Publications

June 2004
Article

A Catering Theory of Dividends

By: Malcolm Baker and Jeffrey Wurgler

We propose that the decision to pay dividends is driven by prevailing investor demand for dividend payers. Managers cater to investors by paying dividends when investors put a stock price premium on payers, and by not paying when investors prefer nonpayers. To test... View Details

Keywords: Dividends; Catering; Financial Instruments; Investment Return; Business and Shareholder Relations

June 2004
Article

Market Liquidity as a Sentiment Indicator

By: Malcolm Baker and Jeremy Stein

We build a model that helps to explain why increases in liquidity-such as lower bid-ask spreads, a lower price impact of trade, or higher turnover-predict lower subsequent returns in both firm-level and aggregate data. The model features a class of irrational... View Details

Keywords: Markets; Financial Liquidity; Price; Trade; Sales; Equity; Information; Management Analysis, Tools, and Techniques; Accounting Industry

May 2004 (Revised June 2004)
Case

Brief Biographical Note on P. Roy Vagelos

By: Nitin Nohria and Bridget Gurtler

Provides background biographical information on P. Roy Vagelos, chief executive officer of Merck Pharmaceuticals. Teaching Purpose: To chart the development of a leader in the pharmaceutical industry. View Details

Keywords: Biography; Teaching; Leadership Development; Mission and Purpose; Personal Development and Career; Ethics; Pharmaceutical Industry

May 2004
Article

CEO: Chief Education Officer; How to Deal with an Independent Board

By: Jay W. Lorsch

Keywords: Education; Governance

April 2004
Case

D-Wave Systems: Building a Quantum Computer

By: Alan D. MacCormack, Ajay Agrawal and Rebecca Henderson

D-Wave Systems is a start-up seeking to commercialize a quantum computer. Its business model is unique: as of 2003, it had very few technical resources within the firm. Instead, it financed a series of projects undertaken at universities and government labs. In return... View Details

Keywords: Business Model; Business Startups; Engineering; Investment; Intellectual Property; Product Development; Research and Development; Commercialization; Computer Industry

April 2004
Tutorial

Yield Curves and Bond Ratings Tutorial

By: William E. Fruhan Jr.

To preview this online product, Authorized Faculty can call our customer service department at 1-800-545-7685 or 617-783-7600. This online tutorial explains what drives the shape of the yield curve for traded debt securities. Also describes the metrics used by rating... View Details

Keywords: Bonds; Investment Return; Financial Services Industry

March 2004 (Revised August 2004)
Case

Restricting Foods of Minimal Nutritional Value in Texas Public Schools

By: Ray A. Goldberg and Hal Hogan

The Commission of Agriculture in Texas wants to improve the nutritional quality of the school lunch program to help fight obesity in students. It needs the cooperation of the soft drink industry to change their products and the manner in which they provide financial... View Details

Keywords: Government and Politics; Business and Government Relations; Nutrition; Food; Quality; Education; Education Industry

March 2004 (Revised May 2006)
Background Note

Corporate Reform in the United States

By: Lynn S. Paine and Kim Bettcher

The spate of corporate misdeeds revealed to the American public in 2001 to 2002 prompted corrective action in many quarters of the U.S. economy. The note summarizes some of the steps taken by lawmakers, regulators, law-enforcement officials, companies, investors,... View Details

Keywords: Corporate Governance; Capital Markets; Governing Rules, Regulations, and Reforms; Trust; United States

March 2004 (Revised November 2004)
Background Note

Building Capabilities: Mechanisms for and Impediments to Learning

By: Steven J. Spear and H. Kent Bowen

Stand-alone teaching note. View Details

Keywords: Education

March 2004 (Revised October 2013)
Case

Innocents Abroad: Currencies and International Stock Returns

By: Mihir A. Desai, Kathleen Luchs, Elizabeth A. Meyer and Mark Veblen

What do international stocks contribute to the portfolio of a U.S. investor? How do currencies interact with stock price movements in determining the benefits of international diversification? This case helps students compare the risks and returns of foreign stock... View Details

March 2004 (Revised May 2014)
Supplement

Innocents Abroad: Currencies and International Stock Returns

By: Mihir A. Desai, Elizabeth A. Meyer and Mark Veblen

Spreadsheet to (9-204-141). Download only. View Details

2004
Other Teaching and Training Material

Great Negotiator 2002: Lakhdar Brahimi

By: James K. Sebenius and Kristin Schneeman

The Program on Negotiation honored Ambassador Brahimi in events on October 2, 2002. These began with an in-depth faculty-moderated discussion with a group of students, faculty, and guests at Harvard Business School. On the evening of the 2nd, Ambassador Brahimi... View Details

Keywords: Negotiation; Learning; Strategy; Afghanistan

2004
Working Paper

Judging Fund Managers by the Company They Keep

By: Randolph Cohen, Joshua Coval and Luboš Pástor

We develop a performance evaluation approach in which a fund manager's skill is judged by the extent to which his investment decisions resemble the decisions of managers with distinguished performance records. The proposed performance measures are estimated more... View Details

Keywords: Measurement and Metrics; Performance Evaluation; Investment Funds; Investment

2004
Case

Learning to Manage with Data in Duval County Public Schools: Lake Shore Middle School (A)

By: Allen Grossman, James P. Honan and Caroline Joan King

Keywords: Middle School Education; Management Skills; Florida

2004
Teaching Note

Learning to Manage with Data in Duval County Public Schools: Lake Shore Middle School (A) and (B) Case Series, Teaching Note

By: Allen Grossman, James P. Honan and Caroline Joan King

Keywords: Middle School Education; Management Skills; Florida

2004
Case

Learning to Manage with Data in Duval County Public Schools: Lake Shore Middle School (B)

By: Allen Grossman, James P. Honan and Caroline Joan King

Keywords: Middle School Education; Management Skills; Florida

2004
Article

Teaching Students How to Reason Well by Analogy

By: Giovanni Gavetti and Jan Rivkin

Keywords: Teaching; Cognition and Thinking

December 2003 (Revised April 2005)
Case

Camilla Denison (A)

By: H. Kent Bowen, Bryce LaPierre and Virginia Fuller

Follows a successful manager as she takes on challenging assignments to lead manufacturing and development organizations. Details many experiences that influenced her character and attitudes from her youth to her graduate education and first jobs. Students discover the... View Details

Keywords: Personal Development and Career; Success; Management Skills; Experience and Expertise

November 2003
Article

The Maturity of Debt Issues and Predictable Variation in Bond Returns

By: Malcolm Baker, Robin Greenwood and Jeffrey Wurgler

The maturity of new debt issues predicts excess bond returns. When the share of long-term debt issues in total debt issues is high, future excess bond returns are low. This predictive power comes in two parts. First, inflation, the real short-term rate, and the term... View Details

Keywords: Borrowing and Debt; Bonds; Investment Return; Financial Markets; Forecasting and Prediction