Decision-making In Financial Markets - Publications - Faculty & Research

August 2016
Article

Asymmetric Effects of Favorable and Unfavorable Information on Decision-making Under Ambiguity

By: Alexander Peysakhovich and Uma R. Karmarkar

Most daily decisions involve uncertainty about outcome probabilities arising from incomplete knowledge, i.e., ambiguity. We explore how the addition of partial information affects these types of choices using theoretical and empirical methods. Our experiments in both... View Details

Keywords: Ambiguity; Decision Making; Outcomes; Information; Decision Choices and Conditions; Outcome or Result

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12 Jul 2018
News

In the Market for Environmental Change

responsible investing or social responsibility in all corporate affairs. That now lives under the rubric ESG-- Environment, Society, and Governance. “What we've seen in the View Details

24 Apr 2014
News

Unlocking mobile money in emerging markets

buyers and sellers are currently excluded from global commerce. These individuals, because of their collective size, will likely redefine the concept of banking and financial access in the future.” Working... View Details

Article

Unhealthy Consumerism: The Challenge of Trading Off Price and Quality in Healthcare

By: Kate Barasz and Peter A. Ubel

Over the last decade, healthcare in many parts of the world has shifted toward a more patient-centric, consumeristic model, marked by an emphasis on choice and a proliferation of typical consumer-facing information (e.g., price and quality data). However, while the... View Details

Keywords: Medical Decision-making; Choice; Health Care and Treatment; Quality; Price; Consumer Behavior; Decision Making

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13 May 2019
News

Reading the Market

2009
Working Paper

Prices or Knowledge? What Drives Demand for Financial Services in Emerging Markets?

By: Shawn A. Cole, Thomas Sampson and Bilal Zia

Financial development is critical for growth, but its micro-determinants are not well understood. We test leading theories of low demand for financial services in emerging markets, combining novel survey evidence from Indonesia and India with a field experiment. We... View Details

Keywords: Banks and Banking; Saving; Knowledge Acquisition; Emerging Markets; Motivation and Incentives; Financial Services Industry; India; Indonesia

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December 2011
Article

Prices or Knowledge? What Drives Demand for Financial Services in Emerging Markets?

By: Shawn A. Cole, Thomas Sampson and Bilal Zia

Financial development is critical for growth, but its micro-determinants are not well understood. We test leading theories of low demand for financial services in emerging markets, combining novel survey evidence from Indonesia and India with a field experiment. We... View Details

Keywords: Price; Knowledge; Demand and Consumers; Emerging Markets; Banks and Banking; Education; Finance; Behavior; Service Operations; Financial Services Industry; India; Indonesia

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June 2014
Teaching Note

Steve Carpenter at Cake Financial

By: Thomas R. Eisenmann

After investing $9 million of venture capital, Cake Financial had failed to reach critical mass. In early 2010 Cake's assets were sold and the company was dissolved. Founded in 2006, the San Francisco-based Internet company allowed users to monitor their investments... View Details

Keywords: Corporate Entrepreneurship; Business or Company Management; Business Model; Growth and Development Strategy; Business Strategy; Internet; Financial Services Industry; Financial Services Industry

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January–February 2019
Article

Corporate Purpose and Financial Performance

By: Claudine Gartenberg, Andrea Prat and George Serafeim

We construct a measure of corporate purpose within a sample of U.S. companies based on approximately 500,000 survey responses of worker perceptions about their employers. We find that this measure of purpose is not related to financial performance. However, high... View Details

Keywords: Corporate Purpose; Purpose; Employee Motivation; Belief Systems; Corporate Performance; Human Capital; Middle Management; Culture; Corporate Culture; Meaning; Mission and Purpose; Organizational Culture; Employees; Perception; Values and Beliefs; Performance Effectiveness

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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

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March 2002
Background Note

Understanding Securities Markets in the United States and Japan

By: Lynda M. Applegate

Provides a basic understanding of how securities markets work. View Details

Keywords: Financial Markets; Financial Services Industry; Japan; United States

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05 Nov 2009
Research & Ideas

A Market for Human Cadavers in All but Name?

(Editor's Note: In a recent issue, Economic Sociology: The European Electronic Newsletter tackled the controversial issue of "commodification of the body." Harvard Business School professor Michel Anteby contributed the... View Details

Keywords: by Michel Anteby; Health

04 Apr 2000
Research & Ideas

The Right Way to Restructure Conglomerates in Emerging Markets

Western corporate strategies have long been held up as role models for businesses in emerging markets. The reaction to recent financial crises in Asia and Latin America has... View Details

Keywords: by Tarun Khanna & Krishna Palepu

04 May 2009
Research & Ideas

What’s Next for the Big Financial Brands

now close to worthless. It drags down Bank of America's brand every time it is mentioned in the same breath. The Merrill Lynch brand is unlikely to ever recover and Bank of America should drop it. Merrill Lynch was one of 25 View Details

Keywords: by John Quelch; Financial Services; Financial Services

Research Summary

Do Equity Covariances Reflect Financial Leverage?

No arbitrage option pricing theory and the efficient market hypothesis predict that firms with higher financial leverage should have higher equity betas, all else equal. This paper finds little support in the data for this prediction. Within industry, there is large... View Details

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... View Details

Keywords: by Michael Blanding; Health

1998
Other Unpublished Work

Value Reporting in Australia: Improving Competitiveness in Capital Markets

By: Robert G. Eccles Jr., Greg Morris and Ian Falconer

Keywords: Capital Markets; Financial Reporting; Competition; Australia

Citation

26 May 2003
Research & Ideas

Corporate Transparency Improves For Foreign Firms in U.S. Markets

Are international firms that interact with U.S. capital, labor, and product markets more likely to be more transparent than companies without those interactions? In this e-mail interview, HBS Suraj... View Details

Keywords: by Cynthia Churchwell

2022
Working Paper

Heterogeneous Investors and Stock Market Fluctuations

By: Odhrain McCarthy and Sebastian Hillenbrand

We introduce a heterogeneous agent model which features extrapolative beliefs and time-varying risk aversion. The model leads to an empirical framework which we estimate with stock prices, survey data and risk aversion measures. We find that extrapolative beliefs and... View Details

Keywords: Stock Market; Investment Decisions; Asset Pricing; Investment; Behavioral Finance; Stocks

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