Publications

November 2010 (Revised December 2010)
Case

Electro, Inc.

By: David F. Hawkins

CFO of U.S. company preparing for U.K. analyst meetings reviews his company's 2008 earnings per share calculations. View Details

Keywords: Business Earnings; Financial Reporting; International Accounting; Standards; United Kingdom; United States

2010
Working Paper

Accounting Scholarship that Advances Professional Knowledge and Practice

By: Robert S. Kaplan

Recent accounting scholarship has used statistical analysis on asset prices, financial reports and disclosures, laboratory experiments, and surveys of practice. The research has studied the interface among accounting information, capital markets, standard setters, and... View Details

Keywords: Accounting; Business Education; Information; Management Analysis, Tools, and Techniques; Risk Management; Measurement and Metrics; Business Processes; Performance Improvement; Practice

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30 Jan 2024
Research & Ideas

‘Intrinsic Joy’ Sparks Ideas Better than Cash

fun. He wants to help others,” Roche recalls. The paper’s co-authors include Annamaria Conti, an associate professor at IE Business School; Vansh Gupta, an analyst at Charles River Associates who participated as an undergraduate student... View Details

Keywords: by Rachel Layne; Technology

June 2011 (Revised January 2013)
Case

Oddo Securities―ESG Integration

By: Paul M. Healy

The case describes the process of integrating environmental, social, and governance issues into valuation models and research analyst recommendations. View Details

Keywords: Financial Strategy; Mathematical Methods; Integration; Valuation; Environmental Sustainability; Social Issues; Governance Controls; Investment

17 Sep 2013
First Look

First Look: September 17

In some cases, people can spare themselves the trouble of deliberation and instead "decide by mind wandering" yet experience no decrease in satisfaction. September 2013 Review of Financial Studies Expectations of Returns and... View Details

Keywords: Sean Silverthorne

January 2011 (Revised July 2011)
Case

Elizabeth Jacobs: Price-Earnings Ratios and Employee Stock Option Grants

By: David F. Hawkins

Analyst questions the value of accounting measurement of earnings per share and stock option costs for equity valuation purposes. View Details

Keywords: Earnings Management; Business Earnings; Employee Stock Ownership Plan; Stock Shares; Employee Ownership; Stock Options; Equity; Accounting Audits; Valuation; Profit Sharing; Accounting Industry

23 Jan 2023
Research & Ideas

After High-Profile Failures, Can Investors Still Trust Credit Ratings?

Credit ratings play an essential role in global finance by assessing whether borrowers can meet their debt obligations. Agency analysts study data from financial statements to make initial assessments about... View Details

Keywords: by Ben Rand

Article

Brand Values and Capital Market Valuation

By: Mary Barth, Michael B. Clement, George Foster and Ron Kasznik

Brand value estimates are significantly positively related to prices and returns, incremental to accounting variables. Questionable brand value estimate reliability underlies lack of financial statement recognition for brands. Findings suggest estimates are relevant... View Details

Keywords: Brands and Branding; Valuation

November 2008
Journal Article

Can Research Committees Add Value for Investors? An Analysis of Lehman Brothers' Ten Uncommon Values® Recommendations

By: Boris Groysberg, Paul M. Healy and Yang Gui

Since 1949 Lehman Brothers has used an investment committee to select the top ten recommendations made by its analysts each year. We examine the performance of this committee's recommendations and find that on average its selections generated abnormal returns of 2.7%... View Details

Keywords: Forecasting and Prediction; Stocks; Financial Markets; Investment; Investment Return; Governing Rules, Regulations, and Reforms; Performance Expectations; Groups and Teams; Research; Value Creation

January 2004 (Revised April 2004)
Case

Ford Motor Company: Quality of Earnings Growth Analysis (A)

By: David F. Hawkins and Jacob Cohen

Even though Ford Motor Co. reports improved profitability, an equity analyst issues a sell recommendation and Standard & Poor's downgrades long-term debt. View Details

Keywords: Quality; Business Earnings; Valuation; Investment Return; Profit; Financial Statements; Revenue; Auto Industry; Consulting Industry

07 Nov 2012
Working Paper Summaries

Causes and Consequences of Linguistic Complexity in Non-US Firm Conference Calls

Keywords: by Francois Brochet, Patricia Naranjo & Gwen Yu; Accounting

May 2015
Teaching Note

The United Kingdom and the Means to Prosperity

By: Laura Alfaro, Lakshmi Iyer and Hilary White

After struggling through the country's longest recession since 2008, the U.K. was expected to grow faster than any other G7 nation in 2014. Analysts wondered whether the return to growth was because, or in spite of, Prime Minister David Cameron's controversial £113... View Details

30 Apr 2019
First Look

New Research and Ideas, April 30, 2019

Psychology and Financial Fragility By: Gennaioli, Nicola, and Andrei Shleifer Abstract—The collapse of Lehman Brothers in September 2008 caught markets and regulators by surprise. Although the government rushed to rescue other View Details

Keywords: Dina Gerdeman

October 2019
Supplement

Impax Laboratories: Executing Accretive Transactions (A)

By: Benjamin C. Esty and Daniel Fisher

Impax Laboratories was a technology-based pharmaceutical company that used a “dual platform” strategy to sell both generic and branded treatments. While Impax had grown organically for most of its history, it was beginning to use major acquisitions for growth. In the... View Details

Keywords: Financial Reporting; Financial Statements; Mergers and Acquisitions; Capital Structure; Financial Strategy; Competition; Competitive Advantage; Corporate Strategy; Pharmaceutical Industry; United States

May 2006
Case

Nokia in 2003

By: Paul M. Healy

Examines the challenges facing a money manager who owns stock in Nokia, the leading wireless handset provider. Two analysts covering the stock make very different predictions about the economies of the industry, Nokia's future performance, and stock recommendations.... View Details

Keywords: Financial Reporting; Forecasting and Prediction; Performance Effectiveness; Performance Evaluation; Problems and Challenges; Electronics Industry

January 1999
Case

State Street Corporation: Leading with Information Technology (B)

By: Stephen P. Bradley and Kelley Porter

With Multi-currency HORIZON, a real-time multi-currency accounting system that replaced the traditional batch-oriented single-currency accounting system, successfully launched, State Street Corp. (State Street) began to focus on growing the scope of its business... View Details

Keywords: Accounting; Trends; Global Strategy; Growth and Development Strategy; Competitive Strategy; Information Technology; Value Creation; Financial Services Industry

June 2006 (Revised January 2012)
Case

Teena Lerner: Dividing the Pie at Rx Capital (A)

By: Boris Groysberg, Victoria Winston and Robin Abrahams

Teena Lerner started her own hedge fund firm in 2001 after nearly 20 years as a star biotechnology analyst and hedge fund manager. After the start-up phase, her firm became highly profitable. In 2004, however, one of her four analysts lost a lot of money for the firm.... View Details

Keywords: Managerial Roles; Investment Funds; Performance; Business Startups; Compensation and Benefits; Corporate Finance; Financial Services Industry

October 2019
Case

Impax Laboratories: Executing Accretive Acquisitions (A)

By: Benjamin C. Esty and Daniel Fisher

Impax Laboratories was a technology-based pharmaceutical company that used a “dual platform” strategy to sell both generic and branded treatments. While Impax had grown organically for most of its history, it was beginning to use major acquisitions for growth. In the... View Details

Keywords: Financial Reporting; Financial Statements; Mergers and Acquisitions; Capital Structure; Competition; Competitive Advantage; Corporate Strategy; Pharmaceutical Industry; United States