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  • 16 Jul 2007
  • Research & Ideas

Understanding the ‘Want’ vs. ’Should’ Decision

desires (e.g., spending instead of saving money, eating junk food instead of health food). The should-self, on the other hand, prefers to behave in a way that will maximize long-run benefits. If left to its own devices, the should-self would always act on behalf of an... View Details
Keywords: by Sarah Jane Gilbert; Retail; Entertainment & Recreation
  • 30 May 2005
  • Research & Ideas

Six Steps for Making Your Threat Credible

reputational capital often entails sacrificing short-term gains in return for long-term profit. For example, some negotiators are habitually straightforward, guarding their integrity with great care despite the potential for short-term... View Details
Keywords: by Deepak Malhotra
  • 10 Dec 2014
  • Research & Ideas

Minimum Wage Debate Is Really About Social Values

aware that the long-term economic path for the United States has some challenges. Spending outstrips our forecast for revenue by an enormous amount and that requires some adjustment. We'll have to either raise taxes or cut spending.... View Details
Keywords: by April White; Retail; Manufacturing
  • 03 May 2012
  • Working Paper Summaries

Learning by Supplying

Keywords: by Juan Alcácer & Joanne Oxley
  • 2008
  • Working Paper

An Investigation of Earnings Management through Marketing Actions

By: Craig James Chapman and Thomas J. Steenburgh

Prior research hypothesizes managers use "real actions," including the reduction of discretionary expenditures, to manage earnings to meet or beat key benchmarks. This paper examines this hypothesis by testing how different types of marketing expenditures are used... View Details

Keywords: Performance Expectations; Earnings Management; Marketing Strategy; Financial Reporting; Brands and Branding; Food and Beverage Industry
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Chapman, Craig James, and Thomas J. Steenburgh. "An Investigation of Earnings Management through Marketing Actions." Harvard Business School Working Paper, No. 08-073, February 2008. (Revised February 2009, December 2009, June 2010, July 2010.)
  • 24 Feb 2021
  • Lessons from the Classroom

What History's Biggest Wars Teach Us About Leading in Peace

promising successes on the world’s battlefields as they pursue long-term success. “You don’t want to copy and paste the strategy and tactics” from one war to the next, says Malhotra, the Eli Goldston Professor of Business Administration.... View Details
Keywords: by Lane Lambert
  • 14 Jan 2019
  • Op-Ed

These 4 CEOs Created a New Standard of Leadership

for the multi-stakeholder approach. In 2011, he told shareholders, “My job is not to serve shareholders, but to serve Unilever’s customers and consumers.” He then suspended quarterly earnings reporting, enabling executives to concentrate on View Details
Keywords: by Bill George; Health; Banking; Food & Beverage; Consumer Products
  • 01 Feb 2022
  • Book

Innovation Isn’t Just for Startups: How Big Companies Can Succeed

where they would end up. She learned that setting a long-term ambition for the business was very helpful in enabling her to pivot the unit’s strategy at key moments. Having a hypothesis about the destination makes it possible to have a... View Details
Keywords: by Lane Lambert
  • September 2024
  • Case

InfraCredit and the Project Inception Facility

By: John Macomber, Namrata Arora and Maagatha Kalavadakken
Around the world, large infrastructure projects are frequently stymied by the high cost and high uncertainty of the project inception phase: the research and engineering and planning prior to financial close and start of construction. Could there be a new kind of... View Details
Keywords: Infrastructure; Financial Institutions; Financial Instruments; Cost; Cash Flow; Capital; Assets; Financial Markets; Financial Strategy; Insurance; Energy; Product Development; Risk and Uncertainty; Business Strategy; Credit; Financial Services Industry; Energy Industry; Banking Industry; Africa; Nigeria
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Macomber, John, Namrata Arora, and Maagatha Kalavadakken. "InfraCredit and the Project Inception Facility." Harvard Business School Case 225-027, September 2024.
  • Research Summary

Overview

Professor MacKay combines theory and measurement to deliver new insights about price competition and consumer preferences. In current and published papers, his research addresses how strategic pricing decisions may be influenced by algorithms, long-term contracts,... View Details

Keywords: Price Effects; Competition Policy; Algorithms; Online Competition; Dynamic Pricing; Beliefs; Preferences; Preference Heterogeneity; Preference Measurement; Competition; Microeconomics; Strategy; Integration; Cooperation
  • January 2008
  • Article

Innovation Killers: How Financial Tools Destroy Your Capacity to Do New Things

By: Clayton M. Christensen, Stephen P. Kaufman and Willy C. Shih
Most companies aren't half as innovative as their senior executives want them to be (or as their marketing claims suggest they are). What's stifling innovation? There are plenty of usual suspects, but the authors finger three financial tools as key accomplices.... View Details
Keywords: Investment; Innovation and Management; Growth and Development Strategy; Business and Shareholder Relations; Prejudice and Bias; Value Creation
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Christensen, Clayton M., Stephen P. Kaufman, and Willy C. Shih. "Innovation Killers: How Financial Tools Destroy Your Capacity to Do New Things." Special Issue on HBS Centennial. Harvard Business Review 86, no. 1 (January 2008).
  • 13 Mar 2023
  • Research & Ideas

