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  • All HBS Web  (8,983)
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  • July 2016
  • Article

Under New Management: Equity Issues and the Attribution of Past Returns

By: Malcolm Baker and Yuhai Xuan
There is a strong link between measures of stock market performance, such as changes in Tobin's Q or past stock returns, and equity issues. Typically, this performance is thought to be a characteristic of the firm, not the CEO who happens to run the firm. In contrast... View Details
Keywords: Performance; Management Teams; Equity
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Baker, Malcolm, and Yuhai Xuan. "Under New Management: Equity Issues and the Attribution of Past Returns." Journal of Financial Economics 121, no. 1 (July 2016): 66–78.
  • 11 Jun 2013
  • Working Paper Summaries

Measurement Errors of Expected Returns Proxies and the Implied Cost of Capital

Keywords: by Charles C.Y. Wang
  • August 2017
  • Article

The First Deal: The Division of Founder Equity in New Ventures

By: Thomas F. Hellmann and Noam Wasserman
We examine the trade-off between efficiency and equality within the context of entrepreneurial founding teams. Using a formal theory where founders may have preferences over relative outcomes, we derive predictions about the antecedents and consequences of dividing... View Details
Keywords: Equality and Inequality; Entrepreneurship; Equity
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Hellmann, Thomas F., and Noam Wasserman. "The First Deal: The Division of Founder Equity in New Ventures." Management Science 63, no. 8 (August 2017): 2647–2666.
  • September 2011
  • Article

Information Risk and Fair Value: An Examination of Equity Betas

By: Edward J. Riedl and George Serafeim
Using a sample of U.S. financial institutions, we exploit recent mandatory disclosures of financial instruments designated as fair value level 1, 2, and 3 to test whether greater information risk in financial instrument fair values leads to higher cost of capital. We... View Details
Keywords: Forecasting and Prediction; Assets; Cost of Capital; Financial Institutions; Financial Instruments; Corporate Disclosure; Information; Risk and Uncertainty; Value; United States
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Riedl, Edward J., and George Serafeim. "Information Risk and Fair Value: An Examination of Equity Betas." Journal of Accounting Research 49, no. 4 (September 2011): 1083–1122.
  • Article

The Relationship Between Workplace Stressors and Mortality and Health Costs in the United States

By: Joel Goh, Jeffrey Pfeffer and Stefanos A. Zenios
Even though epidemiological evidence links specific workplace stressors to health outcomes, the aggregate contribution of these factors to overall mortality and health spending in the United States is not known. In this paper, we build a model to estimate the excess... View Details
Keywords: Occupational Health; Health Costs; Mortality; Applied Optimization; Health
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Goh, Joel, Jeffrey Pfeffer, and Stefanos A. Zenios. "The Relationship Between Workplace Stressors and Mortality and Health Costs in the United States." Management Science 62, no. 2 (February 2016): 608–628.
  • October 2023
  • Article

Product Variety, the Cost of Living, and Welfare Across Countries

By: Alberto Cavallo, Robert C. Feenstra and Robert Inklaar
We use the structure of the Melitz (2003) model to compute the cost of living and welfare across 47 countries, and compare these to conventional measures of prices and real consumption from the International Comparisons Project (ICP). The cost of living is inferred... View Details
Keywords: Macroeconomics; Trade
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Cavallo, Alberto, Robert C. Feenstra, and Robert Inklaar. "Product Variety, the Cost of Living, and Welfare Across Countries." American Economic Journal: Macroeconomics 15, no. 4 (October 2023): 40–66.
  • December 2015
  • Case

Nextel Peru: Emerging Market Cost of Capital

By: Luis M. Viceira and Joel L. Heilprin
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Viceira, Luis M., and Joel L. Heilprin. "Nextel Peru: Emerging Market Cost of Capital." Harvard Business School Brief Case 916-516, December 2015.
  • 2015
  • Working Paper

Measurement Errors of Expected-Return Proxies and the Implied Cost of Capital

By: Charles C.Y. Wang
Despite their popularity as proxies of expected returns, the implied cost of capital's (ICC) measurement error properties are relatively unknown. Through an in-depth analysis of a popular implementation of ICCs by Gebhardt, Lee, and Swaminathan (2001) (GLS), I show... View Details
Keywords: Measurement and Metrics; Cost of Capital; Investment Return
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Wang, Charles C.Y. "Measurement Errors of Expected-Return Proxies and the Implied Cost of Capital." Harvard Business School Working Paper, No. 13-098, May 2013. (Revised February 2015.)
  • 2024
  • Working Paper

