Publications

2022
Article

The Pricing and Ownership of U.S. Green Bonds

By: Malcolm Baker, Daniel Bergstresser, George Serafeim and Jeffrey Wurgler

We study green bonds, which are bonds whose proceeds are used for environmentally sensitive purposes. After an overview of the U.S. corporate and municipal green bonds markets, we study pricing and ownership patterns using a simple framework that incorporates assets... View Details

Keywords: Green Bond; Pricing; Climate Finance; ESG; SRI; Sustainable; Municipal; Bonds; Environmental Sustainability; Financial Markets; Price; Ownership; United States

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November 2022 (Revised May 2023)
Case

Dicerna

By: Malcolm Baker, Ishita Sen and Jonathan Wallen

2022
Working Paper

How Do Investors Value ESG?

By: Malcolm Baker, Mark Egan and Suproteem K. Sarkar

Environmental, social, and governance (ESG) objectives have risen to near the top of the agenda for corporate executives and boards, driven in large part by their perceptions of shareholder interest. We quantify the value that shareholders place on ESG using a revealed... View Details

Keywords: Investment; Investment Portfolio; Corporate Social Responsibility and Impact; Business and Shareholder Relations; Environmental Sustainability; Governance; Financial Services Industry; United States

August 2022 (Revised October 2022)
Case

The Mighty Squirrel Brewery and Taproom

By: Malcolm Baker

January 2022 (Revised January 2022)
Case

The Impact Developers Fund

By: Malcolm Baker, Samuel Gregory Hanson, Jonathan Wallen and Zach Komes

December 2021 (Revised December 2021)
Case

Thrive Earlier Detection

By: Malcolm Baker and William Vrattos

July 2021 (Revised July 2022)
Case

Hamilton

By: Malcolm Baker and Joshua D. Coval

August 2020
Article

Leverage and the Beta Anomaly

By: Malcolm Baker, Mathias F. Hoeyer and Jeffrey Wurgler

The well-known weak empirical relationship between beta risk and the cost of equity—the beta anomaly—generates a simple tradeoff theory: As firms lever up, the overall cost of capital falls as leverage increases equity beta, but as debt becomes riskier the marginal... View Details

Keywords: Risk Anomaly; Leverage; Capital Structure; Risk and Uncertainty

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2018
Working Paper

Detecting Anomalies: The Relevance and Power of Standard Asset Pricing Tests

By: Malcolm Baker, Patrick Luo and Ryan Taliaferro

The two standard approaches for identifying capital market anomalies are cross-sectional coefficient tests, in the spirit of Fama and MacBeth (1973), and time-series intercept tests, in the spirit of Jensen (1968). A new signal can pass the first test, which we label a... View Details

Keywords: Investment Management; Anomalies; Portfolio Construction; Transaction Costs; Investment; Management; Asset Pricing; Market Transactions; Cost

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April 2018
Supplement

Celgene

By: Malcolm Baker and Emily R. McComb

In February 2011, Adam Koppel, a Managing Director at Brookside Capital, the public equity arm of Bain Capital, must decide whether to increase or exit the firm’s position in Celgene Corporation. News has emerged that raises potential safety concerns associated with... View Details

Keywords: Life Sciences; Biotechnology; Public Market Investing; Celgene; Revlimid; Hedge Fund; Growth Stocks; Valuation; Investment; Decision Choices and Conditions; Analysis

March 2018 (Revised May 2018)
Case

Celgene

By: Malcolm Baker and Emily McComb

In February 2011, Adam Koppel, a managing director at Brookside Capital, the public equity arm of Bain Capital, must decide whether to increase or exit the firm’s position in Celgene Corporation. News has emerged that raises potential safety concerns associated with... View Details

Keywords: Life Sciences; Biotechnology; Public Market Investing; Celgene; Revlimid; Hedge Fund; Growth Stocks; Valuation; Investment; Decision Choices and Conditions; Analysis; Biotechnology Industry

March 2018 (Revised May 2018)
Supplement

Celgene (B)

By: Malcolm Baker and Emily McComb

Supplements the (A) case. View Details

Keywords: Life Sciences; Biotechnology; Public Market Investing; Celgene; Revlimid; Hedge Fund; Growth Stocks; Valuation; Investment; Decision Choices and Conditions; Analysis; Biotechnology Industry