Publications

Winter 2016
Article

Improving Store Liquidation

By: Nathan Craig and Ananth Raman

This paper introduces methods for increasing the efficiency of retail store liquidation, which we define as the time-constrained divestment of retail outlets through an in-store sale of inventory. The retail industry depends extensively on liquidation, not only as a... View Details

Keywords: Organizational Change and Adaptation; Operations; Investment; Retail Industry

2013
Working Paper

Improving Store Liquidation

By: Nathan Craig and Ananth Raman

Store liquidation is the time-constrained divestment of retail outlets through an in-store sale of inventory. The retail industry depends extensively on store liquidation, not only as a means for investors to recover capital from failed ventures, but also to allow... View Details

Keywords: Business Exit or Shutdown; Financial Condition; Operations; Retail Industry

24 May 2013
Working Paper Summaries

Improving Store Liquidation

Keywords: by Nathan Craig & Ananth Raman; Retail

January 2019
Module Note

Liquidity Management

By: Adi Sunderam

November 2013
Case

Coca-Cola: Liquid and Linked

By: John Gourville and Noah Fisher

Coca-Cola is considering which of several global marketing/promotional efforts to bring to the United States. Each has proven successful in other parts of the world, but for varying reasons. All represent efforts outside of the industry's normal advertising-based... View Details

Keywords: Marketing; Promotions; Advertising; Marketing Strategy; Advertising Campaigns; Global Strategy; Food and Beverage Industry; United States

June 2004
Article

Market Liquidity as a Sentiment Indicator

By: Malcolm Baker and Jeremy Stein

We build a model that helps to explain why increases in liquidity-such as lower bid-ask spreads, a lower price impact of trade, or higher turnover-predict lower subsequent returns in both firm-level and aggregate data. The model features a class of irrational... View Details

Keywords: Markets; Financial Liquidity; Price; Trade; Sales; Equity; Information; Management Analysis, Tools, and Techniques; Accounting Industry

01 Mar 2004
News

Liquid and Efficient

remains the world’s most liquid and most efficient marketplace. That may involve a greater degree of electronic trading, but that remains to be seen. I have a very open mind about this — we’ll see over the next couple of months what is... View Details

Keywords: Finance

November 2011 (Revised May 2012)
Case

SecondMarket—Providing Liquidity for Shareholders of Privately Held iContact

By: William A. Sahlman, Ramana Nanda and James McQuade

In 2011, SecondMarket was an online platform that facilitated secondary transactions of illiquid assets, including private company stock. This case explores reasons for the decline in small-cap IPOs in the United States from the 1990s to the 2000s and how the emergence... View Details

Keywords: Business and Shareholder Relations

December 1979
Article

Liquidity Preference under Uncertainty

By: Carliss Y. Baldwin and Richard F. Meyer

Keywords: Financial Liquidity; Risk and Uncertainty

2005
Working Paper

Aggregate Corporate Liquidity and Stock Returns

By: Robin Greenwood

Aggregate investment in cash and liquid assets as a share of total corporate investment is negatively related to subsequent U.S. stock market returns between 1947 and 2003. The share of cash in total investment is a more stable predictor of returns than scaled price... View Details

Keywords: Stocks; Financial Liquidity; Cash; Investment Return; Corporate Finance

Article

High Cost of Liquidity

By: Amar Bhidé

10 Apr 2020
News

Managing the Liquidity Crisis

22 Mar 2007
News

In the New Liquidity Factories, Buyers Must Still Beware

Research Summary

Analyst Disagreement, Mispricing and Liquidity (with Ronnie Sadka)

We document a close link between mispricing and liquidity by investigating stocks with high analyst disagreement. Previous research finds that these stocks tend to be overpriced, but prices correct down as uncertainty about earnings is resolved. We conjecture that one... View Details

January 2025
Case

North Forty: Managing Liquidity through Change

By: Luis M. Viceira and Brad Towne

This case explores the interaction between spending and investment decisions at a family office, specifically the family office of Jeff and Tricia Raikes, with special emphasis on the management of spending, portfolio investments, and asset liquidity in the presence of... View Details

October 2011 (Revised December 2011)
Case

Vignette: Alternative Liquidity Options

By: Felda Hardymon, Josh Lerner and Ann Leamon

The growth of companies that facilitate the sales of unregistered stock, such as that granted to employees of successful but long-private companies, has raised a number of questions among regulators, investors, and company founders. This brief vignette sketches out... View Details

Keywords: Financial Liquidity; Private Equity; Stocks; Business Growth and Maturation; Sales

29 Jun 2020
Working Paper Summaries

Measuring the Perceived Liquidity of the Corporate Bond Market

Keywords: by Sergey Chernenko and Adi Sunderam; Financial Services

2008
Working Paper

Liquidity Needs in Economies with Interconnected Financial Obligations

By: Julio J. Rotemberg

A model is developed where firms in a financial system have to settle their debts to each other by using a liquid asset. The question that is studied is how many firms must obtain how much of this asset from outside the financial system to make sure that all debts... View Details

Keywords: Economy; Borrowing and Debt; Financial Liquidity; Networks

September 2011 (Revised July 2012)
Case

Khosla Ventures: Biofuels Gain Liquidity

By: Joseph B. Lassiter III, William A. Sahlman, Alison Berkley Wagonfeld and Evan Richardson

Samir Kaul, a Partner at Khosla Ventures, looked out his office window. It was late June, 2011, and like almost every day in Menlo Park, the sun was shining. Kaul was reflecting on what had been a very positive 10 months in the venture capital business. Over that span,... View Details

Keywords: Venture Capital; Financial Strategy; Business or Company Management; Partners and Partnerships; Product Development; Investment Portfolio; Financial Services Industry