Publications

Other Unpublished Work

Inflation Uncertainty and the Wage Bargain

By: Lucy White and Hans-Joachim Voth

Keywords: Inflation and Deflation; Risk and Uncertainty; Wages; Labor and Management Relations; Negotiation

Article

Business, Governments and Political Risk in South Asia and Latin America since 1970

By: G. Jones and Rachael Comunale

This article contributes to the literature on political risk in business and economic history by examining both new perspectives (risk encountered by companies domestically, rather than risk for foreign investors) and new settings (emerging markets economies in Latin... View Details

Keywords: Political Risk; Emerging Market; Bribery; Business ＆ Government Relations; Turbulence; Violence; Risk and Uncertainty; Emerging Markets; Crime and Corruption; Business and Government Relations; Business History; India; Latin America

December 2022
Technical Note

Risks and Opportunities from the Transition to a Low Carbon Economy: A Business Analysis Framework

By: George Serafeim

The transition to a low carbon economy introduces many risks and opportunities for businesses. Risks emerge from regulatory actions, such as carbon taxes and cap and trade systems, technological innovation that develop alternatives for customers making existing... View Details

Keywords: Risk Assessment; Opportunities; Environmental Sustainability; Carbon Footprint; Risk Management; Competitive Dynamics; Business Analysis; Climate Change; Accounting; Finance; Valuation; Business and Shareholder Relations; Technological Innovation; Transition; Product Positioning; Renewable Energy; Analysis

Educators

February 2018
Article

Bank CEO Materialism: Risk Controls, Culture and Tail Risk

By: Robert Bushman, Robert Davidson, Aiyesha Dey and Abbie Smith

We investigate how the prevalence of materialistic bank CEOs has evolved over time and how risk management policies, non-CEO executives’ behavior, and tail risk vary with CEO materialism. We document that the proportion of banks run by materialistic CEOs increased... View Details

Keywords: Management; Personal Characteristics; Behavior; Risk Management; Organizational Culture; Banks and Banking; Banking Industry

June 2023
Article

Regulatory Limits to Risk Management

By: Ishita Sen

Variable annuities, the largest liability of U.S. life insurers, are investment products containing long-dated minimum return guarantees. I show that guarantees with similar economic risks are treated differently by regulation and these differences impact insurers’... View Details

Keywords: Interest Rate Risk; Variable Annuities; Capital Regulation; Reinsurance; Derivatives; Risk Management; Interest Rates; Governing Rules, Regulations, and Reforms

SSRN

April 2017
Article

Financing Risk and Innovation

By: Ramana Nanda and Matthew Rhodes-Kropf

We provide a model of investment into new ventures that demonstrates why some places, times, and industries should be associated with a greater degree of experimentation by investors. Investors respond to financing risk―a forecast of limited future funding―by modifying... View Details

Keywords: Risk and Uncertainty; Financing and Loans; Innovation and Invention

2024
Working Paper

LASH Risk and Interest Rates

By: Laura Alfaro, Saleem Bahaj, Robert Czech, Jonathan Hazell and Ioana Neamtu

We introduce a framework to understand and quantify a form of liquidity risk that we dub Liquidity After Solvency Hedging or “LASH” risk. Financial institutions take LASH risk when they hedge against losses, using strategies that lead to liquidity needs when the value... View Details

Keywords: Liquidity; Monetary Policy; Non-bank Intermediaries; Hedging; Risk and Uncertainty; Investment Funds; Financial Condition; Interest Rates

19 Nov 2004 - 22 Nov 2004
Conference Presentation

Managing Innovation and Product Development...Under Uncertainty

By: Alan MacCormack

Keywords: Innovation and Invention; Product Development; Management

2014
Working Paper

Financing Risk and Innovation

By: Ramana Nanda and Matthew Rhodes-Kropf

We provide a model of investment into new ventures that demonstrates why some places, times, and industries should be associated with a greater degree of experimentation by investors. Investors respond to financing risk―a forecast of limited future funding―by modifying... View Details

Keywords: Business Startups; Venture Capital; Financial Markets; Financing and Loans; Investment; Price Bubble; Innovation and Invention; Technological Innovation; Risk and Uncertainty

1996
Book

Decisions under Uncertainty

By: D. E. Bell and A. Schleifer Jr.

Keywords: Decisions; Risk and Uncertainty

08 Nov 2016
News

The Upside of Uncertainty

October 2016
Case

Elon Musk: Balancing Purpose and Risk

By: Shikhar Ghosh and Sarah Mehta

The case is used to illustrate the place of ‘Purpose’ versus financial risk and returns in a founder’s objectives. It also addresses personal risk profile of different founders, and when paired with the Risk Tolerance Exercise, it enables evaluating one’s own appetite... View Details

Keywords: Electric Vehicle; Solar Power; Vision; Trade-offs; Leadership; Mission and Purpose; Risk and Uncertainty; Entrepreneurship; Failure; United States; North America

Educators

29 Nov 2016
Working Paper Summaries

Fiscal Risk and the Portfolio of Government Programs

Keywords: by Samuel G. Hanson, David S. Scharfstein, and Adi Sunderam

October 26, 2022
Article

Climate Risk Is Growing. Is Your Company Prepared?

By: John D. Macomber

Most people don’t have a strategy for how to handle the worsening perils of flooding, wildfires and extreme heat. They should adopt a four-step process for protecting their property, whether it be a home or a business. First, they should prioritize how important... View Details

Keywords: Climate Risk; Climate Change; Risk Management; Crisis Management; Insurance

Register to Read

21 Mar 2016
Working Paper Summaries

Risk Management―The Revealing Hand

Keywords: by Robert S. Kaplan and Anette Mikes; Financial Services; Banking

December 2007 (Revised January 2008)
Background Note

Evaluating M&A Deals-Announcement Effects, Risk Arbitrage and Event Risk

By: Carliss Y. Baldwin

The announcement of merger or acquisition conveys new information to the capital markets. This note describes how the stock prices of a Buyer and Target behave after the announcement of a deal. First, for an all-stock deal that is certain to go through, the note... View Details

Keywords: Mergers and Acquisitions; Announcements; Capital Markets; Stocks; Price; Risk and Uncertainty

Educators