Techno Finance and Executive Diary...

Friday, May 27, 2005

A richer future for India

The wealth generated by India's fast-growing information technology and business-process-outsourcing industries shows that the country has started living up to its economic potential. Unfortunately, they produce just 3 percent of GDP and employ less than one-half of 1 percent of the nonfarm labor force. By contrast, most sectors of India's economy remain shielded from global competition by high tariffs and restrictions on foreign direct investment and are thus woefully uncompetitive. Although some might argue that removing these barriers would threaten social objectives such as the protection of jobs and incomes, a robust economy would be more likely to realize them.

Labels: stories

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Tuesday, May 24, 2005

Sarbanes-Oxley Act of 2002

A beautiful summary of Sarbanes-Oxley Act of 2002
http://www.aicpa.org/info/sarbanes_oxley_summary.htm

Posted by "CPerformance" :: 4:02 AM :: 0 comments

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Sunday, May 22, 2005

Inclinations: Share Prices and Intrinsic Value

Inclinations: Share Prices and Intrinsic Value of the Company

Many executives regard investor relations as a way to push share prices as high as possible and approach the task as a public-relations exercise. But the goal should really be to match the share price of a company with its intrinsic value.

Excessively high share prices tend to inspire poor managerial decision making intended to prop them up, and their inevitable fall can damage employee morale. Excessively low share prices can leave a company vulnerable to takeover attempts.

To avoid the drawbacks of such imbalances, executives must understand any gaps between the share price of a company and its intrinsic value, make its strategy consistent with its message to investors, explain its performance transparently, and identify its most important investors.

Isn't Perfect!!!!

Labels: Stock Market

Posted by "CPerformance" :: 1:13 AM :: 1 comments

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Valuation:

Valuation: Measuring and Managing the Value of a Company

What should a company's objective be?
Simply to maximize returns for shareholders by increasing the intrinsic value of a business, or should the company acknowledge the interests of other stakeholders-employees, customers, society-in its decision making?

Corporate-finance practitioners, the tumultuous recent past has reinforced two fundamental beliefs. The first is that the business of business is precisely to maximize shareholder value by increasing a business's intrinsic value. The more shareholder value a company creates in an effectively regulated market, the better the company serves all its stakeholders. The second is that maximizing value involves managing both performance in the short term and the long-term health of the company.

Both requires equal insight in pre-estimation of prospects of an organisation

Labels: Stock Market

Posted by "CPerformance" :: 12:43 AM :: 0 comments

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