Economics and Performance Measuring - Corporate Finance Brief

The Private Capital Wealth Equation, Part 2: The Economics Variable

CFA Institute

JUNE 15, 2022

The performance of alternative asset managers is encapsulated in the formula: Wealth = Controls + Economics. Here, we outline the economics component of the equation.

Economics

Economics Performance Measuring Investments

Economic Value of Equity (EVE): Protection from Rising Interest Rates

CFA Institute

JULY 7, 2022

Economic value of equity (EVE) can help determine how well a company can weather interest rate hikes.

Economics

Economics Performance Measuring Risk Management Corporate Finance

Performance Metrics

Beacon CFO Plus

OCTOBER 11, 2022

The substantive issue behind this challenge is how to effectively measure performance in an environment that does not lend itself to hard and fast metrics. The fact is that no performance measurement will be perfect across every section of an organization. Communicating often. Norton and Robert S. Your delivery teams?

Performance Measuring

Performance Measuring Manufacturing Economics Communication

Webinars

How To Optimize Cash Flow: Your Roadmap To Resilience!

Back to Basics with Reconciliations

Usage-Based Monetization Musts: A Roadmap for Sustainable Revenue Growth

Less Stress, More Success: Accounting Best Practices & Processes for 2025

Avoiding Lease Accounting Pitfalls in 2025: Lessons Learned from Spreadsheet Errors

MORE WEBINARS

Robert J. Shiller on Bubbles, Reflexivity, and Narrative Economics

CFA Institute

JANUARY 6, 2019

Shiller has shown remarkable prescience over the years. And with talk of inverted yield curves, overvalued stock markets, and imminent recession, the present struck us as an opportune time to see what was on his mind.

Economics

Economics Performance Measuring Marketing Finance

Ep 28: How Planning Aces Are Made

CFO Thought Leader

OCTOBER 29, 2023

It highlights the significance of unit economics, internal metrics like labor and transportation costs, and external indicators that predict market changes and competitive advantage. OUR COHOST BRETT KNOWLES | Brett Knowles is a long-time thought leader in the performance measurement space.

Planning

Planning CFO Performance Measuring Leadership

The Path Ahead: Insights on the Economic Recovery

CFA Institute

SEPTEMBER 13, 2020

Despite the shock reverberating through the global economy, equity prices have maintained their upward trajectory. What explains this disconnect?

Economics

Economics Performance Measuring Forecasting Investments

Building a CAPM That Works: What It Means for Today’s Markets

CFA Institute

MAY 24, 2022

The capital asset pricing model (CAPM) is a marvel of economic scholarship. The problem is that it doesn’t always work in practice. So, we fixed it.

Marketing

Marketing Economics Performance Measuring Risk Management

What-if analysis or why is it important for good financial planning software?

Spreadym

MAY 10, 2023

It involves evaluating the impact of various "what-if" situations on financial flows projections, business performance measures, or outcomes. For example, you can assess the financial impact of economic downturn or supply chain disruption.

Financial Planning and Analysis (FP&A)

Financial Planning and Analysis (FP&A) Planning Performance Measuring Risk Management

Fulfilling CFOs' future roles

Future CFO

AUGUST 7, 2024

Partnering with other C-suites executives To be able to adapt with the shifts, Ho takes note of the fact that CFOs often have a seat at the Board and are required to act as the CEOs' business partner working hand-in-hand to steer the company through the current economic climate. Partnering’ is nothing new," says Ho.

CFO

CFO Data Analysis Budgeting Performance Measuring

ESG-driven growth: Stakeholders have greater expectation but boards lack commitment

Future CFO

FEBRUARY 16, 2022

83% of respondents said they would like mandatory reporting of ESG performance measures against global standards. The top two challenges holding businesses back from delivering against ESG according to respondents are externally, near-term economic uncertainty (85%) and internally, lack of commitment from the board (43%).

Performance Measuring

Performance Measuring Leadership Risk Management Economics

Book Review: How Novelty and Narratives Drive the Stock Market

CFA Institute

FEBRUARY 17, 2022

This detailed stock market study attempts to extend Robert Shiller’s development of narrative economics.

Marketing

Marketing Economics Performance Measuring Investments

Boards are accelerating changes to ESG priorities

Future CFO

DECEMBER 14, 2020

Boards are accelerating changes to ESG priorities, promoted by global events such as the pandemic, economic uncertainties, and social and racial injustice, said Willis Towers Watson recently when releasing results of a survey.

