Publications

2009
Other Unpublished Work

Disclose the Fair Value of Complex Securities

By: Robert Kaplan, Robert C. Merton and Scott Richard

Keywords: Value; Financial Instruments; Corporate Disclosure

2009
Working Paper

Do Analysts Follow Managers Who Switch Companies? An Analysis of Relationships in the Capital Markets.

By: Francois Brochet, Gregory S. Miller and Suraj Srinivasan

We examine the importance of professional relationships developed between analysts and managers by investigating analyst coverage decisions in the context of CEO and CFO moves between publicly listed firms. We find that top executive moves from an origin firm to a... View Details

Keywords: Business and Stakeholder Relations; Capital Markets; Decisions; Managerial Roles; Financial Institutions; Investment; Market Participation; Public Ownership; Relationships

SSRN

2009
Chapter

Evaluating the Impact of SA8000 Certification

By: Michael J. Hiscox, Claire Schwartz and Michael W. Toffel

SA 8000, along with other types of certification standards and corporate codes of conduct, represents a new form of private governance of working conditions, initiated and implemented by companies, labor unions, and non-governmental activist groups. Whether these codes... View Details

Keywords: Corporate Governance; Working Conditions; Standards; Performance Evaluation

March 2009 (Revised February 2011)
Background Note

Note: Fair Value Accounting for Investments in Debt Securities

By: William E. Fruhan

The note describes how fair value accounting applies to debt securities that are classified by financial institutions as (1) "trading" securities, (2) "available for sale" securities, or (3) "hold to maturity" securities. It explains the hierarchy for inputs used in... View Details

Keywords: Fair Value Accounting; Financial Reporting; Assets; Debt Securities; Investment

March 2009 (Revised July 2010)
Case

State Street Corporation

By: William E. Fruhan

To maximize their effectiveness, color cases should be printed in color. State Street Corp. reports a 13% gain in EPS in 2008 amidst a global financial crisis. The stock price declines 59% on the day of the earnings report. This one day decline was exceeded in the... View Details

Keywords: Fair Value Accounting; Financial Reporting; Financial Crisis; Financial Liquidity; Financial Markets; Crisis Management; Financial Services Industry

Article

Why Doesn't Capitalism Flow to Poor Countries?

By: Rafael Di Tella and Robert MacCulloch

We show that capitalism is far from common around the world. Outside a small group of rich countries, heavy regulation of business, leftist rhetoric, and interventionist beliefs flourish. We relate these phenomena to the presence of corruption, with causality running... View Details

Keywords: Crime and Corruption; Voting; Economic Systems; Fairness; Governing Rules, Regulations, and Reforms; Emotions

January 2009 (Revised October 2009)
Case

GLOBALGAP: Food Safety and Private Standards

By: David E. Bell and Mary Louise Shelman

In response to new laws governing liability and several food safety scares in the 1990s, European retailers drove the creation of a universal production standard based on Good Agricultural Practices (GAP) for fresh fruit and vegetables and a third-party certification... View Details

Keywords: Agribusiness; Food; Governance Compliance; Governing Rules, Regulations, and Reforms; Business and Government Relations; Safety; Agriculture and Agribusiness Industry; Europe

January 2009
Case

Marks and Spencer: Plan A

By: David E. Bell, Nitin Sanghavi and Laura Winig

Marks & Spencer initiated a comprehensive approach to sustainability (reduction of waste, carbon emissions, fair trade) called Plan A. Does it offer a competitive advantage? View Details

Keywords: Marketing; Corporate Social Responsibility and Impact; Strategic Planning; Environmental Sustainability; Competitive Advantage; Retail Industry

Article

The Performer's Reactions to Procedural Injustice: When Prosocial Identity Reduces Prosocial Behavior

By: Adam M. Grant, Andrew Molinsky, Joshua D. Margolis, Melissa Kamin and William Schiano

Considerable research has examined how procedural injustice affects victims and witnesses of unfavorable outcomes, with little attention to the “performers” who deliver these outcomes. Drawing on dissonance theory, we hypothesized that performers' reactions to... View Details

Keywords: Interpersonal Communication; Judgments; Fairness; Outcome or Result; Behavior; Identity; Power and Influence

October 2008 (Revised August 2009)
Case

Subprime Crisis and Fair-Value Accounting

By: Paul M. Healy, Krishna G. Palepu and George Serafeim

This case examines the challenges in implementing fair value accounting for mortgage instruments, the role of accounting in the sub-prime crisis, and proposals for revising accounting standards given the crisis. View Details

