Publications

Aug 2020
Conference Presentation

Impacting Grand Challenges: A 'Both/And' Approach

By: Natalie Slawinski, Wendy K. Smith, Robin J. Ely, Tobias Hahn, Andrew J. Hoffman and Anita M. McGahan

In this panel symposium, we seek to build on growing efforts by management scholars to engage with grand challenges and the United Nations’ Sustainable Development Goals (SDGs). Reflective of the All- Academy Theme description, we note that research and scholarship... View Details

August 2020
Article

Improving Working Conditions in Global Supply Chains: The Role of Institutional Environments and Monitoring Program Design

By: Jodi L. Short, Michael W. Toffel and Andrea R. Hugill

Activism seeking to improve labor conditions in global supply chains has led many transnational corporations to adopt codes of conduct and monitor suppliers for compliance. Drawing on thousands of audits conducted by a major social auditor, we identify structural... View Details

Keywords: Monitoring; Supplier Relationship; Sustainability; Sustainability Management; Sustainable Operations; Sustainable Supply Chains; NGO; Operations; Supply Chain Management; Governance Compliance; Corporate Social Responsibility and Impact; Global Range; Working Conditions

August 2020
Article

Leverage and the Beta Anomaly

By: Malcolm Baker, Mathias F. Hoeyer and Jeffrey Wurgler

The well-known weak empirical relationship between beta risk and the cost of equity—the beta anomaly—generates a simple tradeoff theory: As firms lever up, the overall cost of capital falls as leverage increases equity beta, but as debt becomes riskier the marginal... View Details

Keywords: Risk Anomaly; Leverage; Capital Structure; Risk and Uncertainty

August 2020
Article

Lone Wolves in Competitive Equilibria

By: Ravi Jagadeesan, Scott Duke Kominers and Ross Rheingans-Yoo

This paper develops a class of equilibrium-independent predictions of competitive equilibrium with indivisibilities. Specifically, we prove an analogue of the “Lone Wolf Theorem” of classical matching theory, showing that when utility is perfectly transferable, any... View Details

Keywords: Indivisibilities; Matching; Lone Wolf Theorem; Marketplace Matching; Theory

August 2020
Article

Machine Learning and Human Capital Complementarities: Experimental Evidence on Bias Mitigation

By: Prithwiraj Choudhury, Evan Starr and Rajshree Agarwal

The use of machine learning (ML) for productivity in the knowledge economy requires considerations of important biases that may arise from ML predictions. We define a new source of bias related to incompleteness in real time inputs, which may result from strategic... View Details

Keywords: Machine Learning; Bias; Human Capital; Management; Strategy

August 2020
Article

Macroeconomic Drivers of Bond and Equity Risks

By: John Y. Campbell, Carolin E. Pflueger and Luis M. Viceira

Our new model of consumption-based habit generates time-varying risk premia on bonds and stocks from loglinear, homoskedastic macroeconomic dynamics. Consumers' first-order condition for the real risk-free bond generates an exactly loglinear consumption Euler equation,... View Details

Keywords: Consumption-based Habit Formation; Consumption Euler Equation; Time-varying Risk Premia; Inflation Dynamics; Bond-stock Correlation; Risk and Uncertainty; Bonds; Macroeconomics

Article

Matching in Networks with Bilateral Contracts: Corrigendum

By: John William Hatfield, Ravi Jagadeesan and Scott Duke Kominers

Hatfield and Kominers (2012) introduced a model of matching in networks with bilateral contracts and showed that stable outcomes exist in supply chains when firms' preferences over contracts are fully substitutable. Hatfield and Kominers (2012) also asserted that in... View Details

Keywords: Matching With Contracts; Substitutability; Mathematical Methods

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September 2020
Article

Relaxing Household Liquidity Constraints Through Social Security

By: Sylvain Catherine, Max Miller and Natasha Sarin

More than a quarter of working-age households in the United States do not have sufficient savings to cover their expenditures after a month of unemployment. Recent proposals suggest giving workers early access to a small portion of their future Social Security benefits... View Details

Keywords: COVID-19 Pandemic; Personal Finance; Employment; Welfare; Insurance; Government Legislation

