Publications
Publications
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- All HBS Web
(3,357)
- Faculty Publications (1,088)
- October 2015
- Article
Agglomerative Forces and Cluster Shapes
By: William R. Kerr and Scott Duke Kominers
We model spatial clusters of similar firms. Our model highlights how agglomerative forces lead to localized, individual connections among firms, while interaction costs generate a defined distance over which attraction forces operate. Overlapping firm interactions... View Details
- 2015
- Working Paper
Do People Shape Cities, or Do Cities Shape People? The Co-evolution of Physical, Social, and Economic Change in Five Major U.S. Cities
By: Nikhil Naik, Scott Duke Kominers, Ramesh Raskar, Edward L. Glaeser and Cesar Hidalgo
Urban change involves transformations in the physical appearance and the social composition of neighborhoods. Yet, the relationship between the physical and social components of urban change is not well understood due to the lack of comprehensive measures of... View Details
- October 2015
- Article
Hormones and Ethics: Understanding the Biological Basis of Unethical Conduct
By: Jooa Julie Lee, Francesca Gino, Ellie Shuo Jin, Leslie K. Rice and Robert A. Josephs
Globally, fraud has been rising sharply over the last decade, with current estimates placing financial losses at greater than $3.7 trillion dollars annually. Unfortunately, fraud prevention has been stymied by lack of a clear and comprehensive understanding of its... View Details
- Article
Men as Cultural Ideals: Cultural Values Moderate Gender Stereotype Content.
By: Amy Cuddy, Elizabeth Baily Wolf, Peter Glick, Susan Crotty, Jihye Chong and Michael I. Norton
Four studies tested whether cultural values moderate the content of gender stereotypes, such that male stereotypes more closely align with core cultural values (specifically, individualism vs. collectivism) than do female stereotypes. In Studies 1 and 2, using... View Details
- 2019
- Working Paper
The Wisdom of Crowds in Operations: Forecasting Using Prediction Markets
By: Achal Bassamboo, Ruomeng Cui and Antonio Moreno
Prediction is an important activity in various business processes, but it becomes difficult when historical information is not available, such as forecasting demand of a new product. One approach that can be applied in such situations is to crowdsource opinions from... View Details
- August 2015 (Revised January 2017)
- Technical Note
From Correlation to Causation
By: Feng Zhu and Karim R. Lakhani
To make sound business decisions, managers must be comfortable with the concepts of correlation and causation. This background note provides an overview of correlation and causation using examples and explains why the former does not imply the latter. It also describes... View Details
- 2016
- Working Paper
Through the Grapevine: Network Effects on the Design of Executive Compensation Contracts
By: Susanna Gallani
Effective design of executive compensation contracts involves choosing and weighting performance measures, as well as defining the mix between fixed and incentive-based pay components, with a view to fostering talent retention and goal congruence. The variability in... View Details
- 2015
- Working Paper
Blinded by Experience: Prior Experience, Negative News and Belief Updating
By: Bradley R. Staats, Diwas S. KC and Francesca Gino
Traditional models of operations management involve dynamic decision-making assuming optimal (Bayesian) updating. However, behavioral theory suggests that individuals exhibit bias in their beliefs and decisions. We conduct both a field study and two laboratory studies... View Details
- July 2015
- Article
Executives' 'Off-the-Job' Behaviors and Financial Reporting Risk
By: Robert Davidson, Aiyesha Dey and Abbie Smith
We examine how executives' behavior outside the workplace, as measured by their ownership of luxury goods (low “frugality”) and prior legal infractions, is related to financial reporting risk. We predict and find that chief executive officers (CEOs) and chief financial... View Details
- July 2015
- Article
The Impact of Corporate Social Responsibility on Investment Recommendations: Analysts' Perceptions and Shifting Institutional Logics
By: Ioannis Ioannou and George Serafeim
We explore the impact of corporate social responsibility (CSR) ratings on sell-side analysts' assessments of firms' future financial performance. We suggest that when analysts perceive CSR as an agency cost, due to the prevalence of an agency logic, they produce... View Details
- June 2015
- Case
The Valuation and Financing of Lady M Confections
By: Mihir A. Desai and Elizabeth A. Meyer
This case explores the decision-making process that small, private businesses must undertake when considering an expansion and when selling equity to outside investors. In the process, students are asked to complete two exercises: a break-even analysis and a valuation... View Details
- June 2015
- Supplement
Generating Higher Value at IBM (A): EPS Forecasting Model
By: Benjamin C. Esty and Scott Mayfield
This case analyzes IBM's financial performance and its capital allocation decisions over a 10-year period from 2004-2013, during which IBM returned more than $140B to shareholders through a combination of dividends and share repurchases. During this time, CEO Sam... View Details
- Article
The Cross Section of Expected Holding Period Returns and Their Dynamics: A Present Value Approach
By: Matthew R. Lyle and Charles C.Y. Wang
We provide a tractable model of firm-level expected holding period returns using two firm fundamentals—book-to-market ratio and ROE—and study the cross-sectional properties of the model-implied expected returns. We find that 1) firm-level expected returns and expected... View Details
- May 2015
- Case
Pricing in a Digital World (2015)
By: John Gourville
Dynamic pricing, especially as practiced by Uber and Lift, seems to be all the rage. In this case, we look at five interesting applications of dynamic price and price customization, each made possible by advances in digital technology. These range from the online... View Details
- Article
Do Strict Capital Requirements Raise the Cost of Capital? Bank Regulation, Capital Structure and the Low Risk Anomaly
By: Malcolm Baker and Jeffrey Wurgler
Traditional capital structure theory predicts that reducing banks' leverage reduces the risk and cost of equity but does not change the weighted average cost of capital, and thus the rates for borrowers. We confirm that the equity of better-capitalized banks has lower... View Details
- April 2015
- Case
Carolinas HealthCare System: Consumer Analytics
By: John A. Quelch and Margaret L. Rodriguez
In 2014, Dr. Michael Dulin, chief clinical officer for analytics and outcomes research and head of the Dickson Advanced Analytics (DA2) group at Carolinas HealthCare System (CHS), successfully unified all analytics talent and resources into one group over a three year... View Details
- Article
Big Other: Surveillance Capitalism and the Prospects of an Information Civilization
By: Shoshana Zuboff
This article describes an emergent logic of accumulation in the networked sphere, 'surveillance capitalism,' and considers its implications for 'information civilization.' The institutionalizing practices and operational assumptions of Google Inc. are the... View Details
- April 2015
- Article
Money Creation and the Shadow Banking System
By: Adi Sunderam
Many explanations for the rapid growth of the shadow banking system in the mid-2000s focus on money demand. This paper asks whether the short-term liabilities of the shadow banking system behave like money. We first present a simple model where households demand money... View Details
- March–April 2015
- Article
Why We Think We Can't Dance: Theory of Mind and Children's Desire to Perform
By: Lan Nguyen Chaplin and Michael I. Norton
Theory of Mind (ToM) allows children to achieve success in the social world by understanding others' minds. A study with 3–12 year olds, however, demonstrates that gains in ToM are linked to decreases in children's desire to engage in performative behaviors associated... View Details
- Article
Waves in Ship Prices and Investment
By: Robin Greenwood and Samuel G. Hanson
We study the link between investment boom and bust cycles and returns on capital in the dry bulk shipping industry. We show that high current ship earnings are associated with high used ship prices and heightened industry investment in new ships, but forecast low... View Details