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  • March 1980 (Revised October 1980)
  • Background Note

Financial Leverage, the Capital Asset Pricing Model and the Cost of Equity Capital

Demonstrates how the capital asset pricing model can be used to estimate the impact of financial leverage on the cost of equity capital. The levering and unlevering of betas are illustrated. Also presents a methodology for decomposing the cost of equity into its three... View Details
Keywords: Cost of Capital; Asset Pricing; Investment
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Mullins, David W., Jr. "Financial Leverage, the Capital Asset Pricing Model and the Cost of Equity Capital." Harvard Business School Background Note 280-100, March 1980. (Revised October 1980.)
  • October 1998 (Revised November 1999)
  • Case

Farallon Capital Management: Risk Arbitrage (A)

By: Andre F. Perold and Robert Howard
Farallon Capital Management, an investment firm that specializes in risk arbitrage, has taken significant long and short positions in MCI Communications and British Telecommunications, respectively, in the belief that the proposed merger of these firms will be... View Details
Keywords: Mergers and Acquisitions; Capital; Capital Markets; Investment; Management; Risk Management; Strategy; Financial Services Industry
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Perold, Andre F., and Robert Howard. "Farallon Capital Management: Risk Arbitrage (A)." Harvard Business School Case 299-020, October 1998. (Revised November 1999.)
  • 2015
  • Working Paper

Integrated Reporting for a Re-Imagined Capitalism

By: Robert G. Eccles and Birgit Spiesshofer
An essential element of capitalism is corporate reporting. Today's capitalism is supported by financial reporting. Critics of today's capitalism argue that it is too short-term oriented and rewards companies for creating negative externalities. Integrated reporting can... View Details
Keywords: Integrated Reporting; Materiality; Securities And Exchange Commission; European Union; Information And Transformation Function; Integrated Corporate Reporting; United States; European Union
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Eccles, Robert G., and Birgit Spiesshofer. "Integrated Reporting for a Re-Imagined Capitalism." Harvard Business School Working Paper, No. 16-032, September 2015.
  • November 2000 (Revised January 2001)
  • Case

Commercial Capital SA (A)

By: Ray A. Goldberg, Carin-Isabel Knoop and Laure Mougeot Stroock
Keywords: Agribusiness; Privatization; Venture Capital; Financial Services Industry; Greece; Romania
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Goldberg, Ray A., Carin-Isabel Knoop, and Laure Mougeot Stroock. "Commercial Capital SA (A)." Harvard Business School Case 901-005, November 2000. (Revised January 2001.)
  • 2010
  • Working Paper

International Capital Allocation, Sovereign Borrowing, and Growth

By: Laura Alfaro, Sebnem Kalemli-Ozcan and Vadym Volosovych
The key in the investigation of "where" and "why" capital flows, relative to the neoclassical benchmark, is how we measure these flows. The macro literature has been using three main yardsticks: the current account balance, returns to capital, and the volume of net... View Details
Keywords: Sovereign Finance; Performance Productivity; Capital; Economics
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Alfaro, Laura, Sebnem Kalemli-Ozcan, and Vadym Volosovych. "International Capital Allocation, Sovereign Borrowing, and Growth." NBER Working Paper Series, No. w17396.
  • March 1996 (Revised February 2002)
  • Case

Portfolio Capital Flows to Emerging Markets

By: Huw Pill
Presents some data showing the magnitude, direction, and composition of capital flows to less developed countries (the so-called emerging markets) in the period 1990-1995. Some potential explanations for these flows are discussed. A number of policy responses to the... View Details
Keywords: International Finance; Emerging Markets; Policy; Capital; Developing Countries and Economies
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Pill, Huw. "Portfolio Capital Flows to Emerging Markets." Harvard Business School Case 796-129, March 1996. (Revised February 2002.)
  • October 1998
  • Case

Farallon Capital Management: Risk Arbitrage (C)

By: Andre F. Perold and Robert Howard
Farallon Capital Management, an investment firm that specializes in risk arbitrage, has taken significant long and short positions in MCI Communications and British Telecommunications, respectively, in the belief that the proposed merger of these firms will be... View Details
Keywords: Capital Markets; Equity; Mergers and Acquisitions; Financial Institutions; Risk Management; Investment Funds; Financial Services Industry
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Perold, Andre F., and Robert Howard. "Farallon Capital Management: Risk Arbitrage (C)." Harvard Business School Case 299-022, October 1998.
  • October 1998
  • Case

Farallon Capital Management: Risk Arbitrage (B)

By: Andre F. Perold and Robert Howard
Farallon Capital Management, an investment firm that specializes in risk arbitrage, has taken significant long and short positions in MCI Communications and British Telecommunications, respectively, in the belief that the proposed merger of these firms will be... View Details
Keywords: Mergers and Acquisitions; Capital Markets; Investment; Risk Management; Strategy; Financial Services Industry
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Perold, Andre F., and Robert Howard. "Farallon Capital Management: Risk Arbitrage (B)." Harvard Business School Case 299-021, October 1998.
  • March 2004 (Revised August 2007)
  • Supplement

