Publications

September 2004
Teaching Note

Between a Rock and a Hard Place: Valuation and Distribution in Private Equity (TN)

By: G. Felda Hardymon, Josh Lerner and Ann Leamon

Teaching Note to (9-803-161). View Details

Keywords: Valuation; Distribution; Private Equity; Venture Capital; Investment Portfolio; Stocks

August 2003
Article

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: Stocks; Price; Investment; Equity; Forecasting and Prediction; Rank and Position; Markets

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

Student-Profile

Sarah Wolfolds

and friends has been instrumental in my happiness thus far. In addition, sometimes graduate school can be lonely - but it is important to remember to reach out to your cohort and all of the support systems that HBS provides during these... View Details

27 Mar 2014
News

From Marx to Marketing

Research Center, a member of HBS professor Howard Raiffa's "Negotiation Roundtable," and a senior research fellow at HBS. Also during that period, he and HBS professor Paul Lawrence would be instrumental in establishing and organizing the... View Details

02 Jun 2021
Blog Post

Paul’s Sabbatical Story: Hypothesis-Testing by Sabbaticals

realities of working in the tourism industry far from friends and family. Paul credits this sabbatical—and his five others—as instrumental in career wayfinding. He’s learned not to expect epiphanies from these blocks of time. Instead,... View Details

21 Sep 2016
Research & Ideas

Shabana Azmi: Leveraging Bollywood Fame into Social Good

Silverthorne: What do you think are the roots of her social activism? Deshpandé: It goes back to growing up in a family where both her parents were politically active, and believed that art was an instrument for political activism. Her... View Details

Keywords: by Sean Silverthorne; Motion Pictures & Video

Web

Preface - Coin and Conscience – Baker Library | Bloomberg Center, Historical Collections

growing number of foreign merchants and financiers who came there to transact business. Money had to be loaned at interest to meet the credit demands of international trade. To secure these loans, various negotiable instruments were... View Details

14 Aug 2007
First Look

First Look: August 14, 2007

facilitates the design of new instruments and contracts to control or transfer sovereign risk. Business Methods Patents as Real Options: Value and Disclosure as Drivers of Litigation. Authors:Atul Nerkar, Srikanth Paruchuri, and Mukti... View Details

Keywords: Martha Lagace

12 Sep 2005
Research & Ideas

The Broadband Explosion: Thinking About a Truly Interactive World

lines creating this kind of technology. As you probably know, Jeremy was instrumental in creating Macromedia's Flash technology, so he really knows what he's talking about. This is the "rich media" component of our argument. You... View Details

Keywords: by Sara Grant; Technology; Communications; Telecommunications

2010
Chapter

The Euro as a Reserve Currency for Global Investors

By: Luis M. Viceira and Ricardo Gimeno

This article explores the demand for the euro for risk management purposes and the evidence of stock market integration in the euro area. We define a reserve currency as one that investors demand either because it helps them hedge real interest risk and inflation risk,... View Details

Keywords: Volatility; Inflation and Deflation; Capital Markets; Currency; Stocks; Financial Markets; Financing and Loans; Investment Return; Investment Portfolio; Risk Management

February 2006 (Revised August 2006)
Case

Auctioning Morningstar

By: Malcolm P. Baker and James Quinn

Morningstar, a publisher of data and ratings for mutual fund investors, is considering an auction-based approach to the company's upcoming IPO, with management weighing the risks and benefits of the auction approach vs. a traditional underwritten offering. View Details

Keywords: Financial Strategy; Initial Public Offering; Stock Shares; Cost vs Benefits; Strategy; Auctions; Business or Company Management; Conflict of Interests; Publishing Industry

20 Mar 2017
Working Paper Summaries

Bubbles for Fama

Keywords: by Robin Greenwood, Andrei Shleifer, and Yang You

January 1993 (Revised August 2003)
Case

Sally Jameson: Valuing Stock Options in a Compensation Package

By: Peter Tufano

Details a thinly disguised situation faced by a recent Harvard MBA graduate who was forced by a prospective employer to place a dollar value on a grant of stock options. There are two objectives: 1) Serves as an introduction to option valuation, in which students have... View Details

Keywords: Valuation; Stock Options; Compensation and Benefits

1990
Chapter

Multinational Corporations, Exchange Rates, and Direct Investment

By: K. A. Froot

Keywords: Corporate Finance; Market Imperfections; Financial Instruments; Foreign Direct Investment; Markets; Asset Pricing

Article

Investing in What You Know: The Case of Individual Investors and Local Stocks

By: Mark Seasholes and Ning Zhu

This paper tests the performance of individuals' equity investments. We study over 40,000 accounts and 950,000 trades from a large discount broker. Individuals invest heavily in local stocks and put 14% more into these stocks than a market-neutral portfolio... View Details

Keywords: Stocks; Local Range; Investment; Equity

January 1993 (Revised May 2004)
Case

Laurinburg Precision Engineering

By: William J. Bruns Jr.

A small manufacturer needs additional financing for expansion and production improvements. A bond issue would provide needed funds, and a zero-coupon bond would delay payments until funds provided by operations were available. Present value tables are included. View Details

Keywords: Valuation; Bonds; Financing and Loans; Interest Rates; Manufacturing Industry

winter 2004
Article

Transferable Stock Options (TSOs) and the Coming Revolution in Equity-Based Pay

By: Brian Hall

Keywords: Stock Options; Equity; Compensation and Benefits

May 2012
Article

Global, Local, and Contagious Investor Sentiment

By: Malcolm Baker, Jeffrey Wurgler and Yu Yuan

We construct investor sentiment indices for six major stock markets and decompose them into one global and six local indices. In a validation test, we find that relative sentiment is correlated with the relative prices of dual-listed companies. Global sentiment is a... View Details

Keywords: Business and Shareholder Relations; Globalization; Stocks; Markets; Capital; Financial Services Industry