McKinsey on Finance, Number 78

McKinsey on Finance, Number 78

Perspectives on Corporate Finance and Strategy

Articles in this issue


Don’t overthink your approach to valuation in emerging markets

– The risks of investing in emerging markets are real, but it’s not necessary to amplify them by adding an extra risk premium to the cost of capital. Standard valuation principles still apply. Here’s why.

Reports of corporates’ demise have been greatly exaggerated

– An analysis of 20 years of data on publicly traded companies and IPOs demonstrates that the drop-off in the number of listings is less steep than pundits would have you believe.

Which metrics really drive total returns to shareholders?

– McKinsey analysis of more than 2,200 large global companies reveals the importance of monitoring both economic-profit growth and revenue growth.
Interview - McKinsey Quarterly

Sounding the alarm on system noise

– Daniel Kahneman and Olivier Sibony, renowned experts in cognitive biases and decision making, explain how noise—or unwanted variability—clouds organizations’ judgments, and what to do about it.

Achieving win-win spin-offs

– By acknowledging and addressing four factors relating to execution and operations, ParentCo can separate from SpinCo in a way that creates value for both.
Article - McKinsey Quarterly

Bias Busters: Taking the ‘outside view’

– Using a reference class can help executives gain much-needed perspective to inform their decision making.

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