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    • News  (88)
    • Research  (580)
    • Multimedia  (2)
  • Faculty Publications  (300)

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  • All HBS Web  (761)
    • News  (88)
    • Research  (580)
    • Multimedia  (2)
  • Faculty Publications  (300)
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  • 24 Sep 2020
  • Research & Ideas

Financial Meltdowns Are More Predictable Than We Thought

research by Harvard Business School Professors Robin Greenwood and Samuel G. Hanson begs to differ. Financial crises, even ones as calamitous as the 2007-2008 banking meltdown, are surprisingly predictable to those who know the warning signs. “Three years of rapid... View Details
Keywords: by Danielle Kost; Financial Services
  • 1991
  • Chapter

Japanese Foreign Direct Investment

By: K. A. Froot
Keywords: Market Imperfections; Financial Instruments; Markets; Asset Pricing; Foreign Direct Investment; Corporate Finance
Citation
Related
Froot, K. A. "Japanese Foreign Direct Investment." In U.S.-Japan Economic Forum. Vol. 1, edited by M. Feldstein and Y. Kosai. National Bureau of Economic Research, 1991. (Revised from NBER Working Paper No. 3737, June 1991.)
  • 1992
  • Chapter

Exchange Rate Forecasting Techniques, Survey Data, and Implications for the Foreign Exchange Market

By: J. Frankel and K. A. Froot
Keywords: Currencies; Exchange Rates; International Macroeconomics; Monetary Policy; Currency Controls; Fixed Exchange Rates; Floating Exchange Rates; Currency Bands; Currency Zones; Currency Areas; Rational Expectations; International Finance; Currency Exchange Rate; Asset Pricing; Forecasting and Prediction; Policy
Citation
Related
Frankel, J., and K. A. Froot. "Exchange Rate Forecasting Techniques, Survey Data, and Implications for the Foreign Exchange Market." In International Business Reader, edited by D. Duta. London: Oxford University Press, 1992. (Revised from IMF Working Paper No. 90/43 and NBER Working Paper No. 3470, October 1990.)
  • 1993
  • Working Paper

Currency Hedging Over Long Horizons

By: K. A. Froot
This paper reexamines the widely-held wisdom that the currency exposure of international investments should be entirely hedged. It finds that the previously documented ability of hedges to reduce portfolio return variance holds at short horizons, but not at long... View Details
Keywords: Currency; Hedging; Transaction Costs; Exchange Rates; International Markets; Real Exchange Rate; Purchasing Power Parity; International Finance; Currency Exchange Rate; Asset Pricing; Investment; Globalized Markets and Industries
Citation
Related
Froot, K. A. "Currency Hedging Over Long Horizons." NBER Working Paper Series, No. 4355, May 1993. (Featured in the NBER Digest, October 1993. Harvard University, April 1993.)
  • March 2007 (Revised March 2007)
  • Case

Burt's Bees: Leaving the Hive

Rapid growth is pushing Burt's Bees' natural personal care products into mass distribution channels, with products and brand elements that are less quirky, more commercial than they used to be. Indeed, CEO John Replogle believes that by focusing on efficacious,... View Details
Keywords: Growth Management; Consumer Behavior; Asset Pricing; Entrepreneurship; Distribution Channels; Product Development; Brands and Branding; Beauty and Cosmetics Industry; United States
Citation
Educators
Purchase
Related
Wathieu, Luc R., and Laura Winig. "Burt's Bees: Leaving the Hive." Harvard Business School Case 507-017, March 2007. (Revised March 2007.)
  • December 1993
  • Article

