Harvard Business School

Displaying 1-40 of 184 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

    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

    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

    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

    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

    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 // 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

    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 // 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

    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 // 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

    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

    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 // 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 // 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 // Jan 2010

    Substitution Patterns Of The Random Coefficients Logit

    Previous research suggests that the random coefficients logit is a highly flexible model that overcomes the problems of the homogeneous logit by allowing for differences in tastes across individuals. The purpose of this paper is to show that this is not true. Author proves that the random coefficients logit imposes...

    Provided By Harvard Business School

  • White Papers // Jul 2009

    Information Risk and Fair Value: An Examination of Equity Betas and Bid-Ask Spreads

    Finance theory suggests that information risk-that is, the uncertainty regarding valuation parameters for an underlying asset-is reflected in firms' equity betas and the information asymmetry component of bid-ask spreads. The paper empirically examine these predictions for a sample of large U.S. banks, exploiting recent mandatory disclosures of financial instruments designated...

    Provided By Harvard Business School

  • White Papers // Sep 2010

    US Ethnic Scientists And Foreign Direct Investment Placement

    The authors analyze how high-skilled immigration to the US affects the foreign direct investment (FDI) activities of US multinationals. The authors construct a firm-level dataset that combines FDI patterns with measures of US-based patenting in the multinational by distinct ethnic groups (e.g., Chinese, Hispanic). Increases in the share of a...

    Provided By Harvard Business School

  • White Papers // Aug 2009

    Operational Failures And Problem Solving: An Empirical Study Of Incident Reporting

    Operational failures occur in all industries with consequences that range from minor inconveniences to major catastrophes. Many organizations have implemented incident reporting systems to highlight actual and potential operational failures in order to encourage problem solving and prevent subsequent failures. The study is among the first to develop and empirically...

    Provided By Harvard Business School

  • White Papers // Sep 2010

    The Distinct Effects Of Information Technology And Communication Technology On Firm Organization

    Empirical studies on information communication technologies (ICT) typically aggregate the information and communication components together. The authors show theoretically and empirically that this is problematic. Information and communication technologies have very different effects on the decisions taken at each level of an organization. Better information access pushes decisions down, as...

    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

    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 // May 2009

    Does Foreign Direct Investment Promote Growth? Exploring The Role Of Financial Markets On Linkages

    The paper is so far to mix varying from beneficial to detrimental effects of FDI on growth, with many studies that find no effect. In order to provide an explanation for this empirical ambiguity, one formalizes a mechanism that emphasizes the role of local financial markets in enabling Foreign Direct...

    Provided By Harvard Business School

  • White Papers // May 2009

    The Pricing Of Investment Grade Credit Risk During The Financial Crisis

    This paper uses a structural model to investigate the pricing of investment grade credit risk during the financial crisis. The analysis suggests that the dramatic recent widening of credit spreads is highly consistent with the decline in the equity market, the increase in its long-term volatility, and an improved investor...

    Provided By Harvard Business School

  • White Papers // Jul 2010

    Wellsprings of Creation: How Perturbation Sustains Exploration In Mature Organizations

    Organizations struggle to balance simultaneous imperatives to exploit and explore, yet theorists differ as to whether exploitation undermines or enhances exploration. The debate reflects a gap: the missing mechanism by which organizations break free of old routines and discover new ones. The authors propose that the missing link is perturbation:...

    Provided By Harvard Business School

  • White Papers // Sep 2010

    Employee Selection As A Control System

    Theories from the economics, management control, and organizational behavior literatures predict that when it is difficult to align incentives by contracting on output, aligning preferences via employee selection may provide a useful alternative. This paper investigates this idea empirically using personnel and lending data from a financial services organization that...

    Provided By Harvard Business School

  • White Papers // Sep 2010

    The Unbundling Of Advertising Agency Services: An Economic Analysis

    The author addresses a longstanding puzzle surrounding the unbundling of services occurring over several decades in the U.S. advertising agency industry: What accounts for the shift from bundling to unbundling of services and the slow pace of change? Using Evans and Salinger's cost-based theory of bundling, the authors develop a...