Keywords: Fair Value Accounting; Financial Crisis; Debt Securities; Mortgages; Standards

October 2008
Article

Navigating the Bind of Necessary Evils: Psychological Engagement and the Production of Interpersonally Sensitive Behavior

By: Joshua D. Margolis and Andrew Molinsky

We develop grounded theory about how individuals respond to the subjective experience of performing "necessary evils" and how that influences the way they treat targets of their actions. Despite the importance and difficulty of delivering just, compassionate treatment... View Details

Keywords: Interpersonal Communication; Fairness; Moral Sensibility; Problems and Challenges; Behavior; Power and Influence; Welfare

July 2008
Article

Fairness in Extended Dictator-Game Experiments

By: Felix Oberholzer-Gee and Reiner Eichenberger

We test the robustness of behavior in dictator games by offering allocators the choice to play an unattractive lottery. With this lottery option, mean transfers from allocators to recipients substantially decline, partly because many allocators now keep the entire... View Details

Keywords: Decision Choices and Conditions; Fairness; Game Theory; Risk and Uncertainty; Behavior

2008
Working Paper

Some Neglected Axioms in Fair Division

By: John W. Pratt

Conditions one might impose on fair allocation procedures are introduced. Nondiscrimination requires that agents share an item in proportion to their entitlements if they receive nothing else. The "price" procedures of Pratt (2007), including the Nash... View Details

Keywords: Resource Allocation; Valuation; Price; Cost

March 2008 (Revised December 2011)
Case

IBM Values and Corporate Citizenship

By: Rosabeth M. Kanter

IBM's transformation into a globally integrated enterprise (GIE) began with a conviction about what should never change. Since its founding in 1911, the company operated under a set of principles articulated by founder Thomas Watson and became known for a strong... View Details

Keywords: Values and Beliefs; Globalized Firms and Management; Technological Innovation; Leading Change; Corporate Social Responsibility and Impact; Organizational Change and Adaptation; Organizational Culture; Integration

December 2007
Article

Fair (and Not So Fair) Division

By: John W. Pratt

Drawbacks of existing procedures are illustrated and a method of efficient fair division is proposed that avoids them. Given additive participants' utilities, each item is priced at the geometric mean (or some other function) of its two highest valuations. The... View Details

Keywords: Price; Management Practices and Processes; Valuation

November 2007 (Revised May 2008)
Case

Haier Hefei Electronics Co. (A)

By: Lynn Sharp Paine

The Haier Group, the first mainland Chinese company to make the Financial Times list of Asia's "most admired companies," attributes its success in large measure to the new value system it has sought to instill throughout the organization. However, when Haier takes over... View Details

Keywords: Public Ownership; Business and Government Relations; Organizational Culture; Transformation; Ethics; Labor and Management Relations; Business or Company Management; Contracts; Electronics Industry; China

2007
Working Paper

Paths to Equality: Walking the Talk in Multi-party Negotiations

By: Kathleen L. McGinn, Katherine L. Milkman and Markus Nöth

Past research has shown that communication in negotiations heightens social awareness, facilitates coordination, increases the utility for the other's positive outcomes, and thereby leads to more equal payoffs. But the role of specific communication strategies in... View Details

Keywords: Interpersonal Communication; Fairness; Agreements and Arrangements; Negotiation Types; Behavior; Competition

2007
Book

An Experiment in Fair Value Accounting? The State of the Art in Research and Thought Leadership on Accounting for Life Assurance in the UK and Continental Europe

By: Joanne G Horton, Richard H. Macve and George Serafeim

"Fair value" is currently the central topic of debate in the development of accounting standards. While it has now been defined to mean an exit price in US GAAP, the IASB is still considering its own definition, and some commentators are arguing for versions of entry... View Details

Keywords: Transition; Financial Instruments; Framework; Market Entry and Exit; Insurance; Revenue Recognition; Fair Value Accounting; Standards; United Kingdom

2007
Working Paper

Fair (and Not So Fair) Division

By: John W. Pratt

Drawbacks of existing procedures are illustrated and a method of efficient fair division is proposed that avoids them. Given additive participants' utilities, each item is priced at the geometric mean (or some other function) of its two highest valuations. The... View Details

Keywords: Fairness; Price