Publications

December 1977
Article

Tender Offers and Stockholder Returns: An Empirical Analysis

By: P. Dodd and R. S. Ruback

Keywords: Ownership; Money; Stocks

06 Feb 2006
What Do You Think?

Should CEOs of Public Companies Offer Earnings Guidance?

practice of providing detailed information about the company's "quarterly standings, stock prices, new acquisitions, etc.," concludes that "anyone who has stock or investments in a public... View Details

Keywords: by James Heskett; Financial Services

February 2013 (Revised June 2013)
Case

BTG Pactual: Preserving a Partnership Culture

By: Paul Healy

Keywords: Stock Market; IPO; Corporate Lending; Initial Public Offering; Investment Banking; Banking Industry; Brazil

January 2019
Case

First Aid Beauty

By: Karen Mills and Annie Dang

In 2008, Lilli Gordon, an experienced financial and skincare entrepreneur, founded First Aid Beauty (FAB). She had discovered a white space in the prestige beauty market: high-end skin solutions that were suitable for sensitive skin. After initial success through... View Details

Keywords: Prestige Beauty; Skincare; Preferred Shares; Common Stock; Entrepreneurship; Venture Capital; Private Equity; Decision Choices and Conditions; Beauty and Cosmetics Industry

2017
Working Paper

Equality and Equity in Compensation

By: Jiayi Bao and Andy Wu

Equity compensation is widely used for incentivizing skilled employees, particularly in new technology businesses. Traditional theories explaining why firms offer equity suggest that workers with higher rank should receive compensation packages more heavily weighted in... View Details

Keywords: Inequality Aversion; Compensation; Stock Options; Scarcity; Experiment; Compensation and Benefits; Equity; Equality and Inequality; Perception

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October 1983 (Revised July 1984)
Case

Information Resources, Inc. (B)

The company's plans are revealed. A stock offering has produced $20 million to be used for development. View Details

Keywords: Initial Public Offering

January 1999 (Revised November 1999)
Case

Metapath Software: September 1997

By: G. Felda Hardymon and Bill Wasik

In September 1997, John Hansen called together his board to debate an interesting choice that his company had to make. Hansen--the CEO of Metapath Software, a provider of software and services to wireless carriers--had two offers to describe. The first was an offer to... View Details

Keywords: Private Ownership; Mergers and Acquisitions; Private Equity; Decision Choices and Conditions; Governing and Advisory Boards; Management Teams; Stocks; Public Ownership; Negotiation Deal; Telecommunications Industry; Information Technology Industry

January 2003 (Revised October 2007)
Case

DoubleClick, Inc.

Examines DoubleClick's capital structure from IPO. Discusses additional offering of common stock, stock splits, dividends, sale of convertible debt, repurchase of convertible debt, and repurchase of common stock. View Details

Keywords: Initial Public Offering; Financial Instruments; Capital Structure; Accounting

June 2015 (Revised May 2017)
Case

LOYAL3: Own What You Love™

By: Luis M. Viceira and Allison M. Ciechanover

This case features San Francisco–based financial technology startup, LOYAL3. Founded in 2008, the company seeks to disrupt the capital markets and democratize access to those markets for retail investors. By the fall of 2014, LOYAL3 had three products. In the first,... View Details

Keywords: Capital Markets; Stocks; Strategic Planning

August 2000 (Revised July 2002)
Case

Sara's Options

By: Peter Tufano, Brian J. Hall and Joshua Musher

This case describes the pay packages offered to Sara Becker, a graduating MBA student, including detailed information about two stock option packages (one of which is an indexed option package). She gathers the information and attempts to compare those compensation... View Details

Keywords: Stock Options; Compensation and Benefits; Recruitment; Information; Valuation

January 2006 (Revised February 2006)
Case

Deutsche Borse and the European Markets

By: Dwight B. Crane and Monika Stachowiak

In December 2004, Deutsche Borse proposed an offer for the London Stock Exchange. Some shareholders opposed the acquisition, leading to the offer's withdrawal and replacement of management, including the CEO and board members. Written from the viewpoint of Deutsche... View Details

Keywords: Mergers and Acquisitions; Strategy; Governing and Advisory Boards; Capital Structure; Stocks; Valuation; Corporate Governance; Price; Change Management; Commercialization; Financial Services Industry; Europe

April 1996 (Revised January 2006)
Case

Times Mirror Company PEPS Proposal Review

By: Peter Tufano

Times Mirror Co. (TMC) owns a substantial block of Netscape common stock purchased prior to Netscape's IPO, on which it has substantial unrealized gains. TMC is restricted from selling the stock in a public offering and is therefore considering a proposal by Morgan... View Details

Keywords: Risk Management; Stocks; Taxation; Corporate Finance; Telecommunications Industry; Media and Broadcasting Industry; United States

July 2023 (Revised February 2024)
Case

Equity Restructuring at Dell Technologies: Buy Out, Buy Up, Buy In (A)

By: Stuart C. Gilson and Sarah L. Abbott

In November 2018, Dell Technologies was poised to re-enter the public markets by means of a complex recapitalization that would replace an entire class of publicly-traded “tracking stock,” with new shares that would trade publicly without the need of a formal IPO. The... View Details

Keywords: Technology; M＆A; Recapitalization; MBO; Equity Issues; Private Equity Buyouts; Public Ownership; Stock Shares; Mergers and Acquisitions; Equity; Technology Industry; United States

20 Mar 2009
Working Paper Summaries

Catering to Characteristics

Keywords: by Robin Greenwood & Samuel Hanson; Technology

January 2023
Case

EKI Energy Services: One Billion Carbon Credits

By: George Serafeim

Within nine months from the time of its Initial Public Offering (IPO) in April of 2021, EKI Energy Services (EKI) shares had increased by more than 8,000%. Equally explosive was the growth of the company’s revenues and Earnings Before Interest, Taxes and Depreciation... View Details

Keywords: Carbon Credits; Carbon Emissions; Growth; Business Analysis; Environmental Sustainability; Corporate Valuation; Climate Change; Accounting; Valuation; Transition; Renewable Energy; Analysis; Product Positioning; India

12 Jan 2010
News

A mistake that will make banks riskier

October 2012
Article

The Effect of Reference Point Prices on Mergers and Acquisitions

By: Malcolm Baker, Xin Pan and Jeffrey Wurgler

Prior stock price peaks of targets affect several aspects of merger and acquisition activity. Offer prices are biased toward recent peak prices although they are economically unremarkable. An offer's probability of acceptance jumps discontinuously when it exceeds a... View Details

Keywords: Mergers and Acquisitions; Stocks; Price; Valuation; Negotiation

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August 2023
Case

Floward

By: Krishna Palepu and Namrata Arora

In 2022, Abdulaziz B. Al Loughani, CEO and co-founder of Floward, an online flower and gifting company established in Kuwait in 2017, contemplated the firm's growth trajectory. Floward, an e-commerce enterprise that offered fresh-cut flowers sourced directly from... View Details

Keywords: Initial Public Offering; Expansion; Growth and Development Strategy; E-commerce; Information Technology Industry; Middle East; North Africa; Saudi Arabia; Kuwait; United Arab Emirates; Jordan