    Provided By Harvard Business School

  • White Papers // Sep 2010

    Prosocial Spending And Well- Being: Cross-Cultural Evidence For A Psychological Universal

    This paper provides the first support for a possible psychological universal: human beings around the world derive emotional benefits from using their financial resources to help others. Analyzing survey data from 136 countries, the authors show that prosocial spending is consistently associated with greater happiness. In contrast to traditional economic...

    Provided By Harvard Business School

  • White Papers // Sep 2010

    The Impact Of Supply Learning On Customer Demand: Model And Estimation Methodology

    To set service levels, firms must understand how changes in service affect customer demand. Supply learning is a process whereby customers use past supplier performance to build beliefs about supplier capabilities and hence about future supplier performance. This paper presents a multi-period model of service level competition among suppliers selling...

    Provided By Harvard Business School

  • White Papers // Aug 2010

    Making The Numbers? "Short Termism" & The Puzzle Of Only Occasional Disaster

    This paper presents a model that can reconcile these apparently contradictory perspectives. The author shows that if the source of long-term advantage is modeled as a stock of capability that accumulates gradually over time, a firm's proclivity to manage short-term earnings at the expense of long-term investment can have very...

    Provided By Harvard Business School

  • White Papers // Sep 2010

    Reversing The Queue: Performance, Legitimacy, And Minority Hiring

    Studies of minority hiring have found that poor-performing firms or firms in highly competitive contexts are more likely to hire minority candidates. However, most work has examined hiring for entry and mid-level positions, not senior management. Management positions differ in terms of the amount of uncertainty in identifying candidates qualified...

    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 // Sep 2010

    Does Mandatory IFRS Adoption Improve The Information Environment?

    The authors examine the effect of mandatory International Financial Reporting Standards ('IFRS') adoption on firms' information environment. They find that after mandatory IFRS adoption consensus forecast errors decrease for firms that mandatorily adopt IFRS relative to forecast errors of other firms. They also find decreasing forecast errors for voluntary adopters,...

    Provided By Harvard Business School

  • White Papers // Oct 2010

    The Profits Of Power: Commercial Realpolitik In Europe And Eurasia

    Old-style realpolitik - bilateral, sentiment-free, and organized by great powers - has returned to Europe, thereby wreaking havoc on traditions of solidarism and multilateralism in the European Union. The renaissance of the Russian state and the rise of Gazprom, Russia's natural gas monopoly, have produced patterns of international politics that...

    Provided By Harvard Business School

  • White Papers // Jul 2010

    Crashes And Collateralized Lending

    This paper develops a parsimonious static model for characterizing financing terms in collateralized lending markets. The authors characterize the systematic risk exposures for a variety of securities and develop a simple indifference-pricing framework to value the systematic crash risk exposure of the collateral. They then apply Modigliani and Miller's (1958)...

    Provided By Harvard Business School

  • White Papers // Sep 2010

    A Positive Approach To Studying Diversity In Organizations

    This paper used to distinguish between positive findings in diversity research and a positive approach to studying diversity. The author first review and integrate research on diversity from organizational behavior, social psychology and sociology from 1998-2010 that has already documented positive findings in relation to diversity. By illuminating both positive...

    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 // Apr 2010

    The Global Networks Of Multinational Firms

    The proliferation of multinational activities has led to the emergence of new industrial clusters around the world. In this paper, the authors examine how "First nature" location fundamentals and "Second nature" agglomeration economies jointly determine the global landscape of multinational firms. Using a unique worldwide plant dataset that reports detailed...

    Provided By Harvard Business School

  • White Papers // Jun 2009

    Open To Negotiation: Phenomenological Assumptions And Knowledge Dissemination

    Phenomenological assumptions - assumptions about the fundamental qualities of the phenomenon being studied and how it relates to the environment in which it occurs - affect the dissemination of knowledge from subfields to the broader field of study. Micro-process research in organizational studies rests on implicit phenomenological assumptions that vary...

