Publications

Educators

2020
Working Paper

Capital Regulation and Product Market Outcomes

By: Ishita Sen and David Humphry

We present evidence of product market adjustments and asset reorganizations from the largest ever shift in risk regulation in a developed insurance market. Using proprietary data on insurance risk exposures from the Bank of England, we develop a measure of regulatory... View Details

Keywords: Non-traditional-non-insurance; Risk Regulation; Product Market Concentration; Small Vs. Large Insurers; Insurance Risk Exposure; Insurance; Risk and Uncertainty; Governing Rules, Regulations, and Reforms

SSRN

June 2009
Teaching Note

Midland Energy Resources, Inc.: Cost of Capital (Brief Case)

By: Timothy A. Luehrman and Joel L. Heilprin

Teaching Note for 4129 View Details

Keywords: Risk Assessment; Risk and Uncertainty; Valuation; Capital Structure; Cash Flow

June 1996
Article

Risk-Based Capital Requirements and the Riskiness of Bank Portfolios

By: Brian J. Hall and Steven R. Grenadier

Keywords: Risk and Uncertainty; Capital; Banks and Banking; Investment

2009
Working Paper

Systemic Risk and the Refinancing Ratchet Effect

By: Amir E. Khandani, Andrew W. Lo and Robert C. Merton

The confluence of three trends in the U.S. residential housing market—rising home prices, declining interest rates, and near-frictionless refinancing opportunities—led to vastly increased systemic risk in the financial system. Individually, each of these trends is... View Details

Keywords: Housing; Mortgages; Risk and Uncertainty; Value; Mathematical Methods; Real Estate Industry; United States

2007
Working Paper

What Have We Learned From Market Design?

By: Alvin E. Roth

This essay discusses some things we have learned about markets, in the process of designing marketplaces to fix market failures. To work well, marketplaces have to provide thickness, i.e. they need to attract a large enough proportion of the potential participants in... View Details

Keywords: Market Design; Market Participation; Market Transactions; Risk and Uncertainty; Safety

Read Now

December 1999
Case

Sun Microsystems, Inc. (A3): Network Computer: Robert Gianni on Answering the Skeptics

By: Rosabeth M. Kanter and Jane Roessner

The concept behind the network computer (NC) at Sun Microsystems, Inc. was simple: bringing workstation performance to the desktop. Recent technological breakthroughs and changes in the marketplace made the NC project timely. But internal and external skeptics wondered... View Details

Keywords: Information Infrastructure; Technology Adoption; Fluctuation; Risk and Uncertainty; Technology Industry; Computer Industry

Educators

March 2021
Case

P.F. Chang's

By: Ashish Nanda, Nitin Nohria and Margaret Cross

Excited yet apprehensive after being named CEO of P.F. Chang’s beginning July 1st, 2020, Damola Adamolekun was well aware of the extraordinary challenges facing the firm. The closure of businesses deemed “nonessential” owing to the COVID-19 pandemic had devastated the... View Details

Keywords: Restaurants; COVID-19 Pandemic; Scenario Planning; Scenarios; Health Pandemics; Risk and Uncertainty; Strategy

Educators

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

Read Now

2018
Working Paper

OTC Intermediaries

By: Andrea L. Eisfeldt, Bernard Herskovic, Sriram Rajan and Emil Siriwardane

Over-the-counter (OTC) markets for financial assets are dominated by a relatively small number of core intermediaries and a large number of peripheral customers. In this paper, we develop a model of trade in a core-periphery network and estimate its key structural... View Details

Keywords: OTC Markets; Intermediaries; Dealers; Credit Default Swaps; Risk Sharing; Networks; Price; Risk and Uncertainty

SSRN

Read Now

July – August 2011
Article

Managing the Multiple Dimensions of Risk: Part I

By: Robert S. Kaplan and Anette Mikes

Based on an extensive program of case-writing and teaching on risk management, we identify three categories of risk and elaborate on the ways companies can identify and mitigate them, with particular emphasis on strategy execution risks. View Details

Keywords: Risk Management; Risk and Uncertainty; Strategy

September 1990
Article

How Risky is the Debt in Highly Leveraged Transactions?

Keywords: Risk and Uncertainty; Borrowing and Debt

February 1984 (Revised March 1984)
Teaching Note

Exercises on Capital Budgeting Under Uncertainty, Teaching Note

By: David E. Bell

Keywords: Capital Budgeting; Risk and Uncertainty

1998
Article

Governance and Risk Taking in the U.S. Cable Television Industry

By: T. R. Eisenmann

Keywords: Governance; Risk and Uncertainty; Television Entertainment; Media and Broadcasting Industry