The academic record has been telling a consistent story for two decades: stronger shareholder rights are associated with higher valuations and better long-run performance.
They look like harmless housekeeping—leases, loans, “commercial terms.” But when the CEO’s friends and family are on the other side of the deal, value walks out the door. Here’s how to spot the smoke before your multiple catches fire.
Capitalizing development lifts EBITDA and cash optics; expensing drags today but clarifies economics. Rebuild both views to test whether the moat holds without accounting gloss.
EVA, in Plain English: The Profit Left After Capital Gets Paid
ChatGPT: Two decades after Enron, Sarbanes-Oxley still divides boardrooms: compliance isn’t cheap, especially for smaller firms, but sturdier audits and investor trust may justify the bill.
Joint ventures can unlock reach and know-how, but misaligned incentives and divided control mean many falter before creating lasting value.
Good management isn’t a personality. It’s fit—clear edge, disciplined capital, and a cadence tuned to the market. That’s why opposite styles thrive.
Deferred taxes quietly reshape earnings, cash flow, and ROIC. Ignore the footnotes, and you risk mistaking timing quirks for real economics.
Studies show acquirers with stronger ERP integration capture synergies faster, report cleaner numbers, and sustain higher returns than peers relying on fragmented systems.
Success sharpens confidence—and, research shows, can quietly warp judgment. Power reduces perspective-taking, inflates overconfidence, and fuels costlier risks.
Acquisition accounting can blur results: inventory step-ups depress margins, deferred-revenue haircuts mute sales, and goodwill tests lurk.
Quarterly vs. semiannual reporting: research shows benefits differ by firm size—clarity for giants, cost relief for smaller issuers.
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