Robin Greenwood

George Gund Professor of Finance and Banking

Unit: Finance

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(617) 495-6979

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Robin is the George Gund Professor of Finance and Banking at Harvard Business School, where he has been on the faculty since 2003. His research investigates market inefficiency at the macro-level, with a special emphasis on debt markets. He received a Ph.D. from Harvard in Economics, and B.S. degrees in Economics and Mathematics at MIT. He has taught in both years of the MBA curriculum as well as the PhD. program. He was the chair of the Finance for Senior Executives Program, developed the Behavioral and Value Investing Elective Course, and now runs the first semester of finance in the MBA program.  He is a Research Associate at the National Bureau of Economic Research and editor of the Review of Financial Studies.

Link to Personal Webpage 
Link to List of Outside Activities

Publications

Working Papers

  1. Waves in Ship Prices and Investment

    We study the returns to owning dry bulk cargo ships. Ship earnings exhibit a high degree of mean reversion, driven by industry participants' competitive investment responses to shifts in demand. Ship prices are far too volatile given the mean reversion in earnings. We show that high current ship earnings are associated with high secondhand ship prices and heightened industry investment in fleet capacity but forecast low future returns. We propose and estimate a behavioral model that can account for the evidence. In our model, firms over-extrapolate exogenous demand shocks and partially neglect the endogenous investment responses of their competitors. Formal estimation of the model confirms that both types of expectational errors are needed to account for our findings.

    Keywords: Demand and Consumers; Price; Ship Transportation; Investment; Shipping Industry;

    Citation:

    Greenwood, Robin, and Samuel G. Hanson. "Waves in Ship Prices and Investment." NBER Working Paper Series, No. 19246, July 2013. (Internet Appendix Here.) View Details

Journal Articles

  1. A Comparative-Advantage Approach to Government Debt Maturity

    We study optimal government debt maturity in a model where investors derive monetary services from holding riskless short-term securities. In a setting where the government is the only issuer of such riskless paper, it trades off the monetary premium associated with short-term debt against the refinancing risk implied by the need to roll over its debt more often. We then extend the model to allow private financial intermediaries to compete with the government in the provision of short-term, money-like claims. We argue that if there are negative externalities associated with private money creation, the government should tilt its issuance more towards short maturities. The idea is that the government may have a comparative advantage relative to the private sector in bearing refinancing risk and, hence, should aim to partially crowd out the private sector's use of short-term debt.

    Keywords: Sovereign Finance; Debt Securities;

    Citation:

    Greenwood, Robin, Samuel G. Hanson, and Jeremy C. Stein. "A Comparative-Advantage Approach to Government Debt Maturity." Journal of Finance (forthcoming). (Internet Appendix Here.) View Details
  2. X-CAPM: An Extrapolative Capital Asset Pricing Model

    Survey evidence suggests that many investors form beliefs about future stock market returns by extrapolating past returns. Such beliefs are hard to reconcile with existing models of the aggregate stock market. We study a consumption-based asset pricing model in which some investors form beliefs about future price changes in the stock market by extrapolating past price changes, while other investors hold fully rational beliefs. We find that the model captures many features of actual prices and returns; importantly, however, it is also consistent with the survey evidence on investor expectations.

    Keywords: capital asset pricing; returns; Investing; Asset Pricing; Investment Return;

    Citation:

    Barberis, Nicholas, Robin Greenwood, Lawrence Jin, and Andrei Shleifer. "X-CAPM: An Extrapolative Capital Asset Pricing Model." Journal of Financial Economics (forthcoming). View Details
  3. Vulnerable Banks

    We present a model in which fire sales propagate shocks across bank balance sheets. When a bank experiences a negative shock to its equity, a natural way to return to target leverage is to sell assets. If potential buyers are limited, then asset sales depress prices, in which case one bank's sales impact other banks with common exposures. We show how this contagion effect adds up across the banking sector, and how it can be estimated empirically using balance sheet data. We compute bank exposures to system-wide deleveraging, as well as the spillovers induced by individual banks. Applying the model to European banks, we evaluate a variety of interventions to reduce their vulnerability to fire sales during the sovereign debt crisis.

    Keywords: Financial Liquidity; Financial Crisis; Banks and Banking; Banking Industry; Europe;

    Citation:

    Greenwood, Robin, Augustin Landier, and David Thesmar. "Vulnerable Banks." Journal of Financial Economics (forthcoming). View Details
  4. Bond Supply and Excess Bond Returns

    We examine empirically how the maturity structure of government debt affects bond yields and excess returns. Our analysis is based on a theoretical model of preferred habitat in which clienteles with strong preferences for specific maturities trade with arbitrageurs. Consistent with the model, we find that (i) the supply of long- relative to short-term bonds is positively related to the term spread, (ii) supply predicts positively long-term bonds' excess returns even after controlling for the term spread and the Cochrane-Piazzesi factor, (iii) the effects of supply are stronger for longer maturities, and (iv) following periods when arbitrageurs have lost money, both supply and the term spread are stronger predictors of excess returns.

