Publications

May 2022
Article

Investment as the Opportunity Cost of Dividend Signaling

By: Zach Kaplan and Gerardo Pérez Cavazos

We provide evidence that firms with weak investment opportunities (those whose current earnings justify a greater valuation than firms with strong investment opportunities) signal their permanent earnings level through their dividends. In the cross-section, we show... View Details

Keywords: Dividends; Earnings; Investment Opportunities; Payout Policy; Signaling; Capital Structure; Business Earnings; Investment; Opportunities

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May 2012
Article

Global, Local, and Contagious Investor Sentiment

By: Malcolm Baker, Jeffrey Wurgler and Yu Yuan

We construct investor sentiment indices for six major stock markets and decompose them into one global and six local indices. In a validation test, we find that relative sentiment is correlated with the relative prices of dual-listed companies. Global sentiment is a... View Details

Keywords: Business and Shareholder Relations; Globalization; Stocks; Markets; Capital; Financial Services Industry

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Read Now

August 2010 (Revised March 2012)
Supplement

The Dow Acquisition of Rohm and Haas (C)

By: Jay W. Lorsch and Melissa Barton

The global economy entered a crippling recession in the fourth quarter of 2008 and Dow lost its primary source of funding for its planned acquisition of Rohm and Haas. View Details

Keywords: Mergers and Acquisitions; Financial Crisis; Financing and Loans; Chemical Industry

December 2017 (Revised June 2021)
Case

Tesla's Bid for SolarCity

By: Charles C.Y. Wang and Raaj Zutshi

In October 2016, Tesla asked its shareholders to ratify their $2.4 billion bid for SolarCity. Tesla had announced a series of large projects in the preceding months including the unveiling of the Model 3, the new Solar Roof, and pushing forward the opening of the... View Details

Keywords: Mergers and Acquisitions; Business and Shareholder Relations; Project Finance

June 2001
Case

GetConnected

By: Jay O. Light and Daniel J. Green

An embryonic Internet-based telecom marketing firm considers its first (seed) round of funding. They are choosing between a fixed price round and a discounted convertible round. View Details

Keywords: Internet and the Web; Financing and Loans; Business Startups; Telecommunications Industry

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March 2000
Background Note

Venture Capitalist as Entrepreneur, The

By: Robert J. Robinson and Noam T. Wasserman

Introduces students to negotiations between venture capitalists (VCs) and the limited partners who provide the VCs' capital. Also discusses negotiations between VCs and other VCs, including those within a VC firm itself. Explores interests, sources of negotiating... View Details

Keywords: Business Model; Venture Capital; Capital; Negotiation Tactics; Entrepreneurship; Financial Services Industry

2021
Working Paper

Nonbank Lending and Credit Cyclicality

By: Quirin Fleckenstein, Manasa Gopal, German Gutierrez and Sebastian Hillenbrand

We document three facts about nonbank lending in the syndicated loan market. First, nonbank lending is more than twice as cyclical as bank lending. Second, declines in nonbank lending explain most of the declines in syndicated lending during the Great Recession and... View Details

Keywords: Nonbank Lending; Credit Cycles; CLO; Mutual Funds; Leveraged Lending; COVID-19; Great Migration; Non-bank Financial Institutions; Financing and Loans; Business Cycles

SSRN

Web

Entrepreneurship in Life Sciences - Course Catalog

opportunities for entrepreneurial innovation. This course is primarily designed for students who are interested in exploring entrepreneurial opportunities within the life sciences, including exploring ideation, generating and/or licensing intellectual property, View Details

May 1998
Teaching Note

BCI Growth III TN

By: Josh Lerner

Teaching Note for (9-298-093) and (9-298-103). View Details

Keywords: Finance; Business Growth and Maturation; Financial Services Industry

November 1990 (Revised May 2004)
Case

Mile High Cycles

By: William J. Bruns Jr.

Introduces the concept of cost variances. Looking at a bicycle manufacturer with one product and three departments, the case presents budgeted and actual data for material, labor, and overhead. View Details

Keywords: Cost; Business Divisions; Accounting; Bicycle Industry

November 2000 (Revised July 2019)
Teaching Note

Cafes Monte Bianco: Building a Profit Plan

By: Robert Simons and Indra Reinbergs

Teaching Note for (9-198-088). View Details

Keywords: Business Strategy; Cash Flow; Capital Structure; Business Earnings; Financial Statements; Business Plan; Profit; Cost Management; Performance Evaluation; Strategic Planning; Financial Management; Investment Return; Food and Beverage Industry; Manufacturing Industry; Italy

May 1999 (Revised September 2003)
Case

Advanced Inhalation Research, Inc.

This case presents a look at the early start-up phase and development of Advanced Inhalation Research (AIR), a company engaged in the development of a new drug-delivery technology. Focuses on the risks, the steps taken to manage it, and the manner in which the company... View Details

Keywords: Technological Innovation; Risk Management; Valuation; Financing and Loans; Health Care and Treatment; Acquisition; Business Startups; Medical Devices and Supplies Industry