Browsing HBS Scholarly Articles by Keyword "Finance"
Now showing items 1-20 of 42
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Asset Price Dynamics in Partially Segmented Markets
(Oxford University Press (OUP), 2018-09)We develop a model in which capital moves quickly within an asset class but slowly between asset classes. While most investors specialize in a single asset class, a handful of generalists can gradually reallocate capital ... -
Borrowing to Save? The Impact of Automatic Enrollment on Debt
(Wiley, 2021-08-09)Does automatic enrollment into a retirement plan increase financial distress due to increased borrowing outside the plan? We study a natural experiment created when the U.S. Army began automatically enrolling newly hired ... -
Can Staggered Boards Improve Value? Causal Evidence from Massachusetts
(Wiley, 2021-09-14)We study the effect of staggered boards (SBs) using a quasi-experiment: a 1990 law that imposed an SB on all Massachusetts-incorporated firms. The law led to an increase in Tobin's Q, investment in CAPEX and R&D, patents, ... -
Conflicting Interests and the Effect of Fiduciary Duty: Evidence from Variable Annuities
(Oxford University Press (OUP), 2022-08-24)We examine the variable annuity market to study conflicts of interest and the effect of fiduciary duty in brokerage markets. Insurers typically pay brokers higher commissions for selling more expensive annuities. Our results ... -
Core Earnings: New Data and Evidence
(Elsevier BV, 2021-12)Using a novel dataset, we show that components of firms' GAAP earnings stemming from ancillary business activities or transitory shocks are significant in frequency and magnitude. These components have grown over time and ... -
Corporate Debt, Firm Size and Financial Fragility in Emerging Markets
(Elsevier BV, 2019-05)The post-Global Financial Crisis period shows a surge in corporate leverage in emerging markets and a number of countries with deteriorated corporate financial fragility indicators (Altman’s Z-score). Firm size plays a ... -
Cost of Experimentation and the Evolution of Venture Capital
(Elsevier BV, 2018-06)We study how technological shocks to the cost of starting new businesses have led the venture capital model to adapt in fundamental ways over the prior decade. We both document and provide a framework to understand the ... -
The Department of Justice as a Gatekeeper in Whistleblower-initiated Corporate Fraud Enforcement: Drivers and Consequences
(Elsevier BV, 2021-02)We examine drivers and consequences of U.S. Department of Justice (DOJ) oversight of whistleblower cases of corporate fraud against the government. We find that the DOJ is more likely to intervene in and conduct longer ... -
Disruption and Credit Markets
(Wiley, 2022-11-26)We show that over the past half‐century, innovative disruptions were central to understanding corporate defaults. In a given year, industries experiencing abnormally high venture capital or initial public offering activity ... -
Don't Take Their Word for It: The Misclassification of Bond Mutual Funds
(Wiley, 2021-04-29)We provide evidence that bond fund managers misclassify their holdings, and that these misclassifications have a real and significant impact on investor capital flows. In particular, many funds report more investment grade ... -
The Effect of Retaliation Costs on Employee Whistleblowing
(Elsevier BV, 2021-04)We use large increases in unemployment insurance (UI) benefits to study the effects of expected retaliation costs on employee whistleblowing. Increases in UI benefits reduce the costs that arise from a job loss, one of the ... -
Expected Stock Returns Worldwide: A Log-Linear Present-Value Approach
(American Accounting Association, 2021-04-08)This study provides the first large-scale study of the performance of expected-return proxies (ERPs) internationally. Analyst-forecast-based ICCs are sparsely populated and not robustly associated with future returns. ... -
Extrapolation and bubbles
(Elsevier BV, 2018-08)We present an extrapolative model of bubbles. In the model, many investors form their demand for a risky asset by weighing two signals: an average of the asset’s past price changes and the asset’s degree of overvaluation. ... -
Fraud Allegations and Government Contracting
(Wiley, 2019-06)This paper examines whether fraud allegations affect firms’ contracting with the government. Using a dataset of whistleblower allegations brought under the False Claims Act against firms accused of defrauding the government, ... -
Frictions in Shadow Banking: Evidence from the Lending Behavior of Money Market Mutual Funds
(Oxford University Press (OUP), 2014-04-07)We document the consequences of money market fund risk taking during the European sovereign debt crisis. Using a novel data set of security-level holdings of prime money market funds, we show that funds with large exposures ... -
Games of Threats
(Elsevier BV, 2018-03)A game of threats on a finite set of players, N, is a function d that assigns a real number to any coalition, S ⊆ N, such that d(S) = -d(N\S). A game of threats is not necessarily a coalitional game as it may fail to satisfy ... -
How Much Should We Trust Staggered Difference-in-Differences Estimates?
(Elsevier BV, 2022-05)We explain when and how staggered difference-in-differences regression estimators, commonly applied to assess the impact of policy changes, are biased. These biases are likely to be relevant for a large portion of research ... -
The Impact of Mass Shootings on Gun Policy
(Elsevier BV, 2020-01)There have been dozens of high-profile mass shootings in recent decades. This paper presents three main findings about the impact of mass shootings on gun policy. First, mass shootings evoke large policy responses. A single ... -
Incorporating Field Data into Archival Research
(Wiley, 2014-05-04)I explore the use of field data in conjunction with archival evidence by examining Iliev, Miller, and Roth's (2014) analysis of an amendment to the Securities Exchange Act of 1934. This regulatory amendment allowed depositary ... -
Innovation under Regulatory Uncertainty: Evidence from Medical Technology
(Elsevier BV, 2017-01)This paper explores how the regulatory approval process affects innovation incentives in medical technologies. Prior studies have found early mover regulatory advantages for drugs. I find the opposite for medical devices, ...