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CEOs Don’t Care Enough About Capital Allocation

Harvard Business Review

It’s been more than 50 years since Nobel prizewinners Franco Modigliani and Merton Miller identified return on investments as a major component of value creation (and value destruction). As the chart below shows, only half of the CEOs of companies in the Dow Jones Index have previous experience in corporate finance or strategy.

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What an Economist Brings to a Business Strategy

Harvard Business Review

Consider first the increasing use of auctions, which have a distinguished history in the development of economics. Economists and finance. They might be surprised at how certain economic notions have been directly applied in business, with largely positive results. Here a few notable examples.