- 08 Dec 2020
- Working Paper Summaries
Party-State Capitalism in China
China’s political economy has evolved from “state capitalism” to a distinctly party-driven incarnation. Party-state capitalism, via enhanced party monitoring and industrial policy, deepens ambiguity between the state and private sectors, and increases pressure on foreign capital, prioritizing the regime’s political survival above all.
- 06 Dec 2020
- Working Paper Summaries
'Repayment-by-Purchase' Helps Consumers to Reduce Credit Card Debt
Many consumers fail to pay off credit card debt each month and suffer financial consequences. Repayment-by-purchase, allocating payment toward specific purchases on a credit card bill, helps consumers gain a sense of progress and control over credit card debt.
- 30 Nov 2020
- Working Paper Summaries
Short-Termism, Shareholder Payouts, and Investment in the EU
Shareholder-driven “short-termism,” as evidenced by increasing payouts to shareholders, is said to impede long-term investment in EU public firms. But a deep dive into the data reveals a different story.
- 24 Nov 2020
- Working Paper Summaries
Accounting for Product Impact in the Consumer Finance Industry
A framework and method for measuring and monetizing product impact across industries, applying it to two competitors in the consumer finance space.
- 17 Nov 2020
- Working Paper Summaries
Venture Capitalists and COVID-19
This survey of more than 1,000 venture capitalists finds that the VC industry and its portfolio companies have reduced their activity less than in previous recessions and have been more resilient than many other sectors of the global economy.
- 16 Nov 2020
- Working Paper Summaries
Private Equity and COVID-19
Private equity investors are seeking new investments despite the pandemic. This study shows they are prioritizing revenue growth for value creation, giving larger equity stakes to management teams, and targeting somewhat lower returns.
- 13 Nov 2020
- Working Paper Summaries
The European Commission’s Sustainable Corporate Governance Report: A Critique
The European Commission commissioned a report on sustainable corporate governance that purports to find serious problems of corporate short-termism. The report is wholly flawed: it conflates time horizon problems with externality problems, mismeasures investment and its financing, and proposes ineffective, possibly harmful reforms.
- 13 Nov 2020
- Working Paper Summaries
Long-Run Returns to Impact Investing in Emerging Markets and Developing Economies
Examination of every equity investment made by the International Finance Corporation, one of the largest and longest-operating impact investors, shows this portfolio has outperformed the S&P 500 by 15 percent.
- 03 Nov 2020
- Working Paper Summaries
An Executive Order Worth $100 Billion: The Impact of an Immigration Ban’s Announcement on Fortune 500 Firms’ Valuation
President Trump’s executive order restricting entry of temporary foreign workers to the United States negatively affected the valuation of 471 publicly traded Fortune 500 firms by an estimated $100 billion. Closed for comment; 0 Comments.
- 03 Nov 2020
- Working Paper Summaries
The Stock Market Value of Human Capital Creation
Measuring human capital creation is complex but increasingly important to managers for understanding the relationship between employee expenditures and firm performance. This paper develops a strategy to examine aspects of the intangible human capital investment embedded in a firm’s personnel expense. Closed for comment; 0 Comments.
- 02 Nov 2020
- Working Paper Summaries
Accounting for Organizational Employment Impact
Impact-weighted accounting methodology standardizes previously disparate measures of impact, in this case the impact of employment. This paper’s methodology and analysis of Intel, Apple, Costco, and Merck shows the feasibility of measuring firm employment impact for insight into firm practices and performance. Closed for comment; 0 Comments.
- 27 Oct 2020
- Working Paper Summaries
Does Venture Capital Attract Human Capital? Evidence from a Randomized Field Experiment
Using a randomized field experiment conducted on a large online search platform, this study illustrates how investments by top venture capital investors attract potential employees and improve the pool of candidates available for the startup.
- 22 Oct 2020
- Working Paper Summaries
Estimating Causal Effects in the Presence of Partial Interference Using Multivariate Bayesian Structural Time Series Models
A case study of an Italian supermarket introducing a new pricing policy—in which it reduced prices on some brands—offers managers a new approach to reduce uncertainty. The approach is flexible and can be applied to different business problems.
- 20 Oct 2020
- Working Paper Summaries
Flight to Safety: How Economic Downturns Affect Talent Flows to Startups
The COVID-19 crisis makes it more difficult for small, young firms to attract talent as higher-quality candidates turn to more mature firms. Such “flight to safety” leads to a deterioration in the quality of human capital available for startups.
- 19 Oct 2020
- Working Paper Summaries
Bankruptcy and the COVID-19 Crisis
Analyzing the impact of the COVID-19 crisis on bankruptcy filing rates in the United States, this study finds that large businesses, small businesses, and consumers experience very different effects of the crisis.
- 13 Oct 2020
- Working Paper Summaries
Fencing Off Silicon Valley: Cross-Border Venture Capital and Technology Spillovers
This study of foreign corporate investment transactions from 32 countries between 1976 and 2015 finds these investments pose a trade-off: While they support young firms in pursuing innovations they could not otherwise afford, they also generate knowledge for the foreign investors.
- 09 Oct 2020
- Working Paper Summaries
Where the Cloud Rests: The Economic Geography of Data Centers
This study quantifies how data center managers make a trade-off between the setup and operational costs of running a facility and capturing local demand.
- 06 Oct 2020
- Working Paper Summaries
Design and Analysis of Switchback Experiments
This paper presents a framework for managers to design and run switchback experiments.
- 06 Oct 2020
- Working Paper Summaries
Optimal Illiquidity
This paper evaluates the optimality of retirement savings systems, finding that the best mix is a three-account system with a perfectly liquid savings account, a partially illiquid savings account (with an early-withdrawal penalty of approximately 10%), and a completely illiquid savings account.
Nonprofit Boards: It is Time to Lift Your Gaze and See the System
Not every organization should attempt to solve problems at a system level, but can become more aware of systemic issues, ensuring that solutions dovetail into the macrosystem for best collective impact.