Publications

SSRN

October 2020
Article

Corporate Legal Structure and Bank Loan Spread

By: Anywhere (Siko) Sikochi

This study examines how a corporate legal structure may affect borrowing costs. Corporate legal structure refers to the legal fragmentation of a firm into multiple, separately incorporated entities. This fragmentation is bound to be a factor when lenders determine the... View Details

Keywords: Corporate Legal Structure; Subsidiaries; Bank Loans; Minority Interest; Credit Risk; Organizational Structure; Business Subsidiaries; Financing and Loans

21 Nov 2022
Research & Ideas

Buy Now, Pay Later: How Retail's Hot Feature Hurts Low-Income Shoppers

Online shopping features that let consumers pay for goods in interest-free installments exploded during the pandemic, but new research questions the riskiness of such services: Are people getting in over their heads? Buy now, pay later (BNPL) View Details

Keywords: by Rachel Layne; Retail; Financial Services; Technology

Emil N. Siriwardane

Emil Siriwardane is an associate professor of business administration in the Finance Unit.

Professor Siriwardane’s research studies the ways in which financial intermediaries influence capital markets, how perceptions of risk impact business cycles,... View Details

Jonathan L. Wallen

Jonathan Wallen is an Assistant Professor of Finance in the Finance Unit and teaches Finance 1 to MBA students.

Professor Wallen’s research centers on financial intermediation and its intersection with asset pricing, currency markets,... View Details

February 2024 (Revised June 2024)
Case

Can Families Conquer Private Equity? Pritzker Private Capital

By: Lauren Cohen and Sophia Pan

Anthony (Tony) Pritkzer, Paul Carbone, and the Pritzker Private Capital (PPC) team wondered how to approach the firm’s next phase of growth. PPC was a private equity firm that offered a differentiated approach to the family capital market. Back in 2016, the partners... View Details

Educators

2021
Article

Decarbonizing Everything

By: Alex Cheema-Fox, Bridget LaPerla, George Serafeim, David Turkington and Hui (Stacie) Wang

We analyze how the use of different climate risk measures leads to different portfolio carbon outcomes and risk-adjusted returns. Our findings are synthesized in a rules-based investment framework, which selects a different type of climate metric across industries and... View Details

Keywords: Climate Risk; ESG; ESG (Environmental, Social, Governance) Performance; ESG Disclosure; ESG Disclosure Metrics; ESG Ratings; Investing; Investing For Impact; Investment Strategy; Environment; Decarbonization; Climate Change; Environmental Sustainability; Environmental Management; Environmental Accounting; Investment; Strategy; Investment Portfolio; Investment Return

SSRN

June 2017 (Revised August 2018)
Supplement

Making Target the Target: Boycotts and Corporate Political Activity (B)

By: Nien-hê Hsieh and Victor Wu

Supplements the (A) Case. View Details

March 1994 (Revised February 2001)
Background Note

Why Manage Risk?

By: Peter Tufano

Conventional finance theory demonstrates that, under simplistic assumptions, firms cannot add to shareholder value through the use of risk management activities. Modern finance theory has begun to carefully consider and examine those circumstances under which firms can... View Details

Keywords: Risk Management

Educators

2009
Book

Financial Economics

By: Zvi Bodie, Robert C. Merton and David L. Cleeton

This book seeks to explain finance through its functions rather than its institutions, concentrating on the three pillars of finance: optimization over time, asset valuation, and risk management. View Details

Keywords: Economics; Finance; Assets; Risk Management; Risk and Uncertainty; Valuation

March 1981 (Revised October 1984)
Case

Corning Glass Works: Indonesia

By: Michael Y. Yoshino

Evaluates the market opportunities and risks by Corning and International Finance Corporation in Indonesia. View Details

Keywords: Globalized Markets and Industries; Risk and Uncertainty; Opportunities; Financial Services Industry; Indonesia

June 2023
Case

Investing in the Climate Transition at Neuberger Berman

By: George Serafeim and Benjamin Maletta

By mid-2023, Neuberger Berman (NB), an active asset manager, had grown its assets under management to about half a trillion dollars and took pride in its client centricity and innovative spirit. Responding to client demand for investment products that integrated... View Details

Educators

David S. Scharfstein

David Scharfstein is the Edmund Cogswell Converse Professor of Finance and Banking at Harvard Business School. He has written on a wide range of topics in finance, including risk management, financial distress, corporate investment, capital structure, and venture... View Details

Keywords: banking

July 2022
Article

Countercyclical Prudential Buffers and Bank Risk-taking

By: Manuel Illueca, Lars Norden, Joseph Pacelli and Gregory F. Udell

We investigate the effects of countercyclical prudential buffers on bank risk-taking. We exploit the introduction of dynamic loan loss provisioning in Spain, mandating that banks use historical average loss rates in their estimation of loan loss provisions. We find... View Details

Keywords: Banks; Bank Regulation; Macroprudential Policies; Bank Lending; Loan Loss Provisioning; Risk Taking; Banks and Banking; Financing and Loans; Governing Rules, Regulations, and Reforms; Risk and Uncertainty

01 Mar 2023
News

3-Minute Briefing: Qiao Ma (MBA 2010)

My dad was an engineering professor, but his true passion was the stock market. When I was six or seven years old, he brought me to a local brokerage office in Guangzhou. It was the early 1990s and the room was packed with men, all smoking. People cheered when the live... View Details

Keywords: Julia Hanna; stock market; investment; finance; Australia; China; Asia; strategy; Securities, Commodities, and Other Financial Investments; Finance

19 Mar 2006
Research & Ideas

Unlocking Your Investment Capital

Business Review, Merton, a Nobel laureate, urges senior corporate executives and boards to view derivative applications not just as tactical measures but as strategic tools that convey competitive advantage. A first step is distinguishing between a company's... View Details

Keywords: by Ann Cullen; Financial Services

2010
Working Paper

Crashes and Collateralized Lending

By: Jakub W. Jurek and Erik Stafford

This paper develops a parsimonious static model for characterizing financing terms in collateralized lending markets. We characterize the systematic risk exposures for a variety of securities and develop a simple indifference-pricing framework to value the systematic... View Details

Keywords: Financial Crisis; Borrowing and Debt; Cost of Capital; Credit; Financing and Loans; Interest Rates; Investment; Framework; Risk and Uncertainty; Financial Services Industry