Publications

March 2024
Supplement

ELCA's Series A Cap Table Exercise (Instructor Version)

By: Raymond Kluender and Anke Becker

In ELCA, the company must decide between two term sheets: one put forth by STV and one put forth by ESV.

This exercise is an analysis of the implications of these two term sheets on the ownership structure and the payouts of common and preferred... View Details

Keywords: Analysis; Venture Capital; Investment; Ownership Stake

2023
Working Paper

Avoiding Idiosyncratic Volatility: Flow Sensitivity to Individual Stock Returns

By: Marco Di Maggio, Francesco Franzoni, Shimon Kogan and Ran Xing

Despite positive and significant earnings announcement premia, we find that institutional investors reduce their exposure to stocks before earnings announcements. A novel result on the sensitivity of flows to individual stock returns provides a potential explanation.... View Details

Keywords: New Trading; Mutual Funds; Fund Flows; Limits To Arbitrage; Financial Constraints; Earnings Announcements; Institutional Investing; Stocks

SSRN

Article

Adding Value by Talking More

By: Robert S. Kaplan, Derek A. Haas and Jonathan Warsh

The prevailing fee-for-service payment model has led health care administrators and physician practices to impose severe constraints on the time physicians spend talking, for which they are reimbursed poorly or not at all. New value-based reimbursement models, however,... View Details

Keywords: Value Creation; Cost Management; Health Care and Treatment; Customer Focus and Relationships; Health Industry

February 2015 (Revised February 2017)
Case

Winnan Metal: Fulfilling the Dream

By: William R. Kerr, Jim Sharpe and James Weber

Neil Kashyap and Neil Lombardo (HBS '08) acquired Winnan Metal, Inc., a metal fabrication shop, after raising a search fund and an 11 month search to fulfill their dreams of becoming business owners. Two weeks after they took control of the company, Winnan's largest... View Details

Keywords: Entrepreneurs; Entrepreneurial Management; Turnarounds; Bank Loan; Crisis Management; Financial Analysis; Search Funds; Acquisitions; Financial Capital Needed; Management; Operations Management; Sales; Entrepreneurship; Decision Making; Change Management; Manufacturing Industry; United States; Indiana

Educators

Article

Emodiversity and the Emotional Ecosystem

By: Jordi Quoidbach, June Gruber, Moira Mikolajczak, Alexsandr Kogan, Ilios Kotsou and Michael I. Norton

Bridging psychological research exploring emotional complexity and research in the natural sciences on the measurement of biodiversity, we introduce—and demonstrate the benefits of—emodiversity: the variety and relative abundance of the emotions that humans experience.... View Details

Keywords: Health; Diversity; Emotions

December 2010
Article

Implications for GAAP from an Analysis of Positive Research in Accounting

By: S.P. Kothari, Karthik Ramanna and Douglas J. Skinner

Based on extant literature, we review the positive theory of GAAP. The theory predicts that GAAP's principal focus is on control (performance measurement and stewardship) and that verifiability and conservatism are critical features of a GAAP shaped by market forces.... View Details

Keywords: Fair Value Accounting; Standards; International Accounting; Financial Markets; Financial Reporting

SSRN

Article

Estimating the Effects of Large Shareholders Using a Geographic Instrument

Large shareholders may play an important role for firm performance and policies, but identifying this empirically presents a challenge due to the endogeneity of ownership structures. We develop and test an empirical framework, which allows us to separate selection from... View Details

Keywords: Business and Shareholder Relations; Performance; Policy; Ownership; Selection and Staffing; Business Headquarters; Geography; Framework

June 2007 (Revised January 2009)
Case

Nextel Partners: Put Option

By: Timothy A. Luehrman and Douglas Scott

Nextel Partners' shareholders have voted to exercise a put option that will require the company's largest shareholder, Sprint Nextel Corp., to purchase all the shares it does not already own. However, the put option does not stipulate a price to be paid, but rather a... View Details

Keywords: Mergers and Acquisitions; Stock Options; Price; Public Ownership; Valuation

Educators

summer 1997
Article

An Empirical Exploration of a Technology Race

By: J. Lerner

An extensive theoretical literature examines technological competition, and in particular whether leaders maintain their standing. These models, however, have received little support. Innovation is examined in the disk drive industry, an environment particularly... View Details

Keywords: Information Technology; Learning

Program

Driving Corporate Performance

are using powerful performance measurement and management control systems to confront some of today's biggest challenges and opportunities, such as improving employee motivation, using AI and data analytics effectively, and reporting on... View Details

January 2008 (Revised October 2010)
Case

Sara Campbell Ltd. (A)

By: Romana Autrey, V.G. Narayanan and Julia Rozovsky

Describes a situation in which Sara Campbell, the CEO of a women's apparel company, must decide how to resolve the tense relationship with her Financial Controller and ex-brother-in-law, Stephen Holt. Holt was employed by Campbell for 10 years, took on the majority of... View Details

Keywords: Accounting; Judgments; Governance Controls; Employee Relationship Management; Behavior; Apparel and Accessories Industry

Educators