Harvard Business School

Displaying 1-40 of 227 results

  • White Papers // Jul 2011

    Issuer Quality And The Credit Cycle

    The authors show that the credit quality of corporate debt issuers deteriorates during credit booms, and that this deterioration forecasts low excess returns to corporate bondholders. The key insight is that changes in the pricing of credit risk disproportionately affect the financing costs faced by low quality firms, so the...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Top Executive Background And Financial Reporting Choice: The Case Of Goodwill Impairment

    The authors study the role of executive functional background in explaining goodwill impairment choices. They focus on top executives (CEOs and CFOs) whose employment history includes experience in investment banking, auditing, or private equity/venture capital. On average, they find that former auditors are significantly more likely to impair goodwill. However,...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    When Power Makes Others Speechless: The Negative Impact Of Leader Power On Team Performance

    The authors examine the impact of subjective power on leadership behavior and demonstrate that the psychological effect of power on leaders spills over to impact team effectiveness. Specifically, drawing from the approach/inhibition theory of power, power-devaluation theory, and organizational research on the antecedents of employee voice, they argue that a...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Risky Trust: How Multi-Entity Teams Develop Trust In A High Risk Endeavor

    This paper explicates the challenge of risky trust, which the authors define as trust that exists between parties vulnerable to high economic, legal or reputational risks at individual or organizational levels. Drawing from analyses of data collected in a grounded case study of a multi-million dollar construction project, they identify...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Rational Preference For Smaller Menus: Variability In Menu-Setting Ability And 401(k) Plans

    The economic literature on choice focuses on individuals' decisions when faced with a given menu. However, the menu itself is often the result of pre-selection by a menu setter. The authors develop a model to study the relation between the ability of the menu setter and the size and quality...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Innovating At The World's Crossroads: How Multicultural Networks Promote Creativity

    This paper examines the effects of multicultural social networks on individuals' creative performance. Combining network analysis with experimental methods, two studies using different samples found that networks' degree of cultural heterogeneity positively predicts creativity on tasks that draw on varied cultural-knowledge resources but not on other tasks. The results also...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    How Do Incumbents Fare In The Face Of Increased Service Competition?

    The authors explore the conditions under which service competition leads to customer defection from an incumbent and which customers are most vulnerable to its effects. They find that customers defect at a higher rate from the incumbent following increased service competition only when the incumbent offers high quality service relative...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Delay As Agenda Setting

    In this paper the authors examine a class of dynamic decision-making processes that involve endogenous commitment. The analysis is relevant to group decision making settings as well as to hierarchical decision making settings in which, for example, subordinates attempt to influence their superiors. An inability to commit leads to the...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Platform Competition Under Asymmetric Information

    In the context of platform competition in a two-sided market, the authors study how uncertainty and asymmetric information concerning the success of a new technology affects the strategies of the platforms and the market outcome. They find that the incumbent dominates the market by setting the welfare-maximizing quantity when the...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Driven By Social Comparisons: How Feedback About Coworkers? Effort Influences Individual Productivity

    Drawing on theoretical insights from research on social comparison processes, this paper explores how managers can use performance feedback to sustain employees' motivation and performance in organizations. Using a field experiment at a Japanese bank, the authors investigate the effects of valence (positive versus negative), type (direct versus indirect), and...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    How Firm Strategies Influence The Architecture Of Transaction Networks

    In the paper of business ecosystems, hierarchy is an architectural property that refers to the degree to which transactions proceed in a single direction, from "Upstream" to "Downstream." It is often assumed that a unidirectional flow of goods in a value chain implies a corresponding hierarchy in the transaction networks...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Exploring The Duality Between Product And Organizational Architectures: A Test Of The "Mirroring" Hypothesis

    A variety of academic studies argue that a relationship exists between the structure of an organization and the design of the products that this organization produces. The authors explore this relationship in the software industry. The research takes advantage of a natural experiment, in that they observe products that fulfill...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Error's Lessons: The Importance Of Work Context In Organizational Learning From Error

