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24 ноября, 06:35

Firm-Level Political Risk: Measurement and Effects -- by Tarek A. Hassan, Stephan Hollander, Laurence van Lent, Ahmed Tahoun

We adapt simple tools from computational linguistics to construct a new measure of political risk faced by individual US firms: the share of their quarterly earnings conference calls that they devote to political risks. We validate our measure by showing that it correctly identifies calls containing extensive conversations on risks that are political in nature, that it varies intuitively over time and across sectors, and that it correlates with the firm's actions and stock market volatility in a manner that is highly indicative of political risk. Firms exposed to political risk retrench hiring and investment and actively lobby and donate to politicians. Interestingly, we find that the incidence of political risk across firms is far more heterogeneous and volatile than previously thought. The vast majority of the variation in our measure is at the firm-level rather than at the aggregate or sector-level, in the sense that it is neither captured by time fixed effects and the interaction of sector and time fixed effects, nor by heterogeneous exposure of individual firms to aggregate political risk. The dispersion of this firm-level political risk increases significantly at times with high aggregate political risk. Decomposing our measure of political risk by topic, we find that firms that devote more time to discussing risks associated with a given political topic tend to increase lobbying on that topic, but not on other topics, in the following quarter.

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22 ноября, 18:59

This Accused 'Mainsplainer' Is Attacked For Defending Alleged Victims

I wrote a piece this week about the counter-intuitiveness of liberal women defending accused sexual-harasser Sen. Al Franken

22 ноября, 16:44

5 Cheap Dividend Growth Stocks for Thanksgiving

Stuff dividend stocks with strong growth prospects in your portfolio for market-beating returns this Thanksgiving Day.

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22 ноября, 16:44

Mazor Robotics Might Need to Worry About This Potential Rival the Most (Hint: It's Not Intuitive Surgical)

A new spine surgery robot has arrived on the scene to challenge Mazor's current dominance.

22 ноября, 16:39

Enhance Your Investing Power With These 4 Low P/CF Stocks

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Investment in stocks made on diligent value analysis is usually considered one of the best practices. In value investing, investors pick stocks that are cheap but fundamentally sound.

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22 ноября, 16:36

Buy These 5 Stocks With Impressive Interest Coverage Ratio

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Interest Coverage Ratio is used to determine how effectively a company can pay the interest charges on its debt.

22 ноября, 16:12

5 Top Stocks With Attractive Sales Growth to Invest In Now

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Sales growth is an important measure for any company, as it is vital to growth projections and strategic decision-making.

22 ноября, 15:24

Zacks.com highlights: Verso, Boise Cascade, Beazer Homes USA, California Resources and Bristow Group

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Zacks.com highlights: Verso, Boise Cascade, Beazer Homes USA, California Resources and Bristow Group

22 ноября, 15:22

Zacks.com highlights: WellCare Health Plans, The Boston Beer Company, AppFolio and TriNet Group

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Zacks.com highlights: WellCare Health Plans, The Boston Beer Company, AppFolio and TriNet Group

22 ноября, 14:00

Is Your Company Actually Set Up to Support Your Strategy?