    Keywords: Bonds; Investment Return;

    Citation:

    Greenwood, Robin, and Dimitri Vayanos. "Bond Supply and Excess Bond Returns." Review of Financial Studies 27, no. 3 (March 2014): 663–713. (Also earlier version NBER Working Paper Series, No. 13806, February 2008.) View Details
  5. Expectations of Returns and Expected Returns

    We analyze time-series of investor expectations of future stock market returns from six data sources between 1963 and 2011. The six measures of expectations are highly positively correlated with each other, as well as with past stock returns and with the level of the stock market. However, investor expectations are strongly negatively correlated with model-based expected returns. The evidence is not consistent with rational expectations representative investor models of returns.

    Keywords: Performance Expectations; Investment Return;

    Citation:

    Greenwood, Robin, and Andrei Shleifer. "Expectations of Returns and Expected Returns." Review of Financial Studies 27, no. 3 (March 2014): 714–746. (Internet Appendix Here.) View Details
  6. The Growth of Finance

    The U.S. financial services industry grew from 4.9% of GDP in 1980 to 7.9% of GDP in 2007. A sizeable portion of the growth can be explained by rising asset management fees, which in turn were driven by increases in the valuation of tradable assets, particularly equity. Another important factor was growth in fees associated with an expansion in household credit, particularly for residential mortgages. This expansion was itself fueled by the development of non-bank credit intermediation (or "shadow banking"). Whether the growth of the financial sector has been socially beneficial depends on one's view of active asset management, the increase in household credit, and the growth of shadow banking. While recognizing some of the benefits of professional asset management, we are skeptical about the marginal value of active asset management. We then raise concerns about whether the potential benefits of increased access to household credit—the main output of the shadow banking system—are outweighed by the risks inherent in this new approach to credit delivery.

    Keywords: Asset Management; Research; Finance; Mortgages; Financial Services Industry;

    Citation:

    Greenwood, Robin, and David S. Scharfstein. "The Growth of Finance." Journal of Economic Perspectives 27, no. 2 (Spring 2013): 3–28. View Details
  7. Issuer Quality and Corporate Bond Returns

    We 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 debt issuance of low quality firms is particularly useful for forecasting bond returns. We show that a significant decline in issuer quality is a more reliable signal of credit market overheating than rapid aggregate credit growth. We use these findings to investigate the forces driving time-variation in expected corporate bond returns.

    Keywords: Quality; Bonds; Forecasting and Prediction; Credit;

    Citation:

    Greenwood, Robin, and Samuel G. Hanson. "Issuer Quality and Corporate Bond Returns." Review of Financial Studies 26, no. 6 (June 2013): 1483–1525. (Internet Appendix Here.) View Details
  8. Share Issuance and Factor Timing

    We show that characteristics of stock issuers can be used to forecast important common factors in stocks' returns such as those associated with book-to-market, size, and industry. Specifically, we use differences between the attributes of stock issuers and repurchasers to forecast characteristic-related factor returns. For example, we show that large firms underperform following years when issuing firms are large relative to repurchasing firms. While our strongest results are for portfolios based on book-to-market, size (i.e., we forecast the HML and SMB factors), and industry, our approach is also useful for forecasting factor returns associated with distress, payout policy, and profitability.

    Keywords: Investment Portfolio; Stock Shares; Forecasting and Prediction; Investment Return; Policy; Profit;

    Citation:

    Greenwood, Robin, and Samuel G. Hanson. "Share Issuance and Factor Timing." Journal of Finance 67, no. 2 (April 2012): 761–798. (Internet Appendix Here.) View Details
  9. Agency Costs, Mispricing, and Ownership Structure

    Standard theories of corporate ownership assume that because markets are efficient, insiders ultimately bear all agency costs that they create and therefore have a strong incentive to minimize conflicts of interest with outside investors. We argue that if equity is overvalued, however, mispricing offsets agency costs and can induce a controlling shareholder to list equity. Higher valuations may support listings associated with greater agency costs. We test the predictions that follow from this idea on a sample of publicly listed subsidiaries in Japan. Subsidiaries in which the parent sells a larger stake and subsidiaries with greater scope for expropriation by the parent firm are more overpriced at listing, and minority shareholders fare poorly after listing as mispricing corrects. Parent firms often repurchase subsidiaries at large discounts to valuations at the time of listing and experience positive abnormal returns when repurchases are announced.