    This paper examines the implications of work context for learning from errors in organizations. Prior research has shown that attitudes and behaviors related to error vary between groups within organizations, but has not investigated or theorized the ways in which differences in task and context influence how organizational groups best...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Leviathan As A Minority Shareholder: A Study Of Equity Purchases By The Brazilian National Development Bank (BNDES), 1995-2003

    There is a growing literature comparing the performance of private vs. state-owned companies. Yet, there is little work examining the effects of having the government as a minority shareholder of private companies. The authors conduct such a study using data for 296 publicly-traded corporations in Brazil, looking at the effects...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    What Makes The Bonding Stick? A Natural Experiment Involving The Supreme Court And Cross-Listed Firms

    Using a natural experiment to overcome the empirical challenges facing the debate over the bonding hypothesis, the authors analyze markets' reaction to a sudden radical change in the world of U.S.-listed foreign firms. They find no evidence that markets' reaction to this event related to the corporate governance and legal...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    The Role Of Organizational Scope And Governance In Strengthening Private Monitoring

    Governments and other organizations often outsource activities to achieve cost savings from market competition. Yet such benefits are often accompanied by poor quality resulting from moral hazard, which can be particularly onerous when outsourcing the monitoring and enforcement of government regulation. In this paper, they argue that the considerable moral...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    How Foundations Think: The Ford Foundation As A Dominating Institution In The Field Of American Business Schools

    In this paper there are two primary factors that can cause institutions to change. First, institutional entrepreneurs, including individual actors or small group of actors, are able to think and act outside the confines of their institutional context, and therefore, mobilize change in directions that favor new sets of interests....

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Measuring And Envisioning Risks: Boundary-Work In Risk Management

    This paper asks whether the expansion of measurement-based risk management in banking is as inevitable and as dangerous as Power and others speculate. Based on two detailed case studies and 53 additional interviews with risk management staff at five other major banks over 2001-2010, this paper shows that while the...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Naivete And Cynicism In Negotiations And Other Competitive Contexts

    A wealth of literature documents how the common failure to think about the decisions of others contributes to suboptimal outcomes. Yet sometimes, an excess of cynicism appears to lead us to over-think the actions of others and make negative attributions about their motivations without sufficient cause. In the process, we...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    When Does A Platform Create Value By Limiting Choice?

    The author presents a theory for why it might be rational for a platform to limit the number of applications available on it. The model is based on the observation that even if users prefer application variety, applications often also exhibit direct network effects. The paper shows that the platform...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    The Dark Side Of Creativity: Original Thinkers Can Be More Dishonest

    Creativity is a common aspiration for individuals, organizations, and societies. Here, however, they test whether creativity increases dishonesty. The author proposes that a creative personality and creativity primes promote individuals' motivation to think outside the box and that this increased motivation leads to unethical behavior. Finally, a field study constructively...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Multinational Firms, Labor Market Discrimination, And The Capture Of Competitive Advantage By Exploiting The Social Divide

    The organizational theory of the multinational firm holds that foreignness is a liability, and specifically that lack of embeddedness in host-country social networks is a source of competitive disadvantage; meanwhile the literature on labor market discrimination suggests that exploiting the bigotry of others can be a source of competitive advantage....

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Sustainable Cities: Oxymoron Or The Shape Of The Future?

    Two trends are likely to define the 21st century: threats to the sustainability of the natural environment and dramatic increases in urbanization. This paper reviews the goals, business models, and partnerships involved in eight early "Ecocity" projects to begin to identify success factors in this emerging industry. Ecocities, for the...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Turning Waste Into By-Product

    This paper studies how a firm can create and capture value by converting a waste stream into a useful and saleable by-product. The authors show that BPS creates an operational synergy between two products that are jointly produced. In essence, BPS is a process innovation that reduces the marginal cost...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    A Darker Side To Decentralized Banks: Market Power And Credit Rationing In SME Lending

    The authors use loan-level data to study how the organizational structure of banks impacts small business lending. They find that decentralized banks - where branch managers have greater autonomy over lending decisions - give larger loans to small firms and those with "Soft information". However, decentralized banks are also more...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Do US Market Interactions Affect CEO Pay? Evidence From UK Companies

    This paper examines the extent that interactions with US markets impact the compensation practices of non-US firms. Using a sample of large UK companies, the authors find that the total compensation of UK CEOs is positively related to the extent of the firm's interactions with US markets, as captured by...

