The Latest Research in Corporate Governance: Finance. Nikhil P. Varaiya Professor of Finance. Top-Tier Finance Journals. Journal of Finance Journal of Financial Economics Journal of Financial and Quantitative Analysis Review of Financial Studies Journal of Business
2. Corporate Governance and Corporate Performance: Implications
3. Shareholder Value Creation Drivers
4. Key Tasks of Management and Board
Gompers-Ishii-Metrick (GIM) index; Bebchuk-Cohen-Ferrell (BCF) Index; Brown-Caylor (BC) Index; The Corporate Library (TCL) Index; Board Ownership; CEO-Board Chair Separation; and Board Independence; GIM, BCF are constructed from IRRC data; BC constructed from ISS data
Operating Rate of Return and Risk-adjusted Share-holder Return
MBV = 0.166x[Profitability] + 0.173x[Growth]; Adj. R2 = 71%
Larry Bossidy, CEO, sets rugged growth targets and provides the resources to get there but requires that [business] units earn their cost of capital.
FORTUNE, August 21, 1995
“It’s a very large company, and it almost can’t grow at the rates it was growing.”
WALL STREET JOURNAL, January 28, 2003
“I have been chartered with growing the earnings of this company. Figuring out where the opportunities are over the next five years and refining our bets.
President & COO, Paul Otellini Intel Beyond 2003, Stanford B-School Case, 2003
Chuck Knight, CEO, Emerson Electric wants to push revenue growth to as high as 10% per year, from under 5% in recent years, while keeping profit margins and return on equity steady.
FORBES, August 1, 1994
“The company can return some of its cash to shareholders without impacting future revenue and earnings growth or restricting strategic opportunities.”
Chairman & CEO Irwin Jacobs.
SAN DIEGO UNION TRIBUNE, Feb. 12, 2003
Participation & Operating Strategy
Strategy – People – Architecture – Routines – Culture