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  • September 2012 (Revised January 2013)
  • Case

Martin Smith: July 2012

By: Josh Lerner and Felda Hardymon
Martin Smith, a recently hired general partner at a Brazil-based venture capital firm, must decide among three deal opportunities. Each has different strengths (management, market, and technology) but each has its own weaknesses as well. He must also consider each deal... View Details
Keywords: Private Equity; Deal Choice; Venture Capital; Investments; Career Management; Management Teams; Decision Choices and Conditions; Cost vs Benefits; Personal Development and Career; Financial Services Industry; Brazil
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Lerner, Josh, and Felda Hardymon. "Martin Smith: July 2012." Harvard Business School Case 813-067, September 2012. (Revised January 2013.)
  • January 2017 (Revised January 2019)
  • Case

The Rise and Fall of Lehman Brothers

By: Stuart C. Gilson, Kristin Mugford and Sarah L. Abbott
With nearly $700 billion in assets, Lehman was the largest U.S. bankruptcy in history. In 2007, Lehman achieved record earnings of over $4 billion on revenues of $60 billion. By September 2008 the fourth largest investment bank in the world was bankrupt. How had a... View Details
Keywords: Bankruptcy; Financial Distress; Accounting Policies; Business Ethics; Financial Reporting; Volatility; Judgments; Financial Crisis; Insolvency and Bankruptcy; Financial Liquidity; Investment Banking; Financial Management; Financial Strategy; Corporate Accountability; Corporate Disclosure; Corporate Governance; Crisis Management; Risk Management; Failure; Business and Government Relations; Ethics; Banking Industry; New York (city, NY)
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Gilson, Stuart C., Kristin Mugford, and Sarah L. Abbott. "The Rise and Fall of Lehman Brothers." Harvard Business School Case 217-041, January 2017. (Revised January 2019.)
  • September 2021
  • Article

Trials and Terminations: Learning from Competitors' R&D Failures

By: Joshua L. Krieger
I analyze project continuation decisions where firms may resolve uncertainty through news about competitors' research and development (R&D) failures, as well as through their own results. I examine the trade-offs and interactions between product-market competition and... View Details
Keywords: Research and Development; Projects; Failure; Decision Making; Learning
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Krieger, Joshua L. "Trials and Terminations: Learning from Competitors' R&D Failures." Management Science 67, no. 9 (September 2021).
  • 19 Apr 2011
  • Working Paper Summaries

Top Executive Background and Financial Reporting Choice: The Case of Goodwill Impairment

Keywords: by Francois Brochet & Kyle Welch; Accounting
  • March 2016
  • Article

The Role of Investor Gut Feel in Managing Complexity and Extreme Risk

By: Laura Huang
Securing financial resources from investors is a key challenge for many early stage entrepreneurial ventures. Given the inherent uncertainty surrounding a decision to invest in these ventures, prior research has found that experienced investors rely heavily on their... View Details
Keywords: Angel Investors; Gut Feel; Intuition; Entrepreneurship; Finance; Risk and Uncertainty; Complexity; Decision Making
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Huang, Laura. "The Role of Investor Gut Feel in Managing Complexity and Extreme Risk." Academy of Management Journal 61, no. 5 (October 2018): 1821–1847.
  • 2015
  • Article

International Trade, Multinational Activity, and Corporate Finance

By: C. Fritz Foley and Kalina Manova
An emerging new literature brings unique ideas from corporate finance to the study of international trade and investment. Insights about differences in the development of financial institutions across countries, the role of financial constraints, and the use of... View Details
Keywords: Multinational Firms and Management; Investment; Trade; Corporate Finance
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Foley, C. Fritz, and Kalina Manova. "International Trade, Multinational Activity, and Corporate Finance." Annual Review of Economics 7 (2015): 119–146.
  • 08 Jan 2018
  • Working Paper Summaries

Come Together: Firm Boundaries and Delegation

Keywords: by Laura Alfaro, Nick Bloom, Paola Conconi, Harald Fadinger, Patrick Legros, Andrew F. Newman, Raffaella Sadun, and John Van Reenen
  • 2023
  • Working Paper