Private Equity and Digital Transformation

By: Brian K. Baik, Wilbur Chen and Suraj Srinivasan
We study the role which private equity (PE) plays in digital transformation. We find that PE investment is associated with greater investments into portfolio firm’s digital technologies, as measured by IT expenditures and the hiring demand for AI skills. This... View Details
Keywords: Digital Transformation; Private Equity; Selection and Staffing; Investment Portfolio; Value Creation
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Baik, Brian K., Wilbur Chen, and Suraj Srinivasan. "Private Equity and Digital Transformation." Harvard Business School Working Paper, No. 24-070, May 2024.
  • 30 Jan 2008
  • Working Paper Summaries

Cost of External Finance and Selection into Entrepreneurship

Keywords: by Ramana Nanda
  • Article

Research: The Cost of a Single U.S. Immigration Restriction

By: Dany Bahar, Prithwiraj Choudhury and Britta Glennon
On June 22, 2020, President Trump passed an Executive Order drastically cutting the number of highly skilled international workers eligible for non-immigrant visas to the U.S. To quantify the impact of this policy, the authors examined the immediate change in stock... View Details
Keywords: Work Visas; H1-B; Restriction; Impact; Immigration; Governing Rules, Regulations, and Reforms; Cost; Economy
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Bahar, Dany, Prithwiraj Choudhury, and Britta Glennon. "Research: The Cost of a Single U.S. Immigration Restriction." Harvard Business Review (website) (January 22, 2021).
  • 2009
  • Case

Midland Energy Resources, Inc.: Cost of Capital: Brief Case No. 4129.

By: Timothy A. Luehrman and Joel L. Heilprin
The senior vice president of project finance for a global oil and gas company must determine the weighted average cost of capital for the company as a whole and each of its divisions as part of the annual capital budgeting process. The case uses comparable companies to... View Details
Keywords: Capital Budgeting; Cost of Capital; Energy Industry
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Luehrman, Timothy A., and Joel L. Heilprin. "Midland Energy Resources, Inc.: Cost of Capital: Brief Case No. 4129." Watertown, MA: Harvard Business Publishing Case, 2009.
  • 1995
  • Article

Managing Distrust: The Hidden Cost of Downsizing

By: D. Sull and N. Nohria
Keywords: Management; Job Cuts and Outsourcing; Cost; Trust
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Sull, D., and N. Nohria. "Managing Distrust: The Hidden Cost of Downsizing." Business Ethics Forum 8 (1995): 73–83.
  • 11 Apr 2007
  • Research & Ideas

Adding Time to Activity-Based Costing

To improve any business, managers need to understand how much it costs to produce a profitable product. It seems a simple task, but the process of securing and analyzing the data can be incredibly complex... View Details
Keywords: by Sarah Jane Gilbert
  • Article

Monetary Policy and Costs of Price Adjustment

By: J. J. Rotemberg
Keywords: Policy; Price; Cost
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Rotemberg, J. J. "Monetary Policy and Costs of Price Adjustment." Journal of Economic Dynamics & Control 5 (February 1983): 267–288.
  • January 1975 (Revised March 1988)
  • Case

Quaker Oats Co.: Cost of Capital (A)

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Wippern, Ronald F., and Guillermo Schultz. "Quaker Oats Co.: Cost of Capital (A)." Harvard Business School Case 275-095, January 1975. (Revised March 1988.)
  • 1998
  • Working Paper

The Cyclical Behavior of Price and Costs

By: Julio J. Rotemberg and Michael Woodford
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Rotemberg, Julio J., and Michael Woodford. "The Cyclical Behavior of Price and Costs." Harvard Business School Working Paper, No. 98-119, June 1998.
  • 30 Apr 2009
  • Working Paper Summaries

Earnings Quality and Ownership Structure: The Role of Private Equity Sponsors

Keywords: by Sharon P. Katz; Financial Services
  • December 2003
  • Article

The Social Cost of Fraud and Bankruptcy

By: Joseph L. Bower and Stuart C. Gilson
Keywords: Cost; Society; Insolvency and Bankruptcy
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Bower, Joseph L., and Stuart C. Gilson. "The Social Cost of Fraud and Bankruptcy." Harvard Business Review 81, no. 12 (December 2003): 20–22.
  • 1998
  • Chapter

The Cost of P&C Insurance Company Failures

By: Brian J. Hall and James G. Bohn
Keywords: Insurance; Insolvency and Bankruptcy; Cost; Insurance Industry
Citation
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Hall, Brian J., and James G. Bohn. "The Cost of P&C Insurance Company Failures." In The Economics of Property-Casualty Insurance, edited by David Bradford. University of Chicago Press, 1998.
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