Publications

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

Research Summary

The Future of Market Capitalism

By: Joseph L. Bower

In 2009 we are aware of the fragile state of our market system. But a careful examination of the long term prospects for the global economy reveal other problems that may destabilize the system that has created so much wealth in the period since the second world... View Details

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

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

Find at Harvard

Article

Raising Capital Requirements: At What Cost?

By: Malcolm Baker and Jeffrey Wurgler

Since the financial crisis, bank capital positions have improved considerably. However, calls for heightened capital requirements have not abated. Federal Reserve Chair Ben Bernanke, Vice Chair Janet Yellen, and governors Daniel Tarullo and Jeremy Stein have all... View Details

Keywords: Laws and Statutes; Capital; Banks and Banking; Banking Industry

January 2017 (Revised March 2017)
Case

SIN Capital and the Fullerton Health IPO

By: Josh Lerner and Ann Leamon

In early 2016, David Sin, founder of the Singapore-based private equity group SIN Capital and chairman of its primary holding, Fullerton Health, was deeply involved in preparations for taking Fullerton public on the Singapore stock exchange. Three years after SIN... View Details

Keywords: Healthcare; Asia; IPO; Financing; Singapore; Growth; Health Care and Treatment; Private Equity; Initial Public Offering; Financing and Loans; Strategy; Value Creation; Growth and Development Strategy; Health Industry; Singapore

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

Find at Harvard

13 Oct 2019
News

We Need a New Capitalism

20 Oct 2020
Blog Post

Changing the Face of Entrepreneurship and Venture Capital at Harlem Capital

entrepreneurship and investing over the next two years and beyond. The Early Days and Success of Harlem Capital The Harlem Capital story begins well before that first day on campus. In 2015, Pierre-Jacques... View Details

Keywords: Venture Capital / Private Equity; Venture Capital / Private Equity

01 Aug 2008
Research & Ideas

Does Market Capitalism Have a Future?

won the Cold War. Doesn't capitalism reign supreme in the 21st century? Looking forward, we certainly can see challenges that will have to be met. So on the occasion of the School's Centennial, we felt it was appropriate to try to... View Details

Keywords: by Garry Emmons

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

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

SSRN

2016
Working Paper

Venture Capital Data: Opportunities and Challenges

By: Steven N. Kaplan and Josh Lerner

This paper describes the available data and research on venture capital investments and performance. We comment on the challenges inherent in those data and research as well as possible opportunities to do better. View Details

Keywords: Venture Capital; Analytics and Data Science; Investment

October 1997 (Revised June 2000)
Exercise

Capital Budgeting: Discounted Cash Flow Analysis

By: Thomas R. Piper

This exercise comprises seven problems that collectively allow students to work through each type of cash flow that is encountered in capital budgeting. The instructor can also address such issues as product cannibalization and real options. View Details

Keywords: Capital Budgeting; Cash Flow

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