The Growth of Modern Finance* Robin Greenwood Harvard Business School and NBER David Scharfstein Harvard Business School and NBER July 2012 Abstract The U.S. financial services industry grew from 4.9% of GDP in 1980 to 7.9% of GDP in 2007. A sizeable portion of the growth can be explained by rising asset management fees, which in turn were driven by increases in the valuation of tradable assets, particularly equity. Another important factor was growth in fees associated with an expansion
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HBO Finals Appraising and Rewarding Performance Chapter Objective: To understand: Total Reward System, Money as Economic and Social Medium of Exchange, The Role of Money in Motivational Models, Behavioral Considerations in Performance Appraisal Introduction- In the 19th and 20th centuries employees were presumed to want primarily money; therefore, money was believed to produced direct motivation. The more money offered, the more motivation. Roethlisberger and his followers successfully buried
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Question 1 Determine the economic earnings of MarineCorp Sdn Bhd, Green Port Sdn Bhd and Sungai Emas Port Sdn Bhd. Economic earnings is used to calculate the profit earned by the company in excess of investors’ expected returns. Positive economic earnings represent that the value was created for the company. Unlike, negative economic earnings represent that the company’s value was destroyed. The calculation for economic earnings is as follow; ECONOMIC EARNINGS = *NOPAT – (ᵝWACC X Average
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manufacturing-intensive automotive industry. This paper describes the analysis process, the decision model, and the resulting improved process for value chain strategy at GMPT. The value analysis process emphasizes the need to balance quantitative financial considerations with less-easily quantifiable strategic issues. This model not only provided key decision support for value chain strategy, but also formed the foundation of a fast-response capability to emergent and disruptive strategic challenges. We describe
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The Battle for Value, 2004 FedEx Corp. vs. UPS, Inc. FedEx was form in economic class by Fred Smith in Yale University. In 1971, Smith invested 4 million dollars of his own capital and raises an addition of 91 million dollars to launch the firm. His key innovation was a hub and spoke distribution pattern. By 2003, FedEx owned 50,000 ground vehicles, 625 aircraft, 216500 employees and shipped more than 5.4 million packages daily. The company had $15.4 billion in assets, $830 million net income
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Project You have been named the Chief Financial Officer (CFO) of a two year old company, CUNY Analytics. Financials have been prepared by a bookkeeper. As CFO, you responsible for the preparation of accurate financials, analysis and review of the financials before they are released and communication of the results of your company to banks, investors, creditors and the government, as necessary. Please complete the following: a. What are the four major financial statements and, in depth, discuss
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Chapter News Volume 40 No. 5 May 2005 Editorial & Communique Editorial : The miracle of free trade 341 ............................................ President's Communique 342 Cover Features Value Added Taxation in India by Sitaram Agarwal 343 ............................................ Value added tax - an overview by Debasish Dutta 349 375 403 417,418 415 409 Professional Updates Tax Titbits by S. Rajaratnam 393 ............................................ Corporate Governance in United
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FINANCIAL MANAGEMENT CASE REPORT 2 IDENTIFYING VALUE CREATORS Denis Vassilyev 201105020 Temple Uwalaka 201105018 04/16/2012 OVERVIEW In the given case we are supposed to prepare a comparative financial performance analysis for companies within different industries and different geographical regions in terms of value creation. From a financial perspective, value is said to be created when a business earns a return on capital that exceeds the cost of capital. For that analysis we are
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NUMBER 3 87 What is value-based management? An excerpt from Valuation: Measuring and Managing the Value of Companies, Second Edition Timothy Koller Recent years have seen a plethora of new management approaches for improving organizational performance: total quality management, flat organizations, empowerment, continuous improvement, reengineering, kaizen, team building, and so on. Many have succeeded – but quite a few have failed. Often the cause of failure was performance targets that were
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To summarize, the balanced scorecard views the mission and strategy of the organization from four perspectives: • The business owners/shareholders (represented by the Financial perspective) • Customers and other stakeholders (represented by the Customer perspective) • Managers and process owners (represented by the Internal Business Processes perspective) • Employees and infrastructure capacity (represented by the Learning and Growth perspective) Within each perspective, the following elements
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