Publications

March 1994
Case

Fremont Financial Corporation (B)

Fremont has a third option to finance its loan portfolio, which involves securitizing and selling the small-business loans into the capital markets. Emphasizes asymmetric information and moral hazard problems involved in designing an asset securitization. When used in... View Details

Keywords: Capital Markets; Financial Markets; Corporate Finance; Financial Services Industry

2009
Article

An Evolutionary Approach to Financial History

Financial history is not conventionally thought of in evolutionary terms, but it should be. Traditional ways of thinking about finance, dating back to Hilferding, emphasize the importance of concentration and economies of scale. But these approaches overlook the rich... View Details

Keywords: History; Transformation; Finance

16 Jul 2014
HBS Case

Marketing Obamacare

that means is that despite the enormous costs—both financial and political—of setting up these exchanges, fewer than 10 percent of uninsured people in the US have so far been insured as a result. “This is not like Field of Dreams, where... View Details

Keywords: by Michael Blanding; Health

Web

HBS - Financials | From the Chief Financial Officer

2022 Annual Report From The Dean Key Metrics Financials PDF Downloads Financials From the CFO Financial Highlights Statement of Activity & Cash Flows Consolidated Balance Sheet... View Details

2015
Book

Political Standards: Corporate Interest, Ideology, and Leadership in the Shaping of Accounting Rules for the Market Economy

By: Karthik Ramanna

There are certain institutions underlying our modern market-capitalist system that are largely outside the interest and understanding of the general public—e.g., rulemaking for bank capital adequacy, actuarial standards, accounting standards, and auditing practice. In... View Details

Keywords: Business And Society; Financial Institutions; Financial Reporting; GAAP; IFRS; Lobbying; Capitalism; Sustainability; Accounting; Finance; Business and Government Relations; Leadership; Financial Services Industry; Financial Services Industry; United States; China; India

Web

Behavioral Finance & Financial Stability

Financial Fragility By: Nicola Gennaioli & Andrei Shleifer SUMMER 2018 Nicola Gennaioli and Andrei Shleifer explain how beliefs shape financial markets and contribute to... View Details

2009
Book

Experiments in Financial Democracy: Corporate Governance and Financial Development in Brazil, 1882-1950

By: Aldo Musacchio

In Experiments in Financial Democracy, I challenge the idea that it was colonial institutions that sent Brazil, a civil law country, down a particular path of corporate governance and finance. Detailed archival research reveals significantly different patterns of... View Details

Keywords: Private Equity; Investment; Corporate Governance; Governing Rules, Regulations, and Reforms; Business History; Business and Shareholder Relations; Brazil

July 2004 (Revised January 2007)
Case

H&R Block and "Everyday Financial Services"

By: Peter Tufano and Daniel Schneider

H&R Block, the U.S. market leader in tax preparation services, must decide whether to offer financial services to its low-income clients. H&R Block is facing increased competition from branded and nonbranded tax preparers, and the number of returns prepared by the... View Details

Keywords: Financial Management; Income; Taxation; Product Development; Financial Services Industry; United States

01 Feb 2000
News

Financial Services 24/7

a routine part of most people's lives, there is no doubt that technology - especially Internet technology - is having a huge impact on the financial services industry. With much hype and headlines, Web trading has revolutionized the... View Details

Keywords: Susan Young

2022
Working Paper

Many Markets Make Good Neighbors: Multimarket Contact and Deposit Banking

By: John William Hatfield and Jonathan Wallen

We investigate the relationship between the interest rates offered to consumers in a deposit banking market and the contact that banks in that market have with each other in other markets. We show, in a simple theoretical model, that such overlapping relationships... View Details

Keywords: Antitrust; Deposit Banking; Market Power; Multimarket Contact; Banks and Banking; Markets; Competition

2006
Working Paper

How Does Foreign Direct Investment Promote Economic Growth? Exploring the Effects of Financial Markets on Linkages

