First Look

First Look summarizes new working papers, case studies, and publications produced by Harvard Business School faculty. Readers receive early knowledge of cutting-edge ideas before they enter the mainstream of business practice. For complete details on faculty research, see our Working Papers section.

January 16, 2007

Has globalization passed its peak? That's the provocative question posed by HBS professor Rawi Abdelal and colleague Adam Segal in the policy bible Foreign Affairs. Contradictory trends—technological revolution combined with anxiety about cross-border flows of capital, goods, and people, combined with energy again looming as "the object of intense resource nationalism"—are the shape of things to come, they write. "Much now depends on how national governments respond to these changing circumstances."

Also this week, download a new working paper about how western investors in post-communist countries can better mitigate their risks. Pervading misconceptions about the realities of interacting with locals can unnecessarily short-circuit business success, say emeritus professor Paul R. Lawrence and Athens-based coauthor Charalambos Vlachoutsicos. Effective communication is key.

Also new from HBS faculty this week: "Investor Sentiment in the Stock Market," a look at which stocks are likely to be disproportionately sensitive to broad waves of investor sentiment; the new edition of a well-regarded textbook on managerial accounting; and a baker's dozen of business cases including one on raising private equity in India.

 

Working Papers

"Don'ts" And "Do's": Insights from Experience In Mitigating Risks Of Western Investors In Post-Communist Countries

Abstract

No abstract available.

Download the paper:
http://www.hbs.edu/research/pdf/07-041.pdf

 

Cases & Course Materials

BioScale

Harvard Business School Case 606-100

Purchase this case:
http://www.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=606100

China: "To Get Rich Is Glorious"

Harvard Business School Case 707-022

Purchase this case:
http://www.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=707022

Earnings Management Exercise

Harvard Business School Exercise 207-034

Purchase this exercise:
http://www.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=207034

EFJ, Inc.

Harvard Business School Case 807-062

Purchase this case:
http://www.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=807062

Eli Lilly: Developing Cymbalta

Harvard Business School Case 507-044

Purchase this case:
http://www.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=507044

Haier's U.S. Refrigerator Strategy 2005

Harvard Business School Case 705-475

Purchase this case:
http://www.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=705475

Market Making Exercise

Harvard Business School Exercise 207-033

Purchase this exercise:
http://www.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=207033

Pitney Bowes, Inc.

Harvard Business School Case 607-034

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http://www.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=607034

Platform-Mediated Networks: Definitions and Core Concepts

Harvard Business School Note 807-049

Purchase this note:
http://www.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=807049

Rico Auto Industries: Raising Private Equity in India

Harvard Business School Case 806-079

Purchase this case:
http://www.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=806079

Procter & Gamble's Organization 2005 (A)

Harvard Business School Case 707-401

Purchase this case:
http://www.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=707401

Procter & Gamble's Organization 2005 (B)

Harvard Business School Supplement 707-402

Purchase this supplement:
http://www.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=707402

Rancho Cucamonga

Harvard Business School Case 206-033

Purchase this case:
http://www.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=206033

 

Publications

Management Accounting, 5th ed.

Publisher's abstract:
http://vig.prenhall.com/catalog/academic/product/0,1144,0131732811-TOC,00.html

How Globalization Passed Its Peak

Read a preview:
http://www.foreignaffairs.org/20070101faessay86108/rawi-abdelal-adam-segal/

Investor Sentiment in the Stock Market

Abstract

Real investors and markets are too complicated to be neatly summarized by a few selected biases and trading frictions. The "top-down" approach to behavioral finance focuses instead on the measurement of reduced form, aggregate sentiment and traces its effects to stock returns. It builds on the two broader and more irrefutable assumptions of behavioral finance—sentiment and the limits to arbitrage—to explain which stocks are likely to be most affected by sentiment. In particular, stocks of low capitalization, younger, unprofitable, high volatility, non-dividend paying, growth companies, or stocks of firms in financial distress, are likely to be disproportionately sensitive to broad waves of investor sentiment. We review the theoretical and empirical evidence for these predictions.