Finance →
- 13 Nov 2020
- Working Paper Summaries
Long-Run Returns to Impact Investing in Emerging Markets and Developing Economies
Examination of every equity investment made by the International Finance Corporation, one of the largest and longest-operating impact investors, shows this portfolio has outperformed the S&P 500 by 15 percent.
- 03 Nov 2020
- Working Paper Summaries
The Stock Market Value of Human Capital Creation
Measuring human capital creation is complex but increasingly important to managers for understanding the relationship between employee expenditures and firm performance. This paper develops a strategy to examine aspects of the intangible human capital investment embedded in a firm’s personnel expense. Closed for comment; 0 Comments.
- 27 Oct 2020
- Working Paper Summaries
Does Venture Capital Attract Human Capital? Evidence from a Randomized Field Experiment
Using a randomized field experiment conducted on a large online search platform, this study illustrates how investments by top venture capital investors attract potential employees and improve the pool of candidates available for the startup.
- 25 Oct 2020
- Research & Ideas
The Dark Side of Fintech Borrowing
Fintechs have revolutionized the banking industry, but some customers end up worse for the experience, according to research by Marco Di Maggio and colleagues. Open for comment; 0 Comments.
- 22 Oct 2020
- Working Paper Summaries
Estimating Causal Effects in the Presence of Partial Interference Using Multivariate Bayesian Structural Time Series Models
A case study of an Italian supermarket introducing a new pricing policy—in which it reduced prices on some brands—offers managers a new approach to reduce uncertainty. The approach is flexible and can be applied to different business problems.
- 19 Oct 2020
- Working Paper Summaries
Bankruptcy and the COVID-19 Crisis
Analyzing the impact of the COVID-19 crisis on bankruptcy filing rates in the United States, this study finds that large businesses, small businesses, and consumers experience very different effects of the crisis.
- 13 Oct 2020
- Working Paper Summaries
Fencing Off Silicon Valley: Cross-Border Venture Capital and Technology Spillovers
This study of foreign corporate investment transactions from 32 countries between 1976 and 2015 finds these investments pose a trade-off: While they support young firms in pursuing innovations they could not otherwise afford, they also generate knowledge for the foreign investors.
- 17 Sep 2020
- Research & Ideas
Many Small-Business Employees May Be Close to Losing Health Insurance
Small-business owners have delayed rent payments and other bills to protect health benefits for employees. Now, financial pressure is mounting, according to research by Leemore Dafny, Yin Wei Soon, Zoë Cullen, and Christopher Stanton. Open for comment; 0 Comments.
- 03 Sep 2020
- Op-Ed
Why American Health Care Needs Its Own SEC
The United States needs a health care equivalent of the Securities and Exchange Commission to increase transparency and competition, argues Regina Herzlinger. Open for comment; 0 Comments.
- 31 Aug 2020
- Working Paper Summaries
The Pass-Through of Uncertainty Shocks to Households
A firm’s stock price volatility during times of uncertainty can significantly reduce workers’ consumption and savings decisions. This paper sheds light on the economic effects of uncertainty, and in particular, how firms provide insurance to their workers during periods of turmoil.
- 20 Aug 2020
- Working Paper Summaries
Best Ideas
The “best ideas” in investment managers’ portfolios generate statistically and economically significant risk-adjusted returns over time, and they systematically outperform other positions in the portfolios. Investors can gain substantially if managers choose less-diversified portfolios that tilt more towards their best ideas.
- 12 Aug 2020
- Research & Ideas
Why Investors Often Lose When They Sue Their Financial Adviser
Forty percent of American investors rely on financial advisers, but the COVID-19 market rollercoaster may have highlighted a weakness when disputes arise. The system favors the financial industry, says Mark Egan. Open for comment; 0 Comments.
- 29 Jul 2020
- Working Paper Summaries
Two Case Studies on the Financing of Forest Conservation
Case studies about The Conservation Fund and Sonen Capital highlight three broad lessons about fresh approaches to the ownership and management of forestland.
- 27 Jul 2020
- Working Paper Summaries
The Evolution of CEO Compensation in Venture Capital-Backed Startups
Resolving uncertainty related to market demand—so called “product-market” fit—marks a key inflection point in the compensation contract for CEOs of venture-capital backed firms.
- 12 Jul 2020
- Working Paper Summaries
Sticky Capital Controls
One of the legacies of the 2007–2008 global financial crisis has been a reassessment of the potential for restriction of capital flows policies. This paper documents a set of stylized facts on capital controls along their intensive and extensive margins for emerging markets and document them to be “sticky.” We then rationalize them through a model that includes fixed cost of implementing such policies, which lower the welfare gains of implementation.
- 10 Jul 2020
- Working Paper Summaries
Making Economics More Useful: How Technological Eclecticism Could Help
This paper shows how tools, such as simulations used to design new technologies, can facilitate collaborative economic policy judgments. The paper forms part of a broader, ongoing study of knowledge in practical fields such as engineering, medicine, and business.
- 07 Jul 2020
- Research & Ideas
Market Investors Pay More for Resilient Companies
During a market collapse, investors will pay up for companies considered resilient in their response, according to George Serafeim. Open for comment; 0 Comments.
- 06 Jul 2020
- Research & Ideas
The Right Way to Manage Customer Churn for Maximum Profit
Many companies actively manage customer churn but aren't seeking out the best customers to retain, warns Sunil Gupta. Open for comment; 0 Comments.
- 02 Jul 2020
- Working Paper Summaries
Inflation with COVID Consumption Baskets
Examining the impact that changes in expenditure patterns are having on the measurement of consumer price indices (CPI) inflation in 17 countries, this study finds that the cost of living for the average consumer is higher than estimated by the official CPI. This implies that real consumption is falling more quickly over time.
Private Equity and COVID-19
Private equity investors are seeking new investments despite the pandemic. This study shows they are prioritizing revenue growth for value creation, giving larger equity stakes to management teams, and targeting somewhat lower returns.