Performance Measuring

Performance Measuring Planning Economics Investments

A new way to measure long-term firm performance and shareholder value

Future CFO

DECEMBER 6, 2019

While these provide useful information, they are focused on the short-term and do little to reflect underlying economic performance or to precisely capture the creation (or destruction) of long-term shareholder value, the business school noted. What is LIVA? values both profits and growth.

Net Present Value (NPV)

Net Present Value (NPV) Performance Measuring Economics Marketing

Permanent Capital: The Holy Grail of Private Markets

CFA Institute

JUNE 1, 2021

The goal of private equity is to be impervious to the vagaries of the economic cycle and to outside interference.

Marketing

Marketing Economics Performance Measuring Leverage

Pointless Market Equivalence? If Not the IRR, Why the PME?

CFA Institute

JULY 4, 2021

The public market equivalent (PME) does not reflect the economic reality of private equity investing.

Marketing

Marketing Economics Investments Performance Measuring

Private Real Estate Fund Categories: A Risk/Return Assessment

CFA Institute

DECEMBER 12, 2019

Based on the risk-adjusted performance of all three categories of private real estate funds, investors are paying billions in economically unwarranted fees.

Economics

Economics Performance Measuring Financial Analysis Communication

Fixed-Income Allocations: Where To?

CFA Institute

JUNE 9, 2021

How should investors shift their fixed-income portfolios amid the US economic recovery?

Economics

Economics Performance Measuring Marketing Investments

Gender Lens Equity Funds: The First Major Test

CFA Institute

JULY 21, 2020

How did gender lends funds perform amid the pandemic and economic downturn of the first quarter?

Economics

Economics Performance Measuring Investments

What is the difference between planning, budgeting and forecasting for a business?

Spreadym

JUNE 8, 2023

It is a tool used to anticipate the financial performance of a business or a specific project. Forecasts can be short-term or long-term and are usually based on assumptions about factors like market conditions, customer behavior, economic trends, and internal capabilities.

Forecasting

Forecasting Budgeting Planning Risk Management

Hidden Ideas in Macro: The Long-Forgotten “M”

CFA Institute

FEBRUARY 26, 2020

A long-forgotten economic indicator demands a reappraisal, says Daniel Nevins, CFA.

Economics

Economics Performance Measuring Financial Analysis Banking

Inside VantageScore’s Decade Of Credit Validation

PYMNTS

AUGUST 3, 2016

It’s also able to measure various characteristic trends, risk and population volumes in order to determine true performance measures. And from there, here’s what the company’s assessment was able to conclude. The VantageScore 3.0

Performance Measuring

Performance Measuring Economics Accounting

Valuing Digital Assets with TradFi Tools: Three Methods

CFA Institute

OCTOBER 25, 2022

Not all traditional investment management techniques are applicable to digital assets, but sector breakdowns, DCF models, and risk factor modeling are solid starting points.

Investments

Investments Performance Measuring Risk Management Economics

Tell Me a Story: Aswath Damodaran on Valuing Young Companies

CFA Institute

MAY 24, 2022

"You don't have to be right to make money [valuing companies]," Aswath Damodaran says. You just have to be less wrong than everybody else.”.

Performance Measuring

Performance Measuring Risk Management Valuation Economics

How Sharp Is the Sharpe Ratio? An Analysis of Global Stock Indices

CFA Institute

JUNE 3, 2022

To test the Sharpe Ratio’s effectiveness, we constructed monthly return distributions for global stock market indices to see if any had too much skewness.

Construction

Construction Marketing Performance Measuring Risk Management

Decision Attribution: Portfolio Manager Skill vs. Past Performance

CFA Institute

JANUARY 31, 2023

As portfolio managers, being able to show our investors — with data-driven evidence — that we know exactly what we are good at and the steps we are taking to improve goes a long way.