Risk Management: Coordinating Corporate Investment and Financing Policies

By: K. A. Froot, David S. Scharfstein and J. Stein
Keywords: Catastrophe Risk; Corporate Finance; Banking And Insurance; Hedging; Banking; Decision Choice And Uncertainty; Financial Markets; Insurance; Policy; Risk Management; Natural Disasters; Cost of Capital; Asset Pricing; Insurance Industry
Citation
Read Now
Related
Froot, K. A., David S. Scharfstein, and J. Stein. "Risk Management: Coordinating Corporate Investment and Financing Policies." Journal of Finance 48, no. 5 (December 1993): 1629–1658. (Revised from NBER Working Paper No. 4084, February 1993. Reprinted in RAE-Revista de Administração de Empresas, Management Journal of Fundação Getulio Vargas (FGV-EAESP), Business School for Administration in Sao Paulo, Brazil, volume no. 48, issue no. 1 (January-March 2008): 87-118. Reprinted in Insurance and Risk Management, Volume II, Corporate Risk Management, Part I: Theory on Why and How Firms Manage Risk, Chapter 3, edited by Gregory R. Niehaus, UK: Edward Elgar Publishing Ltd. (October 2008). Also in M.J. Brennan, The Theory of Corporate Finance from The International Library of Critical Writings in Financial Economics, edited by R. Roll, 1995; and in Merton Miller and Chris Culp, eds. Corporate Hedging in Theory and Practice: Lessons from Metallgesellschaft, Risk Books, 1999.)
  • 19 Mar 2008
  • Research & Ideas

Finding Success in the Middle of the Market

provider of premium-priced products tailored to a particular customer segment, or you have to shoot for scale, using low prices and volume purchasing to attract a mass market and drive down your cost structure. Midfield has been... View Details
Keywords: by John Quelch; Auto; Retail
  • 26 Oct 2009
  • Lessons from the Classroom

The New Deal: Negotiauctions

asset that it was willing to buy, and then the banks that held that class of asset would bid the price down in an effort to sell their toxic View Details
Keywords: by Julia Hanna
  • June 2005
  • Article

Currency Returns, Intrinsic Value, and Institutional Investor Flows

By: K. A. Froot and T. Ramadorai
Keywords: Currencies; Exchange Rates; Purchasing Power Parity; Real Exchange Rate; Forecasting and Prediction; Behavioral Finance; Investment Return; Market Transactions; Performance Expectations; Personal Characteristics; Asset Pricing; Financial Services Industry
Citation
Find at Harvard
Related
Froot, K. A., and T. Ramadorai. "Currency Returns, Intrinsic Value, and Institutional Investor Flows." Journal of Finance 60, no. 3 (June 2005): 1535–1566. (Revised from NBER Working Paper no. 9101, August 2002 and Harvard Business School Working Paper no. 04-036, December 2003.)
  • 28 Jul 2009
  • Research Event

Business Summit: Real Estate

The crisis may have started with residential real estate but it is also affecting commercial real estate. Asset prices have fallen and are expect to decline further; there are likely to be massive defaults;... View Details
Keywords: Re: Howard H. Stevenson; Construction; Real Estate
  • 09 Jan 2006
  • Research & Ideas

Rebuilding Commercial Real Estate

viewed as a new asset class that competes with stocks and bonds for investment capital. It earned that newfound status on the strength of market-stabilizing structural changes that took root after the last crash. "Everything we do... View Details
Keywords: by Roger Thompson; Construction; Real Estate
  • 1999
  • Book

The Financing of Catastrophe Risk

By: Kenneth A. Froot
Keywords: Catastrophe Risk; Corporate Finance; Banking And Insurance; Hedging; Banking; Decision Choice And Uncertainty; Financial Markets; Insurance; Policy; Risk Management; Natural Disasters; Cost of Capital; Asset Pricing; Insurance Industry
Citation
Find at Harvard
Related
Froot, Kenneth A., ed. The Financing of Catastrophe Risk. Chicago: University of Chicago Press, 1999.
  • August 2010
  • Teaching Note

Vereinigung Hamburger Schiffsmakler und Schiffsagenten e.V.: Valuing Ships (TN)

By: Benjamin C. Esty and Albert W. Sheen
Teaching Note for 210058. View Details
Keywords: Valuation; Economic Slowdown and Stagnation; Financial Crisis; Price; Financing and Loans; Contracts; Asset Pricing; Cash Flow; Management Analysis, Tools, and Techniques; Shipping Industry; Germany
Citation
Purchase
Related
Esty, Benjamin C., and Albert W. Sheen. "Vereinigung Hamburger Schiffsmakler und Schiffsagenten e.V.: Valuing Ships (TN)." Harvard Business School Teaching Note 211-009, August 2010.
  • June 2007
  • Article

Risk Management, Capital Budgeting and Capital Structure Policy for Insurers and Reinsurers

