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      • Faculty Publications  (768)

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      • March 1981 (Revised October 1984)
      • Case

      Corning Glass Works: Indonesia

      By: Michael Y. Yoshino
      Evaluates the market opportunities and risks by Corning and International Finance Corporation in Indonesia. View Details
      Keywords: Globalized Markets and Industries; Risk and Uncertainty; Opportunities; Financial Services Industry; Indonesia
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      Yoshino, Michael Y. "Corning Glass Works: Indonesia." Harvard Business School Case 381-119, March 1981. (Revised October 1984.)
      • December 1980 (Revised January 1994)
      • Case

      International Foodstuffs

      By: David E. Bell
      Describes three fairly routine instances in which considerations of risk exposure in foreign exchange are necessary. The three are a delayed payment for a grain shipment, a foreign subsidiary facing devaluation of its domestic currency, and a foreign acquisition. The... View Details
      Keywords: Currency Exchange Rate; Risk and Uncertainty; International Relations; Mergers and Acquisitions; Money; International Finance; Financial Services Industry
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      Bell, David E. "International Foodstuffs." Harvard Business School Case 181-049, December 1980. (Revised January 1994.)
      • December 1980 (Revised January 1992)
      • Case

      Savannah West

      By: William J. Poorvu and John H. Vogel Jr.
      Allison Porter, a loan officer for Chemical Bank, must decide whether to make a construction loan on a 216-unit apartment building to be built in Savannah, Georgia. In teaching this case, one begins by looking at the economics, marketing data, etc., of the proposed... View Details
      Keywords: Credit; Property; Financing and Loans; Banks and Banking; Housing; Risk Management; Valuation; Real Estate Industry; Banking Industry; Georgia (state, US)
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      Poorvu, William J., and John H. Vogel Jr. "Savannah West." Harvard Business School Case 381-081, December 1980. (Revised January 1992.)
      • January 1980 (Revised April 1994)
      • Case

      New Balance Athletic Shoes

      By: Kim B. Clark
      Faced with growth exceeding 100% per year, James Davis, president of New Balance, must decide how to meet the need for additional capacity. Several factors contribute to a climate of extreme uncertainty. Several options are considered, ranging from a second shift to... View Details
      Keywords: Factories, Labs, and Plants; Forecasting and Prediction; Financial Strategy; Information; Growth Management; Organizational Design; Performance Capacity; Risk and Uncertainty; Apparel and Accessories Industry; Republic of Ireland
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      Clark, Kim B. "New Balance Athletic Shoes." Harvard Business School Case 680-110, January 1980. (Revised April 1994.)
      • December 1979
      • Article

      Liquidity Preference under Uncertainty

      By: Carliss Y. Baldwin and Richard F. Meyer
      Keywords: Financial Liquidity; Risk and Uncertainty
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      Baldwin, Carliss Y., and Richard F. Meyer. "Liquidity Preference under Uncertainty." Journal of Financial Economics 7, no. 4 (December 1979).
      • April 1978
      • Article

      The Returns and Risk of Alternative Call Option Portfolio Investment Strategies

      By: Robert C. Merton, Myron S. Scholes and Matthew L. Gladstein
      Keywords: Risk and Uncertainty; Investment; Strategy
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      Merton, Robert C., Myron S. Scholes, and Matthew L. Gladstein. "The Returns and Risk of Alternative Call Option Portfolio Investment Strategies." Journal of Business 51 (April 1978): 183–242.
      • April 1975 (Revised November 1984)
      • Case

      Enzone Petroleum Corp.

      By: Thomas R. Piper
      A large integrated oil company is debating whether to switch from a single hurdle rate to multiple hurdle rates for project analysis purposes. Raises questions on: 1) determination of the cost of equity; 2) the usefulness of multiple hurdle rates to adjust for project... View Details
      Keywords: Risk and Uncertainty; Cost; Investment Return; Equity; Capital Budgeting; Energy Industry
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      Piper, Thomas R. "Enzone Petroleum Corp." Harvard Business School Case 275-113, April 1975. (Revised November 1984.)
      • November 1974 (Revised May 1994)
      • Case

      Science Technology Co.

      By: Thomas R. Piper
      The president of a medium-sized electronics company is evaluating the financial forecasts and proposed financing program submitted by the chief financial officer. The forecasts are prepared in constant dollars, on which basis the proposed financing plan seems... View Details
      Keywords: Currency; Financial Strategy; Forecasting and Prediction; Inflation and Deflation; Risk and Uncertainty; Outcome or Result; Technology Industry; Electronics Industry
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      Piper, Thomas R. "Science Technology Co." Harvard Business School Case 275-058, November 1974. (Revised May 1994.)
      • May 1974
      • Article

      On the Pricing of Corporate Debt: The Risk Structure of Interest Rates

      By: Robert C. Merton
      Keywords: Price; Borrowing and Debt; Risk and Uncertainty; Interest Rates
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      Merton, Robert C. "On the Pricing of Corporate Debt: The Risk Structure of Interest Rates." Journal of Finance 29, no. 2 (May 1974): 449–470. (Chapter 12 in Continuous-Time Finance.)
      • November 1973 (Revised April 1983)
      • Case

      Southport Minerals, Inc.

