The New Deal: Negotiauctions
| Q&A with: | Guhan Subramanian |
|---|---|
| Published: | October 26, 2009 |
| Feature: | Executive Education |
Whether negotiating to purchase a company or a house, dealmaking is becoming more complex. Harvard Business School professor Guhan Subramanian sees a new form arising, part negotiation, part auction. Call it the negotiauction. Here's how to play the game.
Published in 2007
Government's Misguided Probe of Private Equity
| Published: | March 14, 2007 |
|---|---|
| Feature: | Op-Ed |
The U.S Department of Justice has begun an inquiry into potentially anti-competitive behavior on the part of leading private equity firms. Professor Josh Lerner looks to history to underscore why this move carries the prospect of damaging what is actually an incredibly competitive industry that creates much value.
Inexperienced Investors and Market Bubbles
| Q&A with: | Robin Greenwood |
|---|---|
| Published: | February 19, 2007 |
| Feature: | Research & Ideas |
The evidence isn't conclusive, but new research from Harvard Business School suggests younger fund managers may have contributed to the tech stock bubble. Professor Robin Greenwood discusses the research paper, "Inexperienced Investors and Bubbles," and what mutual fund investors should keep in mind.
"UpTick" Brings Wall Street Pressure to Students
| Published: | February 12, 2007 |
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| Feature: | Lessons from the Classroom |
Money managers work in a stressful, competitive pressure cooker that's hard to appreciate from the safety of a business management classroom. That's why HBS professors Joshua Coval and Erik Stafford invented upTick—a market simulation program that has students sweating and strategizing as they recreate classic market scenarios.
Published in 2006
Should CEOs of Public Companies Offer Earnings Guidance?
| Published: | February 6, 2006 |
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| Feature: | What Do YOU Think? |
| Forum: | closed | 17 Comments posted |
A small but growing chorus of public company CEOs is deciding not to provide quarterly earnings guidance. Is this a good or bad development for shareholders, investors, analysts, the marketplace, and the company’s short- and long-term health?
Published in 2005
VCs Survey Post-Bubble Opportunities
| Published: | December 5, 2005 |
|---|---|
| Feature: | Research & Ideas |
At the annual Cyberposium conference held at Harvard Business School, venture capitalists pondered what makes for winners and losers in the new VC landscape.
Float Manipulation and Stock Prices
| Author: | Robin Greenwood |
|---|---|
| Published: | July 5, 2006 |
| Paper Release Date: | June 2005, revised February 2006 |
| Feature: | Working Papers |
When a firm reduces the number of shares available to trade, so-called float manipulation, the price of the stock is often driven up. The author uses a series of 2,000 stock split events in Japan as an experiment to understand the consequences of float manipulation for stock prices. The conclusion: Stock prices are raised significantly when there are differing opinions about the value of shares, investors are unable to sell short, and the number of outstanding shares is reduced.
A Cross-Sectional Analysis of the Excess Comovement of Stock Returns
| Author: | Robin Greenwood |
|---|---|
| Published: | July 5, 2006 |
| Paper Release Date: | April 2005 |
| Feature: | Working Papers |
This paper develops cross-sectional predictions from a model in which the excess comovement of stock returns comes from correlated demand shocks. The model is tested on 298 Nikkei index stocks and 1,458 non-index stocks for the years 1993 through 2003. The study finds that controlling for index membership, index overweighting is a significant determinant of the comovement of returns with index returns.
Published in 2004
Analyst Disagreement, Forecast Bias and Stock Returns
| Author: | Anna Scherbina |
|---|---|
| Published: | July 5, 2006 |
| Paper Release Date: | July 2004 |
| Feature: | Working Papers |
It is well documented that financial analysts' opinions are reflected in stock prices. The problem: Analysts often operate under incentives that are inconsistent with telling the truth. Retail investors, who tend to be less sophisticated, may fail to make proper adjustments for the more nuanced of the resulting biases, some of which might be reflected in market prices. To study the scope of market efficiency, Scherbina studied analysts' incentives, resulting forecast biases, and their potential impact on market prices.
Published in 2003
A Bold Proposal for Investment Reform
| Q&A with: | Paul M. Healy and Krishna G. Palepu |
|---|---|
| Published: | September 8, 2003 |
| Feature: | Research & Ideas |
Do the markets need an investor's union? Should company audits be overseen by stock exchanges? If you want to restore investor confidence, think radical reforms, say professors Paul Healy and Krishna Palepu.
Published in 1999
Where Main Street Meets Wall Street
| Published: | October 12, 1999 |
|---|---|
| Feature: | Research & Ideas |
Its phenomenal growth, based on its near-perfect fit with consumer needs and aspirations, has made the mutual fund one of this century's big success stories. How is it adapting to the age of the Internet and 21st century change? HBS Professors Jay O. Light and Peter Tufano and three alumni take a look at the state of the mutual fund industry 75 years after its beginnings in Boston's financial district.
