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  • All HBS Web  (728)
    • News  (81)
    • Research  (333)
    • Events  (5)
    • Multimedia  (3)
  • Faculty Publications  (196)
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  • March 2008 (Revised February 2009)
  • Case

Transparent Value LLC

By: Sharon P. Katz, Krishna G. Palepu and Aldo Sesia, Jr.
Leading index company Dow Jones recently signed a license and joint marketing agreement with Transparent Value LLC, the creator of a new fundamentals-based valuation methodology. The agreement allowed Dow Jones to offer a family of indexes based on the Transparent... View Details
Keywords: Asset Management; Stocks; Price; Performance Expectations; Mathematical Methods; Valuation
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Katz, Sharon P., Krishna G. Palepu, and Aldo Sesia, Jr. "Transparent Value LLC." Harvard Business School Case 108-069, March 2008. (Revised February 2009.)
  • August 2003
  • Article

When Does the Market Matter? Stock Prices and the Investment of Equity-Dependent Firms

By: Malcolm Baker, Jeremy Stein and Jeffrey Wurgler
We use a simple model of corporate investment to determine when investment will be sensitive to non-fundamental movements in stock prices. The key cross-sectional prediction of the model is that stock prices will have a stronger impact on the investment of firms that... View Details
Keywords: Stocks; Price; Investment; Equity; Forecasting and Prediction; Rank and Position; Markets
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Baker, Malcolm, Jeremy Stein, and Jeffrey Wurgler. "When Does the Market Matter? Stock Prices and the Investment of Equity-Dependent Firms." Quarterly Journal of Economics 118, no. 3 (August 2003): 969–1006.
  • November 2009
  • Article

Neural Mechanisms of Social Influence

By: Malia Mason, Rebecca Dyer and Michael I. Norton
The present investigation explores the neural mechanisms underlying the impact of social influence on preferences. We socially tagged symbols as valued or not-by exposing participants to the preferences of their peers-and assessed subsequent brain activity during an... View Details
Keywords: Power and Influence; Value; Information; Outcome or Result
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Mason, Malia, Rebecca Dyer, and Michael I. Norton. "Neural Mechanisms of Social Influence." Organizational Behavior and Human Decision Processes 110, no. 2 (November 2009): 152–159.
  • August 2000 (Revised July 2002)
  • Case

Sara's Options

By: Peter Tufano, Brian J. Hall and Joshua Musher
This case describes the pay packages offered to Sara Becker, a graduating MBA student, including detailed information about two stock option packages (one of which is an indexed option package). She gathers the information and attempts to compare those compensation... View Details
Keywords: Stock Options; Compensation and Benefits; Recruitment; Information; Valuation
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Tufano, Peter, Brian J. Hall, and Joshua Musher. "Sara's Options." Harvard Business School Case 201-005, August 2000. (Revised July 2002.)
  • 2001
  • Working Paper

When Does the Market Matter? Stock Prices and the Investment of Equity Dependent Firms

By: Malcolm Baker, Jeremy Stein and Jeffrey Wurgler
We use a simple model of corporate investment to determine when investment will be sensitive to non-fundamental movements in stock prices. The key cross-sectional prediction of the model is that stock prices will have a stronger impact on the investment of firms that... View Details
Keywords: Investment; Equity; Stocks; Price; Mathematical Methods; Forecasting and Prediction
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Baker, Malcolm, Jeremy Stein, and Jeffrey Wurgler. "When Does the Market Matter? Stock Prices and the Investment of Equity Dependent Firms." NBER Working Paper Series, No. 8750, December 2001. (First draft in 2001.)
  • 2022
  • White Paper

The American Opportunity Index: A Corporate Scorecard of Worker Advancement

By: Matt Sigelman, Joseph Fuller, Nik Dawson and Gad Levanon
The American Opportunity Index: A Corporate Scorecard of Worker Advancement is a new effort to give companies and other stakeholders a set of robust tools that measure how well major employers are doing in fostering economic mobility for workers and how they could do... View Details
Keywords: Upward Mobility; Career Advancement; Personal Development and Career; Compensation and Benefits; Employees; Wages; Human Capital; Recruitment
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Sigelman, Matt, Joseph Fuller, Nik Dawson, and Gad Levanon. "The American Opportunity Index: A Corporate Scorecard of Worker Advancement." White Paper, Burning Glass Institute, October 2022 (A joint project with Harvard Business School Project on Managing the Future of Work and Schultz Family Foundation.)
  • March 2005
  • Article

