How the Budgeting Tail Wags the Corporate Dog
Big companies try to impose discipline on spending by setting budgets for everything, but the rules lead to lots of waste.
How the Budgeting Tail Wags the Corporate DogWhy cash profits are the best predictor of stock performance
Firms that are more profitable today on a cash basis could earn higher future returns.
Returns for a portfolio of companies with strong cash-based earnings were more than double those for a portfolio based on operating profit or accruals.
Ray Ball, Joseph Gerakos, Juhani Linnainmaa, and Valeri Nikolaev, “Accruals, Cash Flows, and Operating Profitability in the Cross Section of Stock Returns,” Fama-Miller working paper, April 2015.
Big companies try to impose discipline on spending by setting budgets for everything, but the rules lead to lots of waste.
How the Budgeting Tail Wags the Corporate DogWhen the pandemic hit the United States, medical debt appeared likely to soar. Instead, it fell.
The COVID Medical-Debt Bomb That FizzledAccording to the inelastic markets hypothesis, the reason involves fund flows and investor demand.
Why Are Financial Markets So Volatile?Your Privacy
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