Globalizing the Cost of Capital and Capital Budgeting at AES

By: Mihir A. Desai
Spreadsheet to (9-204-109). Download only. View Details
Keywords: Globalization; Capital Budgeting
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Desai, Mihir A. "Globalizing the Cost of Capital and Capital Budgeting at AES." Harvard Business School Spreadsheet Supplement 204-707, March 2004. (Revised August 2007.)
  • November 2000 (Revised December 2000)
  • Case

Commercial Capital SA (B)

By: Ray A. Goldberg, Carin-Isabel Knoop and Laure Mougeot Stroock
Keywords: Agribusiness; Privatization; Venture Capital; Financial Services Industry; Greece; Romania
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Goldberg, Ray A., Carin-Isabel Knoop, and Laure Mougeot Stroock. "Commercial Capital SA (B)." Harvard Business School Case 901-012, November 2000. (Revised December 2000.)
  • 17 Aug 2016
  • Working Paper Summaries

Venture Capital Data: Opportunities and Challenges

Keywords: by Steven N. Kaplan and Josh Lerner; Financial Services; Banking
  • March 2014
  • Teaching Note

Barclays Bank and Contingent Capital Notes, 2012

By: Lucy White
In 2012, regulatory changes following the financial crisis mean that Barclays Bank is faced with the need to raise large amounts of capital in order to comply with increased capital requirements, tightening rules as to the "quality of capital," and increased risk... View Details
Keywords: Capital; Financial Crisis; Banks and Banking; Banking Industry
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White, Lucy. "Barclays Bank and Contingent Capital Notes, 2012." Harvard Business School Teaching Note 214-069, March 2014.
  • 19 Mar 2006
  • Research & Ideas

Unlocking Your Investment Capital

markets, managers can engineer a company's capital structure so that the only liabilities borne by the company are value-added risks. What are value-added risks and how are they different from passive risks? A: "Value-added"... View Details
Keywords: by Ann Cullen; Financial Services
  • 2021
  • Article

Venture Capital Booms and Startup Financing

By: William Janeway, Ramana Nanda and Matthew Rhodes-Kropf
We review the growing literature on the relationship between venture capital booms and startup financing, focusing on three broad areas: First, we discuss the drivers of large inflows into the venture capital asset class, particularly in recent years—which are related... View Details
Keywords: Venture Capital; Business Startups; Innovation and Invention; Policy
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Janeway, William, Ramana Nanda, and Matthew Rhodes-Kropf. "Venture Capital Booms and Startup Financing." Annual Review of Financial Economics 13 (2021): 111–127.
  • Summer 1998
  • Article

A New Approach to Capital Budgeting for Financial Institutions

By: K. A. Froot and J. Stein
Keywords: Catastrophe Risk; Corporate Finance; Cost Of Capital; Banking And Insurance; Asset Pricing; Hedging; Banking; Decision Choice And Uncertainty; Financial Markets; Insurance; Policy; Risk Management; Natural Disasters; Insurance Industry
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Froot, K. A., and J. Stein. "A New Approach to Capital Budgeting for Financial Institutions." Bank of America Journal of Applied Corporate Finance 11, no. 2 (Summer 1998): 59–69.
  • 19 Dec 2006
  • Working Paper Summaries

The Political Economy of Capitalism

Keywords: by Bruce R. Scott
  • October 2010 (Revised June 2021)
  • Case

Bessemer Trust: Guardians of Capital

By: Tom Nicholas and David Chen
Henry Phipps, Jr. made his fortune in the steel industry alongside one of America's most celebrated entrepreneurs—Andrew Carnegie. His wealth was administered in the form of trusts, which he hoped would provide a stream of income for his family and their descendants... View Details
Keywords: Wealth; Asset Management; Family Business; Business History; Income; Entrepreneurship; Capital; United States
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Nicholas, Tom, and David Chen. "Bessemer Trust: Guardians of Capital." Harvard Business School Case 811-031, October 2010. (Revised June 2021.)
  • Winter 2014
  • Article

Labor Regulations and European Venture Capital

By: Ant Bozkaya and William R. Kerr
European nations substitute between employment protection regulations and labor market expenditures (e.g., unemployment insurance benefits) for providing worker insurance. Employment regulations more directly tax firms making frequent labor adjustments than other labor... View Details
Keywords: Insurance; Labor; Europe
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Bozkaya, Ant, and William R. Kerr. "Labor Regulations and European Venture Capital." Journal of Economics & Management Strategy 23, no. 4 (Winter 2014): 776–810.
  • April 1995 (Revised April 1999)
  • Teaching Note

Aberlyn Capital Management TN

By: Josh Lerner
Teaching Note for (9-294-083). View Details
Keywords: Biotechnology Industry; Financial Services Industry
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Lerner, Josh. "Aberlyn Capital Management TN." Harvard Business School Teaching Note 295-134, April 1995. (Revised April 1999.)
  • March 2023
  • Supplement

Collab Capital Example Cases

By: Natalia Rigol
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Rigol, Natalia. "Collab Capital Example Cases." Harvard Business School Spreadsheet Supplement 823-709, March 2023.
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