    Keywords: Business and Shareholder Relations; Ownership; Conflict of Interests; Investment; Valuation;

    Citation:

    Greenwood, Robin, C. Fritz Foley, and Sergey Chernenko. "Agency Costs, Mispricing, and Ownership Structure." Financial Management 41, no. 4 (Winter, 2012): 885–914. View Details
  10. Stock Price Fragility

    We investigate the relationship between ownership structure of financial assets and non-fundamental risk. We define an asset to be fragile if it is susceptible to non-fundamental trading shocks. An asset can be fragile because of concentrated ownership or because its owners face correlated liquidity shocks, i.e., they must buy or sell at the same time. Two assets are co-fragile if their owners have correlated trading needs, even if the holdings of these owners do not directly overlap. We formalize this idea and apply it to the ownership of U.S. stocks between 1990 and 2007. Consistent with our predictions, fragility strongly predicts future price volatility, and co-fragility predicts cross-stock return comovement.

    Keywords: Stocks; Price; Ownership; Risk and Uncertainty; Assets; System Shocks; Financial Liquidity; Forecasting and Prediction; Investment Return; Volatility; Relationships; United States;

    Citation:

    Greenwood, Robin, and David Thesmar. "Stock Price Fragility." Journal of Financial Economics 102, no. 3 (December 2011). View Details
  11. A Gap-Filling Theory of Corporate Debt Maturity Choice

    We argue that time-series variation in the maturity of aggregate corporate debt issues arises because firms behave as macro liquidity providers, absorbing the large supply shocks associated with changes in the maturity structure of government debt. We document that when the government funds itself with relatively more short-term debt, firms fill the resulting gap by issuing more long-term debt, and vice-versa. This type of liquidity provision is undertaken more aggressively: i) in periods when the ratio of government debt to total debt is higher; and ii) by firms with stronger balance sheets. Our theory provides a new perspective on the apparent ability of firms to exploit bond-market return predictability with their financing choices.

    Keywords: Business Ventures; Decision Choices and Conditions; Borrowing and Debt; Financial Liquidity; Investment Return; Government and Politics;

    Citation:

    Greenwood, Robin, Samuel G. Hanson, and Jeremy C. Stein. "A Gap-Filling Theory of Corporate Debt Maturity Choice." Journal of Finance 65, no. 3 (June 2010): 993–1028. (Supplementary results in Internet Appendix.) View Details
  12. Price Pressure in the Government Bond Market

    Keywords: Price; Government and Politics; Bonds; Markets;

    Citation:

    Greenwood, Robin, and Dimitri Vayanos. "Price Pressure in the Government Bond Market." American Economic Review: Papers and Proceedings 100, no. 2 (May 2010). View Details
  13. The Evolution of Corporate Ownership after IPO: The Impact of Investor Protection

    We use firm-level data from 34 countries covering the 1995-2006 period to analyze how the characteristics of public markets shape the process by which firms become widely held. Firms in all countries in the sample tend to have concentrated ownership at the time they go public. Decreases in ownership concentration are more likely for firms in countries with stronger protections for minority shareholders, lower block premia, and more liquid stock markets. In these countries, firms are more likely to issue equity when investment opportunities are high, becoming widely held in the process. We find scant evidence, however, that changes in percentage blockholding forecast future returns, inconsistent with market timing theories. Our results suggest that liquidity-based theories of corporate ownership may have been underemphasized in previous cross-country studies.

    Keywords: Financial Liquidity; Business History; Market Timing; Going Public; Business and Government Relations; Business and Shareholder Relations;

    Citation:

    Foley, C. Fritz, and Robin Greenwood. "The Evolution of Corporate Ownership after IPO: The Impact of Investor Protection." Review of Financial Studies 23, no. 3 (March 2010). (Formerly NBER Working Paper No. 14557.) View Details
  14. Catering Through Nominal Share Prices

    We propose and test a catering theory of nominal stock prices. The theory predicts that when investors place higher valuation on low-price firms, managers will maintain share prices at lower levels, and vice-versa. Using measures of time-varying catering incentives based on valuation ratios, split announcement effects, and future returns, we find empirical support for the predictions in both time-series and firm-level data. Given the strong cross-sectional relationship between capitalization and nominal share price, an interpretation of the results is that managers may be trying to categorize their firms as small firms when investors favor small firms.

