Publications

07 Dec 2018
Video

Current Events Through the Lens of Theory: Tesla's Debt Downgraded

Research Summary

Dr. Logg studies how people can improve the accuracy of their judgments and decisions. Her main program of work examines when people are most likely to leverage the power of algorithms to improve their accuracy. Research on what she calls “theory of machine” is... View Details

Keywords: Decision Making; Judgment; Algorithms; Advice Taking

Behavioral Corporate Finance: A Survey

In this chapter, we survey the theory and evidence of behavioral corporate finance, which generally takes one of two approaches. The market timing and catering approach views managerial financing and investment decisions as rational managerial responses to... View Details

October 2013
Article

When Power Makes Others Speechless: The Negative Impact of Leader Power on Team Performance

By: Leigh Plunkett Tost, Francesca Gino and Richard P. Larrick

We examine the impact of subjective power on leadership behavior and demonstrate that the psychological effect of power on leaders spills over to impact team effectiveness. Specifically, drawing from the approach/inhibition theory of power, power-devaluation theory,... View Details

Keywords: Power; Leadership; Team Performance; Groups and Teams; Performance; Leadership Style; Power and Influence

March 1995
Background Note

Gender Differences in Managerial Behavior: The Ongoing Debate

Do men and women have distinct leadership styles? Do they approach management differently? This note summarizes the two perspectives that have dominated the ongoing debate on gender differences in organizational leadership and management behavior. Psychological... View Details

Keywords: Leadership Style; Gender

Educators

07 Nov 2017
News

Best Business Books 2017: Innovation

March 2001 (Revised May 2001)
Case

&Samhoud Service Management

By: Thomas J. DeLong, Ashish Nanda and Monica Mullick

&Samhoud, a small service management consulting firm in the Netherlands, grapples with the dilemma of firing its largest client while introducing Heskett's theory of the service profit chain. View Details

Keywords: Mission and Purpose; Management Practices and Processes; Customer Focus and Relationships; Customer Relationship Management; Consulting Industry; Netherlands

Educators

January 1994
Background Note

Note on Financial Programming Over Long Horizons

By: Timothy A. Luehrman

Introduces students to financial programming as a way to incorporate concepts and tools from modern corporate finance theory into a framework for managing over long horizons. Particular attention is paid to corporate capital budgeting and investment processes. View Details

Keywords: Framework; Theory; Investment; Business Processes; Capital Budgeting; Corporate Finance

2018
Working Paper

Channeled Attention and Stable Errors -- Previous Working Version

By: Tristan Gagnon-Bartsch, Matthew Rabin and Joshua Schwartzstein

A common critique of models of mistaken beliefs is that people should recognize their error after observations they thought were unlikely. This paper develops a framework for assessing when a given error is likely to be discovered, in the sense that the error-maker... View Details

Keywords: Perception; Behavior; Theory; Situation or Environment

2010
Chapter

The Shape of Things to Come: Institutions, Entrepreneurs, and the Case of Hedge Funds

By: Pamela Tolbert and Shon R. Hiatt

Foundational work on institutional theory as a framework for studying organizations underscored its relevance to analyses of entrepreneurship, but entrepreneurship research has often ignored the insights provided by this theoretic approach. In this chapter, we... View Details

Keywords: Entrepreneurship; Organizations; Research; Theory; Financial Services Industry

June 2011
Article

Implicit Voice Theories: Taken-for-granted Rules of Self-censorship at Work

By: J. R. Detert and Amy C. Edmondson

This article examines, in a series of four studies, the nature and impact of implicit voice theories-largely taken-for-granted beliefs about when and why speaking up at work is risky or inappropriate. In Study 1, qualitative data from 190 interviews conducted in a... View Details

Keywords: Spoken Communication; Interpersonal Communication; Employees; Managerial Roles; Organizational Culture; Risk and Uncertainty; Behavior

June 2010
Article

What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns

By: Glenn Ellison, Edward Glaeser and William R. Kerr

Why do firms cluster near one another? We test Marshall's theories of industrial agglomeration by examining which industries locate near one another, or coagglomerate. We construct pairwise coagglomeration indices for US manufacturing industries from the Economic... View Details

Keywords: Production; Economics; Industry Clusters; Analytics and Data Science; Labor; Theory; Goods and Commodities; United States; United Kingdom

2008
Working Paper

Catering through Nominal Share Prices

By: Malcolm Baker, Robin Greenwood and Jeffrey Wurgler

We propose and test a catering theory of nominal stock prices. The theory predicts that when investors place higher valuation on low-price firms, managers will maintain share prices at lower levels, and vice-versa. Using measures of time-varying catering... View Details

Keywords: Stocks; Stock Shares; Investment; Investment Return; Price; Theory; Valuation

30 Oct 2018
Working Paper Summaries

Design Rules, Volume 2: How Technology Shapes Organizations: Chapter 5 Complementarity

Keywords: by Carliss Y. Baldwin

19 Oct 2017
HBS Seminar

Dennis Carlton, University of Chicago Booth School of Business

Fall 2013
Article

In Strange Company: The Puzzle of Private Investment in State-Controlled Firms

By: Mariana Pargendler, Aldo Musacchio and Sergio G. Lazzarini

A large legal and economic literature describes how state-owned enterprises (SOEs) suffer from a variety of agency and political problems. Less theory and evidence, however, have been generated about the reasons why state-owned enterprises listed in stock markets... View Details

Keywords: State-owned Enterprises; Oil Companies; Corporate Governance; Business and Shareholder Relations; Energy Industry; Brazil; Mexico; Norway

SSRN

15 Sep 2016
News

Competing Against Luck

December 2009
Article

Catering Through Nominal Share Prices

By: Malcolm Baker, Robin Greenwood and Jeffrey Wurgler

We propose and test a catering theory of nominal stock prices. The theory predicts that when investors place higher valuation on low-price firms, managers will maintain share prices at lower levels, and vice-versa. Using measures of time-varying catering incentives... View Details

Keywords: Stocks; Stock Shares; Investment; Investment Return; Price; Theory; Valuation

August 1970
Case

Hawthorne Plastics

An "imperfect tester" problem involving the decision of how to produce batches of plastic strapping, given uncertainty about the length of the molecular chain in the raw material. A decision on whether to test the raw material and a choice of production process must be... View Details

Keywords: Decision Making; Mathematical Methods

Educators