Publications

January 2007
Exercise

Multifactor Models

By: Malcolm P. Baker

Students evaluate the performance of four mutual funds and compute the cost of capital for two companies using fixed benchmarks, the CAPM, and a multifactor model of returns. View Details

Keywords: Cost of Capital; Performance Evaluation; Business Model; Investment Funds; Investment Return; Motivation and Incentives; Markets

August 2006
Article

Investor Sentiment and the Cross Section of Stock Returns

By: Malcolm Baker and Jeffrey Wurgler

We examine how investor sentiment affects the cross-section of stock returns. Theory predicts that a broad wave of sentiment will disproportionately affect stocks whose valuations are highly subjective and are difficult to arbitrage. We test this prediction by... View Details

Keywords: Behavioral Finance; Stocks; Investment Return; Forecasting and Prediction; Motivation and Incentives; Risk and Uncertainty; Volatility

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November 1989
Teaching Note

H.J. Heinz Co.: The Administration of Policy (A), (B), (C), and (D), Teaching Note

By: Kenneth E. Goodpaster and Thomas R. Piper

Teaching Note for (9-382-034, 035, 036, and 037). View Details

Keywords: Business Earnings; Management Practices and Processes; Motivation and Incentives; System; Ethics; Policy; Business Divisions; Organizational Change and Adaptation; Food and Beverage Industry

March 2011 (Revised June 2011)
Supplement

Arck Systems (E)

By: Ian Larkin

The Arck Systems series of cases describes the dilemmas faced by a senior sales manager in determining a sales compensation plan at an enterprise software company. The existing compensation plan is aggressive and highly rewards "star" performers. The cases track a... View Details

Keywords: Transformation; Framework; Compensation and Benefits; Organizational Design; Performance Evaluation; Salesforce Management; Motivation and Incentives; Software

September 2003 (Revised March 2004)
Compilation

PEARL Project, The: Work Patterns at Ditto (A)

By: Leslie A. Perlow

Describes life on a product development team, the behaviors that are rewarded, and the difficult tradeoffs members often have to make as a result. This is a rewritten version of an earlier case. View Details

Keywords: Product Development; Time Management; Groups and Teams; Work-Life Balance; Motivation and Incentives; Information Technology Industry

June 2000 (Revised July 2000)
Case

ORIX KK

By: Malcolm S. Salter and Andrew Eggers

Describes the challenges facing a Japanese financial services company as it attempts to maintain its ability to attract and retain talented employees. The CEO's ideas of corporate governance and evidence from the competitive labor environment suggest the need for more... View Details

Keywords: Corporate Governance; Compensation and Benefits; Motivation and Incentives; Management Analysis, Tools, and Techniques; Geographic Location; Financial Services Industry; Japan

Educators

12 Aug 2002
Op-Ed

Using Big Business to Fight Poverty

standards. Today, however, a new determination has emerged to deal with what one UN panel has called the "pre-eminent moral and humanitarian challenge of our age." This new resolve may be motivated partly by compassion. But it... View Details

Keywords: by George C. Lodge

2013
Article

Non-Audit Services and Financial Reporting Quality: Evidence from 1978–1980

By: Kevin Koh, Shiva Rajgopal and Suraj Srinivasan

We provide evidence for the long-standing concern on auditor conflicts of interest from providing non-audit services (NAS) to audit clients by using rarely explored NAS fee data from 1978 to 1980. Using this earlier setting, we find cross-sectional evidence of improved... View Details

Keywords: Conflict of Interests; Financial Reporting; Accounting Audits; Knowledge Dissemination; Quality; Corporate Disclosure; Motivation and Incentives

SSRN

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2013
Chapter

The Design of Online Advertising Markets

By: Benjamin Edelman

Because the market for online advertising is both new and fast-changing, participants experiment with all manner of variations. Should an advertiser's payment reflect the number of times an ad was shown, the number of times it was clicked, the number of sales that... View Details

Keywords: Misleading and Fraudulent Advertising; Online Advertising; Price; Market Design; Measurement and Metrics; Sales; Motivation and Incentives; Internet and the Web

October 2005 (Revised December 2006)
Case

Magazine Luiza: Building a Retail Model of "Courting the Poor"

By: Frances X. Frei and Ricardo Reisen de Pinho

Describes the innovative retail model of the Brazilian firm Magazine Luiza. Magazine Luiza enables low-income consumer credit by applying a flexible and nuanced evaluation system. Additionally, its dedication to customer service, employee motivation, and progressive... View Details

Keywords: Motivation and Incentives; Information Technology; Income; Innovation and Management; Success; Customer Focus and Relationships; Credit; Retail Industry; Brazil

Educators

Portrait Project

Linda Li

once intertwined, drifted apart. While dreaming big motivated me to acquire new skills and solve new challenges, I felt rudderless. I realized then that my dreams are anchored by the people and communities I love. I want to celebrate our... View Details

Web

Dean Datar on the shootings in Atlanta and violence against Asian Americans | About

Dean Datar on the shootings in Atlanta and violence against Asian Americans Published March 17, 2021 Share via Facebook Share via LinkedIn Print Share via email Throughout the day, details of last night’s tragic shootings in Atlanta have been coming into sharper focus.... View Details

21 Oct 2014
First Look

First Look: October 21

Economics Payout Policy By: Farre-Mensa, Joan, Roni Michaely, and Martin C. Schmalz Abstract—We survey the literature on payout policy, with a particular emphasis on developments in the last two decades. Of the traditional motives of why... View Details

Keywords: Sean Silverthorne

2000
Other Unpublished Work

Career Concerns and Staged Investment: Evidence from the Venture Capital Industry

By: Malcolm Baker

I develop a model in which career concerns lead to inefficient reinvestment decisions. Managers have incentives to inflate interim returns by continuing bad projects and delaying write-offs. In the venture capital industry, the syndication of follow-on investments can... View Details

Keywords: Performance Efficiency; Valuation; Venture Capital; Investment; Decisions; Motivation and Incentives; Quality