The Power of Personal Connections: How Shared Experiences Boost Performance

could have positive long-term implications to any organization’s success. “We were surprised by the magnitude of the effects,” Pany says, noting that future studies could examine just how such relationships form and evolve. “There’s just... View Details
Keywords: by Rachel Layne; Health
  • 13 Jan 2020
  • Research & Ideas

Do Private Equity Buyouts Get a Bad Rap?

benefit society: asset stripping, short-term profit at the expense of workers, and long-term stability. “There are certainly a lot of concerns around whether these kind of transactions are indeed fomenting inequality by getting rid of... View Details
Keywords: by Michael Blanding; Financial Services; Banking
  • 05 Mar 2009
  • What Do You Think?

How Frank or Deceptive Should Leaders Be?

particularly by younger adults, of the importance of compound interest, inflation, and long-term value of money in one's planning), and political-economic stories (the way people communicate confidence that can affect entire economies and... View Details
Keywords: by Jim Heskett
  • 08 Mar 2019
  • Research & Ideas

Seven Negotiation Lessons from Amazon's HQ Disaster in Queens

which requires sustained support for long-term success. Had Amazon approached the New York headquarters decision in line with the seven steps outlined above, experience suggests that its odds of success would have been far greater. Of... View Details
Keywords: by James K. Sebenius; Real Estate; Construction
  • 29 Apr 2010
  • Working Paper Summaries

The Great Leap Forward: The Political Economy of Education in Brazil, 1889-1930

Keywords: by André Martínez-Fritscher, Aldo Musacchio & Martina Viarengo; Education
  • September 2011
  • Article

Political Instability: Effects on Financial Development, Roots in the Severity of Economic Inequality

By: Mark J. Roe and Jordan I. Siegel
We here bring forward strong evidence that political instability impedes financial development, with its variation a primary determinant of differences in financial development around the world. As such, it needs to be added to the short list of major determinants of... View Details
Keywords: Financial Development; Political Instability; Government and Politics; Finance; Growth and Development; Economics; Equality and Inequality
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Roe, Mark J., and Jordan I. Siegel. "Political Instability: Effects on Financial Development, Roots in the Severity of Economic Inequality." Journal of Comparative Economics 39, no. 3 (September 2011): 279–309. (We here bring forward strong evidence that political instability impedes financial development, with its variation a primary determinant of differences in financial development around the world. As such, it needs to be added to the short list of major determinants of financial development. First, structural conditions first postulated by Engerman and Sokoloff (2002) as generating long-term inequality are shown here empirically to be exogenous determinants of political instability. Second, that exogenously-determined political instability in turn holds back financial development, even when we control for factors prominent in the last decade's cross-country studies of financial development. The findings indicate that inequality-perpetuating conditions that result in political instability are fundamental roadblocks for international organizations like the World Bank that seek to promote financial development. The evidence here includes country fixed effect regressions and an instrumental model inspired by Engerman and Sokoloff's (2002) work, which to our knowledge has not yet been used in finance and which is consistent with current tests as valid instruments. Four conventional measures of national political instability — Alesina and Perotti's (1996) well-known index of instability, a subsequent index derived from Banks' (2005) work, and two indices of managerial perceptions of nation-by-nation political instability — persistently predict a wide range of national financial development outcomes for recent decades. Political instability's significance is time consistent in cross-sectional regressions back to the 1960's, the period when the key data becomes available, robust in both country fixed-effects and instrumental variable regressions, and consistent across multiple measures of instability and of financial development. Overall, the results indicate the existence of an important channel running from structural inequality to political instability, principally in nondemocratic settings, and then to financial backwardness. The robust significance of that channel extends existing work demonstrating the importance of political economy explanations for financial development and financial backwardness. It should help to better understand which policies will work for financial development, because political instability has causes, cures, and effects quite distinct from those of many of the key institutions most studied in the past decade as explaining financial backwardness.)
  • 09 Oct 2001
  • Research & Ideas

Driven: How Human Nature Shapes Organizations

competition. This type of problem arises again and again in economic activity. Think of the problem of pollution control, of lumbering, of soil conservation—the list goes on and on. To the extent that a living organization managed to follow this blueprint, we predict... View Details
Keywords: by Paul Lawrence & Nitin Nohria
  • 25 Jun 2024
  • Research & Ideas

How Transparency Sped Innovation in a $13 Billion Wireless Sector

Many businesses are loath to share proprietary information with others, fearing it will undercut their long-term financial prospects. They view openness as a threat to innovation. But a new years-long study of the wireless router industry... View Details
Keywords: by Jay Fitzgerald; Technology
  • 01 Oct 2021
  • Research & Ideas

Dying to Lead: How Reaching the Top Can Kill You Sooner

were sometimes more stressed and sometimes less stressed than others in lower positions in the group. But researchers studying primates have found that the pursuit of hierarchical status can be particularly detrimental to long-term... View Details
Keywords: by Jay Fitzgerald
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