Publications

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February 2003 (Revised October 2003)
Case

Cable Data Systems

By: Paul W. Marshall and Todd H Thedinga

Describes the operating challenges of Cable Data Systems (CDS), a minority-owned cable installation company with a dual mission of maximizing profits and providing employment opportunities to minorities in urban markets. Following the merger of two cable installation... View Details

Keywords: Selection and Staffing; Employment; Forecasting and Prediction; Urban Scope; Cost Management; Infrastructure; Labor Unions; Demand and Consumers; Demographics; Media and Broadcasting Industry; Telecommunications Industry; Boston

October 2013
Module Note

Note on LBO Capital Structure

By: Victoria Ivashina, Paul A. Gompers, Paul A. Gompers, Victoria Ivashina, Joris Van Gool and Joris Van Gool

This note discusses the capital structure often found in LBO transactions. Although the specifics of each capital structure vary case by case, in any given year, there is a great deal of similarity in the capital structure of these buyouts. These similarities exist... View Details

Keywords: Leveraged Buyouts; Capital Structure

March 2014
Case

Managing Change at Axis Bank (A)

By: Paul Healy and Rachna Tahilyani

Axis Bank is India's third largest private sector bank. In April 2009, Shikha Sharma, an outsider, was appointed as its CEO. She took over from a person who had overseen ten years of rapid growth at the bank. The selection of an outsider as the new CEO surprised many... View Details

Keywords: Change Management; Transformation; Organizational Culture; Organizational Change and Adaptation; Leadership Style; Leading Change; Valuation; Finance; Banks and Banking; Financial Services Industry; Banking Industry; India

July – August 2008
Article

Buy-Side vs. Sell-Side Analysts' Earnings Forecasts

By: Boris Groysberg, Paul M. Healy and Craig James Chapman

We compare the earnings forecast performance of analysts at a large buy-side firm to that of sell-side analysts. Our tests show that the buy-side firm analysts make more optimistic and less accurate forecasts than their counterparts on the sell-side. These performance... View Details

Keywords: Motivation and Incentives; Business Earnings; Forecasting and Prediction; Performance Effectiveness

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17 Sep 2013
First Look

First Look: September 17

Paul Healy, George Serafeim, and Devin Shanthikumar Abstract—Prior research on equity analysts focuses almost exclusively on those employed by sell-side investment banks and brokerage houses. Yet investment... View Details

Keywords: Sean Silverthorne

2017
Working Paper

Homophily in Entrepreneurial Team Formation

By: Paul A. Gompers, Kevin Huang and Sophie Q. Wang

We study the role of homophily in group formation. Using a unique dataset of MBA students, we observe homophily in ethnicity and gender increases the probability of forming teams by 25%. Homophily in education and past working experience increases the probability of... View Details

Keywords: Groups and Teams; Diversity; Familiarity; Entrepreneurship; Venture Capital; Performance

SSRN

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February 2024
Case

Tony Elumelu Foundation: Democratizing Luck Across Africa

By: Paul A. Gompers and Samir Saxena

Founded in 2010, The Tony Elumelu Foundation is Africa’s leading philanthropy working to support entrepreneurs in Africa with access to seed capital, business management training, mentorship, and access to networks. Through a $100 million commitment by its founder,... View Details

Keywords: Entrepreneurship; Innovation Leadership; Philanthropy and Charitable Giving; Mission and Purpose; Education Industry; Nigeria; Africa

November 1997 (Revised October 2001)
Background Note

Note on Strategic Alliances, A

By: Paul A. Gompers and Alexander Tsai

Presents an overview of strategic alliance. Discusses the academic literature and its implications for the structure of strategic alliances. Also details the types of strategic alliances utilized by small, growing firms. View Details

Keywords: Alliances; Strategy

23 Aug 2011
First Look

First Look: August 23

that exposure to informational advertising can decrease the consumer's tendency to purchase the promoted product. The structural estimates imply that an exposure to a single advertisement decreases the consumer's probability of not choosing her best alternative View Details

Keywords: Sean Silverthorne

January 2014 (Revised September 2015)
Case

Mittal Steel's Pursuit of Arcelor (A)

