Finance & accounting

Calculating Cost of Capital: 4 Principles

Benchmarks are critical to decision-making. It stands to reason, then, that an investment decision should have its own benchmark: the cost of capital. Here, Darden Professor Michael Schill offers four principles to guide the investor in measuring risk and expected return to estimate the cost of capital.
Collection: Investing Insights

Cooking (and Uncooking) the Books: Corporate Financial Misreporting

After misstating earnings, which companies come clean? In the aftermath of major corporate scandal, Professor Justin Hopkins takes stock of employee stock option misreporting, disincentives to investigate misbehavior and constraints to integrity.

Innovations for Fairer Markets in the Era of High Frequency and Algorithmic Trading

The proliferation of high frequency and algorithmic trading began in the late 1990s, ushering in a revolution in equity market microstructure. In a world where small nuances create multibillion dollar opportunities, new markets and market structures are emerging to ensure the playing field remains level.

Bad Medicine? The Side Effects of Central Bank Mispricing

Professor Tomio looks at how bond purchases by the European Central Bank created a large mispricing between the market for German and Italian government bonds and their respective futures contracts.

The Many Names and Global Reach of Socially Responsible Investing

What is socially responsible investing? Is its increasing momentum sustainable? And are international commitments to ESG practices making an impact? Darden Professors Mary Margaret Frank and Pedro Matos discuss issues related to this popular phenomenon.

Opportunity Zones: 5 Things You Need to Know

Legislation on “opportunity zones” is intended to encourage investment in economically distressed communities by providing significant tax incentives to investors. Professor Mary Margaret Frank and alumnus Ben Cullop (MBA ’11) explain how this new program works and what its repercussions may be.

A Big Year For IPOS: What You Need To Know

2019 is projected to be a landmark year for initial public offerings of stock, even with the current turbulence in the market. Professor Susan Chaplinsky talks about how these IPOs could affect the stock market, which closed 2018 with a dramatic downturn.

Does a Crisis Lurk in the Shadows?

Richard A. Mayo Center for Asset Management Director Aaron Fernstrom (GEMBA ’15) explores the rapidly growing — and essentially unregulated — shadow banking market.

Will Amazon Get Whole Value from Whole Foods?

In 2017, Amazon announced it would acquire Whole Foods, and the company paid $13.2 billion for the deal, about $9 billion more than the grocery chain's fair market value. Will this ultimately mean a massive write down in value for the tech giant or a savvy investment?