Spatial Mobility, Economic Opportunity, and Crime

By: Gaurav Khanna, Carlos Medina, Anant Nyshadham, Daniel Ramos-Menchelli, Jorge Tamayo and Audrey Tiew
Neighborhoods are strong determinants of both economic opportunity and criminal activity. Does improving connectedness between segregated and unequal parts of a city predominantly import opportunity or export crime? We use a spatial general equilibrium framework to... View Details
Keywords: Urban Transit Infrastructure; Crime; Spatial Equilibrium; Urban Development; Transportation Networks; Crime and Corruption; Transportation Industry; Medellín; Colombia; South America
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Khanna, Gaurav, Carlos Medina, Anant Nyshadham, Daniel Ramos-Menchelli, Jorge Tamayo, and Audrey Tiew. "Spatial Mobility, Economic Opportunity, and Crime." Harvard Business School Working Paper, No. 24-016, September 2023. (R&R American Economic Review.)
  • January 2009 (Revised June 2014)
  • Supplement

CityCenter (B): Economics and Delivery

By: A. Eugene Kohn, John D. Macomber and Ben Creo
Bill Smith is informed by his general contractor that a key component of the Aria Resort is going to be delayed. Aria is the centerpiece of CityCenter: a $9 billion complex and a bet-the-firm decision for MGM Mirage. Smith must make a decision as to whether to force... View Details
Keywords: Buildings and Facilities; Decision Choices and Conditions; Construction; Finance; Organizational Structure; Projects; Complexity
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Kohn, A. Eugene, John D. Macomber, and Ben Creo. "CityCenter (B): Economics and Delivery." Harvard Business School Supplement 209-094, January 2009. (Revised June 2014.)
  • July 1992
  • Case

Laura Wollen and ARPCO, Inc.

Laura Wollen, a group marketing director for ARPCO, Inc., must decide whether to recommend a high performance product manager for a choice position overseas. The supervisor overseas resists the hire because of the candidate's race and Wollen fears that insisting will... View Details
Keywords: Management; Decisions; Race
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Gentile, Mary C. "Laura Wollen and ARPCO, Inc." Harvard Business School Case 393-003, July 1992.
  • 12 May 2015
  • Research & Ideas

How Crowds and Experts Kickstart the Arts

Philosophers have talked by turns about both the "wisdom" and "madness" of crowds. But when it comes to assessing and funding the arts, just how wise are crowds—and how does their wisdom compare to that of... View Details
Keywords: Entertainment & Recreation
  • November 2023
  • Case

Will Fintechs and Central Banks Play in Emtech's Sandbox?

By: Daniel Isenberg and William R. Kerr
In February 2023, Emtech’s founder Carmelle Cadet is facing a dilemma. Rapidly running out of cash, Cadet has a term sheet from a leading VC but has a choice of how to structure the investment. The decision will have significant implications for Cadet’s own stake, as... View Details
Keywords: Cryptocurrency; Business Startups; Venture Capital; Cash Flow; Currency; Governing Rules, Regulations, and Reforms; Digital Platforms
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Isenberg, Daniel, and William R. Kerr. "Will Fintechs and Central Banks Play in Emtech's Sandbox?" Harvard Business School Case 824-096, November 2023.
  • October 1992 (Revised September 1993)
  • Case

L.L. Bean, Inc.: Item Forecasting and Inventory Management

By: Arthur Schleifer Jr.
L.L. Bean must make stocking decisions on thousands of items sold through its catalogs. In many cases, orders must be placed with vendors twelve or more weeks before a catalog lands on a customer's doorstep, and commitments cannot be changed thereafter. As a result,... View Details
Keywords: Forecasting and Prediction; Risk Management; Cost Management; Risk and Uncertainty; Demand and Consumers; Order Taking and Fulfillment; Retail Industry; United States
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Schleifer, Arthur, Jr. "L.L. Bean, Inc.: Item Forecasting and Inventory Management." Harvard Business School Case 893-003, October 1992. (Revised September 1993.)
  • 2024
  • Working Paper

Advice and the Bayesian Entrepreneur

By: Susan Cohen and Rembrand Koning
Bayesian entrepreneurship starts from the premise that entrepreneurs’ beliefs guide their theorizing, experimentation, and choices (Agrawal et al., n.d.). Since each entrepreneur has unique beliefs based on their own set of past experiences, cognitive ability, and... View Details
Keywords: Entrepreneurship; Decision Choices and Conditions
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Cohen, Susan, and Rembrand Koning. "Advice and the Bayesian Entrepreneur." Harvard Business School Working Paper, No. 25-029, November 2024.
  • April 2025
  • Article

