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• Article | Review of Financial Studies | June 2012

  A Reexamination of Tunneling and Business Groups: New Data and New Methods

  Jordan I. Siegel and Prithwiraj Choudhury

  One of the most rigorous methodologies in the corporate governance literature uses firms' reactions to industry shocks to characterize the quality of governance. This methodology can produce the wrong answer unless one considers the ways firms compete. Because macro-level shocks reverberate differently at the firm level depending on whether a firm has a cost structure that requires significant adjustment, the quality of governance can only be elucidated accurately analyzing a firm's business strategy and their corporate governance. These differences can help one determine whether the fruits of a positive macro-level shock have been expropriated by insiders. Using the example of Indian firms, we show that an influential finding is reversed when these differences are considered. We further argue that the conventional wisdom about tunneling and business groups will need to be reformulated in light of the data, methodology, and findings presented here.

  Keywords: corporate governance; mergers and acquisitions; business economics; firm organization; firm performance; Groups and Teams; Data and Data Sets;

  Citation:

  Siegel, Jordan I., and Prithwiraj Choudhury. "A Reexamination of Tunneling and Business Groups: New Data and New Methods." Review of Financial Studies 25, no. 6 (June 2012): 1763–1798. (One of the most rigorous methodologies in the corporate governance literature uses firms' reactions to industry shocks to characterize the quality of governance. This methodology can produce the wrong answer unless one considers the ways firms compete. Because macro-level shocks reverberate differently at the firm level depending on whether a firm has a cost structure that requires significant adjustment, the quality of governance can only be elucidated accurately analyzing a firm's business strategy and their corporate governance. These differences can help one determine whether the fruits of a positive macro-level shock have been expropriated by insiders. Using the example of Indian firms, we show that an influential finding is reversed when these differences are considered. We further argue that the conventional wisdom about tunneling and business groups will need to be reformulated in light of the data, methodology, and findings presented here.)

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• Article | McKinsey Quarterly | 2010

  Creating Value in the Age of Distributed Capitalism

  Shoshana Zuboff

  Capitalism is a book of many chapters—and we are beginning a new one. Every century or so, fundamental changes in the nature of consumption create new demand patterns that existing enterprises can't meet. When a majority of people want things that remain priced at a premium under the old institutional regime—a condition I call the "premium puzzle"—the ground becomes extremely fertile for wholly new classes of competitors that can fulfill the new demands at an affordable price. A premium puzzle existed in the auto industry before Henry Ford and the Model T and in the music industry before Steve Jobs and the iPod. The consumption shift in Ford's time was from the elite to the masses; today, we are moving from an era of mass consumption to one focused on the individual. Sharp increases in higher education, standards of living, social complexity, and longevity over the past century gave rise to a new desire for individual self-determination: having control over what matters, having one's voice heard, and having social connections on one's own terms. The leading edge of consumption is now moving from products and services to tools and relationships enabled by interactive technologies.

  Citation:

  Zuboff, Shoshana. "Creating Value in the Age of Distributed Capitalism." Art. 4. McKinsey Quarterly (2010): 45–55.

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• Exercise | 2003

  SACD Final Paper Assignment

  Shoshana Zuboff, David A. Thomas and Monica C. Higgins

  The final paper assignment for the Self-Assessment and Career Development course.

  Keywords: Curriculum and Courses; Personal Development and Career;

  Citation:

  Zuboff, Shoshana, David A. Thomas, and Monica C. Higgins. "SACD Final Paper Assignment." Harvard Business School Exercise 404-018, August 2003.

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