Short- and Long-term Demand Curves for Stocks: Theory and Evidence on the Dynamics of Arbitrage

By: Robin Greenwood
I develop a framework to analyze demand curves for multiple risky securities at extended horizons in a setting with limits-to-arbitrage. Following an unexpected change in uninformed investor demand for several assets, I predict returns of each security to be... View Details
Keywords: Limits To Arbitrage; Event Studies; Demand Curves; Portfolio Choice; Framework; Demand and Consumers; Change; Risk and Uncertainty; Debt Securities; Forecasting and Prediction; Stocks; Assets; Investment Portfolio; System Shocks; Price; Japan
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Greenwood, Robin. "Short- and Long-term Demand Curves for Stocks: Theory and Evidence on the Dynamics of Arbitrage." Journal of Financial Economics 75, no. 3 (March 2005): 607–649.
  • 22 Aug 2017
  • Working Paper Summaries

Investors as Stewards of the Commons?

Keywords: by George Serafeim
  • 2021
  • Working Paper

Going by the Book: Valuation Ratios and Stock Returns

By: Ki-Soon Choi, Eric So and Charles C.Y. Wang
We study the use of firms’ book-to-market ratios (B/M) in value investing and its implications for comovements in firms’ stock returns and trading volumes. We show B/M has become increasingly detached from common alternative valuation ratios over time while also... View Details
Keywords: Valuation Ratios; Book-to-market Ratios; Investment Return; Investment; Decision Making
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Choi, Ki-Soon, Eric So, and Charles C.Y. Wang. "Going by the Book: Valuation Ratios and Stock Returns." Harvard Business School Working Paper, No. 21-126, May 2021.
  • March 2008
  • Article

Functional Imaging of Decision Conflict

By: J. B. Pochon, Jason Riis, A. Sanfey, L. Nystrom and J. D. Cohen
Decision conflict occurs when people feel uncertain as to which option to choose from a set of similarly attractive (or unattractive) options, with many studies demonstrating that this conflict can lead to suboptimal decision making. In this article, we investigate the... View Details
Keywords: Decisions; Judgments; Risk and Uncertainty; Science; Conflict and Resolution; Perception
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Pochon, J. B., Jason Riis, A. Sanfey, L. Nystrom, and J. D. Cohen. "Functional Imaging of Decision Conflict." Journal of Neuroscience 28, no. 13 (March 2008).
  • Second Quarter 2008
  • Article

How Does Investor Sentiment Affect the Cross-Section of Returns

By: Malcolm Baker, Johnathan Wang and Jeffrey Wurgler
Broad waves of investor sentiment should have larger impacts on securities that are more difficult to value and to arbitrage. Consistent with this intuition, we find that when an index of investor sentiment takes low values, small, young, high volatility,... View Details
Keywords: Volatility; Behavioral Finance; Stocks; Investment; Investment Return; Attitudes
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Baker, Malcolm, Johnathan Wang, and Jeffrey Wurgler. "How Does Investor Sentiment Affect the Cross-Section of Returns." Journal of Investment Management 6, no. 2 (Second Quarter 2008): 57–72.
  • October 2009 (Revised April 2010)
  • Case

Societe Generale (A): The Jerome Kerviel Affair

By: Francois Brochet
This case illustrates the tension/balance that firms with complex and risky business models must consider in designing their internal controls. It describes the environment in which a derivatives trader engaged in massive directional positions on major European stocks... View Details
Keywords: Risk Management; Problems and Challenges; Complexity; Cost Management; Balance and Stability; Business Model; Design; Stocks; Crisis Management; Financial Markets; Consulting Industry; Europe
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Brochet, Francois. "Societe Generale (A): The Jerome Kerviel Affair." Harvard Business School Case 110-029, October 2009. (Revised April 2010.)
  • 2022
  • Working Paper

How Do Investors Value ESG?

