Publications

Purchase

Article

The Effect of Dividends on Consumption

By: Malcolm Baker, Stefan Nagel and Jeffrey Wurgler

Classical models predict that the division of stock returns into dividends and capital appreciation does not affect investor consumption patterns, while mental accounting and other economic frictions predict that investors have a higher propensity to consume from... View Details

Keywords: Investment; Investment Return; Economics; Stocks; Capital; Business Earnings; Investment Portfolio; Investment Funds; Cost; Saving

July 2014
Article

Network Effects in Countries' Adoption of IFRS

By: Karthik Ramanna and Ewa Sletten

If the differences in accounting standards across countries reflect relatively stable institutional differences (e.g., auditing technology, the rule of law, etc.), why did several countries rapidly, albeit in a staggered manner, adopt IFRS over local standards in the... View Details

Keywords: International Accounting; Financial Reporting; Network Effects

18 Jan 2016
Research & Ideas

Hazard Warning: The Unacceptable Cost of Toxic Workers

Toxic workers aren’t just a pain in the rear; they’re also a pain in the bottom line, according to a new Harvard Business School working paper. Dylan Minor, visiting assistant professor of business administration in the HBS Strategy unit, says a company stands to lose... View Details

Keywords: by Roberta Holland

2022
Article

The Effects of Public and Private Equity Markets on Firm Behavior

By: Shai Bernstein

In this article, I review the theoretical and empirical literature on the effects of public and private equity markets on firm behavior, emphasizing the consequences that emerge from disclosure requirements, ownership concentration, and degree of firm standardization.... View Details

Keywords: Corporate Finance And Governance; Financing Policy; Commercialization; Capital Markets; Private Equity; Public Equity; Venture Capital; Innovation and Invention; Cost of Capital

Purchase

22 Jan 2014
Research & Ideas

High-Tech Immigrant Workers Don’t Cost US Jobs

are legal fees and recruiting costs for hiring immigrants, and that kind of stuff will quickly wipe out any underpayment that a firm would get off a $50,000 salary. So I don't have the belief that firms are using this to reduce the wage... View Details

Keywords: by Dina Gerdeman; Computer; Financial Services

22 Mar 2016
Working Paper Summaries

Voter Registration Costs and Disenfranchisement: Experimental Evidence from France

Keywords: by Celine Braconnier, Jean-Yves Dormagen, and Vincent Pons

09 Sep 2011
Working Paper Summaries

Quantity vs. Quality: Exclusion by Platforms with Network Effects

Keywords: by Andrei Hagiu; Technology

03 Dec 2020
Research & Ideas

Cut Payroll Costs with Transparency, Fairness, and Compassion

and layoffs. Questions that CEOs raised with us included: “What are best practices for digital terminations?” and “If the economy worsens and you have to consider reducing payroll, what’s the most effective way?” As we look ahead to what... View Details

Keywords: by Boris Groysberg and Sarah Abbott

August 2004 (Revised February 2008)
Case

Land Securities Group (A): Choosing Cost or Fair Value on Adoption of IFRS

A U.K. real estate firm, required to adopt international accounting standards (IAS) by 2005, must change the reporting of its primary asset (investment property) from the revaluation model under U.K. GAAP to either the cost or fair-value model under IAS. This would... View Details

Keywords: Cost Accounting; Fair Value Accounting; Financial Reporting; International Accounting; Investment; Standards; Real Estate Industry; Europe; United Kingdom

Educators

Purchase

2017
Working Paper

The Effects of Media Slant on Firm Behavior

By: Vishal P. Baloria and Jonas Heese

The media can impose reputational costs on firms because of its important role as an information intermediary and its ability to negatively slant coverage. We exploit a quasi-natural experiment that holds constant the information event across firms, but varies the... View Details

