A new approach to financial valuation, international accounting standards, and prudential standards
"The EDHEC Sustainable Value Creation Chair's purpose is to help organisations challenge the parameters of financial performance measurement and develop a framework which enables them to make sound, sustainable decisions which reflect the socio-economic landscape."
Despite an unprecedented speed of change impacting all aspects of modern day business, society and culture, all decisions made in both market and corporate finance are still largely based on the Modern Portfolio Theory of the 1950s-1960s, (a recipient of several Nobel prizes.)
It is interesting to note that today, whether a finance expert or not, everyone has an opinion on how businesses should measure performance and create sustainable value. The debates are numerous, often contradictory, and have created a complex and unclear situation, in which the professionals who make these decisions now have difficulty finding their way. They are caught between the traditional practices of a 60-year-old financial culture, and its detractors, who believe that the digitalisation of the economy and its consequences make this financial theory obsolete.
EDHEC Sustainable Value Creation’s aim is to help bring clarity and resolution to the debate by providing the fundamentals required to create a path going forward. Our objectives are to support companies by highlighting the specificities of this new environment and providing the research, guidance and expertise to help businesses make sound, sustainable decisions based on relevant performance indicators.