Publications

Article

Can Analysts Assess Fundamental Risk and Valuation Uncertainty? An Empirical Analysis of Scenario-Based Value Estimates

By: Peter R. Joos, Joseph D. Piotroski and Suraj Srinivasan

We use a dataset of sell-side analysts' scenario-based valuation estimates to examine whether analysts reliably assess the risk surrounding a firm's fundamental value. We find that the spread in analysts' state-side contingent valuations captures the riskiness of... View Details

Keywords: Analyst Forecasts; Scenarios; Uncertainty; Risk and Uncertainty; Valuation; Forecasting and Prediction

March 24, 2014
Article

Roundtable on Shared Value in Education

By: Mark R. Kramer and Kate Tallant

Seventeen corporate and global education leaders gathered at the World Economic Forum 2014 in Davos, Switzerland, to discuss how they are rethinking the role of business in global education. View Details

Keywords: Shared Value; Education; Global Range

September 2022
Background Note

On CUE: The Quest for Optimal Customer Unit Economics

By: Elie Ofek, Barak Libai and Eitan Muller

Startups are often evaluated by how well they perform on unit economics, defined as the ratio of a customer’s lifetime value (LTV) to acquisition costs (CAC). A common target for unit economics, advocated by many VCs and analysts, is 3:1 (i.e., LTV/CAC=3). While there... View Details

Keywords: Unit Economics; Business Startups; Performance Evaluation; Customer Value and Value Chain; Customer Relationship Management; Analysis

Educators

2011
Book

Higher Ambition: How Great Leaders Create Economic and Social Value

By: Michael Beer, Russell A. Eisenstat, Nathaniel Foote, Tobias Fredberg and Flemming Norgreen

Keywords: Leadership; Economics; Society; Value

Article

Variety of Innovation in Global Value Chains

By: Giulio Buciuni and Gary P. Pisano

This article analyzes how the geography and organization of pre- and production stages in Global Value Chains (GVC) contribute to lead firms' innovation development. A novel approach in GVC studies is introduced based on transaction cost economics (TCE) and the... View Details

Keywords: GVC; Global Value Chains; Manufacturing; Production; Global Range; Innovation and Invention

Research Summary

Business and Low Income Sectors: The Creation of Economic and Social Value

In the last three decades, innovative commercial solutions have emerged in developing nations focusing on providing effective responses to the hugely underserved needs of low-income populations, both as consumers as well as active participants in productive value... View Details

2015
Working Paper

Replicating Private Equity with Value Investing, Homemade Leverage, and Hold-to-Maturity Accounting

By: Erik Stafford

Private equity funds tend to select relatively small firms with low EBITDA multiples. Publicly traded equities with these characteristics have high risk-adjusted returns after controlling for common factors typically associated with value stocks. Hold-to-maturity... View Details

Keywords: Value Investing; Endowments; Investment Management; Asset Pricing; Private Equity; Investment; Management; United States

2016
Working Paper

Economic Transition and Private-Sector Labor Demand: Evidence from Urban China

By: Lakshmi Iyer, Xin Meng, Nancy Qian and Xiaoxue Zhao

This paper studies the policy determinants of economic transition and estimates the elasticity demand for labor in the infant private sector in urban China. We show that a reform that untied access to housing in urban areas from working for the state sector accounts... View Details

Keywords: Economic Transition; Structural Change; Labor Mobility; Transition; Human Capital; Private Sector; China

October 2000
Case

Tree Values

By: Richard S. Ruback and Kathleen Luchs

Describes two alternative tree cutting strategies. The first is to cut all trees that are at least 12 inches in diameter at breast height. The second is to thin the forest by cutting less desirable trees immediately and harvesting the crop trees later. The case... View Details

Keywords: Strategy; Decision Making; Cash Flow; Decision Choices and Conditions; Management Practices and Processes; Value Creation; Forestry Industry

Educators

12 May 2017
Panel Discussion

Impact of Economics of Mutuality on Corporate Governance and Values

By: Lynn S. Paine

2023
Article

Exploiting Discovered Regression Discontinuities to Debias Conditioned-on-observable Estimators

By: Benjamin Jakubowski, Siram Somanchi, Edward McFowland III and Daniel B. Neill

Regression discontinuity (RD) designs are widely used to estimate causal effects in the absence of a randomized experiment. However, standard approaches to RD analysis face two significant limitations. First, they require a priori knowledge of discontinuities in... View Details

Keywords: Regression Discontinuity Design; Analytics and Data Science; AI and Machine Learning

18 Feb 2011
Other Presentation

Prosperity for Colombia: Creating Shared Value

By: Michael E. Porter

Regional competitiveness and CSV presentation, Bogotá View Details

Keywords: Economic Development; Competitiveness; Economics; Society; Colombia

27 Sep 2018
Working Paper Summaries

Large-Scale Demand Estimation with Search Data

Keywords: by Tomomichi Amano, Andrew Rhodes, and Stephan Seiler; Retail

2007
Book

Business Solutions for the Global Poor: Creating Social and Economic Value

By: V. Kasturi Rangan, John A. Quelch, Gustavo Herrero and Brooke Barton

Keywords: Poverty; Society; Economics; Value

January – February 2011
Article

Creating Shared Value

By: Michael E. Porter and Mark R. Kramer

The capitalist system is under siege. In recent years business has been criticized as a major cause of social, environmental, and economic problems. Companies are widely thought to be prospering at the expense of their communities. Trust in business has fallen to new... View Details

Keywords: Customer Value and Value Chain; Economic Growth; Economic Systems; Corporate Social Responsibility and Impact; Environmental Sustainability; Trust; Human Needs; Welfare; Competitive Advantage; Value Creation

2024
Working Paper

The Value of Open Source Software

By: Manuel Hoffmann, Frank Nagle and Yanuo Zhou

The value of a non-pecuniary (free) product is inherently difficult to assess. A pervasive example is open source software (OSS), a global public good that plays a vital role in the economy and is foundational for most technology we use today. However, it is... View Details

Keywords: Valuation; Open Source Distribution; Applications and Software

2020
Working Paper

Design Rules, Volume 2: How Technology Shapes Organizations: Chapter 7 The Value Structure of Technologies, Part 2: Strategy without Numbers

By: Carliss Y. Baldwin

Functional analysis as set forth in the last chapter decomposes a technical system into functional components that do things to advance the system’s purpose and the goals of its designers. Functional analysis in turn can be used to construct value structure maps... View Details

Keywords: Modularity; Value Structure Mapping; Value Capture; Information Technology; Organizations; Strategy; Value Creation

Article

Best Practices for Differentiated Products Demand Estimation with PyBLP

Differentiated products demand systems are a workhorse for understanding the price effects of mergers, the value of new goods, and the contribution of products to seller networks. Berry, Levinsohn, and Pakes (1995) provide a flexible random coefficients logit model... View Details

Article

The Impact of Forward-Looking Metrics on Employee Decision-Making: The Case of Customer Lifetime Value

By: Pablo Casas-Arce, Asis Martinez Jerez and V.G. Narayanan

This paper analyzes the effects of forward-looking metrics on employee decision-making. We use data from a bank that started providing branch managers with the customer lifetime value (CLV)—an estimate of the future value of the customer relationship—of mortgage... View Details

Keywords: Customer Lifetime Value; Forward-looking Metrics; Employees; Decision Making; Information; Customer Value and Value Chain; Banks and Banking; Mortgages; Outcome or Result