    Provided By Harvard Business School

  • White Papers // Dec 2010

    Using What We Know: Turning Organizational Knowledge Into Team Performance

    This paper examines how teams draw on knowledge resources in the firm in the production of novel output. The author theorize positive effects of team use of an organizational knowledge repository on two measures of team performance (quality and efficiency), and argue that these effects will be greater when teams...

    Provided By Harvard Business School

  • White Papers // Dec 2010

    To Groupon Or Not To Groupon: The Profitability Of Deep Discounts

    The author examines the profitability and implications of online discount vouchers, a new marketing tool that offers consumers large discounts when they prepay for participating merchants' goods and services. Within a model of repeat experience good purchase, they examine two mechanisms by which a discount voucher service can benefit affiliated...

    Provided By Harvard Business School

  • White Papers // Dec 2010

    A Brief Postwar History Of US Consumer Finance

    This paper describes the consumer finance sector in the US since World War II. The authors define the sector in terms of the functions delivered by firms. They provide time series evidence on major trends in consumption, savings, and borrowing. Examining consumer decisions, changes in regulation, and business practices, they...

    Provided By Harvard Business School

  • White Papers // Dec 2010

    Dividends As Reference Points: A Behavioral Signaling Model

    The authors propose a model in which investors are loss averse relative to a reference point set with prior dividends. Managers with strong earnings separate themselves by increasing dividends and yet still retaining enough slack to clear a higher reference point in the next period, with high probability. The model...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    Does Diversification Create Value In The Presence Of External Financing Constraints? Evidence From The 2007?2009 Financial Crisis

    The author shows that the value of corporate diversification increased during the 2007 - 2009 financial crises. Diversification gave firms both financing and investment advantages. First, conglomerates became significantly more leveraged relative to comparable focused firms. Second, conglomerates' access to internal capital markets became more valuable not just because external...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    Sponsored Links Or "Advertisements"?: Measuring Labeling Alternatives In Internet Search Engines

    Search engines combine two kinds of links: So-called "Algorithmic" links present the results a search engine deems most relevant for a given search phrase, selected based on page contents, keywords, links, and other factors. So-called "Sponsored" links give the results a search engine is paid to show, selected based on...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    The Influence Of Prior Industry Affiliation On Framing In Nascent Industries: The Evolution Of Digital Cameras

    New industries sparked by technological change are characterized by high uncertainty. In this paper the author explores how a firm's conceptualization of products in this context, as reflected by product feature choices, is influenced by prior industry affiliation. They study digital cameras introduced from 1991-2006 by firms from three prior...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    The Learning Effects Of Monitoring

    This paper investigates the relationship between monitoring, decision-making, and learning among lower level employees. The author exploits a field-research setting in which business units vary in the "Tightness" with which they monitor employee decisions. They find that tighter monitoring gives rise to implicit incentives in the form of sharp increases...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    Does Shareholder Proxy Access Improve Firm Value? Evidence From The Business Roundtable Challenge

    The author measures the value of shareholder proxy access by using a recent development in the ability of shareholders to nominate candidates for board seats. They use the SEC's October 4, 2010 announcement that it would significantly delay implementation of its August 2010 proxy access rule as a natural experiment....

