Why Are Companies That Lose Money Still So Successful?

  • 📰 HarvardBiz
  • ⏱ Reading Time:
  • 23 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 63%

United Kingdom News News

United Kingdom United Kingdom Latest News,United Kingdom United Kingdom Headlines

In a well-functioning capital market, profits should be the sole criterion for firm survival; that is, firms reporting losses should disappear. Of late, however, loss-making firms are highly sought after by investors — often more than some profitable firms.

New research on how to identify investments that produce delayed but real profits — not just those that produce short-term accounting profits.

Unicorns, or startups with valuations exceeding a billion dollars, are examples of such loss-making firms. What has changed over time? When and why did losses lose their meaning? The authors’ series of new research papers provide some answers, guiding managers to make the right investments: those that produce delayed but real profits — not just those that produce short-term accounting profits but decimate shareholder wealth in long run.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 310. in UK
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Why American tech companies need to help build AI weaponryAutonomous weapons will be built. The only questions are who will build them and for what purpose.
Source: washingtonpost - 🏆 95. / 72 Read more »

Why Big Tech Is Pumping Big Money Into Companies Pulling CO2 From the AirA wave of funding announcements from Microsoft, Salesforce and other tech giants pours millions into new projects to pull CO2 directly from the air.
Source: Newsweek - 🏆 468. / 52 Read more »

Why Bensalem Twp. is consolidating 6 volunteer fire companies under one entityAfter two years of planning, six independent volunteer fire companies in Bensalem Township are set to consolidate into one fire company.
Source: 6abc - 🏆 250. / 63 Read more »

6 volunteer fire companies in Bensalem to consolidate, here's whyAfter two years in the making, six separate legacy volunteer fire companies in Bensalem have been brought together under one organization in one municipality. Here's why.
Source: FOX29philly - 🏆 570. / 51 Read more »

Why oil companies are raking in record profits under Joe BidenNearly four years ago, while campaigning in the runup to the last presidential election, Donald Trump warned that President Joe Biden would “destroy” the oil industry.
Source: cnnbrk - 🏆 393. / 55 Read more »

For Companies, AI Is Actually A Chance For More Customer Contact, Not Less — Here’s WhyMike Murchison is CEO of Ada, an AI-powered platform transforming how brands around the world interact with the people that love them. Read Mike Murchison's full executive profile here.
Source: ForbesTech - 🏆 318. / 59 Read more »