Winning Investors Over : Surprising Truths about Honesty, Earnings Guidance, and Other Ways to Boost Your Stock Price

by Lev, Baruch

• ISBN13: 9781422115022
• ISBN10: 142211502X
• Format: Hardcover
• Copyright: 2011-11-15
• Publisher: Perseus Distribution Services

Summary

There was a time (the 1980s and 1990s) when it seemed easy for executives to please Wall Street. That hasn't been true for a while. The stock market has become an unforgiving place, and dealing with dissatisfied investors part of the daily job of CEOs, CFOs and investor-relations executives. There are right ways and many, many wrong ways to face an angry mob. Nobody knows them better than Baruch Lev. He's done the research. He's analyzed the data. And he has developed a set of authoritative, often surprising instructions for dealing intelligently with Wall Street. This book tells what to do when your company disappoints investors, gets slammed by financial analysts, or finds itself mired in lawsuits all of which have a negative effect not just on stock prices but on employee recruitment (who wants to work for a losing company?), consumer behavior (who wants to buy a major product of a failing firm?), and supply chain development (who wants to partner with a troubled enterprise?). Stripped of cliches and emotional arguments, and backed up by extensive research by Lev and other finance scholars, the book amounts to an indispensable capital-markets operating manual for executives. And its overarching message is an inspiring and perhaps surprising one: Honesty turns out to good for business.

Table of Contents

Acknowledgments	p. ix
Introduction	p. 1
Why Restoring Investors' Trust in Managers Is Now Critical	p. 1
It's Not the End of the World	p. 19
What to Do-and Not Do-When Faced with Missing the Consensus Earnings Estimate
Do We Have a Story for You	p. 39
How Soft Information Can Change Stock Prices
To Manage or Not to Manage Earnings?	p. 61
Why You Shouldn't Even Think of Manipulating Financial Information
Kill All the Lawyers?	p. 87
How to Immunize Your Company from Class-Action Lawsuits
Nothing in Excess	p. 103
The Hazards of Under-and Overpriced Shares, Particularly the Latter
Guiding the Misguided	p. 123
Why It's Beneficial to Assist Investors with Forward-Looking Information
Life Beyond GAAP	p. 145
Why Managers Should Disclose More Information Than Legally Required
Put Your Money Where Your Mouth Is	p. 173
Why Certain Financial Actions Affect Share Prices and Others Don't
Is Doing Good, Good for Business?
Which Corporate Social Responsibility (CSR) Activities Are Worth Pursuing and Which Are Not
In the Long Run, We're All Dead	p. 217
Why the Much-Maligned Investor Short-Termism and Managerial Myopia Are Myths
Breathing Down Your Neck	p. 239
How to Handle Activist Investors and Hedge Funds Intruding on Your Turf
Looking Out for You, Dear Shareholder	p. 261
Why Corporate Governance Often Fails and How to Fix It
Excess or Excellence?	p. 283
How to Clean Up the Managerial Compensation Mess
What Then Must We Do?	p. 305
Meta-instructions
Notes	p. 317
Bibliography	p. 355
Index	p. 369
About the Author	p. 381
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