    Provided By Harvard Business School

  • White Papers // Nov 2010

    Institutional Pressures And Organizational Characteristics: Implications For Environmental Strategy

    A broad literature has emerged over the past decades demonstrating that firms' environmental strategies and practices are influenced by stakeholders and institutional pressures. Such findings are consistent with institutional sociology, which emphasizes the importance of regulatory, normative and cognitive factors in shaping firms' decisions to adopt specific organizational practices, above...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    Regulating For Legitimacy: Consumer Credit Access In France And America

    Theories of legitimate regulation have emphasized the role of governments either in fixing market failures to promote greater efficiency, or in restricting the efficient functioning of markets in order to pursue public welfare goals. In either case, features of markets serve to justify regulatory intervention. For certain areas of regulation,...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    Beyond The Deal: Wage A "Negotiation Campaign"

    In contrast to the sweeping spectrum of this story, the "Unit of analysis" that negotiation scholars primarily examine is the individual deal. With this focus, they analyze the process by which parties interact, their deeper interests, their communication patterns, possible agreements, and other factors that may influence the outcome of...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    Modularity For Value Appropriation - How To Draw The Boundaries Of Intellectual Property

    The existing theory of modularity explains how modular designs create value. The author extends the theory to address value appropriation. A product or process design that is modular with respect to intellectual property (IP) allows firms to better capture value in situations where knowledge and value creation are distributed across...

    Provided By Harvard Business School

  • White Papers // Oct 2010

    Reversing The Null: Regulation, Deregulation, And The Power Of Ideas

    It has been said that deregulation was an important source of the recent financial crisis. It may be more accurate, however, to say that a deregulatory mindset was an important source of the crisis - a mindset that, to a very significant extent, grew out of profound changes in academic...

    Provided By Harvard Business School

  • White Papers // Sep 2009

    Clusters Of Entrepreneurship

    Employment growth is strongly predicted by smaller average establishment size, both across cities and across industries within cities, but there is little consensus on why this relationship exists. Traditional economic explanations emphasize factors that reduce entry costs or raise entrepreneurial returns, thereby increasing net returns and attracting entrepreneurs. A second...

    Provided By Harvard Business School

  • White Papers // Sep 2009

    I Read Playboy For The Articles: Justifying And Rationalizing Questionable Preferences

    Humans are masters of lying and self-deception. The authors want others to believe good, fair, responsible and logical, and they place just as much importance on thinking of this way. Therefore, when people behave in ways that might appear selfish, prejudiced or perverted, they engage a host of strategies designed...

    Provided By Harvard Business School

  • White Papers // Aug 2009

    Financing Constraints And Entrepreneurship

    This paper reviews two major streams of work examining the relevance of financing constraints for entrepreneurship. The first research stream considers the impact of financial market development on entrepreneurship. These papers usually employ variations across regions to examine how differences in observable characteristics of financial sectors relate to entrepreneurs' access...

    Provided By Harvard Business School

  • White Papers // Aug 2009

    Feeling Good About Giving: The Benefits (And Costs) Of Self-Interested Charitable Behavior

    While lay intuitions and pop psychology suggest that helping others leads to higher levels of happiness, the existing evidence only weakly supports this causal claim: Research in psychology, economics, and neuroscience exploring the benefits of charitable giving has been largely correlation, leaving open the question of whether giving causes greater...

    Provided By Harvard Business School

  • White Papers // Oct 2009

    Banking Deregulations, Financing Constraints And Firm Entry Size

    The authors examine the effect of US branch banking deregulations on the entry size of new firms using micro-data from the US Census Bureau. They find that the average entry size for startups did not change following the deregulations. However, among firms that survived at least four years, a greater...

    Provided By Harvard Business School

  • White Papers // Jul 2009

    Does Competition Favor Delegation?

    This paper studies the consequences of product-market competition on firms' decisions to delegate more or fewer decision-making responsibilities to managers. By simultaneously addressing the choice of both competitive actions and organizational design, the paper makes an attempt at bringing economic theory and management strategy closer together. An increase in substitutability...

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  • White Papers // Jul 2009

    Insider Trading Preceding Goodwill Impairments

    The authors investigate whether insiders strategically sell shares prior to the disclosure of goodwill impairment losses. They provide evidence that insiders of goodwill impairment firms engage in abnormal selling of their shares quarters prior to the announcement of such losses. In addition, of firms recording goodwill impairments, they provide evidence...

    Provided By Harvard Business School

  • White Papers // Jul 2009

    Patent Policy, Patent Pools, And The Accumulation Of Claims In Sequential Innovation

    The authors present a dynamic model where the accumulation of patents generates an increasing number of claims on sequential innovation. They study the equilibrium innovation activity under three regimes: patents, no-patents and patent pools. Patent pools increase the probability of innovation with respect to patents, but they also find that:...

