Publications

Research Summary

Self-environment relationship and its effect on decisions under risk and uncertainty

My research seek to better understand the main cognitive and social abilities that guide our judgments, and the ways they interact with aspects of the situation to shape humans' decisions. It is currently comprised of three related... View Details

21 Mar 2022
News

Are the Risks of Global Supply Chains Starting to Outweigh the Rewards?

March 21, 2022
Article

Are the Risks of Global Supply Chains Starting to Outweigh the Rewards?

By: Willy C. Shih

The conflict in Ukraine is only the latest jolt to global supply chains. Disruptions caused by the Covid-19 pandemic, climate-related events, and geopolitical tensions were already undermining their rationale. As companies rethink sourcing, they will have to consider... View Details

Keywords: Supply Chain Management; Supply Chain; Distribution; Globalization; Manufacturing Industry; Consumer Products Industry; United States; Asia; Europe

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Web

2018 Financial Risk and Regulation Survey - Behavioral Finance & Financial Stability

2007-2009. When asked about the 19 potential factors that contributed to the crisis (see survey text), respondents identified the following as the top 5: financial engineering, mortgage lenders not paying attention to View Details

26 Nov 2018
News

New York Alumni Explore Risks and Opportunities in Climate Change

climate change and its impact on their industries. They want to talk about it.” Alumni explored investment risks and opportunities in climate change at HBS Club of New York panel discussion. To get the conversation started, Lassiter sent... View Details

Keywords: Margie Kelley; clubs; alumni clubs

October 2019
Article

Limited Investment Capital and Credit Spreads

By: Emil N. Siriwardane

Using proprietary credit default swap (CDS) data, I investigate how capital shocks at protection sellers impact pricing in the CDS market. Seller capital shocks—measured as CDS portfolio margin payments—account for 12% of the time-series variation in weekly spread... View Details

Keywords: Credit Risk; Derivatives; Credit Derivatives and Swaps; Capital Markets; Credit; Financial Institutions

Article

The Cost of Capital for Alternative Investments

By: Jakub W. Jurek and Erik Stafford

Traditional risk factor models indicate that hedge funds capture pre-fee alphas of 6% to 10% per annum over the period from 1996 to 2012. At the same time, the hedge fund return series is not reliably distinguishable from the returns of mechanical S&P 500 put-writing... View Details

Keywords: Hedge Funds; Required Returns; Downside Risk; Index Options; Investment Funds; Cost of Capital; Investment Return; Risk and Uncertainty; Financial Services Industry

June 2023 (Revised February 2024)
Case

Betting on Green Steel

By: George Serafeim and Sofoklis Melissovas

'Betting on Green Steel' traces the innovative journey embarked upon by a group of MBA students who have set out to conceive a novel steelmaker that pioneers the production of green steel. The ensemble is confronted with a series of critical choices that will shape the... View Details

Keywords: Decarbonization; Sustainability Management; Technology; Industrialization; Climate Risk; Energy; Entrepreneurship; Environmental Sustainability; Technology Adoption; Climate Change; Innovation and Invention; Business Strategy; Family Business; Steel Industry; Middle East; India

Educators

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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

September 20, 2024
Article

It’s Time to Unbundle ESG

By: Aaron K. Chatterji and Michael W. Toffel

ESG is at an inflection point. It has come to represent a broad and inchoate aspiration for what business should be doing beyond maximizing shareholder value. With ESG advocates on the defensive, business leaders need a new roadmap to determine which factors to... View Details

Keywords: ESG; ESG (Environmental, Social, Governance) Performance; ESG Ratings; ESG Reporting; ESG Disclosure; Sustainability; Climate; Climate Finance; Climate Risk; Social Accounting; Investment; Governance; Safety; Climate Change; Environmental Sustainability; Corporate Social Responsibility and Impact; Financial Services Industry

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13 May 2022
News

Company Reviews on Glassdoor: Petty Complaints or Signs of Potential Misconduct?

January 28, 2016
Article

Making Sense of the Many Kinds of Impact Investing

By: Brian Trelstad

The article discusses the factors to consider when seeking to practice impact investing, which include the kind of impact preferred by the investor, the intensity and immediacy of impact, and the impact risk profile. View Details

Keywords: Ethical Investments; Investment Policy; Investment; Ethics

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06 Mar 2014
News

At Family Firms, Do CEOs Work Fewer Hours?

Research Summary

Portfolio Betas Do Not Make for Better Asset Pricing Tests

Many papers claim that because using portfolios instead of individual stocks as test assets minimizes idiosyncratic volatility, their use also yields more precise estimates of risk premia. I show that while portfolio formation does lead to more efficient beta... View Details

03 Mar 2003
Research & Ideas

The Ingredients of a Deal Disaster

signed may sour. Risk Factors The most common causes of social contract problems are lack of awareness and benign neglect. The parties involved inevitably form expectations about how the deal will be carried... View Details

Keywords: by Ron S. Fortgang, David A. Lax & James K. Sebenius

2014
Article

Psychological Safety: The History, Renaissance, and Future of an Interpersonal Construct

By: Amy C. Edmondson and Zhike Lei

Psychological safety describes people's perceptions of the consequences of taking interpersonal risks in a particular context such as a workplace. First explored by pioneering organizational scholars in the 1960s, psychological safety experienced a renaissance starting... View Details

Keywords: Risk and Uncertainty; Safety; Groups and Teams

April 2022 (Revised May 2022)
Case

Mastercard Labs (A)

By: Linda A. Hill, Sunil Gupta, Emily Tedards and Julia Kelley

When Ajaypal (Ajay) Banga became the CEO of Mastercard in 2010, he shifted the company’s competitive focus from card networks to cash itself. Mastercard’s new vision of a “World Beyond Cash” distilled into a three-pronged framework: Grow the core business, Diversify... View Details