Two Polish entrepreneurs were so passionate about windmills that their friends nicknamed them "Don Quixote." Their plan to make money through free wind energy convinced banks to back their ambitious wind farm project. But when the project encounters delays, some begin to question whether they have adequately accounted for all the risks associated with such a large-scale capital project. Were these two about to live up to their deluded eponym?
Arce, Oscar; Campa Fernández, José Manuel; Gavilán, A.
How do different financing conditions affect investments, allocation of credit and output across sectors? IESE's José M. Campa, Óscar Arce, of the Bank of Spain, and Ángel Gavilán, of BBVA, explore financing conditions in the construction sector in a number of OECD countries during the decade prior to the 2007 financial crisis. Their findings present an interesting model, with salutary lessons for investors.
Sancho Gargallo, Carlos; Santomá Juncadella, Javier
If two companies from different countries with a contractual relationship have a conflict, it behooves them to go through an arbitrator rather than the national court system. According to IESE's Carlos Sancho and Javier Santomá, the procedure is faster, less expensive and ensures a greater degree of confidentiality than a lawsuit.
Fernández López, Pablo
One year since Argentina took control of the oil company YPF from the Spanish firm, Repsol, IESE Prof. Pablo Fernandez asked 22,000 international experts to give their best estimate of the compensation that Repsol should receive as a result of the expropriation: $10.3 billion was the average, according to the nearly 2,000 responses received.
Soley Sans, Jorge; Sánchez de León, Carlos
The Bankia case raises many questions. IESE Prof. Jorge Soley and Carlos Sánchez de León analyze the savings bank, from its creation and IPO, to its nationalization and restructuring, which has seen branch closures, layoffs and a new commercial strategy. How much wiggle room does a nationalized bank have? And how will Bankia's woes affect the rest of the Spanish banking system?
Sagnier, Pablo; Baón, Luis
The upheaval in the world of corporate finance brought on by the global financial crisis is transforming the role of the CFO. This article lists the greater competencies needed for CFOs to meet the new demands being placed on them.
IESE Prof. Fabrizio Ferraro believes this is an opportune moment for institutionalizing responsible investment and ushering in a new, more sustainable age of capitalism. This article identifies some of the key drivers and the challenges that responsible investment poses to investors and managers as they try to take this novel field and embed it into their institutional practices.
While Say-on-Pay policies may not curb excessive remuneration, they do provide other measurable, positive benefits for companies and their shareholders. IESE Prof. Mireia Giné argues that Say-on-Pay measures can be effective for strengthening corporate governance and accountability within the firm, outweighing the time and costs they require.
Almandoz Rios, John
As banks seek to redeem themselves in light of the reckless mismanagement that destabilized the entire global economy, IESE Prof. Juan Almandoz draws out several lessons for creating a new community bank, which serve as useful reminders for any business seeking to reconcile its mission with the needs of customers, while also reconnecting with communities in vital and lasting ways.
Campa Fernández, José Manuel
IESE Prof. José M. Campa proposes the attitudes and principles that finance sector professionals must adopt, and the actions to go along with them, to get corporate finance back to where it always belonged -- supporting the company's core business activities through financing and sound financial advice.