    Provided By Harvard Business School

  • White Papers // Jul 2009

    Culture Clash: The Costs And Benefits Of Homogeneity

    This paper develops an economic theory of the costs and benefits of corporate culture - in the sense of shared beliefs and values - in order to study the effects of 'culture clash' in mergers and acquisitions. The author first uses a simple analytical framework to show that shared beliefs...

    Provided By Harvard Business School

  • White Papers // Jul 2009

    A Decision-making Perspective To Negotiation: A Review Of The Past And A Look Into The Future

    Through the decision-analytic approach to negotiations, the past quarter century has seen the development of a better dialog between the descriptive and the prescriptive, as well as a burgeoning interest in the field for both academics and practitioners. Researchers have built upon the work in behavioral decision theory, examining the...

    Provided By Harvard Business School

  • White Papers // Jun 2009

    Industry Equilibrium With Open Source And Proprietary Firms

    The authors present a model of industry equilibrium to study the coexistence of Open Source (OS) and Proprietary (P) firms. Two novel aspects of the model are: participation in OS arises as the optimal decision of profit-maximizing firms, and OS and P firms may (or may not) coexist in equilibrium....

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  • White Papers // Jun 2009

    Anticommons And Optimal Patent Policy In A Model Of Sequential Innovation

    The authors present a model of sequential innovation in which an innovator uses several research inputs to invent a new good. These inputs, in turn, must be invented before they can be used by the final innovator. As a consequence, the degree of patent protection affects the revenues and cost...

    Provided By Harvard Business School

  • White Papers // Aug 2010

    Fluid Tasks And Fluid Teams: The Impact Of Diversity In Experience And Team Familiarity On Team Performance

    In this paper, the authors consider how the structures of tasks and teams interact to affect team performance. They study the effects of diversity in experience on a team's ability to respond to task changes, by separately examining interpersonal team diversity and intrapersonal team diversity. They also examine whether team...

    Provided By Harvard Business School

  • White Papers // Jun 2009

    Buy Local? The Geography Of Successful And Unsuccessful Venture Capital Expansion

    The author's document geographic concentration by both venture capital firms and venture capital financed companies in three cities - San Francisco, Boston, and New York. They find that firms open new satellite offices based on the success rate of venture capital-backed investments in an area. Geography is also significantly related...

    Provided By Harvard Business School

  • White Papers // Jun 2009

    Informed And Interconnected: A Manifesto For Smarter Cities

    The need for a fresh approach to U.S. communities is more urgent than ever because of the biggest global economic crisis since the Great Depression. Through examination of the barriers to solving urban problems, this paper offers a new approach to community transformation which calls for leaders to use technology...

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  • White Papers // Jun 2009

    Optimal Taxation In Theory And Practice

    The authors highlight and explain eight lessons from optimal tax theory and compare them to the last few decades of OECD tax policy. As recommended by theory, top marginal income tax rates have declined, marginal income tax schedules have flattened, redistribution has risen with income inequality, and commodity taxes are...

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  • White Papers // Jun 2009

    Walking Through Jelly: Language Proficiency, Emotions, And Disrupted Collaboration In Global Work

    In an ethnographic study comprised of interviews and concurrent observations of 145 globally distributed members of nine project teams of an organization, the authors found that uneven proficiency in English, the lingua franca, disrupted collaboration for both native and non-native speakers. Although all team members spoke English, different levels of...

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  • White Papers // May 2009

    Farsighted Stability For Roommate Markets

    Using a bi-choice graph technique, the authors show that a matching for a roommate market indirectly dominates another matching if and only if no blocking pair of the former is matched in the latter. Using this characterization of indirect dominance, they investigate von Neumann-Morgenstern farsightedly stable sets. They show that...

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  • White Papers // Jun 2009

    Technology Innovation And Diffusion As Sources Of Output And Asset Price Fluctuations

    The authors develop a model in which innovations in an economy's growth potential are an important driving force of the business cycle. The framework shares the emphasis of the recent "New shock" literature on revisions of beliefs about the future as a source of fluctuations, but differs by tieing these...