    Provided By Harvard Business School

  • White Papers // Jul 2009

    The Effect Of Labor On Profitability: The Role Of Quality

    Determining staffing levels is an important decision in retail operations. While the costs of increasing labor are obvious and easy to measure, the benefits are often indirect and not immediately felt. One benefit of increased labor is improved quality. The objective of this paper is to examine the effect of...

    Provided By Harvard Business School

  • White Papers // Jun 2009

    Securing Online Advertising: Rustlers And Sheriffs In The New Wild West

    Advertising is the bedrock of websites that are provided without charge to end users, so advertising is everywhere. But advertising security gaps are equally widespread: from "Malvertisement" banner ads pushing rogue anti-spyware software, to click fraud, to spyware and adware, the security lapses of online advertising are striking. Still, buying...

    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 // Oct 2010

    Coming Clean And Cleaning Up: Does Voluntary Self- Reporting Indicate Effective Self-Policing?

    Administrative agencies are increasingly establishing voluntary self-reporting programs both as an investigative tool and to encourage regulated firms to commit to policing themselves. The authors investigate whether self-reporting can reliably indicate effective self-policing efforts that might provide opportunities for enforcement efficiencies. They find that regulators used self-reports of legal violations...

    Provided By Harvard Business School

  • White Papers // Mar 2008

    Modeling Expert Opinions On Food Healthiness: A Nutrition Metric

    Research over the last several decades indicates the failure of existing nutritional labels to substantially improve the healthiness of consumers' food and beverage choices. The obstacle for policy-makers is to encapsulate a wide body of scientific knowledge into a labeling scheme that is also comprehensible to the average shopper. Here,...

    Provided By Harvard Business School

  • White Papers // Jun 2009

    Responding To Public And Private Politics: Corporate Disclosure Of Climate Change Strategies

    This paper explores the conditions under which firms participate in this endeavor. Building on theories of how social activists inspire changes in organizational norms, beliefs, and practices, the authors hypothesize that shareholder actions and regulatory threats are likely to prime firms to adopt practices consistent with the aims of a...

    Provided By Harvard Business School

  • White Papers // Mar 2010

    Workplace Peers And Entrepreneurship

    The authors examine whether the likelihood of entrepreneurial activity is related to the prior career experiences of an individual's co-workers, using a unique matched employer-employee panel dataset. They find that an individual is more likely to become an entrepreneur if his or her co-workers have been entrepreneurs before. Peer influences...

    Provided By Harvard Business School

  • White Papers // Dec 2009

    Labor Regulations And European Private Equity

    European nations substitute between employment protection regulations and labor market expenditures for providing worker insurance. Employment regulations more directly tax firms making frequent labor adjustments than other labor insurance mechanisms. Venture capital and private equity investors are especially sensitive to these labor adjustment costs. Nations favoring labor expenditures as the...

    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 // Jun 2009

    How Firms Respond To Being Rated

    While many rating systems seek to help buyers overcome information asymmetries when making purchasing decisions, they investigate how these ratings also influence the companies being rated. The authors examine how several hundred firms respond to corporate environmental ratings issued by a prominent independent social rating agency, and take advantage of...

    Provided By Harvard Business School

  • White Papers // Sep 2008

    Mental Accounting And Small Windfalls: Evidence From An Online Grocer

    The authors study the effect of small windfalls on consumer spending decisions by comparing the purchases online grocery customers make when redeeming $10-off coupons with the purchases they make without coupons. Controlling for customer fixed effects and other variables; they find that grocery spending increases by $1.59 when a $10-off...

    Provided By Harvard Business School

  • White Papers // Jul 2010

    Platform Envelopment

    Due to network effects and switching costs in platform markets, entrants generally must offer revolutionary functionality. The authors explore a second entry path that does not rely upon Schumpeterian innovation: platform envelopment. Through envelopment, a provider in one platform market can enter another platform market, combining its own functionality with...

    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

    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