Publications

25 Aug 2017
News

Shame, Prestige Drive Returns at Some of Japan's Biggest Firms

24 Mar 2021
News

Inflation Is Harder to Measure After a Year of Pandemic Spending

28 Jun 2011
News

Retsinas Says Jobless, Foreclosures Weighing on Housing

06 Sep 2019
Video

Mo Ibrahim

Mo Ibrahim, the founder of the African telecommunications company Celtel and later a major corporate philanthropist, describes why he created the Mo Ibrahim Foundation in 2006, the creation... View Details

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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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

08 Apr 2021
Blog Post

HBS Entrepreneurship Immersion - Four Highlights

Since graduation, I have spent a lot of time in the entrepreneurial space! Currently, I am the CFO at Pilot.com, a $1.2Bn Series C FinTech startup backed by Sequoia Capital, Index Ventures, Stripe, and Bezos Expeditions. Pilot builds... View Details

17 Oct 2024
Video

John Coates: Most Americans aren’t aware of how concentrated the financial sector has gotten

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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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

Find at Harvard

22 Aug 2017
Working Paper Summaries

Investors as Stewards of the Commons?

Keywords: by George Serafeim

17 Jun 2021
News

Too Few Women Get to Invent – That’s a Problem for Women’s Health

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

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

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

22 Sep 2017
News

State Street’s SHE: Investing in Women Leaders

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