Performance Measuring

Performance Measuring Economics Investments

Credit Model Validation Solves For Shortcomings In Scoring

PYMNTS

DECEMBER 2, 2016

The default risk associated with that score value (any credit score value) is not a fixed quantity: It will shift continually as economic conditions fluctuate, as lenders develop new loan products and as consumer behaviors change accordingly. The truth is more nuanced: A credit score evaluates a consumer’s risk of defaulting on a loan (i.e.,

Performance Measuring

Performance Measuring Accounting Economics Credit Risk

Bitcoin Mining and Local Stock Market Performance Correlations

CFA Institute

JANUARY 30, 2023

Is there a relationship between where bitcoin is mined and how the performance of the local equity markets correlated with bitcoin prices?

Marketing

Marketing Performance Measuring Economics Investments

Rethinking Retirement Planning Outcome Metrics

CFA Institute

APRIL 10, 2023

Retirement, like life, is fundamentally uncertain. That's why we need to provide clients with more context about what missing their retirement-income goals might look like.

Planning

Planning Performance Measuring Risk Management Economics

Equity Risk Premium Forum: The Deficient Market Hypothesis

CFA Institute

APRIL 29, 2022

"If we thought of the equity premium as a fear premium," Rob Arnott says, "a lot of the so-called anomalies that we’ve talked about would not be anomalies at all.".

Marketing

Marketing Performance Measuring Risk Management Economics

Equity Risk Premium Forum: Term Structure, Mean Reversion, and CAPE Reconsidered

CFA Institute

JULY 29, 2022

Does the equity risk premium (ERP) vary depending on the term structure? Does reversion to the mean dictate that it will decrease the longer the time horizon?

Performance Measuring

Performance Measuring Risk Management Economics Investments

How Do Cryptocurrencies Correlate with Traditional Asset Classes?

CFA Institute

NOVEMBER 16, 2022

The crypto market’s recent gyrations necessitate a fresh look at the evolving relationships between crypto and traditional asset classes.

Performance Measuring

Performance Measuring Risk Management Economics Investments

Equity Risk Premium Forum: Don’t Bet Against a Bubble

CFA Institute

APRIL 7, 2022

Cliff Asness, Rob Arnott, Roger G. Ibbotson, and other luminaries explore the nature of bubbles and the momentum factor.

Performance Measuring

Performance Measuring Risk Management Economics Investments

Portfolio Diversification: Harder Than It Used to Be?

CFA Institute

APRIL 11, 2022

Ever-greater access to world equity markets should have made it easier for investors to build and harvest the benefits of diversified global stock portfolios. But has it really?

Performance Measuring

Performance Measuring Marketing Economics Investments

Crypto Tokens and Crypto Coins: What Drives Performance?

CFA Institute

APRIL 24, 2022

The correlation between volume and price of crypto coins and tokens is negligible no matter how it's measured.

Performance Measuring

Performance Measuring Economics Investments

The Equity Advantage: Reinvestment of Earnings

CFA Institute

JUNE 17, 2022

Equities can compound in value in a way that investments in bonds, real estate, and other asset classes cannot.

Investments

Investments Performance Measuring Economics

Presidential Election Cycle Theory: A Bullish 2023?

CFA Institute

FEBRUARY 14, 2023

What are the strengths, limitations, and nuances of presidential election cycle theory and what does the current political context foretell regarding whether 2023 will follow the predicted trend?

Performance Measuring

Performance Measuring Risk Management Forecasting Economics

Tricks of the Private Equity Trade, Part 2: Leverage

CFA Institute

OCTOBER 21, 2022

The essence of maximizing the internal rate of return (IRR) lies in the total amount of leverage contracted to finance a transaction.

Leverage

Leverage Finance Performance Measuring Economics

Digital Gold or Fool’s Gold: Is Crypto Really a Hedge against Equity Risk?

CFA Institute

JULY 11, 2022

When it comes to hedging equity risk, bitcoin and cryptocurrencies are less "digital gold" and more fool's gold.

Performance Measuring

Performance Measuring Risk Management Economics Investments

Crypto Tokens: Does Security Selection Matter?

CFA Institute

JULY 10, 2022

Can token pickers demonstrate differentiated performance? What role does security selection play in cryptocurrency investing?

Securities

Securities Investments Performance Measuring Economics

Is the 60/40 Portfolio Still Relevant?

CFA Institute

APRIL 12, 2023

How do portfolios with asset allocations of 100% equity, 100% bond, 60/40, and 80/20 in the US, UK, Italian, Swiss, and global markets perform over time?

Performance Measuring

Performance Measuring Marketing Risk Management Economics