Finance
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- 27 Apr 2023
- Cold Call Podcast
Equity Bank CEO James Mwangi: Transforming Lives with Access to Credit
James Mwangi, CEO of Equity Bank, has transformed lives and livelihoods throughout East and Central Africa by giving impoverished people access to banking accounts and micro loans. He’s been so successful that in 2020 Forbes coined the term “the Mwangi Model.” But can we really have both purpose and profit in a firm? Harvard Business School professor Caroline Elkins, who has spent decades studying Africa, explores how this model has become one that business leaders are seeking to replicate throughout the world in her case, “A Marshall Plan for Africa': James Mwangi and Equity Group Holdings.” As part of a new first-year MBA course at Harvard Business School, this case examines the central question: what is the social purpose of the firm?

- 25 Apr 2023
- Cold Call Podcast
Using Design Thinking to Invent a Low-Cost Prosthesis for Land Mine Victims
Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS) is an Indian nonprofit famous for creating low-cost prosthetics, like the Jaipur Foot and the Stanford-Jaipur Knee. Known for its patient-centric culture and its focus on innovation, BMVSS has assisted more than one million people, including many land mine survivors. How can founder D.R. Mehta devise a strategy that will ensure the financial sustainability of BMVSS while sustaining its human impact well into the future? Harvard Business School Dean Srikant Datar discusses the importance of design thinking in ensuring a culture of innovation in his case, “BMVSS: Changing Lives, One Jaipur Limb at a Time.”

- 18 Apr 2023
- Research & Ideas
What Happens When Banks Ditch Coal: The Impact Is 'More Than Anyone Thought'
Bank divestment policies that target coal reduced carbon dioxide emissions, says research by Boris Vallée and Daniel Green. Could the finance industry do even more to confront climate change?

- 18 Apr 2023
- Research & Ideas
The Best Person to Lead Your Company Doesn't Work There—Yet
Recruiting new executive talent to revive portfolio companies has helped private equity funds outperform major stock indexes, says research by Paul Gompers. Why don't more public companies go beyond their senior executives when looking for top leaders?

- 11 Apr 2023
- Cold Call Podcast
A Rose by Any Other Name: Supply Chains and Carbon Emissions in the Flower Industry
Headquartered in Kitengela, Kenya, Sian Flowers exports roses to Europe. Because cut flowers have a limited shelf life and consumers want them to retain their appearance for as long as possible, Sian and its distributors used international air cargo to transport them to Amsterdam, where they were sold at auction and trucked to markets across Europe. But when the Covid-19 pandemic caused huge increases in shipping costs, Sian launched experiments to ship roses by ocean using refrigerated containers. The company reduced its costs and cut its carbon emissions, but is a flower that travels halfway around the world truly a “low-carbon rose”? Harvard Business School professors Willy Shih and Mike Toffel debate these questions and more in their case, “Sian Flowers: Fresher by Sea?”

- 11 Apr 2023
- Research & Ideas
Is Amazon a Retailer, a Tech Firm, or a Media Company? How AI Can Help Investors Decide
More companies are bringing seemingly unrelated businesses together in new ways, challenging traditional stock categories. MarcAntonio Awada and Suraj Srinivasan discuss how applying machine learning to regulatory data could reveal new opportunities for investors.

- 07 Apr 2023
- Research & Ideas
When Celebrity ‘Crypto-Influencers’ Rake in Cash, Investors Lose Big
Kim Kardashian, Lindsay Lohan, and other entertainers have been accused of promoting crypto products on social media without disclosing conflicts. Research by Joseph Pacelli shows what can happen to eager investors who follow them.

- 31 Mar 2023
- Research & Ideas
Can a ‘Basic Bundle’ of Health Insurance Cure Coverage Gaps and Spur Innovation?
One in 10 people in America lack health insurance, resulting in $40 billion of care that goes unpaid each year. Amitabh Chandra and colleagues say ensuring basic coverage for all residents, as other wealthy nations do, could address the most acute needs and unlock efficiency.

- 23 Mar 2023
- Research & Ideas
As Climate Fears Mount, More Investors Turn to 'ESG' Funds Despite Few Rules
Regulations and ratings remain murky, but that's not deterring climate-conscious investors from paying more for funds with an ESG label. Research by Mark Egan and Malcolm Baker sizes up the premium these funds command. Is it time for more standards in impact investing?

