Allen's Theory of Value Presentation

I spoke before a joint meeting of the Columbus, Ohio Chapter of National Investor Relations Institute (NIRI) and the Financial Executives Institute (FEI) making the business case for business ethics.

Attached is a copy of the slides with transcript notes.  Key points inlcude:

• Price ≠ Value
• Value of the firm is derived from markets, products/services and management
• Financial market developments have reduced friction and increased liquidity resulting in lower holding periods and greater trading emphasis vs. long term investing
• Market models have driven trading and investing strategies, but models do not replicate reality
• Recent market meltdown -- and other market disturbances -- have sent flashing yellow warnings
• Management, trading and Wall St. research scandals have sent flashing yellow warnings
• Cost of Capital is impacted by perceptions of increased market risk and increased management risk
• Focus on ethical market behavior is necessary to restore trust to the capital markets
• Markets matter; Investor Relations Matters; Individuals Matter