McKinsey on Finance, Number 56

Fears that US companies underinvest by paying too much back to shareholders are unfounded. Rather, the rise in buybacks reflects changes in the economy.

Investments can have the same internal rate of return for different reasons. A breakdown of this metric in private equity shows why it matters.

Seasoned finance chiefs explore revamping business models and coping with new competitors, currency risks, and changing capital structures.

The growing strategic role of CFOs may create tension with top strategists. That’s a missed opportunity for teaming up to improve company performance.

Companies that are best at transactions approach M&A differently—but there’s room for improvement across the board.