Publications

January 1994 (Revised July 2000)
Exercise

Walt Disney Company's Sleeping Beauty Bonds--Duration Analysis

By: Carliss Y. Baldwin

Walt Disney Co. issues a 100-year bond. This case describes the terms of the bond and immediate capital market reaction. View Details

Keywords: Capital Markets; Bonds; Valuation; Entertainment and Recreation Industry

Forthcoming
Article

Institutional Corporate Bond Pricing

By: Ishita Sen, Lorenzo Bretscher, Lukas Schmid and Varun Sharma

We propose an equilibrium corporate bond pricing model that accommodates the heterogeneity in institutional investors' preferences and mandates in an empirically tractable way. Our model, estimated on rich holdings data, quantifies investors' preferences and demand... View Details

Keywords: Corporate Bonds; Demand Systems; Insurance Companies; Mutual Funds; Liquidity; Bonds; Price; Investment Funds

SSRN

1980
Working Paper

Taxation and the Ex-dividend Day Behavior of Common Stock Prices

By: Jerry R. Green

The behavior of stock prices around ex-dividend days has been suggested as evidence for tax-induced clientele effects and as a means to estimate the average effective tax rate faced by investors. In this paper these possibilities are examined theoretically and... View Details

Keywords: Taxation; Stocks; Price

December 2010 (Revised June 2011)
Case

Boston Properties (A)

By: Ryan D. Taliaferro and Aldo Sesia

Investment manager Eliza Baena confronts an apparent convertible bond arbitrage opportunity when she notices a narrowing spread between two Boston Properties (BXP) bonds, one a convertible bond and the other a straight bond, in the wake of the 2008 Lehman bankruptcy.... View Details

Keywords: Asset Management; Bonds; Investment

25 Jul 2003
Keynote Speech

The Impact of Sarbanes-Oxley and the NYSE Rules on American Corporate Governance

By: W. Carl Kester

Keywords: Stocks; Corporate Governance; Accounting Audits; United States

April 26, 2007
Article

How to Strengthen Wall Street's Global Trust

By: Robert C. Pozen

Keywords: Trust; Stocks; Financial Institutions

December 2009
Article

Catering Through Nominal Share Prices

By: Malcolm Baker, Robin Greenwood and Jeffrey Wurgler

We propose and test a catering theory of nominal stock prices. The theory predicts that when investors place higher valuation on low-price firms, managers will maintain share prices at lower levels, and vice-versa. Using measures of time-varying catering incentives... View Details

Keywords: Stocks; Stock Shares; Investment; Investment Return; Price; Theory; Valuation

Web

The Spread and Adoption of Option Pricing Models - Option Pricing in Theory & Practice: The Nobel Prize Research of Robert C. Merton - Exhibits - Historical Collections

for the practical implementation of the Black-Scholes model. Within six months of the original publication of the Black-Scholes formula, it had become so widely used by traders at the CBOE that Texas Instruments produced a handheld... View Details

01 Mar 2008
News

Reflections on the “Artistry” of Teaching

questions as a shepherd’s staff — or as a club. He should take care to use it as a gentle prod, not an instrument of wrath, anger, or punishment. >>>> Many teachers consider silence on the part of a student to be a neutral signal. I... View Details

Keywords: Colleges, Universities, and Professional Schools; Educational Services

07 Nov 2016
News

The Business of Saving Old Buildings

Roger Webb (MBA 1961) is the founder and chairman emeritus of the Architectural Heritage Foundation in Boston and was instrumental in launching Preservation Massachusetts, a statewide nonprofit historic preservation organization. In this... View Details

2022
Other Article

Freezeouts in Delaware and Around the World

By: Guhan Subramanian

Keywords: Acquisition; Stock Shares

2025
Working Paper

How Do Households Suppress the Price of Tail Risk?

By: Laurent Calvet, Claire Célérier, Gordon Liao and Boris Vallée

This paper investigates the effects of the issuance of retail products with non-linear payoffs on option prices. For a given underlying asset, when the outstanding volume of products embedding a short-put position increases, implied volatility at the corresponding... View Details

Keywords: Security Design; Dividend; Options; Structured Products; Market Segmentation; Financial Instruments; Design; Volatility; Markets; Segmentation

February 2005
Article

Can Foreign Firms Bond Themselves Effectively by Renting U.S. Securities Laws?

By: Jordan I. Siegel

The study tests the functional convergence hypothesis, which states that foreign firms can leapfrog their countries' weak legal institutions by listing equities in New York and agreeing to follow U.S. securities law. Evidence shows that the SEC and minority... View Details

Keywords: Corporate Governance; Cross-listing; Reputation; Bonding; Business Ventures; Laws and Statutes; Financial Instruments; United States; Mexico

February 2024 (Revised February 2024)
Case

CLSA: Integrating ESG in Stock Valuation

By: Shirley Lu, Aaron Yoon and Billy Chan

In 2023, a senior financial analyst at the Hong Kong-based stock brokerage firm CLSA was surprised to see that, based on his calculations, the financial impact from climate risks on a major Indian cement manufacturing company’s projected earnings could be massive.... View Details

Keywords: Accounting; Corporate Governance; Analysis; Stocks; Valuation; Environmental Sustainability; Financial Services Industry; Industrial Products Industry; Hong Kong; China; India; Asia

September 2023 (Revised January 2024)
Case

Icahn Enterprises: Ponzi Scheme or Sound Investment

By: Aiyesha Dey, Jonas Heese and James Weber

Icahn Enterprises, a publicly traded limited partnership founded and operated by famed activist investor Carl Icahn, had earned above market returns for over a decade. Between 2018 and early 2023, it had a compound annual return of 31%. Icahn invested in undervalued... View Details

Keywords: Stock Shares; Investment Return; Business Model; Valuation; Financial Services Industry

October 2019
Article

Limited Investment Capital and Credit Spreads

By: Emil N. Siriwardane

Using proprietary credit default swap (CDS) data, I investigate how capital shocks at protection sellers impact pricing in the CDS market. Seller capital shocks—measured as CDS portfolio margin payments—account for 12% of the time-series variation in weekly spread... View Details

Keywords: Credit Risk; Derivatives; Credit Derivatives and Swaps; Capital Markets; Credit; Financial Institutions