Serving with a Smile on Airbnb: Analyzing the Economic Returns and Behavioral Underpinnings of the Host’s Smile

By: Shunyuan Zhang, Elizabeth Friedman, Kannan Srinivasan, Ravi Dhar and Xupin Zhang
Non-informational cues, such as facial expressions, can significantly influence judgments and interpersonal impressions. While past research has explored how smiling affects business outcomes in offline or in-store contexts, relatively less is known about how smiling... View Details
Keywords: Sharing Economy; Airbnb; Image Feature Extraction; Machine Learning; Facial Expressions; Prejudice and Bias; Nonverbal Communication; E-commerce; Consumer Behavior; Perception
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Zhang, Shunyuan, Elizabeth Friedman, Kannan Srinivasan, Ravi Dhar, and Xupin Zhang. "Serving with a Smile on Airbnb: Analyzing the Economic Returns and Behavioral Underpinnings of the Host’s Smile." Journal of Consumer Research 51, no. 6 (April 2025): 1073–1097.
  • March 2000 (Revised January 2001)
  • Case

First USA and Internet Marketing

By: Rajiv Lal and Amy H. Nelson
Explores First USA's decision to use the Internet for acquiring customers. Tom Brenner needs to decide on the terms of the deals demanded by the portals and justify the recommendations to his boss. View Details
Keywords: Digital Marketing; Decision Choices and Conditions; Resource Allocation; Marketing Strategy; Internet and the Web
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Lal, Rajiv, and Amy H. Nelson. "First USA and Internet Marketing." Harvard Business School Case 500-043, March 2000. (Revised January 2001.)
  • June 2000
  • Case

Risk Management and Leasing at Nissan Motor Corporation, USA

Market pressures, accounting, and managerial incentives can result in managerial choices that have a long-term detrimental effect on the firm. View Details
Keywords: Risk Management; Value; Decision Choices and Conditions; Accounting; Auto Industry
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Sarkar, Ratna G., and Roger Orosman Nieves. "Risk Management and Leasing at Nissan Motor Corporation, USA." Harvard Business School Case 100-104, June 2000.
  • Article

Naturals and Strivers: Preferences and Beliefs about Sources of Achievement

By: Chia-Jung Tsay and Mahzarin R. Banaji
To understand how talent and achievement are perceived, three experiments compared the assessments of "naturals" and "strivers." Professional musicians learned about two pianists, equal in achievement but who varied in the source of achievement: the "natural" with... View Details
Keywords: Prejudice and Bias; Perception; Judgments; Success; Competency and Skills
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Tsay, Chia-Jung, and Mahzarin R. Banaji. "Naturals and Strivers: Preferences and Beliefs about Sources of Achievement." Journal of Experimental Social Psychology 47, no. 2 (March 2011): 460–465.
  • August 2020
  • Article

Leverage and the Beta Anomaly

By: Malcolm Baker, Mathias F. Hoeyer and Jeffrey Wurgler
The well-known weak empirical relationship between beta risk and the cost of equity—the beta anomaly—generates a simple tradeoff theory: As firms lever up, the overall cost of capital falls as leverage increases equity beta, but as debt becomes riskier the marginal... View Details
Keywords: Risk Anomaly; Leverage; Capital Structure; Risk and Uncertainty
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Baker, Malcolm, Mathias F. Hoeyer, and Jeffrey Wurgler. "Leverage and the Beta Anomaly." Journal of Financial and Quantitative Analysis 55, no. 5 (August 2020): 1491–1514.
  • October 2004 (Revised February 2005)
  • Case

John Moran and the Orthopedics Industry

By: Richard G. Hamermesh
Reviews John Moran's 25-year career in the orthopedic industry and his current decision whether to start a hand and foot surgery company. View Details
Keywords: Business Startups; Decision Choices and Conditions; Personal Development and Career; Health Industry
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Hamermesh, Richard G. "John Moran and the Orthopedics Industry." Harvard Business School Case 805-026, October 2004. (Revised February 2005.)
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