FUTURE VALUE: THE $7 TRILLION CHALLENGE
As of May 2003, $7.6 trillion (or 58%) of the aggregate value of the U.S. stock market represented "future value"-that portion of value that does not depend on current operating performance but rather on anticipated growth. This concept of future growth value is especially important in newer industry sectors and among companies whose value is based heavily on intangible assets, such as brand and proprietary knowledge. But traditional accounting remains focused on tangible assets. And because most executives rely on accounting- based financial data to run their businesses, they end up focusing on current operating results when they should be investing in strategies that optimize future growth. In short, many of the assets that are most responsible for creating value in today's economy are not managed as well as they could be. 2004 Morgan Stanley.
Year of publication: |
2004
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Authors: | Ballow, John J. ; Thomas, Robert J. ; Roos, Göran |
Published in: |
Journal of Applied Corporate Finance. - Morgan Stanley, ISSN 1078-1196. - Vol. 16.2004, 1, p. 71-76
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Publisher: |
Morgan Stanley |
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