By: Laura Alfaro, Areendam Chanda, Sebnem Kalemli-Ozcan and Selin Sayek

December 1998
Case

Retail Financial Services in 1998: Travelers

By: Stephen P. Bradley and Takia Mahmood

Provides an overview of Travelers Group's current strategy for retail financial services. Retail Financial Services in 1998 should be given to all students as background material. The class should then be split into groups, with each group receiving one of the... View Details

Keywords: Investment Funds; Management Analysis, Tools, and Techniques; Industry Structures; Competition; Competitive Strategy; Financial Services Industry

Research Summary

How Does Foreign Direct Investment Promote Economic Growth? Exploring the Effects of Financial Markets on Linkages (with Areendam Chanda, Sebnem Kalemli-Ozcan and Selin Sayek)

By: Laura Alfaro

The empirical literature finds mixed evidence on the existence of positive productivity externalities in the host country generated by foreign multinational companies. We propose a novel mechanism, which emphasizes the role of local financial markets in enabling... View Details

2022
Article

Which Corporate ESG News Does the Market React To?

By: George Serafeim and Aaron Yoon

Using a dataset that classifies firm-level ESG news as positive and negative, we examine how stock prices react to different types of ESG news. We analyze 111,020 firm-day observations for 3,126 companies and find that prices react only to issues identified as... View Details

Keywords: ESG; ESG (Environmental, Social, Governance) Performance; ESG Ratings; Social Capital; Environment; Sustainability; CSR; Stock Price; Stock Market Expectations; Materiality; Market Reaction; Environmental Sustainability; Governance; Social Issues; Performance; News

SSRN

Winter 2013
Article

Mandatory IFRS Adoption and Financial Statement Comparability

By: Francois Brochet, Alan Jagolinzer and Edward J. Riedl

This study examines whether mandatory adoption of International Financial Reporting Standards (IFRS) leads to capital market benefits through enhanced financial statement comparability. UK domestic standards are considered very similar to IFRS (Bae et al., 2008),... View Details

Keywords: IFRS; Comparability; Private Information; Insider Trading; Ethics; Standards; Financial Statements

2021
Working Paper

The Value of Intermediation in the Stock Market

By: Marco Di Maggio, Mark Egan and Francesco Franzoni

We estimate a structural model of broker choice to quantitatively decompose the value that institutional investors attach to broker services. Studying over 300 million institutional equity trades, we find that investors are sensitive to both explicit and implicit... View Details

Keywords: Financial Intermediation; Institutional Investors; Research Analysts; Broker Networks; Equity Trading; Institutional Investing; Financial Services Industry

SSRN

April 2000 (Revised May 2000)
Case

Capital One Financial Corporation

By: Bharat N. Anand, Michael G. Rukstad and Christopher Paige

Designed to explore the structure, implementation, and sustainability of an information-based strategy (IBS) undertaken by Capital One during the 1990s. Particular issues of interest are the impact of mass customization on industry structure, the ability to transfer... View Details

Keywords: Competitive Strategy; Customization and Personalization; Industry Structures; Internet and the Web; Innovation Strategy; Knowledge Use and Leverage; Financial Services Industry; United States

12 Aug 2020
Research & Ideas

Why Investors Often Lose When They Sue Their Financial Adviser

Years of bull market bliss gave brokerage clients few reasons to open their account statements—until March. Within one month, stocks in the United States notched their biggest one-day losses—and gains—as mounting fears about COVID-19’s... View Details

Keywords: by Danielle Kost; Financial Services

December 1998
Background Note

Retail Financial Services in 1998

By: Stephen P. Bradley and Takia Mahmood

Provides an overview of the current restructuring that is taking place in the retail financial services industry. Provides a brief overview of the structural changes in banking, brokerage, insurance, and mutual funds. Used as background for examining the strategies of... View Details

Keywords: Economic Sectors; Economy; Financial Institutions; Financial Markets; Industry Growth; Strategy; Competitive Strategy; Financial Services Industry; Financial Services Industry