Publications

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May 2020 (Revised November 2021)
Supplement

Valuing Peloton

By: E. Scott Mayfield

Peloton Interactive, a well-known unicorn in the connected fitness space, had gone public with a market capitalization of over $8.0 billion. In the weeks following its public debut, Peloton’s stock price fell by over 25%. Taylor Knox, a stock analyst and enthusiastic... View Details

Keywords: Business Model; Disruptive Innovation; Risk and Uncertainty; Stocks; Price; Valuation; Entertainment and Recreation Industry

2012
Article

Mutual Fund Trading Pressure: Firm-Level Stock Price Impact and Timing of SEOs

By: Mozaffar N. Khan, Leonid Kogan and George Serafeim

In tests of the equity market timing theory of external finance, the prior literature has used overvaluation identifiers such as high market-to-book and high prior returns that are likely correlated with other determinants of SEOs. We use price pressure resulting from... View Details

Keywords: Equity; Market Transactions; Valuation; Capital Structure; Market Timing; Mathematical Methods; Acquisition

July 2008 (Revised February 2011)
Supplement

Sanford C. Bernstein: The Fork in the Road (B)

By: Boris Groysberg and Geoff Eckman Marietta

Update on the (A) case. View Details

Keywords: Knowledge; Business or Company Management; Organizational Change and Adaptation; Organizational Culture; Competitive Advantage; Valuation; Financial Services Industry

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May 2007
Article

Aspects of Endowment: A Query Theory of Value Construction

By: Eric Johnson, Gerald Häubl and Anat Keinan

How do people judge the monetary value of objects? One clue is provided by the typical endowment study (D. Kahneman, J. L. Knetsch, & R. H. Thaler, 1991), in which participants are randomly given either a good, such as a coffee mug, that they may later sell ("sellers")... View Details

Keywords: Profit; Forecasting and Prediction; Theory; Valuation; Loss; Ownership; Decision Choices and Conditions

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June 2001 (Revised September 2011)
Case

PepsiCo's Bid for Quaker Oats (A)

By: Carliss Y. Baldwin and Leonid P Sudakov

Throughout 1999, PepsiCo closely tracked several potential strategic acquisitions. In the fall of 2000, it appeared that the right moment for an equity-financed acquisition had arrived. At this time, PepsiCo management decided to initiate confidential discussions with... View Details

Keywords: Mergers and Acquisitions; Private Equity; Stock Shares; Negotiation; Strategy; Valuation; Food and Beverage Industry

January 2025
Supplement

Negotiating a Legacy at Sustainable Harvest (B)

By: Jillian Jordan, Julian Zlatev, Alicia Dadlani and Martha Hostetter

The specialty coffee importer Sustainable Harvest was the first certified B Corp in the coffee industry due to its investments in building coffee farmers’ capacity and livelihood. But in 2022, after coffee prices plummeted and the company’s bank declined to extend its... View Details

Keywords: Negotiation; Acquisition; Trust; Ethics; Agribusiness; Volatility; Futures and Commodity Futures; Social Enterprise; Valuation; Food and Beverage Industry; United States; Europe

February 2004
Case

Bradman and Tendulkar, LLC

By: Ananth Raman and Vishal Gaur

An investment firm is trying to project inventory turns for Radio Shack, a chain of consumer electronics stores. The investment firm has access to public financial data but not to internal operational metrics. It needs to project inventory turns because inventory... View Details

Keywords: Forecasting and Prediction; Cash Flow; Demand and Consumers; Distribution Channels; Mathematical Methods; Valuation

August 1996 (Revised May 1997)
Case

Delta & Pine Land: Measuring the Value of Transgenic Cotton

By: Ray A. Goldberg and Charlotte A. Tasker

Discusses the joint venture between two companies with different capabilities: 1) technology provider and 2) transportation agent. Discusses how to capture value from joint venture and biotechnology: 1) who are winners and who are losers; 2) how much value can/should... View Details

Keywords: Agribusiness; Joint Ventures; Marketing Strategy; Supply Chain Management; Performance Consistency; Information Technology; Transportation; Valuation; Biotechnology Industry

February 1997 (Revised September 1997)
Case

Bidding for Antamina

By: Peter Tufano

In June 1996, executives of the multinational mining company RTZ-CRA contemplate bidding to acquire the Antamina copper and zinc mine in Peru. The Antamina project is being offered for sale by auction as part of the privatization of Peru's state mining company. RTZ-CRA... View Details

Keywords: Valuation; Auctions; Bids and Bidding; Mining; Mining Industry; Peru

16 Jun 2003
Research & Ideas

Surveying the VC Landscape

quick" mentality pervaded many venture capital organizations. Today, though, reality has returned once again: venture capitalists realize that if they are going to be able to eventually take the firms in their portfolios public or sell them at an attractive View Details

Keywords: by Ann Cullen; Financial Services

01 Feb 2008
What Do You Think?

How Sustainable Is Sustainability in a For-Profit Organization?

of any organization." Carol Holding associated brand value with sustainability: "As brand value will soon be included in a company's valuation ... we can more than ever monetize sustainable behavior." Others see the market... View Details

Keywords: by Jim Heskett

15 Feb 2000
Research & Ideas

The Right Connections

pharmaceutical companies — what the authors call downstream social capital — had a direct impact on the size of the startup's IPO. "Downstream social capital was essential in attracting the interest of a top investment bank and getting a high View Details

Keywords: by Judith A. Ross

2009
Simulation

Finance Simulation: Blackstone/Celanese (Facilitator's Guide)

By: Nabil N. El-Hage, Timothy A. Luehrman and Heide Diener Abelli

Keywords: Bids and Bidding; Finance; Mergers and Acquisitions; Valuation; Leveraged Buyouts; Negotiation

01 Sep 2015
First Look

First Look -- September 1, 2015

currency), the asset valuation effects occasioned by currency depreciation (or appreciation) act to absorb global shocks and render consumption smoother. In this setting, countries do not accumulate high levels of reserves to be depleted... View Details

Keywords: Sean Silverthorne

20 Jan 2010
First Look

First Look: Jan. 20

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... View Details

Keywords: Martha Lagace

July 2010
Teaching Note

Monmouth, Inc. (Brief Case)

By: Thomas R. Piper and Heide Abelli

Teaching Note for 4226. View Details

Keywords: Competitive Bidding; Forecasting; Stock Offerings; Mergers ＆ Acquisitions; Valuation, Margins; Stocks; Valuation; Mergers and Acquisitions; Forecasting and Prediction; Bids and Bidding

June 2001
Case

Bang Networks- The First Customer (A)

By: Jay O. Light and Mary N. Caravella

In November 2000, six-month-old start-up Bang Networks is preparing a proposal for its first paid subscription contract. The recent MBA founders of the new San Francisco--based company believe they have a unique new solution for effective delivery of real-time Web... View Details

Keywords: Business Startups; Negotiation Tactics; Internet and the Web; Valuation; Value Creation; Negotiation Preparation; Information Technology Industry; San Francisco

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January 2001
Case

First Community Bank (B): Community Banking Group

By: Rosabeth M. Kanter and Daniel Galvin

After nine years of leading First Community Bank (FCB), BankBoston's unique venture targeting low- to moderate-income communities, and finally gaining recognition and respect for her efforts, Gail Snowden must once again faces the challenge of justifying FCB's value,... View Details

Keywords: Mergers and Acquisitions; Valuation; Organizational Change and Adaptation; Problems and Challenges; Business and Community Relations; Banking Industry