By: Malcolm Baker, Mark Egan and Suproteem K. Sarkar
Environmental, social, and governance (ESG) objectives have risen to near the top of the agenda for corporate executives and boards, driven in large part by their perceptions of shareholder interest. We quantify the value that shareholders place on ESG using a revealed... View Details
Keywords: Investment; Investment Portfolio; Corporate Social Responsibility and Impact; Business and Shareholder Relations; Environmental Sustainability; Governance; Financial Services Industry; United States
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Baker, Malcolm, Mark Egan, and Suproteem K. Sarkar. "How Do Investors Value ESG?" NBER Working Paper Series, No. 30708, December 2022. (Harvard Business School Working Paper, No. 23-028, November 2022.)
  • 2025
  • Working Paper

Turning Points in Inflation: A Structural Breaks Approach with Micro Data

By: Alberto Cavallo and Gastón García Zavaleta
We introduce a novel methodology for detecting inflation turning points that combines high-frequency, disaggregated price data with standard structural break techniques to provide policymakers with more precise and timely signals of inflation dynamics. The methodology... View Details
Keywords: Inflation and Deflation; Global Range; Economic Slowdown and Stagnation; Analysis; Price
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Cavallo, Alberto, and Gastón García Zavaleta. "Turning Points in Inflation: A Structural Breaks Approach with Micro Data." Working Paper, May 2025. (Preliminary draft.)
  • December 2000 (Revised February 2002)
  • Case

Pine Street Capital

A technology hedge fund is trying to decide whether and/or how to hedge equity market risk. Its hedging choices are short-selling and options. The fund has just gone through one of the most volatile periods in NASDAQ's history, it is trying to decide whether it should... View Details
Keywords: Risk Management; Investment Funds
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Chacko, George C., and Eli Strick. "Pine Street Capital." Harvard Business School Case 201-071, December 2000. (Revised February 2002.)
  • Research Summary

National Innovative Capacity and the Ideas Production Function

By: Michael E. Porter
Joint research with Scott Stern (MIT) is exploring the determinants of innovative capacity across countries using time series/cross-section data ("Measuring the "Ideas" Production Function: Evidence from International Patent... View Details
  • 5 Dec 2013
  • Other Presentation

Can Japan Compete? Revisited

By: Michael E. Porter
This presentation draws on ideas from Professor Porter's articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), "Building the Microeconomic Foundations of Competitiveness," in The Global Competitiveness Report... View Details
Keywords: Economics; Japan
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Porter, Michael E. "Can Japan Compete? Revisited." Porter Prize Conference, Hitotsubashi University. Graduate School of International Corporate Strategy, Tokyo, Japan, December 5, 2013.
  • April 2020
  • Article

Field Comparisons of Incentive-Compatible Preference Elicitation Techniques

By: Shawn A. Cole, A. Nilesh Fernando, Daniel Stein and Jeremy Tobacman
Knowledge of consumer demand is important for firms, policy makers, and economists. One common tool for incentive-compatible demand elicitation, the Becker-DeGroot-Marschak (BDM) mechanism, has been widely used in laboratory settings but rarely evaluated for... View Details
Keywords: Incentive-compatible Elicitation; Experimental Methods; Weather Insurance; Rainfall Insurance; Agricultural Extension; Demand and Consumers
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Cole, Shawn A., A. Nilesh Fernando, Daniel Stein, and Jeremy Tobacman. "Field Comparisons of Incentive-Compatible Preference Elicitation Techniques." Journal of Economic Behavior & Organization 172 (April 2020): 33–56.
  • March 1998
  • Article

On the Sequencing of Privatization in Transition Economies

By: Gautam Ahuja and Sumit K. Majumdar
This paper presents an empirical criterion for establishing privatization priorities for state-owned enteiprises. The approach uses firm performance, defined as productive efficiency, as the basis for deciding the sequence in which firms are privatized. Sequencing is... View Details
Keywords: Strategy; Performance Efficiency; Privatization; Developing Countries and Economies; Planning; Service Industry; India
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Ahuja, Gautam, and Sumit K. Majumdar. "On the Sequencing of Privatization in Transition Economies." Industrial and Corporate Change 7, no. 1 (March 1998): 109–151.
  • 4 Oct 2013
  • Other Presentation

Economic and Social Development: The New Learning

By: Michael E. Porter
This presentation draws on ideas from Professor Porter's articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), "Building the Microeconomic Foundations of Competitiveness," in The Global Competitiveness Report... View Details
Keywords: Economics; Panama
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Porter, Michael E. "Economic and Social Development: The New Learning." Americas Competitiveness Forum, Panama City, Panama, October 4, 2013.
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