Publications

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

April 2019
Response

Response to Comments on Toward a Prescriptive Theory of Dynamic Capabilities

By: Gary P. Pisano

July 2002 (Revised April 2003)
Case

Computer Associates International, Inc.: Governance and Investor Communication Challenge

By: Paul M. Healy and Krishna G. Palepu

Sanjay Kumar, the CEO of Computer Associates, faces investor communication challenges following the company's implementation of a new business model and the accompanying change method used to recognize revenue. Despite management's confidence that the new business... View Details

Keywords: Business Earnings; Earnings Management; Stock Shares; Problems and Challenges; Communication Strategy; Accrual Accounting; Business Model; Budgets and Budgeting; Corporate Governance; Revenue; Computer Industry; Information Technology Industry

Educators

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26 Oct 2015
Working Paper Summaries

Applications of Fractional Response Model to the Study of Bounded Dependent Variables in Accounting Research

Keywords: by Susanna Gallani, Ranjani Krishnan & Jeffrey M. Wooldridge; Accounting

17 May 2004
Research & Ideas

Why We Don’t Study Corporate Responsibility

to their ethical conduct. Scholarly attention to ethics and values does indeed have an impact on business leaders' self-conception and resulting behavior. Q: Corporate social View Details

Keywords: by Manda Salls

2023
Working Paper

How Private Investors Value 'Platformness': An Exploratory Study of Unicorns

By: David B. Yoffie, Michael A. Cusumano, Annabelle Gawer, Sarah von Bargen and Kwesi Acquay

This paper explores the premium investors have been willing to pay for private companies (unicorns) that are digital platforms vs. traditional companies. View Details

Keywords: Platforms And Ecosystems; Digital Platforms; Investment Portfolio

13 Dec 2022
Research & Ideas

The Color of Private Equity: Quantifying the Bias Black Investors Face

Black venture capital and growth investors have a much harder time getting funding than white investors, because—despite efforts to bring more racial diversity to financial... View Details

Keywords: by Pamela Reynolds; Financial Services

summer 2008
Article

Corporate Social Responsibility Through an Economic Lens

By: Forest L. Reinhardt, Robert N. Stavins and Richard H.K. Vietor

Business leaders, government officials, and academics are focusing considerable attention on the concept of "corporate social responsibility" (CSR), particularly in the realm of environmental protection. Beyond complete compliance with environmental regulations, do... View Details

Keywords: Profit; Governance Compliance; Governing Rules, Regulations, and Reforms; Corporate Social Responsibility and Impact; Business and Shareholder Relations; Environmental Sustainability

May 1992 (Revised July 1995)
Case

Capital Holding Corp.: Reengineering the Direct Response Group

By: Donna B. Stoddard

Describes a major change initiative--reengineering--that is underway at Capital Holding Corp.'s Direct Response Group. The reengineering initiative involved changes to the organization's structure, control systems, and information systems. View Details

Keywords: Organizational Change and Adaptation

May 2011
Article

Higher Risk, Lower Returns: What Hedge Fund Investors Really Earn

By: Ilia Dichev and Gwen Yu

The returns of hedge fund investors depend not only on the returns of the hedge funds they hold but also on the timing and magnitude of their capital flows in and out of the funds. We use dollar-weighted returns (a form of IRR) to assess the properties of actual... View Details

Keywords: Investment Funds; Investment Return; Capital Markets; Market Timing; Currency

March 2001 (Revised April 2001)
Case

Sustainable Development & Socially Responsible Investing: ABB in 2000

By: Forest L. Reinhardt

Several investment firms and mutual funds position themselves as providers or facilitators of opportunities for socially responsible investment. This case addresses the impact of these firms on publicly traded companies. Focuses on managers at ABB, a large... View Details

Keywords: Investment; Corporate Social Responsibility and Impact; Environmental Sustainability; Social Enterprise; Corporate Governance; Business Strategy; Capital Markets; Management Teams; Business and Community Relations; Trade; Electronics Industry; Switzerland

Educators

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2001
Dissertation

A Dilemma in Response: Examining the Newspaper Industry's Response to the Internet

By: Clark Gilbert

October 2004 (Revised March 2006)
Background Note

Learning from Scandals: Responsibility of Professional Organizations

By: Ashish Nanda

This case comments on the responsibility of professional organizations to respond openly to public accusations of wrongdoing by its members. It briefly relates the circumstances of the sexual abuse scandal in the Boston archdiocese of the Roman Catholic Church and the... View Details

Keywords: Corporate Disclosure; Ethics

03 Nov 2003
What Do You Think?

Can Investors Have Too Much Accounting Transparency?

Summing Up Basic conclusions that can be drawn from responses to this month's column are that it may or may not be useful to try to legislate... View Details

Keywords: by James Heskett

Research Summary

Business Leadership and Corporate Social Responsibility

By: Dutch Leonard

This project focuses on how business leaders can be most effective at creating better social outcomes and vibrant, successful businesses at the same time. What forms of leadership -- and in what venues (in the community, in the corporation, in politics, ...) -- turn... View Details

2021
Working Paper

Studying the U.S.-Based Portfolio Companies of U.S. Impact Investors

By: M. Diane Burton, Gurveen Chadha, Shawn A. Cole, Abhishek Dev, Christina Jarymowycz, Leslie Jeng, Laura Kelley, Josh Lerner, Jaime R. Diaz Palacios, Yue (Cynthia) Xu and T. Robert Zochowski

Recent years have seen a dramatic increase in the reliance on market-based solutions to social and environmental problems around the world (Barman 2016; Horvath and Powell 2020). The growth of impact investing is a vivid example of this trend and, although there have... View Details

Keywords: Impact Investing; Impact Portfolio Companies; Investment; Social Issues; Environmental Sustainability; Investment Portfolio; Business Ventures; Analytics and Data Science; Performance; United States

Article

The Social Contract Model of Corporate Purpose and Responsibility

By: Nien-he Hsieh

Of the many developments in business ethics that Thomas Donaldson has helped pioneer, one is the application of social contract theory to address questions about the responsibilities of business actors. In Corporations and Morality, Donaldson develops one of the... View Details

Keywords: Corporate Social Responsibility and Impact

Purchase

November 2009
Article

Fast or Fair? A Study of Response Times

This paper uses a modified dictator game to investigate the relationship between response times and social preferences. We find that faster subjects more often chose the option with the highest payoff for themselves. Moreover, our within-analysis reveals that, for a... View Details

Keywords: Relationships; Time Management; Social Issues; Decision Choices and Conditions; Management Analysis, Tools, and Techniques; Profit