Examines how individual projects will affect the organization’s stated desire to “add value” by its operations, particularly how the market will judge each project on this basis. Considers rates of return, risk and cost of capital. Provides practical guidance for managers seeking to...

Describes the conceptual meaning of the cost of capital (COC) and relates its use of COC in decisions that add value to a company. Illustrations provide the basis for an intuitive feel of the crucial role of COC in the pursuit of generating value. Explains the meaning of true economic value...

We analyze the relation between comprehensive measures of board quality and the cost as well as the non-price terms of bank loans. We show that firms with higher quality boards and even a single (non-insider) advisory board member borrow at lower interest rates. This relation exists even after...