Publications

SSRN

Article

Deposit Competition and Financial Fragility: Evidence from the U.S. Banking Sector

By: Mark Egan, Ali Hortaçsu and Gregor Matvos

We develop a structural empirical model of the US banking sector. Insured depositors and run-prone uninsured depositors choose between differentiated banks. Banks compete for deposits and endogenously default. The estimated demand for uninsured deposits declines with... View Details

Keywords: Banks and Banking; Financial Condition; United States

15 May 2009
Working Paper Summaries

Money or Knowledge? What Drives Demand for Financial Services in Emerging Markets?

Keywords: by Shawn Cole, Thomas Sampson & Bilal Zia; Financial Services

May 1990 (Revised September 1994)
Background Note

Note on Financial Reporting Strategy and Analysis When Managers Have Proprietary Information

By: Krishna G. Palepu

Provides a framework that helps explain these real-world observations about accounting and financial statement analysis. When managers have superior information on firms' strategies, and when investors suspect that managers have incentives not to fully disclose this... View Details

Keywords: Financial Reporting; Strategy; Knowledge Management

Educators

Forthcoming
Article

Legislators' Demand for Firms' Financial Statements: Evidence from U.S. Congressional Redistricting Events

By: Matthew Ma, Jing Pan, Ethan Rouen and Laura Wellman

We investigate whether U.S. House representatives and their staff seek financial information from constituent firms to inform their legislative decisions. We exploit shifts in U.S. congressional districts (i.e., the reconfiguration of federal district lines or... View Details

Keywords: Redistricting; Lobbying; Legislators; Voting Behavior; Corporate Disclosure; Government Legislation; Voting; Behavior

Register to Read

November 2008
Journal Article

Financial Constraints and Growth: Multinational and Local Firm Responses to Currency Crises

By: Mihir A. Desai, C. Fritz Foley and Kristin Forbes

This paper examines how financial constraints and product market exposures determine the response of multinational and local firms to sharp depreciations. U.S. multinational affiliates increase sales, assets, and investment significantly more than local firms during,... View Details

Keywords: Economic Growth; Financial Crisis; Currency; Private Equity; Foreign Direct Investment; Multinational Firms and Management; Emerging Markets; United States

SSRN

Research Summary

The Real Effects of Capital Controls: Financial Constraints, Exporters, and Firm Investment

By: Laura Alfaro

In aftermath of the global financial crisis of 2008–2009, emerging-market governments have increasingly restricted foreign capital inflows. The data show a statistically significant drop in cumulative abnormal returns for Brazilian firms following capital control... View Details

01 Dec 2008
News

No Easy Fix for the Financial Crisis

How did we get into this mess, and how do we fix it? Those were the key questions that three separate expert panels — two convened by HBS and one by Harvard University — addressed for standing-room-only audiences in late September as the nation’s View Details

Keywords: Roger Thompson;Martha Lagace; deregulation; moral hazard; the middle class; Finance

19 Apr 2011
Working Paper Summaries

Top Executive Background and Financial Reporting Choice: The Case of Goodwill Impairment

Keywords: by Francois Brochet & Kyle Welch; Accounting

24 Apr 2014
News

Recasting environmentalism as a smart financial investment

global mission, Tercek says that viewing nature through the lens of basic business principles can lead to win-win opportunities—investments in nature that produce good business results and good environmental outcomes. (Published April... View Details

13 Dec 2018
Blog Post

"I Wanted to Move from Analyzing Results to Creating Them": Cynthia Samanian, MBA 2012

Cynthia says, "but preferred to be on the side of figuring out what products could be. I wanted to move from analyzing results to creating them." At HBS, Cynthia immersed herself in entrepreneurial coursework and club... View Details

Web

HBS - Financials | From the CFO

Harvard Business School Online and the support of HBS alumni, the School delivered financial results that came in significantly ahead of expectations. In a year when HBS had budgeted an operating deficit,... View Details

Web

Supplemental Financial Information | Annual Report 2024

Supplemental Financial Information Financial Overview Harvard Business School’s economic model is designed to support the School’s mission of educating leaders who make a difference in the world. Prudent... View Details

August 2013 (Revised November 2015)
Case

Prudential Financial - General Motors Pension Risk Transfer: Back to the Future?

By: Luis M. Viceira and Emily A. Chien

In November 2012, Prudential Financial and General Motors closed on a $25.1B pension risk transfer (PRT) transaction, the largest of its kind to date by an order of magnitude both in the U.S. market and globally. In exchange for an in-kind transfer of $25.1B in... View Details

Keywords: Risk Management; Asset Management; Insurance; Retirement; Financial Services Industry; Financial Services Industry

Educators

November 2023
Article

When Executives Pledge Integrity: The Effect of the Accountant's Oath on Firms' Financial Reporting

By: Jonas Heese, Gerardo Pérez Cavazos and Caspar David Peter

We study the effect of executives’ pledges of integrity on firms’ financial reporting outcomes by exploiting a 2016 regulation that requires holders of Dutch professional accounting degrees to pledge an integrity oath. We identify chief executive officers (CEOs) and... View Details

Keywords: Integrity; Financial Reporting; Accounting; Earnings Management

SSRN

Read Now

24 Oct 2008
Working Paper Summaries

Signaling Firm Performance Through Financial Statement Presentation: An Analysis Using Special Items

Keywords: by Edward J. Riedl & Suraj Srinivasan

2012
Working Paper

Can Implicit Regulation Change Financial Market Behavior? Evidence from Spitzer's Attack on Market Timers

By: Charles C.Y. Wang

This paper explores a natural experiment setup from the 2003-2004 mutual fund scandals to evaluate the effectiveness of implicit regulation on financial markets behavior. On average, buy-and-hold investors lost 218 basis points annually from 1998 to 2002 to market... View Details

Keywords: Financial Markets; Market Timing; United States

2010
Article

The Effect of Financial Development on the Investment Cash Flow Relationship: Cross-Country Evidence from Europe

We investigate financing constraints in a large cross-country data set covering most of the European economy. Firm-level investment sensitivity to cash flow is used to identify financing constraints. We find that the sensitivities are significantly positive, on... View Details

Keywords: Growth and Development; Development Economics; Investment; Cash Flow; Cross-Cultural and Cross-Border Issues; Relationships; Economy; Financial Markets; Business Subsidiaries; Capital Markets; Assets; Financing and Loans; Europe

July 2010 (Revised June 2012)
Background Note

Note: Regulation of Hedge Fund Managers in the U.K. Before and After the Global Financial Crisis

By: Robert C. Pozen and Melissa Anne Hammerle

This note will examine the regulatory framework for hedge funds in the United Kingdom (UK) before and after the financial crisis of 2008. First, it will discuss European Union (EU)-level regulation that applies to the UK as an EU member state. Second, it will discuss... View Details

Keywords: Financial Crisis; Investment Funds; Governing Rules, Regulations, and Reforms; Laws and Statutes; Business and Government Relations; Financial Services Industry; European Union; United Kingdom

Educators

2015
Working Paper

Collateral Shortages and Intermediation Networks

By: Marco Di Maggio and Alireza Tahbaz-Salehi

This paper argues that in the presence of trading frictions and agency problems, the interbank market may be overly fragile, in the sense that small changes in the liquidity of assets used as collateral may lead to large swings in haircuts and a potential credit... View Details

Keywords: Financial Intermediation; Financial Networks; Secured Lending; Collateral; Repo Runs; ABCP Collapse; Networks; Negotiation; Financing and Loans; Financial Crisis