      By: William E. Fruhan Jr.
      Examines how the attractiveness of an investment project can be enhanced by making financing and operating decisions which either manage investment returns or reduce project risks. View Details
      Keywords: Decisions; Financing and Loans; Investment; Investment Return; Risk Management; Operations; Projects
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      Fruhan, William E., Jr. "Southport Minerals, Inc." Harvard Business School Case 274-110, November 1973. (Revised April 1983.)
      • spring 1973
      • Article

      Management of Commercial Bank Government Security Portfolios: An Optimization Approach Under Uncertainty

      By: D. B. Crane and Stephen P. Bradley
      Keywords: Management; Banks and Banking; Government and Politics; Investment; Risk and Uncertainty
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      Crane, D. B., and Stephen P. Bradley. "Management of Commercial Bank Government Security Portfolios: An Optimization Approach Under Uncertainty." Journal of Bank Research 4, no. 1 (spring 1973).
      • January 1973 (Revised September 1990)
      • Case

      Carrefour S.A.

      By: William E. Fruhan Jr.
      Involves a very rapidly growing retail chain that is financing itself in an unusual (and at first glance) risky fashion. View Details
      Keywords: Growth and Development Strategy; Financing and Loans; Risk and Uncertainty; Retail Industry
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      Fruhan, William E., Jr. "Carrefour S.A." Harvard Business School Case 273-099, January 1973. (Revised September 1990.)
      • Article

      Lifetime Portfolio Selection under Uncertainty: The Continuous-Time Case

      By: Robert C. Merton
      Keywords: Risk and Uncertainty; Investment
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      Merton, Robert C. "Lifetime Portfolio Selection under Uncertainty: The Continuous-Time Case." Review of Economics and Statistics 51, no. 3 (August 1969): 247–257. (Chapter II of Ph.D. dissertation; Chapter 4 in Continuous-Time Finance.)
      • March 1968 (Revised July 2010)
      • Case

      Basic Industries

      By: Joseph L. Bower and John W. Rosenblum
      Policy problems, mainly organizational issues, face a young middle manager in the context of capital budgeting in a highly technological conglomerate firm with high market uncertainty. View Details
      Keywords: Business Conglomerates; Capital Budgeting; Policy; Managerial Roles; Risk and Uncertainty
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      Bower, Joseph L., and John W. Rosenblum. "Basic Industries." Harvard Business School Case 313-121, March 1968. (Revised July 2010.)
      • Forthcoming
      • Article

      Bank Risk-Taking and the Real Economy: Evidence from the Housing Boom and Its Aftermath

      By: Antonio Falato, Giovanni Favara and David Scharfstein
      We present evidence that pressure to maximize short-term stock prices and earnings leads banks to increase risk. We start by showing that banks increase risk when they transition from private to public ownership through a public listing or an acquisition. The increase... View Details
      Keywords: Ownership Type; Risk and Uncertainty; Financial Markets; Banks and Banking; Transition; Price
      Citation
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      Falato, Antonio, Giovanni Favara, and David Scharfstein. "Bank Risk-Taking and the Real Economy: Evidence from the Housing Boom and Its Aftermath." Review of Financial Studies (forthcoming).
      • Teaching Interest

      Cities, Structures, and Climate Shocks

      By: John D. Macomber

      This course is about building sustainable and resilient cities, future proofing real estate and infrastructure assets, and examining how businesses and investors find opportunities in climate adaptation.

      The world faces substantial challenges in the face of... View Details

      Keywords: Sustainability; Economic Development; Climate Finance; Migration; Climate Change; Adaptation; Urban Development; Real Estate Industry; Construction Industry; Energy Industry; Utilities Industry; Insurance Industry; Banking Industry
      • Research Summary

      Entrepreneurial Finance

      By: William A. Sahlman
      William A. Sahlman is examining the investment and financing decisions made at all stages in the development of entrepreneurial ventures. Related lines of inquiry concern the role of financial institutions in providing risk capital, and the role of government policy in... View Details
      • Teaching Interest

      Executive Education - Owner/President Management Program

      By: Martin A. Sinozich

      Delivered in three units that span 24 months over three calendar years, the Owner/President Management (OPM) program is a transformative learning experience that boosts leadership skills and the value of participants’ enterprises.  Sinozich teaches the Finance... View Details

      • Teaching Interest

      Finance I

      By: Archie L. Jones

      This course examines the role of finance in supporting the functional areas of a firm, and fosters an understanding of how financial decisions themselves can create value.

      Topics covered include:

      • Basic analytical skills and principles of... View Details
      • Forthcoming
      • Article

      How Central Banks Manage Climate and Energy Transition Risks

      By: Esther Shears, Jonas Meckling and Jared Finnegan
      Central banks have begun to examine and manage climate risks, including both transition risks of moving from fossil fuels to clean energy and physical climate risks. Here we provide a systematic assessment of how and why central banks address climate risks on the basis... View Details
      Keywords: Banks and Banking; Risk and Uncertainty; Climate Change; Transition; Risk Management
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      Shears, Esther, Jonas Meckling, and Jared Finnegan. "How Central Banks Manage Climate and Energy Transition Risks." Nature Energy (forthcoming). (Pre-published online February 28, 2025.)
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