing R&D matches the returns of firms without R&D. However, the market is apparently too pessimistic about beaten-down R&D-intensive technology stocks’ prospects. Companies with high R&D to equity market value ~which tend to have poor past returns! earn large excess returns. A similar relation exists between advertising and stock returns. R&D intensity is positively associated with return volatility. THE MARKET VALUE OF A F IRM’S SHARES ultimately ref lects the value of all its net assets. When most of the assets are physical, such as plant and equipment, the link between asset values and stock prices is relatively apparent. In modern economies, however, a large part of a firm’s value may ref lect its intangible assets, such as brand names. Under generally accepted U.S. accounting principles, many types of intangible assets are not reported in firms’ financial statements. When a firm has large amounts of such intangibles, the lack of accounting information generally complicates the task of...
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...The Future of Printed Books in the Digital Age Students Name University Affiliation The Future of Printed Books in the Digital Age Books are cultural tools, which have undergone considerable changes since their inception. In the early times, books took the form of stones and clay tables, which, due to technology, evolved to the modernly printed book. Despite changes, the objective of books remained the same, which is, storing and preserving information. The storage and preservation of information have made it possible over the years to gain substantial knowledge. Therefore, the printed book will forever remain the most useful invention in learning (Bruccoli, 2007). On the other hand, professionals from libraries and publishing groups have commented that, the future usage of the printed books is on the decline taking into account the swiftly evolving technologies. The fear arises because digitalization has made it possible to provide printed books in electronic forms known as e-books, which has made it easier to access information. The threat is significant considering the wide usage e-books as the primary electronic contents in learning (Buzzeto-More, Nicole, & Elaboid, 2007). The question on the future of printed books in the digital age has induced mixed reactions. While some scholars feel that printed books will survive the digital age, others have commented that digitalization will cause the “death” of printed books. Scholars in opposition...
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