What is shareholder value?
How do managers create value?
How do investors find value?
These questions are central to the world of finance. CapLab is a state-of-the-art
learning system, based on modern financial theory and advanced technology. It helps
managers learn how to create shareholder value. It trains analysts and investors in
finding this value.
Financial decisions are crucial to market economies. Structural changes are being
introduced around the world due to financial crisis in Asia, introduction of a common
currency in Europe, and volatility in U.S. markets. Managers everywhere have to focus on
creating shareholder value and benchmarking their performance against their global
competition. CapLab is an essential learning instrument for them.
Investors scour myriad opportunities looking for shareholder value. They also must
discipline corporations to deliver profits. CapLab helps investors and analysts develop
these fundamental skills, and prepares them to function effectively in open, competitive,
market-driven economies.
For success in market economies, it is critical to understand corporate governance,
managerial compensation, financial reporting, securities valuation, portfolio management
and trading decisions, etc. It is equally important to understand the links among these
decisions. Financial actions often unleash a chain of reactions. Strategic decision making
requires anticipating reactions of others, and including such reaction in one's own
decisions.
CapLab participants experience first hand the consequences of making financial decisions
in dynamic environments. It is an active learning system, not a tutorial. Some
participants manage firms, while the others own, analyze, trade, and manage their
portfolio of securities of these firms. It supplements or replaces passive reading and
listening by problem-solving and decision making using tools of advanced information
technology.
CapLab allows the instructor to design a large array of corporate and market scenarios,
and choose the range of decisions the participants must make to earn profits. The
instructor can pick the parameters to fit the goals and key issues that he or she wishes
to focus on.CapLab economizes the cost of learning without exposing large assets and
portfolios of companies to decision-making errors.