    Provided By Harvard Business School

  • White Papers // May 2009

    Firsthand Experience And The Subsequent Role Of Reflected Knowledge In Cultivating Trust In Global Collaboration

    While scholars contend that firsthand experience - time spent onsite observing the people, places, and norms of a distant locale - is crucial in globally distributed collaboration, how such experience actually affects interpersonal dynamics is poorly understood. Based on 47 semi structured interviews and 140 survey responses in a global...

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  • White Papers // May 2009

    Innovation Communication In Multicultural Networks: Deficits In Inter-cultural Capability And Affect-Based Trust As Barriers To New Idea Sharing In Inter- Cultural Relationships

    Innovative solutions to pressing global problems require effective inter-cultural communication. The authors propose that a barrier to the sharing of ideas pertinent to innovation in inter-cultural relationships is low affect-based trust, which arise from individuals' deficits in inter-cultural capability. Results from a study of sample of executives' professional networks indicate...

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  • White Papers // May 2009

    It Is Okay For Artists To Make Money. No, Really, It's Okay

    In this paper, the authors examine the apparent conflict between artistic and commercial objectives within creative companies, taking as the point of departure a particularly energetic debate during a symposium at the 2007 Academy of Management meetings. They surface the assumptions that underlie such debates, compare them with findings from...

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  • White Papers // May 2009

    Don't Just Survive-Thrive: Leading Innovation In Good Times And Bad

    At the beginning of the decade the authors saw two challenges ahead of them, one external and one internal. Externally, they faced a world economy that would be characterized by slower growth, with stronger global competitors going after a smaller piece of the pie. Internally, the challenge was even bigger....

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  • White Papers // Apr 2009

    Feeling The Heat: The Effects Of Performance Pressure On Teams- Knowledge Use And Performance

    This paper identifies performance pressure as a critical barrier to effective knowledge utilization. Performance pressure creates threat rigidity effects in teams, meaning that they default to using the expertise of high-status members while becoming less effective at using team members with deep client knowledge. This paper thus reveals a paradox...

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  • White Papers // Apr 2009

    On Good Scholarship, Goal Setting, And Scholars Gone Wild

    In this paper, the authors define good scholarship, highlight the points of disagreement with Locke and Latham (2009), and call for further academic research to examine the full range of goal setting's effects. They reiterate the original claim that goal setting, like a potent medication, can produce both beneficial effects...

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  • White Papers // Apr 2009

    Can A Continuously- Liquidating Tontine (Or Mutual Inheritance Fund) Succeed Where Immediate Annuities Have Floundered?

    A new instrument is proposed whose purpose is to help people carry their savings forward from the moment they retire into their old age. Like annuities, this instrument requires an up-front payment before people receive any benefits while also protecting people from the risk that they will live a long...

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  • White Papers // Apr 2009

    Asset Specificity And Vertical Integration: Williamson's Hypothesis Reconsidered

    A point repeatedly stressed by transaction cost economics is that the more specific the asset, the more likely is vertical integration to be optimal. In spite of the profusion of empirical papers supporting this prediction, recent surveys and casual observation suggest that higher levels of asset specificity need not always...

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  • White Papers // Apr 2009

    Where Is The Pharmacy To The World? International Regulatory Variation And Pharmaceutical Industry Location

    A consumer-oriented model for drug development and use has attracted attention in recent years as an alternative to the much-maligned approach of mass-marketing blockbuster drugs. In a parallel development, patients and disease-based organizations have assumed greater roles in defining disease categories than in the past and now influence clinical trials...

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  • White Papers // Oct 2010

    Prices Or Knowledge? What Drives Demand For Financial Services In Emerging Markets?

    Financial development is critical for growth, but its micro-determinants are not well understood. The authors test leading theories of low demand for financial services in emerging markets, combining novel survey evidence from Indonesia and India with a field experiment. They find a strong correlation between financial literacy and behavior. However,...