- 14 Mar 2023
- In Practice
What Does the Failure of Silicon Valley Bank Say About the State of Finance?
Silicon Valley Bank wasn't ready for the Fed's interest rate hikes, but that's only part of the story. Victoria Ivashina and Erik Stafford probe the complex factors that led to the second-biggest bank failure ever.

- 13 Mar 2023
- Research & Ideas
What Would It Take to Unlock Microfinance's Full Potential?
Microfinance has been seen as a vehicle for economic mobility in developing countries, but the results have been mixed. Research by Natalia Rigol and Ben Roth probes how different lending approaches might serve entrepreneurs better.

- 16 Feb 2023
- HBS Case
ESG Activists Met the Moment at ExxonMobil, But Did They Succeed?
Engine No. 1, a small hedge fund on a mission to confront climate change, managed to do the impossible: Get dissident members on ExxonMobil's board. But lasting social impact has proved more elusive. Case studies by Mark Kramer, Shawn Cole, and Vikram Gandhi look at the complexities of shareholder activism.

- 07 Feb 2023
- Research & Ideas
Supervisor of Sandwiches? More Companies Inflate Titles to Avoid Extra Pay
What does an assistant manager of bingo actually manage? Increasingly, companies are falsely classifying hourly workers as managers to avoid paying an estimated $4 billion a year in overtime, says research by Lauren Cohen.

- 31 Jan 2023
- Op-Ed
Can Insurance Technology Solve the Uninsured Driver Problem?
High fees prevent many drivers from buying auto insurance—often with catastrophic consequences. Raymond Kluender offers a novel way to make coverage affordable and roads safer: Let drivers pay for only the days they drive.

- 23 Jan 2023
- Research & Ideas
After High-Profile Failures, Can Investors Still Trust Credit Ratings?
Rating agencies, such as Standard & Poor’s and Moody's, have been criticized for not warning investors of risks that led to major financial catastrophes. But an analysis of thousands of ratings by Anywhere Sikochi and colleagues suggests that agencies have learned from past mistakes.

- 13 Dec 2022
- Research & Ideas
The Color of Private Equity: Quantifying the Bias Black Investors Face
Prejudice persists in private equity, despite efforts to expand racial diversity in finance. Research by Josh Lerner sizes up the fundraising challenges and performance double standards that Black and Hispanic investors confront while trying to support other ventures—often minority-owned businesses.

- 21 Nov 2022
- Research & Ideas
Buy Now, Pay Later: How Retail's Hot Feature Hurts Low-Income Shoppers
More consumers may opt to "buy now, pay later" this holiday season, but what happens if they can't make that last payment? Research by Marco Di Maggio and Emily Williams highlights the risks of these financing services, especially for lower-income shoppers.

- 03 Oct 2022
- Research & Ideas
Why a Failed Startup Might Be Good for Your Career After All
Go ahead and launch that venture. Even if it fails, the experience you gain will likely earn you a job that's more senior than those of your peers, says research by Paul Gompers.

- 20 Sep 2022
- Cold Call Podcast
Larry Fink at BlackRock: Linking Purpose to Profit
In 2014, Larry Fink started writing letters to the leaders of some of the largest publicly listed companies, urging them to consider the importance of environmental, social, and governance (ESG) issues. Fink is the chairman and CEO of BlackRock, one of the largest asset management houses in the world. The firm’s success was rooted in its cost-effective, passive investment products that rely more on tracking indices and funds. But Fink wanted his firm to engage with the companies in which they invest and hold them accountable for their social and environmental impacts. What role should investors play in urging business leaders to take environmental, social, and governance issues more seriously and enforcing compliance? Harvard Business School professor George Serafeim discusses the merits of Fink’s approach, the importance of corporate investments in ESG themes, and how to lead a company driven by purpose and profit in his case, “BlackRock: Linking Purpose to Profit,” and his new book Purpose and Profit: How Business Can Lift Up The World.
After Silicon Valley Bank's Flameout, What's Next for Entrepreneurs?
Silicon Valley Bank's failure in the face of rising interest rates shook founders and funders across the country. Julia Austin, Jeffrey Bussgang, and Rembrand Koning share key insights for rattled entrepreneurs trying to make sense of the financing landscape.