Publications

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September 2011
Article

Information Risk and Fair Value: An Examination of Equity Betas

By: Edward J. Riedl and George Serafeim

Using a sample of U.S. financial institutions, we exploit recent mandatory disclosures of financial instruments designated as fair value level 1, 2, and 3 to test whether greater information risk in financial instrument fair values leads to higher cost of capital. We... View Details

Keywords: Forecasting and Prediction; Assets; Cost of Capital; Financial Institutions; Financial Instruments; Corporate Disclosure; Information; Risk and Uncertainty; Value; United States

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October 1990
Case

Manufacturers Hanover Corp.: Customer Profitability Report

By: Robert S. Kaplan

Banking company noting declining profitability from its traditional lending activities has started to measure the total profitability of its lending relationships. A loan pricing model estimates the profit and return-on-equity from commercial loans. Additional work was... View Details

Keywords: Investment Return; Revenue; Commercial Banking; Banks and Banking; Customer Value and Value Chain; Banking Industry

March 2009
Background Note

Note on the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)

By: Stuart C. Gilson

In 2005, new legislation was passed by the U.S. Congress and signed into law by the President that introduced a number of major amendments to U.S. bankruptcy law, affecting both business and consumer bankruptcies. This legislation, called the Bankruptcy Abuse... View Details

Keywords: Government Legislation; Restructuring; Personal Finance; Laws and Statutes; Insolvency and Bankruptcy; Corporate Finance

August 2007
Case

Lightspeed Venture Partners -- International Expansion

By: Krishna G. Palepu and Alison Berkley Wagonfeld

Looks at various international expansion models for a venture capital firm based in Silicon Valley. Lightspeed Venture Partners believed that India had tremendous potential for venture capital returns--the question was how best to tap into that potential while also... View Details

Keywords: Venture Capital; Expansion; Investment Return; Global Strategy; Emerging Markets; Investment; International Finance; Organizational Structure; India; Israel

August 1999
Teaching Note

Dana-Farber Cancer Institute: Development Strategy, The (TN)

By: V. Kasturi Rangan

Teaching Note for (9-599-104). View Details

Keywords: Revenue; Operations; Investment Funds; Capital; Growth and Development Strategy; Financing and Loans; Programs; Value; Mission and Purpose; Health Industry

June 2024 (Revised February 2025)
Case

Accounting for Loans at SoFi Technologies

By: Joseph Pacelli and Michael Norris

At the release of its first quarter earnings report on May 1, 2023, digital bank SoFi beat its earnings guidance by 25%. On May 2, Wedbush Securities analyst David Chiaverini issued a report downgrading the stock. A second downgrade followed from Chiaverini on May 15.... View Details

Keywords: Accounting; Banks and Banking; Financing and Loans; Valuation; Stocks; Banking Industry; United States

October 1986 (Revised August 2015)
Case

Advanced Medical Technology Corporation

By: Thomas R. Piper and Steven Rogers

A loan officer must decide whether to lend $8 million to a rapidly growing high technology company. The company has had a series of relationships with three other banks. Reports from loan officers at these banks are mixed and raise questions as to the ease with which a... View Details

Keywords: Decision Making; Commercial Banking; Financing and Loans; Financial Condition; Technology Industry

2010
Working Paper

Financial guarantors and the 2007-2009 credit crisis

More than half of the municipal bonds issued between 1995 and 2009 were sold with bond insurance. During the credit crisis the perceived credit quality of the financial guarantors fell, and yields on insured bonds exceeded yields on equivalent uninsured issues. It does... View Details

Keywords: Financial Crisis; Credit; Financial Liquidity; Bonds; Insurance; Quality

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September 2008
Case

Samoa Tala

By: Joshua D. Coval, Bhagwan Chowdhry and Konark Saxena

This case examines currency risks faced by Microfinance Institutions, and evaluates strategies to hedge them in countries with pegged currency regimes and no derivatives markets. An MFI based in Western Samoa borrows in different currencies like the US dollar and the... View Details

Keywords: Cash Flow; Currency Exchange Rate; Microfinance; Risk and Uncertainty; Financial Services Industry; Samoa

June 2002
Background Note

Note on the Equivalency of Methods for Discounting Cash Flows

By: William E. Fruhan Jr.

Uses a numerical example to demonstrate that when you discount the cash flows to capital from a project at the weighted average cost of capital, you get same net present value result as you obtain when discounting the cash flows to equity at the cost of equity. Also... View Details

Keywords: Capital Structure; Cash Flow; Cost of Capital; Equity; Valuation