Publications

Web

Finance Curriculum - Faculty & Research

interest and different legal/regulatory rules. MBA Elective Curriculum (SECOND YEAR) Course Title Faculty Name Term Quarter Credits Cities, Structures, and Climate Shocks John Macomber Fall 2024 Q1Q2 3.0 Corporate Finance: Corporate Financial Operations (CFO) View Details

Web

Finance Awards & Honors - Faculty & Research

Pearson/Prentice Hall Prize for Best Paper published in Financial Management in the previous two years for "Agency Costs, Mispricing, and Ownership Structure" (2012) with Sergey Chernenko and C. View Details

Article

Agency Costs, Mispricing, and Ownership Structure

By: Sergey Chernenko, C. Fritz Foley and Robin Greenwood

Standard theories of corporate ownership assume that because markets are efficient, insiders ultimately bear all agency costs that they create and therefore have a strong incentive to minimize conflicts of interest with outside investors. We argue that if equity is... View Details

Keywords: Business and Shareholder Relations; Ownership; Conflict of Interests; Investment; Valuation

20 Oct 2023
News

Highlights from the Fall 2023 Alumni Board Meeting

On the evening of Wednesday, October 11, Alumni Board members joined with current HBS students in the Spangler Center for "A Conversation about Life Lessons", which was led by Leslie Perlow, the Konosuke Matsushita Professor of Leadership. This October, more than 75... View Details

18 Oct 2017
News

White House Push to Help Workers Through Corporate Tax Cut Draws Skepticism

March 2024 (Revised July 2024)
Case

AMC: The Zero Revenue Case

By: C. Fritz Foley and Donal O'Cofaigh

The onset of the Covid-19 pandemic put theatre company AMC’s already perilous financial situation under even further strain. The company’s high levels of debt resulted in a monthly cash-burn which left it facing an imminent Chapter-11 filing in the absence of... View Details

Keywords: Ethics; Insolvency and Bankruptcy; Public Equity; Stock Shares; Health Pandemics; Entertainment and Recreation Industry

July 2013
Article

Ethnic Innovation and U.S. Multinational Firm Activity

By: C. Fritz Foley and William R. Kerr

This paper studies the impact that immigrant innovators have on the global activities of U.S. firms by analyzing detailed data on patent applications and on the operations of the foreign affiliates of U.S. multinational firms. The results indicate that increases in the... View Details

Keywords: Technology Transfer; Innovation; Ethnic Networks; Patents; Diasporas; Ethnicity; Multinational Firms and Management; Competitive Advantage; Research and Development; Foreign Direct Investment; Innovation and Invention; United States

May 2008 (Revised June 2009)
Case

Finansbank 2006

By: C. Fritz Foley and Linnea Meyer

How do financial policy requirements and benefits of ownership concentration affect the need for and process of corporate restructuring? This case provides students with an opportunity to analyze the restructuring of a Turkish multinational business group by way of a... View Details

Keywords: Leveraged Buyouts; Mergers and Acquisitions; Restructuring; Capital Budgeting; Agreements and Arrangements; Valuation; Turkey; Greece

2010
Article

Has the Shift to Stronger Intellectual Property Rights Promoted Technology Transfer, FDI, and Industrial Development?

By: Lee Branstetter, C. Fritz Foley and Kamal Saggi

This article reviews recent research conducted by the authors that finds that intellectual property rights reform increases technology transfers, foreign direct investment inflows, and industrial development. It also places the findings of this work in the broader... View Details

Keywords: Intellectual Property; Rights; Information Technology; Body of Literature; Foreign Direct Investment; Industry Growth

Article

Tax Policy and the Efficiency of U.S. Direct Investment Abroad

By: Mihir A. Desai, C. Fritz Foley and James R. Hines Jr.

Deferral of U.S. taxes on foreign source income is commonly characterized as a subsidy to foreign investment, as reflected in its inclusion among "tax expenditures" and occasional calls for its repeal. This paper analyzes the extent to which tax deferral and other... View Details

Keywords: International Taxation; Dynamic Efficiency; Deferral; Policy; Taxation; Performance Efficiency; Foreign Direct Investment; Investment Funds; Investment Return; Business Earnings; Equity; Financing and Loans; Cash Flow; Capital; United States

SSRN

2011
Working Paper

Tax Policy and the Efficiency of U.S. Direct Investment Abroad

By: Mihir A. Desai, C. Fritz Foley and James R. Hines Jr.

Deferral of U.S. taxes on foreign source income is commonly characterized as a subsidy to foreign investment, as reflected in its inclusion among "tax expenditures" and occasional calls for its repeal. This paper analyzes the extent to which tax deferral and other... View Details

Keywords: Cash Flow; Investment Return; Foreign Direct Investment; Investment Funds; Policy; Taxation; United States

May 2008
Supplement

Finansbank 2006 (CW)

By: C. Fritz Foley and Linnea Meyer

How do financial policy requirements and benefits of ownership concentration affect the need for and process of corporate restructuring? This case provides students with an opportunity to analyze the restructuring of a Turkish multinational business group by way of a... View Details

Keywords: Mergers and Acquisitions; Restructuring; Financing and Loans; Policy; Compensation and Benefits; Growth and Development Strategy; Ownership; Business and Shareholder Relations; Banking Industry; Russia; Turkey; Romania; Switzerland; Ukraine

Web

Research - Behavioral Finance & Financial Stability

Externalities? By: Sergey Chernenko & Adi Sunderam DEC 2018 How do cash policies affect stock returns? A mutual fund that uses its cash reserves to accommodate outflows will lower the volatility of its underlying holdings View Details

January 2015 (Revised September 2017)
Case

Project Titan at Northrop Grumman

By: C. Fritz Foley and Kevin Sharer

In March of 2011, Northrop Grumman divested shipbuilding assets through the spin-off of Huntington Ingalls Industries. This case reviews many of the key questions faced by Northrop's CEO, CFO, and top management team during this process, including questions concerning... View Details

Keywords: Corporate Reorganization; Spin Off; Asset Sales; Managing Portfolios Of Businesses; Managing Change; Diversification; Change Management; Restructuring; Corporate Strategy; Financial Strategy; Manufacturing Industry

August 2015
Article

Poultry in Motion: A Study of International Trade Finance Practices

By: Pol Antràs and C. Fritz Foley

This paper analyzes the financing terms that support international trade and sheds light on how these terms shape the impact of economic shocks on trade. Analysis of transaction-level data from a U.S.-based exporter of frozen and refrigerated food products, primarily... View Details

Keywords: Risk and Uncertainty; International Finance; Financing and Loans; Trade

2010
Chapter

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

Keywords: Expansion; Trade; Foreign Direct Investment; Mathematical Methods; Multinational Firms and Management; China; United States

SSRN

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

Keywords: Macroeconomics; Trade; Foreign Direct Investment; Multinational Firms and Management; Expansion; China; United States