A price on the priceless
Article Abstract:
Companies' key assets are increasingly those that are intangible, so not easy to value, and this is a particular problem for management consultancies, which are seeking to tackle the problem. Investors appear to have an instinct for valuable intangibles, and this is reflected in the high stock prices of certin companies. Intangible assets may lie in the minds of employees who can leave the company and set up their own ventures. Companies have to measure these assets, since they are important in terms of how profitable companies are.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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An end to empire
Article Abstract:
Large Czech companies such as Chemapol and Skoda Plzen face financial problems. Skoda Plzen took orders from Ukraine and Russia and has been hit by overdue payments from customers, while its acquisitions have tended not to be profitable. Chemapol and Skoda Plzen have both built up debts and creditor banks are putting pressure on the companies. The banks themselves face problems of bad debts and failed to seek restructuring as stockholders. The Czech economic downturn has also hit these companies.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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Keeping all options open
Article Abstract:
Companies can evaluate investment projects using similar techniques to the evaluation of derivatives, according to economists, but this is not always easy. The traditional model or Capital Asset Pricing Model may not be accurate since it does not place enough emphasis on the value of managers, while a new model, real options theory, does focus on managers. There is a need for managers to understand math at a high level if the new theory is to become popular.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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