Keywords: Media Slant; Reputational Capital; Strategic Corporate Decisions

SSRN

September 2023
Article

The Health Costs of Dirty Energy: Evidence from the Capacity Market in Colombia

By: Achyuta Adhvaryu, Theresa Molina, Anant Nyshadham, Jorge Tamayo and Nicholas Torres

The health effects of “dirty” (fossil fuel driven) energy production are difficult to measure accurately due to the endogeneity of fuel choice. We exploit an electricity policy in Colombia that generates a price-based trigger for the use of thermal energy sources.... View Details

Keywords: Pollution; Health Disorders; Energy Industry; Colombia

06 Jul 2016
What Do You Think?

How Do We Pay for the Costs of Globalization?

Research has shown that the benefits of globalization are substantial. For example, a study of the effects of the pending Trans-Pacific Partnership by the Peterson Institute for International Economics projects benefits in US economic... View Details

Keywords: by James L. Heskett; Manufacturing

2008
Working Paper

The Effect of Labor on Profitability: The Role of Quality

By: Zeynep Ton

Determining staffing levels is an important decision in retail operations. While the costs of increasing labor are obvious and easy to measure, the benefits are often indirect and not immediately felt. One benefit of increased labor is improved quality. The objective... View Details

Keywords: Profit; Selection and Staffing; Service Delivery; Business Processes; Quality; Retail Industry

July–August 2013
Article

Looking Up and Looking Out: Career Mobility Effects of Demographic Similarity among Professionals

By: Kathleen L. McGinn and Katherine L. Milkman

We investigate the role of workgroup sex and race composition on the career mobility of professionals in "up-or-out" organizations. We develop a nuanced perspective on the potential career mobility effects of workgroup demography by integrating the social... View Details

Keywords: Professional Service Firms; Race And Ethnicity; Ethnicity; Race; Personal Development and Career; Gender; Legal Services Industry

December 2014
Article

The Distinct Effects of Information Technology and Communication Technology on Firm Organization

By: Nicholas Bloom, Luis Garicano, Raffaella Sadun and John Van Reenen

Empirical studies on information communication technologies (ICT) typically aggregate the "information" and "communication" components together. We show theoretically and empirically that this is problematic. Information and communication technologies have very... View Details

Keywords: Communication Technology; Information Technology; Organizational Structure

2023
Article

Probabilistically Robust Recourse: Navigating the Trade-offs between Costs and Robustness in Algorithmic Recourse

By: Martin Pawelczyk, Teresa Datta, Johannes van-den-Heuvel, Gjergji Kasneci and Himabindu Lakkaraju

As machine learning models are increasingly being employed to make consequential decisions in real-world settings, it becomes critical to ensure that individuals who are adversely impacted (e.g., loan denied) by the predictions of these models are provided with a means... View Details

Keywords: AI and Machine Learning; Decision Choices and Conditions; Mathematical Methods

Research Summary

When Distance Shrinks: The Effects of Competitor Proximity on Firm Survival

What are the performance implications of locating close to firms in one's industry? The existing empirical evidence is mixed. In this paper I argue that proximity between firms affects their performance differently... View Details

26 Jan 2015
Research & Ideas

National Health Costs Could Decrease if Managers Reduce Work Stress

pressure, alcoholism, mental illness. Even so, the connections between job pressures and health—and what management can do to address the problem—have been little studied. “We have not placed a lot of emphasis on the role of workplace stress in the high View Details

Keywords: by Michael Blanding; Health

2013
Working Paper

Do Strict Capital Requirements Raise the Cost of Capital? Banking Regulation and the Low Risk Anomaly

By: Malcolm Baker and Jeffrey Wurgler

Minimum capital requirements are a central tool of banking regulation. Setting them balances a number of factors, including any effects on the cost of capital and in turn the rates available to borrowers. Standard theory predicts that, in perfect and efficient capital... View Details

Keywords: Risk and Uncertainty; Cost of Capital; Capital Markets; Banks and Banking; Banking Industry; United States