Currency Risk - Publications - Faculty & Research

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Latin America - Global

multilateral finance institutions, which believed it could bring macroeconomic instability to the local economy. Was bitcoin a viable currency for Salvadorans? Or, as some observers pointed out, was Bukele's plan another sign of weakened... View Details

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Topics - HBS Working Knowledge

Derivatives and Swaps (1) Credit (8) Crime and Corruption (43) Crisis Management (51) Cross-Cultural and Cross-Border Issues (23) Culture (10) Currency Exchange Rate (3) Currency (12) Curriculum and Courses... View Details

May 2011
Article

Higher Risk, Lower Returns: What Hedge Fund Investors Really Earn

By: Ilia Dichev and Gwen Yu

The returns of hedge fund investors depend not only on the returns of the hedge funds they hold but also on the timing and magnitude of their capital flows in and out of the funds. We use dollar-weighted returns (a form of IRR) to assess the properties of actual... View Details

Keywords: Investment Funds; Investment Return; Capital Markets; Market Timing; Currency

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18 Jul 2022
Research & Ideas

After the 'Crypto Crash,' What's Next for Digital Currencies?

Bitcoin, Terra, and Celsius has renewed calls for regulators to protect consumers from fly-by-night currency operators, scammers, and theft. How vulnerable are crypto investors, particularly the retail-level amateur investors? Kominers: I... View Details

Keywords: by Christina Pazzanese, Harvard Gazette; Financial Services; Technology

04 Feb 2002
Research & Ideas

How To Do Business in Islamic Countries

the Challenge." He was joined by a specialist in Islamic law, Harvard Law School professor Frank E. Vogel, for the series' discussion on doing business in the Islamic world. Vogel and Hayes are also co-authors of the book Islamic Law and Finance: Religion, View Details

Keywords: by Martha Lagace

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Research - Behavioral Finance & Financial Stability

risk and the cost of equity (the beta anomaly): As firms lever up, the overall cost of capital falls as leverage increases equity beta, but as debt becomes riskier the marginal benefit of increasing equity beta declines. They find that... View Details

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About - Behavioral Finance & Financial Stability

measure investor sentiment or risk neglect and understand its influence on security prices? Do credit market conditions reveal bubbles? How are credit market bubbles different from equity market bubbles? Regulation and Monetary Policy... View Details

28 Apr 2003
Research & Ideas

Supply Chain Risk: Deal With It

question," says Steve Harris, vice president of ABS Consulting, Oakland, Calif. Risk can be viewed as the product of frequency times consequence. That means a high-frequency/low-consequence event, such as the regular fluctuation of... View Details

Keywords: by David Stauffer

16 Apr 2020
Research & Ideas

Has COVID-19 Broken the Global Value Chain?

efficiency and cost minimization shall be accompanied by more attention toward a diversification and also of the currencies used for transactions. Question: What are some implications for policymakers? Answer: Here there is role for local... View Details

Keywords: by Sean Silverthorne

09 Apr 2019
First Look

New Research and Ideas, April 9, 2019

Western firms sought access to resources, and they faced little political risk due to Western imperialism. The main risks were logistical due to infrastructure and technological inadequacies. During the... View Details

Keywords: Dina Gerdeman

12 Dec 2005
Research & Ideas

Using the Law to Strategic Advantage

Constance Bagley: Yes, I'd be happy to. The law offers a variety of tools managers can use to manage the firm more effectively. They range from contracts, which can be used to strengthen business relationships, allocate risk and reward,... View Details

Keywords: by Sean Silverthorne; Legal Services

06 Oct 2003
Research & Ideas

The Problem with Hedge Funds

claims to have but really doesn't—any more than the mutual funds had expertise in picking dot-com stocks. The banks argue that they have expertise allowing them to pick the better hedge funds in which to invest. And they provide statistical models that supposedly... View Details

Keywords: by D. Quinn Mills

26 Apr 2011
First Look

First Look: April 26

only when publicly disclosed fundamental signals have high precision; fundamentals are thus the sole driver of crises in low-precision settings. We affirm this proposition on 39 currency crises by exploiting a key publicly disclosed... View Details

Keywords: Sean Silverthorne

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Globalization - Faculty & Research

currency internationalization, those ambitions have been moderated substantially over the last decade. We argue that the US ought to encourage renminbi internationalization as a costless means of assurance to China, to incentivize reform... View Details

05 Mar 2007
Research & Ideas

Risky Business? Protecting Foreign Investments

foreigners. In the somewhat special case of Indonesia, the political crisis accompanying the Asian Currency Crisis meant that no increases in rates were granted; thus the state-owned power distributor simply could not pay what had been... View Details

Keywords: by Sean Silverthorne; Energy; Utilities

30 Mar 2003
Research & Ideas

The Future of IT Consulting

an impressive education and training facility called St. Charles, outside of Chicago, which focuses on maintaining currency in the skill levels of their professionals, as well as providing a leading tool for equipping their professionals... View Details

Keywords: by Sarah Jane Johnston; Consulting

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Finance Awards & Honors - Faculty & Research

the 2024 Rising Scholar Award from The Review of Financial Studies for "Regulatory Limits to Risk Management" (June 2023). 2023 Mark L. Egan : Winner of the 2023 TIAA Paul A. Samuelson Award for Outstanding Scholarly Writing on Lifelong... View Details

May 2021 (Revised September 2021)
Case

Accounting for Bitcoin at Tesla

By: Charles C.Y. Wang and Siyu Zhang

On February 8, 2021, Tesla revealed, through its 10-K filing to the Securities and Exchange Commission (SEC), that it had purchased $1.5 billion of Bitcoin, totaling 7.5% of the company’s cash, and that it planned to accept payments in the cryptocurrency soon. These... View Details

Keywords: Bitcoin; Accounting; Currency; Communication Intention and Meaning; Strategy; Investment Portfolio; Emerging Markets; Risk and Uncertainty; Value Creation