August 2020
Article

Strategies for Managing the Privacy Landscape

By: Ramon Casadesus-Masanell and Andres Hervas-Drane

Firms use consumer personal information to improve their products and services. Personal information is open to misuse, however, and when exploited for undesired or unexpected purposes reduces consumer’s trust in the firm and their willingness to provide personal... View Details

Keywords: Consumer Privacy; Privacy Threats; Strategy Framework; Strategy Interactions; Customers; Information; Management; Strategy; Technology Industry

August 2020
Article

Trust in State and Non-State Actors: Evidence from Dispute Resolution in Pakistan

By: Daron Acemoglu, Ali Cheema, Asim I. Khwaja and James A. Robinson

Lack of trust in state institutions is a pervasive problem in many developing countries. This paper investigates whether information about improved public services can help build trust in state institutions and move people away from non-state actors. We find that... View Details

Keywords: Dispute Resolution; Lab-in-the-field Games; Legitimacy; Motivated Reasoning; Non-state Actors; State Capacity; Trust; Conflict and Resolution; Information; Developing Countries and Economies

2020
Working Paper

Updating the Balanced Scorecard for Triple Bottom Line Strategies

By: Robert S. Kaplan and David McMillan

Many companies are now attempting to achieve triple bottom line performance on financial, environmental, and societal metrics. Successful strategies for such performance, however, generally require new relationships among multiple players in multiple sectors across a... View Details

Keywords: Balanced Scorecard; Adaptation; Environmental Sustainability; Social Issues; Performance; Strategy

SSRN

2020
Working Paper

What Can Economics Say About Alzheimer's Disease?

By: Amitabh Chandra, Courtney Coile and Corina Mommaerts

Alzheimer’s Disease (AD) affects one in ten people aged 65 or older and is the most expensive disease in the United States. We describe the central economic questions raised by AD. While there is overlap with the economics of aging, the defining features of the... View Details

Keywords: Health Disorders; Health Care and Treatment; Economics

2020
Book

Work, Mate, Marry, Love: How Machines Shape Our Human Destiny

By: Debora L. Spar

Covering a time frame that ranges from 8000 BC to the present, and drawing upon both Marxist and feminist theories, the book argues that nearly all the decisions we make in our most intimate lives—whom to marry, how to have children, how to have sex, how to think about... View Details

August 2020
Article

Workplace Knowledge Flows

By: Jason Sandvik, Richard Saouma, Nathan Seegert and Christopher Stanton

We conducted a field experiment in a sales firm to test whether improving knowledge flows between coworkers affects productivity. Our design allows us to compare different management practices and to isolate whether frictions to knowledge transmission primarily reside... View Details

Keywords: Knowledge Sharing; Interpersonal Communication; Employees; Performance Productivity; Sales; Motivation and Incentives

July 2020 (Revised September 2020)
Case

Cash Flow Statements and Analysis

By: Paul Healy

Educators

July 2020 (Revised August 2021)
Case

Capitalizing Development Costs at Fiat Chrysler Automobiles and Volkswagen

By: Paul M. Healy and Marshal Herrmann

Educators

July 30, 2020
Article

How to Build a Life: ‘Success Addicts’ Choose Being Special Over Being Happy

By: Arthur C. Brooks

2020
Working Paper

How to Build Enduring Brands in the Digital Age

By: David J. Collis and William Collis

What makes a brand last? It’s a deceptively simple question, but its answer separates sustainable success from eventual obscurity. Almost every company devotes significant resources to defining their brand. But few ask the more important question: how to... View Details

Keywords: Brands and Branding; Adaptation; Strategy

July 2020
Teaching Note

Shindigz

By: Frank Cespedes

Teaching Note for HBS Case No. 819-010. Shindigz sells party and celebratory items through its branded direct online channel, third-party retail and wholesale channels, and online marketplaces. Shindigz has for decades successfully executed a premium-priced branded... View Details

Keywords: Ecommerce; Pricing; Price; Strategy; Decision Making; Distribution Channels; Brands and Branding; E-commerce; Consumer Products Industry