Investment Banking
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- 15 Nov 2018
- Working Paper Summaries
Do Fire Sales Create Externalities?
This paper contributes to our understanding of the role of large institutional investors in securities markets, providing evidence that the structure of the mutual fund industry increases the risks of costly "fire sales."
- 11 Sep 2018
- Working Paper Summaries
IQ from IP: Simplifying Search in Portfolio Choice
Mutual fund managers solve their complex “search problem” for superior investable returns by tracking—and trading—on very particular sets of firms and insiders. These sets are chosen strategically and remain very persistent over time, as does the outperformance these insiders’ trades afford to the given fund managers.
- 15 Feb 2016
- Working Paper Summaries
Replicating Private Equity with Value Investing, Homemade Leverage, and Hold-to-Maturity Accounting
This paper studies the asset selection of private equity investors and the risk and return properties of passive portfolios with similarly selected investments in publicly traded securities. Results indicate that sophisticated institutional investors appear to significantly overpay for the portfolio management services associated with private equity investments.
- 12 Nov 2015
- Working Paper Summaries
Catering to Investors Through Product Complexity
This paper investigates the rationale for issuing complex securities to retail investors.
- 29 Sep 2008
- Research & Ideas
Financial Crisis Caution Urged by Faculty Panel
Dean Jay O. Light and a group of Harvard Business School faculty explored the origins and possible outcomes of the U.S. financial crisis at a recent "Turmoil on the Street" panel. Closed for comment; 0 Comment(s) posted.
The Economic Effects of Private Equity Buyouts
Private equity buyouts are a major financial enterprise that critics see as dominated by rent-seeking activities with little in the way of societal benefits. This study of 6,000 US buyouts between 1980 and 2013 finds that the real side effects of buyouts on target firms and their workers vary greatly by deal type and market conditions.