    Provided By Harvard Business School

  • White Papers // Oct 2009

    Capitalizing On Innovation: The Case Of Japan

    Japan's industrial landscape is characterized by hierarchical forms of industry organization, which are increasingly inadequate in modern sectors, where innovation relies on platforms and horizontal ecosystems of firms producing complementary products. Using three case studies - software, animation and mobile telephony -, they illustrate two key sources of inefficiencies that...

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  • White Papers // Mar 2009

    The Investment Strategies Of Sovereign Wealth Funds

    This paper examines the direct private equity investment strategies across sovereign wealth funds and their relationship to the funds' organizational structures. SWFs seem to engage in a form of trend chasing, since they are more likely to invest at home when domestic equity prices are higher, and invest abroad when...

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  • White Papers // May 2010

    Taking A "Deep Div"?: What Only A Top Leader Can Do

    Unlike most historical accounts of strategic change inside large firms, empirical research on strategic management rarely uses the day-to-day behaviors of top executives as the unit of analysis. By examining the resource allocation process closely, they introduce the concept of a deep dive, an intervention when top management seizes hold...

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  • White Papers // Mar 2009

    Corporate Misgovernance At The World Bank

    The authors test for evidence of corporate misgovernance at the World Bank. Most major decisions at the World Bank are made by its Board of Executive Directors. However, in any given year the majority of the Bank's member countries do not get a chance to serve on this powerful body....

    Provided By Harvard Business School

  • White Papers // Oct 2008

    Earnings Quality And Ownership Structure: The Role Of Private Equity Sponsors

    This paper explores how firms' ownership structures affect their earnings quality and long-term performance. Focusing on a unique sample of private firms for which there is financial data available in the years before and after their initial public offering (IPO), the author differentiates between those that have private equity sponsorship...

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  • White Papers // Mar 2009

    Corporate Social Entrepreneurship

    Corporate Social Entrepreneurship (CSE) is a process aimed at enabling business to develop more advanced and powerful forms of Corporate Social Responsibility (CSR). CSE emerges from and builds on three other conceptual frameworks: entrepreneurship, corporate entrepreneurship, and social entrepreneurship. CSE's conceptual roots begin with Schumpeter's vision that nations' innovation and...

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  • White Papers // Feb 2010

    Characteristic Timing

    The authors use differences between the attributes of stock issuers and repurchases to forecast characteristic-related stock returns. For example, they show that large firms underperform following years when issuing firms are large relative to repurchasing firms. The approach is useful for forecasting returns to portfolios based on book-to-market (HML), size...

    Provided By Harvard Business School

  • White Papers // Oct 2009

    Gray Markets And Multinational Transfer Pricing

    Gray markets arise when a manufacturer's products are sold outside of its authorized channels, for instance when goods designated for a foreign market are resold domestically. One method multinationals use to combat gray markets is to increase internal transfer prices to foreign subsidiaries in order to increase the gray market's...

    Provided By Harvard Business School

  • White Papers // Feb 2009

    Demographics, Career Concerns Or Social Comparison: Who Games SSRN Download Counts?

    The authors use a unique database of every SSRN paper download over the course of seven years, along with detailed resume data on a random sample of SSRN authors, to examine the role of demographic factors, career concerns, and social comparisons on the commission of a particular type of gaming:...

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  • White Papers // Jul 2009

    Monopolistic Competition Between Differentiated Products With Demand For More Than One Variety

    The authors analyze the existence of pure strategy symmetric price equilibrium in a generalized version of Salop (1979)'s circular model of competition between differentiated products - namely, they allow consumers to purchase more than one brand. When consumers purchase all varieties from which they derive non-negative net utility, there is...

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  • White Papers // Feb 2009

    Applying The Care Delivery Value Chain: HIV/AIDS Care In Resource Poor Settings

    In this paper, the authors describe the care delivery value chain for HIV/AIDS care in resource poor settings. Much is known about HIV/AIDS care, and the purpose of this note is not to be exhaustive but to see care in an overall systemic perspective. The care cycle for HIV begins...

    Provided By Harvard Business School