Leading corporate finance and investment analysis expert Aswath Damodaran says that considering the economic crisis, companies and large corporations should operate as simply as possible, recognize and solve problems in time and always have a backup plan when things go bad.
Keep it simple, that is the advice I give to any corporation in any country, operate simply and make simple plans, Damodaran told Tanjug in an interview.
He will hold an expert conference entitled “Value: More than a number” in Belgrade on Monday, with participation of representatives of the Serbian government, the National Bank of Serbia, and the management of numerous companies and banks.
Damodaran is a professor at the Stern School of Business at New York University, the author of several widely used academic and practitioner texts on valuation, corporate finance and investment management in leading journals such as the Journal of Financial and Quantitative Analysis, the Journal of Finance Economics, and the Review of Financial Studies.
He built his reputation as a finance guru with visionary estimates of the movement of world economies and companies.
Asked how Serbia and other countries in the Western Balkan region which aspire to EU membership can overcome their economic problems, Damodaran said one of the advantages of joining the EU is gaining access to a large market.
The EU used to be a healthy, growing market, but when you look at it today the situation is not as good. One part of the EU does not want to help the other part which is having trouble. The fear I have about joining the EU now is the negatives might outweigh the positives, more things can go wrong than can go right, he said.
Damodaran said the EU is having a hard time dealing with the crisis and economic problems and is showing serious weaknesses.
He said the problem is that the entire EU has a smaller population than countries like China or India, which means their market is not as big.
Still, we are all part of a global economy with all its positive and negative characteristics, concluded Damodaran.
Source Tanjug