By: K. A. Froot
Keywords: Risk Management; Capital Budgeting; Cost of Capital; Policy; Insurance; Asset Pricing; Insurance Industry
Citation
Find at Harvard
Related
Froot, K. A. "Risk Management, Capital Budgeting and Capital Structure Policy for Insurers and Reinsurers." Journal of Risk and Insurance 74, no. 2 (June 2007): 273–299. (Winner of Robert C. Witt Award Given annually for the best feature article in the Journal of Risk and Insurance presented by American Risk and Insurance Association. Revised from NBER Working Paper no. 10184, Harvard Business School Working Paper no. 04-035, December 2003.)
  • January 1998
  • Case

Meinhard v. Salmon: Court of Appeals of New York (1928)

By: Henry B. Reiling
Meinhard and Salmon were joint venturers who had a 20-year lease on the Hotel Bristol in New York City. Salmon was the managing party. Four months before the lease was to end, the owner approached Salmon and offered to lease all the property, of which the Bristol was... View Details
Keywords: Lawsuits and Litigation; Joint Ventures; Partners and Partnerships; Decisions; Asset Pricing; Leasing; New York (city, NY)
Citation
Find at Harvard
Related
Reiling, Henry B. "Meinhard v. Salmon: Court of Appeals of New York (1928)." Harvard Business School Case 298-079, January 1998.
  • Article

Optimal Value and Growth Tilts in Long-Horizon Portfolios

By: Jakub W. Jurek and Luis M. Viceira
We develop an analytical solution to the dynamic portfolio choice problem of an investor with power utility defined over wealth at a finite horizon, who faces a time-varying investment opportunity set, parameterized using a flexible vector autoregression. We apply this... View Details
Keywords: Decision Choices and Conditions; Private Equity; Investment; Investment Portfolio; Asset Pricing; Value
Citation
Find at Harvard
Read Now
Related
Jurek, Jakub W., and Luis M. Viceira. "Optimal Value and Growth Tilts in Long-Horizon Portfolios." Review of Finance 15, no. 1 (January 2011): 29–74.
  • 23 Jan 2008
  • Op-Ed

A House Divided: Investment or Shelter?

that this economic juggernaut carries risk. Investors know that the price of all assets rise and fall. In much of the country, home prices are falling. Soon the dictionary,... View Details
Keywords: by Nicolas P. Retsinas; Banking; Construction; Real Estate
  • February 2007 (Revised January 2008)
  • Supplement

Multifactor Models (CW)

By: Malcolm P. Baker
Keywords: Asset Pricing; Cost of Capital; Forecasting and Prediction; Investment Funds; Investment Return; Mathematical Methods; Performance Evaluation
Citation
Purchase
Related
Baker, Malcolm P. "Multifactor Models (CW)." Harvard Business School Spreadsheet Supplement 207-710, February 2007. (Revised January 2008.)
  • September 2006
  • Case

Stedman Place: Buy or Rent?

By: Andre F. Perold and David S. Scharfstein
A couple has to decide whether to continue renting a townhouse or buy the one next door. Allows for a discussion of net present value, internal rate of return, and the costs and benefits of homeownership. View Details
Keywords: Cost vs Benefits; Decisions; Asset Pricing; Investment Return; Housing; Family Ownership; Renting or Rental; Valuation
Citation
Educators
Purchase
Related
Perold, Andre F., and David S. Scharfstein. "Stedman Place: Buy or Rent?" Harvard Business School Case 207-063, September 2006.
  • October 1997 (Revised March 1998)
  • Case

Komatsu Ltd.: Project G's Globalization

By: Christopher A. Bartlett
This case describes the major strategic and organizational transformation at Komatsu aimed at changing it from a Japan-based producer of construction equipment to a truly global company with the ability to leverage its groupwide portfolio of resources and capabilities... View Details
Keywords: Change Management; Construction; Asset Pricing; Investment Portfolio; Global Strategy; Leadership; Resource Allocation; Risk Management; Expansion; Manufacturing Industry; Japan
Citation
Educators
Purchase
Related
Bartlett, Christopher A. "Komatsu Ltd.: Project G's Globalization." Harvard Business School Case 398-016, October 1997. (Revised March 1998.)
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