Publications

2003
Working Paper

The Risk Tolerance of International Investors

By: Kenneth A. Froot and Paul G. J. O'Connell

Keywords: Risk Aversion; Risk; International Investing; Risk and Uncertainty; International Finance; Asset Pricing; Investment

February 2000 (Revised August 2001)
Case

Astor Park Hotel

By: William J. Poorvu, Arthur I Segel and Matthew C. Lieb

Starwood Hotels, the world's largest REIT, is interested in acquiring an underperforming hotel in the Pacific Northwest. Steve Goldman, Starwood's VP of acquisitions and development, is wondering how much to pay for the property and how to reposition it. View Details

Keywords: Entrepreneurship; Mergers and Acquisitions; Asset Pricing; Property; Investment; Accommodations Industry; Northwestern United States

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

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

July 1991 (Revised August 2000)
Case

California PERS (A)

By: Jay O. Light, Jay W. Lorsch and James O. Sailer

Examines California Public Employees Retirement System (CalPERS), the world's fourth largest pension fund. Dale Hanson, CEO of CalPERS, has a problem; how does he use CalPERS' influence as the holder of a small percentage of 1,300 American companies to put pressure on... View Details

Keywords: Employees; Retirement; System; Asset Pricing; Performance Improvement; Corporate Governance; Investment Funds; Investment Return; California

September 1999
Case

Sally Jameson - 1999

By: George C. Chacko, Henry B. Reiling, Peter Tufano and Matthew Bailey

Sally Jameson has a large block of appreciated stock, which she is contemplating selling to purchase a home. She is comparing an outright sale, borrowing against the stock, shorting against the box, and a stock loan proposed by a small financial services firm. View Details

Keywords: Asset Pricing; Asset Management; Financial Liquidity; Stocks; Stock Options; Financing and Loans; Financial Services Industry

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2013
Working Paper

FIN Around the World: The Contribution of Financing Activity to Profitability

By: Russell Lundholm, George Serafeim and Gwen Yu

We study how the availability of domestic credit influences the contribution that financing activities make to a firm's return on equity (ROE). Using a sample of 51,866 firms from 69 countries, we find that financing activities contribute more to a firm's ROE in... View Details

Keywords: Domestic Credit; Return Of Equity; Corporate Performance; Financial Statement Analysis; Financial Statements; Valuation; Cost of Capital; Asset Pricing; Economic Growth

SSRN

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

Find at Harvard

17 Feb 2014
Research & Ideas

Companies Detangle from Legacy Pensions

interest rates have fallen to historic lows, increasing the funding that companies must set apart to make up for the lower yield on the assets already in place. "Companies have had to increase their contributions exponentially as... View Details

Keywords: by Michael Blanding; Aerospace; Financial Services

22 Aug 2024
Research & Ideas

Reading the Financial Crisis Warning Signs: Credit Markets and the 'Red-Zone'

of periods of overheated credit markets. We try to track crises using a measure of overheating that we developed and call the “Red-zone.” The Red-zone is a combination of credit expansion and high asset prices. In the domain of houses and... View Details

Keywords: by Rachel Layne; Banking

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

29 Aug 2024
Research & Ideas

Shoot for the Stars: What to Know About the Space Economy

attention―manufacturing of launch vehicles and satellites―its growth is in fact quite strong. That’s especially true when you adjust for the quality improvements and price declines in that area; something our research is the first to... View Details

Keywords: by Kara Baskin; Aerospace

21 Nov 2017
First Look

First Look at New Research and Ideas, November 21, 2017

https://www.hbs.edu/faculty/Pages/item.aspx?num=53530 forthcoming Review of Financial Studies Asset Price Dynamics in Partially Segmented Markets By: Greenwood, Robin, Samuel Gregory Hanson, and Gordon Y.... View Details

Keywords: Sean Silverthorne

25 Jun 2013
First Look

First Look: June 25

establishing some stylized facts about the fine-grained structure of large, real-world technical systems. Download working paper: http://ssrn.com/abstract=2277795 Pricing and Efficiency in the Market for IP Addresses By: Edelman,... View Details

Keywords: Anna Secino

fall 2008
Article

The Intermediation of Financial Risks: Evolution in the Catastrophe Reinsurance Market

By: Kenneth A. Froot

In this paper, I provide evidence concerning the imperfections in the reinsurance market. I try to get at some of the root causes of these imperfections, e.g., the behavior of ratings firms and the agency problems associated with the corporate form of ownership. I also... View Details

Keywords: Catastrophe Risk; Corporate Finance; Banking And Insurance; Hedging; Banking; Financial Markets; Insurance; Policy; Risk Management; Natural Disasters; Cost of Capital; Asset Pricing; Insurance Industry

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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

27 Aug 2013
First Look

First Look: August 27

organizational adoption of practice variants that differ in their degree of customization. Working Papers X-CAPM: An Extrapolative Capital Asset Pricing Model By: Barberis, Nicholas, Robin Greenwood,... View Details

Keywords: Sean Silverthorne

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