Publications
Publications
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- All HBS Web
(2,095)
- Faculty Publications (617)
- January 2008
- Background Note
Convertible Arbitrage
By: Joshua Coval and Erik Stafford
The goal of this simulation is to understand how convertible bonds can be viewed as a portfolio of simpler securities and to introduce an over-the-counter market. The convertible bonds that are available during the simulation are at-the-money and in-the-money so that... View Details
- January 2008
- Background Note
Collateralized Debt Obligations (CDOs)
By: Joshua Coval and Erik Stafford
This lesson integrated Merton's (1974) contingent claims model of debt and equity claims with the CAPM, which allows us to examine the risks and pricing of credit portfolios and the derivative claims issued against them. In particular, this model is used to make... View Details
- 2008
- Working Paper
Attracting Flows by Attracting Big Clients: Conflicts of Interest and Mutual Fund Portfolio Choice
By: Lauren Cohen and Breno Schmidt
We explore a new channel for attracting inflows using a unique dataset of corporate 401(k) retirement plans and their mutual fund family trustees. Families secure substantial inflows by being named trustee of a 401(k) plan. This affords the plan sponsor potential... View Details
- 2008
- Working Paper
The Small World of Investing: Board Connections and Mutual Fund Returns
By: Lauren Cohen, Andrea Frazzini and Christopher J. Malloy
This paper uses social networks to identify information transfer in security markets. We focus on connections between mutual fund managers and corporate board members via shared education networks. We find that portfolio managers place larger bets on firms they are... View Details
- December 2007
- Article
Learning to Live with Governments: Unilever in India and Turkey, 1950-1980
By: G. Jones
A noteworthy characteristic of the contemporary global economy is the uneven distribution of world foreign direct investment (FDI). In 2007 three-quarters of world FDI was located in developed countries. The residual was concentrated in a small number of emerging... View Details
- November 2007 (Revised January 2013)
- Case
Indonesia: Attracting Foreign Investment
By: Michael E. Porter and Christian H.M. Ketels
Describes the economic development of Indonesia from independence after World War II to 2006 and the post-Suharto period. The coverage of the post-Suharto period provides evidence of how political and economic conditions are intertwined after a change in the political... View Details
- November 2007
- Background Note
Asset Allocation I
By: Joshua D. Coval, Erik Stafford, Rodrigo Osmo, John Jernigan, Zack Page and Paulo Passoni
The goal of these simulations is to understand the mathematics of mean-variance optimization and the equilibrium pricing of risk if all investors use this rule with common information sets. Simulation A focuses on five to 10 years of monthly sector returns that are... View Details
- November 2007
- Background Note
Event Arbitrage
By: Joshua D. Coval and Erik Stafford
The event arbitrage module includes two simulation sessions. The first simulation focuses on analyzing and evaluating individual merger transactions, while the second simulation emphasizes managing a portfolio of individual positions and the limitations of arbitrage... View Details
- November 2007
- Background Note
Bayesian Estimation & Black-Litterman
By: Joshua D. Coval and Erik Stafford
Describes a practical method for asset allocation that is more robust to estimation errors than the traditional implementation of mean-variance optimization with sample means and covariances. The Bayesian inspired Black-Litterman model is described after introducing... View Details
- October 2007
- Case
Blue River Capital
By: Krishna G. Palepu, Tarun Khanna and Richard Bullock
Examines the strategy and experience of Indian private equity firm Blue River Capital. Blue River was established in 2005 to invest primarily in middle market, particularly family-run, businesses in India. Blue River caters to this niche as an active investor,... View Details
- 2007
- Working Paper
Facts and Fallacies about U.S. FDI in China
By: Lee Branstetter and C. Fritz Foley
Despite the rapid expansion of U.S.-China trade ties, the increase in U.S. FDI in China, and the expanding amount of economic research exploring these developments, a number of misconceptions distort the popular understanding of U.S. multinationals in China. In this... View Details
- September 2007 (Revised November 2008)
- Case
Sinopec: Refining its Strategy
By: Richard H.K. Vietor and Julia Galef
China's oil industry, with majority ownership vested in the government, had engaged in an "equity oil" strategy for the past few years-acquiring equity interests in oil producing nations including Sudan, Angola, and Iran. Outside critics, however, suggested that the... View Details
- 2007
- Working Paper
Intra-Industry Foreign Direct Investment
By: Laura Alfaro and Andrew Charlton
We use a new firm level data set that establishes the location, ownership, and activity of 650,000 multinational subsidiaries -- close to a comprehensive picture of global multinational activity. A number of patterns emerge from the data. Most foreign direct investment... View Details
- 2007
- Working Paper
Intra-Industry Foreign Direct Investment
By: Laura Alfaro and Andrew Charlton
We use a new firm level data set that establishes the location, ownership, and activity of 650,000 multinational subsidiaries—close to a comprehensive picture of global multinational activity. A number of patterns emerge from the data. Most foreign direct investment... View Details
- August 2007
- Case
Lightspeed Venture Partners -- International Expansion
By: Krishna G. Palepu and Alison Berkley Wagonfeld
Looks at various international expansion models for a venture capital firm based in Silicon Valley. Lightspeed Venture Partners believed that India had tremendous potential for venture capital returns--the question was how best to tap into that potential while also... View Details
- 2007
- Working Paper
Hedge Fund Investor Activism and Takeovers
By: Robin Greenwood and Michael Schor
We examine long-horizon stock returns around hedge fund activism in a comprehensive sample of 13D filings by portfolio investors between 1993 and 2006. Abnormal returns surrounding investor activism are high for the subset of targets that are... View Details
- 2007
- Other Unpublished Work
Hedge Fund Investor Activism and Takeovers
By: Robin Greenwood and Michael Schor
We examine long-horizon stock returns around hedge fund activism in a comprehensive sample of 13D filings by portfolio investors between 1993 and 2006. Abnormal returns surrounding investor activism are high for the subset of targets that are acquired ex-post, but not... View Details
- 2007
- Working Paper
Taxes and Portfolio Choice: Evidence from JGTRRA's Treatment of International Dividends
By: Mihir A. Desai and Dhammika Dharmapala
This paper investigates how taxes influence portfolio choices by exploring the response to the distinctive treatment of foreign dividends in the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA). JGTRRA lowered the dividend tax rate to 15% for American equities... View Details
- 2007
- Book
Making Foreign Investment Safe: Property Rights and National Sovereignty
By: L. T. Wells Jr. and Rafiq Ahmed
- January 2007 (Revised March 2011)
- Case
Yale University Investments Office: August 2006
By: Josh Lerner
The Yale Investments Office must decide whether to continue to allocate the bulk of the university's endowment to illiquid investments--hedge funds, private equity, real estate, and so forth. Considers the risks and benefits of a different asset allocation strategy.... View Details