sweetvenom/Getty Images How do banks switch customer relationships from branch offices to mobile phone screens? Why is one multinational consumer goods company organized by category, while another organizes by region? Why is one insurance company deep into an agile transformation while another is experimenting with it only at the edges of its business? For every company wrestling with evolutions in its strategy, success depends as much on matching the operating model to those evolutions as it does on the soundness of the strategy itself. Whether a company has reinvented itself, sought growth through expansion, or turned to partnerships or M&A, gaps between what it says it does for customers and what it delivers are usually the result of an operating model that isn’t set up to deliver the strategy. An “operating model” — how a company organizes and manages its resources to achieve its strategic ambitions — is the bridge between strategy and execution. The idea that organizational structure follows strategy is not new — business historian Alfred Chandler laid this out in 1962 in his book Strategy & Structure. But exactly how do today’s companies create or update an operating model to match adaptations or wholesale changes in strategy? Insight center The Gap Between Strategy and Execution Sponsored by the Brightline Initiative Aligning the big picture with the day-to-day. After all, a well-designed operating model involves far more than the lines and boxes or spans and layers in the organization chart. It includes accountabilities. Who has P&L authority? Who on that org chart has the authority to make which decisions? As companies move to more agile operating models, they must learn to balance accountability with autonomy. A new operating model also requires a governance structure and leadership model so leaders know how they will exercise operational control and inspire employees—and hold themselves accountable for doing both. That means choosing the right dashboards, defining which metrics matter most and mapping out how long-range planning, resource allocation, and budgeting will work. And since people ultimately make all the difference, your operating model should define how you manage the assignments and career paths for your difference-making talent. Crucially, the operating model also must define ways of working and behaviors that actually bring your company’s strategy to life. If your company’s promise to its customer is lowest costs, is everyone focused on cost control? If your reputation is built on superb service, is everyone — not just the front line, but even back-office functions like accounting or legal or procurement —highly attuned to how they affect the customer experience? What high-performance behaviors are nonnegotiable, and how do you make sure that you’re enabling and reinforcing them? What is your approach to risk taking, experimentation, and test and learn? And finally, does the operating model support the company’s strategic mission with the right combination of people, process, technology, and tools? Are you focusing opex and capex on these priorities in order to build competitively differentiated capabilities? None of these are easy questions. Consider traditional banks, which Gartner estimates spend an average of about 66% of their IT budgets to maintain legacy IT systems vs. just 22% to grow the business and 12% to transform it. A decade after the global financial crisis, many banks remain averse to risk, and their legacy talent pools, processes, and IT systems are ill-suited to major change. Yet change they must. Do they focus on “manufacturing” (creating products), “distribution” (managing channels and customer relationships), or some combination of the two? How do they ensure someone owns each customer experience or “journey” on an end-to-end basis? Citibank Asia, which has a strong customer loyalty position in most of its markets, decided to change its operating model to double down on customer relationships to counter locally based competitors. Among other steps, it elevated the role of customer segment heads, giving them authority over products and channels for those segments. It also placed a team charged with ensuring an excellent experience for each customer segment. Banks emphasizing products, meanwhile, have turned to partnerships. Bank of China and Deutsche Bank set up a host-to-host platform for domestic and international payments. Others have joined forces with fintech companies, such as JPMorgan Chase partnering with OnDeck to approve and fund small business loans in as little as a day. More such partnering is inevitable in banking, but is challenging for banks that now have less control over the people and IT involved in providing services to their customers. When an insurance company’s staff works in a bank’s branches and uses tablets that collect customer data, this arrangement pushes each organization into new territory. Who owns each customer relationship? Who is responsible for regulatory compliance? A common mistake we see companies make when tackling such complex and often political questions is that they dive straight into a detailed redesign of their operating model — and lose sight of the strategic intent. We believe redesigning your operating model must start with a blueprint based on a few basic principles. First among them: Agree on what really matters to deliver your strategy. An operating model that tries to make your company good at everything is doomed. Your company must be great at some things — and can probably be just OK at the rest. Agreeing up front on the capabilities that truly matter turns what can be a very subjective and emotionally charged discussion among your leadership team into a fact-based dialogue. This is especially needed in organizations that have been geared for functional excellence everywhere. Across industries and countries, effective principles share three characteristics. First, they’re grounded in facts in order to bring that needed objectivity. Principles informed by a fact-based strategy encourage impartiality, highlighting gaps, and forcing difficult choices. Second, they’re specific enough to help senior management make trade-offs. One CEO we know worried that some principles developed by his senior team were too generic to help them evaluate different operating model options. “Can any of them equally apply to a dog food company as to us?” he asked. Generic statements such as “leverage scale” or “create a streamlined organization” have little explanatory power. For a sports apparel and equipment maker, for instance, the generic “improve collaboration across different categories” contains less useful direction than “make it easy for us to deliver coordinated head-to-toe apparel and footwear to stores in time for the season.” Third, effective principles stay brief. The best sets of principles fit on one page. If they exceed 10 or so, it’s best to identify the ones that should be weighted most heavily. Once the blueprint is developed, we find that the best CEOs focus not only on the capabilities that matter, but on the individuals and teams that matter. For individuals, they make sure that difference-making talent is in mission critical positions. They make sure that the most important battles are entrusted to agile, cross-functional teams with real authority and support. We refer to these discrete, customer-focused initiatives as “micro-battles” whose key lessons then can be applied to other parts of the business. Finally, we urge companies not to lose sight of an essential goal of good organizational design: constructive conflict. The CEOs we know who have built effective operating models have a real intuition about designing creative conflict into their operating models, as well as the means for efficiently and effectively resolving that conflict. The result is often inspired outcomes for their customers, employees and other stakeholders. A CEO I once worked with would often say the decisions that were made without debate or agreements that came without conflict were “often pleasant, rarely pleasing — and never transformational.” If your company’s operating model can’t deliver on your strategy, or needs to be upgraded to match the evolution of that strategy, start the redesign with your leadership team not by digging into the details, but by pulling up and agreeing on a few basic principles. Clarity and simplicity are the watchwords here.

22 ноября, 08:16

How an Employer’s Hidden Bias Can Keep You From Getting Hired

In a perfect world, you get hired based on merit. Unfortunately, research says that doesn't always happen.

21 ноября, 18:20

Watch Out for These 5 Stocks After Broker Rating Upgrades

In a bid to generate handsome returns, investors would like to add outperformers to their portfolios.

21 ноября, 16:46

Weight Watchers International, Red Robin Gourmet Burgers, Palo Alto Networks, Urban Outfitters and Intuit highlighted as Zacks Bull and Bear of the Day

Weight Watchers International, Red Robin Gourmet Burgers, Palo Alto Networks, Urban Outfitters and Intuit highlighted as Zacks Bull and Bear of the Day

21 ноября, 15:45

Intuit (INTU) Q1 Earnings & Revenues Top, Keeps FY18 Outlook

Intuit Inc. (INTU) Q1 results benefited from growth in QuickBooks Online and ecosystem along with new and improved products.

21 ноября, 15:43

4 Top Liquid Stocks for a Winning Portfolio

Liquidity indicates a company's capability to meet debt obligations by converting assets into liquid cash and equivalents.

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21 ноября, 15:35

Intuit shares down 0.8% premarket

This is a Real-time headline. These are breaking news, delivered the minute it happens, delivered ticker-tape style. Visit www.marketwatch.com or the quote page for more information about this breaking news.

21 ноября, 14:42

Some Links

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(Don Boudreaux) TweetBryan Caplan’s important idea of the ideological Turing test is featured in this excellent new video from Learn Liberty. Richard McKenzie clarifies much confusion about the corporate income tax.  A slice: The corporate tax is, effectively, a means of taxing people hidden “behind trees,” which is one of its chief attractions to politicians interested in […]

21 ноября, 01:46

Palo Alto Networks, Urban Outfitters, Intuit All Beat Expectations

Three notable companies reported earnings after the bell Monday, and all gave stellar performances.

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21 ноября, 01:27

Intuit (INTU) Beats Earnings Expectations, Q1 Revenues Jump 14%

Intuit Inc. (INTU) just released its first-quarter fiscal 2018 financial results, posting adjusted earnings of $0.11 per share and revenues of $886 million.

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