By: Paul M. Healy and Penelope Rossano

Lakshmi Mittal, CEO of Mittal Steel, a UK-based company with Indian roots, took advantage of a weakened Arcelor that had successfully won a bidding war for Canadian steel company Dofasco, with an unsolicited bid to buy the company. Mittal's plans for acquiring Arcelor... View Details

Keywords: Fiduciary Duty; Steel; India; Europe; Governance; Mergers; Board Decisions; White Knight; Strategy; Negotiation; Mergers and Acquisitions; Corporate Governance; Cross-Cultural and Cross-Border Issues; Steel Industry; Canada; United Kingdom; Russia; India

17 Jan 2017
First Look

First Look at New Research: January 17

in goods, services, investments, and ideas led by multinational firms. Extensive research has sought to understand the geographic patterns of foreign direct investment (FDI). This chapter reviews existing theories and evidence... View Details

Keywords: Sean Silverthorne

2022
Working Paper

Failing Just Fine: Assessing Careers of Venture Capital-backed Entrepreneurs via a Non-wage Measure

By: Natee Amornsiripanitch, Paul Gompers, George Hu, Will Levinson and Vladimir Mukharlyamov

This paper proposes a non-pecuniary measure of career achievement, Seniority. Based on a database of over 5 million resumes, this metric exploits the variation in job titles and how long they take to attain. When non-monetary factors influence career choice, inference... View Details

Keywords: Career Outcomes; Founders; Personal Development and Career; Venture Capital; Entrepreneurship

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27 Apr 2021
Research & Ideas

New Research: Surviving Bankruptcy, Useful Economics, and Retirement

of dollars every year. I estimate that liquidation is frequently chosen when a reorganization would have maximized total creditor recovery. I estimate that courts could dramatically improve creditor recovery by assigning liquidations... View Details

May 2002
Case

Venture Capital Fund Restructuring Vignettes (Abridged)

By: Paul A. Gompers

This case examines the changes in fund structures proposed by four venture capital firms in 2002: Accel Partners, Battery Ventures, Charles River Ventures, and Kleiner Perkins Caufield & Byers. The venture capital market has experienced a major downturn, and these... View Details

Keywords: Venture Capital; Restructuring; Financial Crisis; Motivation and Incentives; Business and Shareholder Relations; Investment Funds; Financial Services Industry

March 2024
Case

Nomad: A License to Bank

By: Paul A. Gompers and Pedro Levindo

In late 2023, Lucas Vargas, CEO and co-founder of Nomad, a fintech that offered financial services in the United States for Brazilian residents, had to decide what to do to ensure the company’s continued expansion. Nomad launched its first product, a U.S. digital bank... View Details

11 Mar 2014
First Look

First Look: March 11

consumers large discounts when they prepay for participating firms' goods and services. Within a model of repeat experience good purchase, we examine two mechanisms by which a discount voucher service can benefit affiliated firms: price... View Details

Keywords: Sean Silverthorne

12 Apr 2011
First Look

First Look: April 12

Abstract This book presents new research on the historical impact of globalization on Argentina and Chile. The authors focus on the role of entrepreneurs and firms. The Role of Venture Capitalists in the Acquisition of Private Companies Authors: View Details

Keywords: Sean Silverthorne

2014
Article

Wall Street Research

By: Paul M. Healy

This article discusses a research program investigating the workings of both the sell and buy sides of financial analysis, tackles how the U.S. securities industry research adds value in financial markets, and evaluates the business model problems that the industry... View Details

Keywords: Financial Markets; Business Model; Research; Financial Services Industry; United States

March 2007 (Revised May 2012)
Case

PRG-Schultz International

By: Paul W. Marshall and James Weber

PRG-Schultz will run out of cash within a couple of months unless the new CEO can reduce costs and restructure the company's debt. PRG was the dominant market leader in the audit recovery industry. The industry consisted of firms which employed accounting professionals... View Details

Keywords: History; Organizational Change and Adaptation; Leadership; Restructuring; Cost Management; Insolvency and Bankruptcy; Borrowing and Debt; Accounting Audits; Accounting Industry