Boris Groysberg

13 Results

 

The Use of Broker Votes to Reward Brokerage Firms’ and Their Analysts’ Research Activities

Broker votes are one of the most pervasive yet least understood reporting practices on Wall Street. The votes are essentially ratings of the value of brokers' investment research services. These ratings are produced by institutional investors (the "buy side") and solicited by broker dealers (the "sell side"). Little research to date, however, has examined the determinants of broker votes, their consequences, and their economic function. In this paper the authors use data gathered from a mid-sized investment bank for the years 2004 to 2007 in order to study how broker votes are related to institutional investors' commission payments and analysts' client services and compensation. Results overall suggest that broker votes help to facilitate implicit contractual relationships between sell-side brokers, their affiliated analysts, and their buy-side clients. Broker votes are neither mere popularity contests nor a simple reflection of trading in analysts' covered stocks. Instead, they appear to be a key component of the investment research industry's contracting technology, acting as the nexus for a set of relationships between sell-side brokers, their affiliated analysts, and their buy-side clients. The findings thus deepen our understanding of how information is exchanged on Wall Street and help to explain why the practice of collecting and aggregating client votes—a costly internal reporting procedure—has stood the test of time and has been replicated across countless sell-side research departments. Read More

HBS Cases: Women MBAs at Harvard Business School

Professor Boris Groysberg discusses his new case, "Women MBAs at Harvard Business School: 1962-2012," which delves into the experiences of the School's alumnae over the past 50 years. Closed for comment; 5 Comments posted.

Few Women on Boards: Is There a Fix?

Women hold only 14 percent of the board seats at S&P 1500 companies. Why is that, and what—if anything—should business leaders and policymakers do about the gender disparity? Research by Professor Boris Groysberg and colleagues shows that male and female board members have very different takes on the issue. Closed for comment; 17 Comments posted.

Book Excerpt: ‘Talk, Inc.’

In their book Talk, Inc. Boris Groysberg and Michael Slind show how several global companies are adapting the principles of face-to-face conversation to improve companywide corporate communication. Closed for comment; 1 Comment posted.

The Power of Conversational Leadership

Communication is always a challenge, especially in multinational corporations. Boris Groysberg and Michael Slind discuss why it makes sense to adopt the principles of face-to-face conversation in organizational communication. Closed for comment; 24 Comments posted.

The Stock Selection and Performance of Buy-Side Analysts

Important differences between buy- and sell-side analysts are likely to affect their behavior and performance. While considerable research during the last twenty years has focused on the performance of sell-side analysts (that is, analysts who work for brokerage firms, investment banks, and independent research firms), much less is known about buy-side analysts (analysts for institutional investors such as mutual funds, pension funds, and hedge funds). This paper examines buy recommendation performance for analysts at a large, buy-side firm relative to analysts at sell-side firms throughout the period of mid-1997 to 2004. The researchers find evidence of differences in the stocks recommended by the buy- and sell-side analysts. The buy-side firm analysts recommended stocks with stock return volatility roughly half that of the average sell-side analyst, and market capitalizations almost seven times larger. These findings indicate that portfolio managers (buy-side analysts' clients) prefer that buy-side analysts cover less volatile and more liquid stocks. The study also finds that the buy-side firm analysts' stock recommendations are less optimistic than their sell-side counterparts, consistent with buy-side analysts facing fewer conflicts of interest. This and future studies may help sell-side and buy-side executives to allocate their financial and human resources more strategically. Read More

The New Challenge of Leading Financial Firms

Running a financial organization, never easy to begin with, has quickly become one of the most difficult leadership challenges that an executive can undertake, requiring mastery of talent management, change management, and ethics. An interview with Professor Boris Groysberg, who teaches a new HBS Executive Education program on the subject with Professor Paul M. Healy. Open for comment; 13 Comments posted.

Chasing Stars: Why the Mighty Red Sox Struck Out

When the Red Sox announced they had signed away veteran pitcher John Lackey from the Anaheim Angels, it was the start of one of the most expensive talent hunts in baseball history. So why were the Red Sox an epic failure in 2011? Lackey's lackluster performance is a case study in the perils of chasing superstars, says Professor Boris Groysberg. Open for comment; 7 Comments posted.

Why Do We Chase Stars?

Summing Up: Is it wise for companies to recruit "star" performers? Discussing the book "Chasing Stars", Jim Heskett's readers support the idea that talent is portable between employers and that women are better at it than men. (Next Forum opens December 2) Closed for comment; 46 Comments posted.

The Value of a ‘Portable’ Career

Can you predict whether star performers will replicate their success in a new environment? HBS professor Boris Groysberg and colleagues ask this question of professional football teams, and the results offer valuable lessons for star performers and hiring executives of business firms, too. Q&A with Groysberg, Lex Sant, and Robin Abrahams. Read More

How Female Stars Succeed in New Jobs

Women who are star performers on Wall Street tend to fare better than men after changing jobs. Why? According to HBS professor Boris Groysberg, star women place greater emphasis than men on external business relationships, and conduct better research on potential employers. Plus: Businesswomen are asked to share career experiences. Read More

The Key to Managing Stars? Think Team

Stars don't shine alone. As Harvard Business School's Boris Groysberg and Linda-Eling Lee reveal in new research, it is imperative that top performers as well as their managers take into account the quality of colleagues. Groysberg and Lee explain the implications for star mobility and retention in this Q&A. Read More

Why CEOs Are Not Plug-and-Play

Company-specific skills may be valuable in a new job under the right conditions, say Harvard Business School's Boris Groysberg, Andrew N. McLean, and Nitin Nohria. They studied GE; here's an excerpt from Harvard Business Review. Read More