    Keywords: Stocks; Stock Shares; Investment; Investment Return; Price; Theory; Valuation;

    Citation:

    Baker, Malcolm, Robin Greenwood, and Jeffrey Wurgler. "Catering Through Nominal Share Prices." Journal of Finance 64, no. 6 (December 2009): 2559–2590. (Internet Appendix.) View Details
  15. Inexperienced Investors and Bubbles

    We use mutual fund manager data from the technology bubble to examine the hypothesis that inexperienced investors play a role in the formation of asset price bubbles. Using age as a proxy for managers' investment experience, we find that around the peak of the technology bubble, mutual funds run by younger managers are more heavily invested in technology stocks, relative to their style benchmarks, than their older colleagues. Furthermore, young managers, but not old managers, exhibit trend-chasing behavior in their technology stock investments. As a result, young managers increase their technology holdings during the run-up, and decrease them during the downturn. Both results are in line with the behavior of inexperienced investors in experimental asset markets. The economic significance of young managers' actions is amplified by large inflows into their funds prior to the peak in technology stock prices.

    Keywords: Investment Funds; Behavioral Finance; Price Bubble; Technology; Managerial Roles; Stocks;

    Citation:

    Greenwood, Robin, and Stefan Nagel. "Inexperienced Investors and Bubbles." Journal of Financial Economics 93, no. 2 (August 2009): 239–258. (formerly NBER Working Paper No. 14111, June 2008.) View Details
  16. Trading Restrictions and Stock Prices

    Firms can manipulate their stock price by limiting the ability of their investors to sell. I examine a series of corporate events in Japan in which firms actively reduced their float—the fraction of shares available to trade—for periods of one to three months, locking investors into their long positions. Standard theory predicts that the greater are the restrictions, the greater is the impact of trading on price. Particularly severe restrictions are associated with positive event returns of over 30 percent, most of which are reversed when the restrictions are removed. Firms are more likely to issue equity or redeem convertible debt during the restricted period, suggesting strong incentives for manipulation.

    Keywords: Equity; Stock Shares; Investment; Investment Return; Price; Market Transactions; Japan;

    Citation:

    Greenwood, Robin. "Trading Restrictions and Stock Prices." Review of Financial Studies 22, no. 3 (March 2009): 509–539. View Details
  17. Investor Activism and Takeovers

    Recent work documents large positive abnormal returns around the time that a hedge fund announces its activist intentions with a publicly listed firm. We show that these returns are largely explained by the ability of activists to force target firms into a takeover: In a comprehensive sample of 13D filings by portfolio investors between 1993 and 2006, we find that announcement returns and long-term abnormal returns are high for the subset of targets that are acquired ex-post, but not detectably different from zero for firms that remain independent eighteen months after the initial filing. We show that firms that are targeted by activists are more likely to get acquired than those in a control sample. Finally, we show that the portfolios managed by activist investors perform poorly during a period in which market-wide takeover interest declined.

    Keywords: Mergers and Acquisitions; Private Equity; Investment Return; Investment Activism; Investment Portfolio; Public Ownership;

    Citation:

    Greenwood, Robin, and Michael Schor. "Investor Activism and Takeovers." Journal of Financial Economics 92 (2009): 362–375. View Details
  18. Excess Comovement of Stock Returns: Evidence from Cross-sectional Variation in Nikkei 225 Weights

    In the presence of limits to arbitrage, cross-sectional variation in periodic investor demand should be related to the degree of comovement of returns. I exploit the unusual weighting system of the Nikkei 225 index in Japan to identify cross-sectional variation in periodic demand for index stocks. Relative to their weights in a value weighted index, some stocks in the Nikkei are overweighted by a factor of ten or more. Using overweighting as an instrument for the proportionality between demand shocks for index stocks, I find a strong positive relation between overweighting and the comovement of a stock with other stocks in the index, and a negative relationship between index overweighting and comovement with stocks outside of the index. Put simply, overweighted stocks have high betas. The results suggest that excess comovement of stock returns is a consequence of an institutionalized commonality in trading behavior, rather than inefficiencies related to the speed at which index stocks incorporate economy-wide information.

    Keywords: Stocks; Investment; Investment Return; Market Transactions; Weight; Performance Expectations; Behavior; Japan;

    Citation:

    Greenwood, Robin. "Excess Comovement of Stock Returns: Evidence from Cross-sectional Variation in Nikkei 225 Weights." Review of Financial Studies 21, no. 2 (April 2008): 1153–1186. View Details
  19. Trading Patterns and Excess Comovement of Stock Returns

    n April 2000, 30 stocks were replaced in the Nikkei 225 Index. The unusually broad index redefinition allowed for a study of the effects of index-linked trading on the excess comovement of stock returns. A large increase occurred in the correlation of trading volume of stocks added to the index with the volume of stocks that remained in the index, and opposite results occurred for the deletions. Daily index return betas of the additions rose by an average of 0.45; index return betas of the deleted stocks fell by an average of 0.63. Theoretical predictions for changes in autocorrelations and cross-serial correlations of returns of index additions and deletions were confirmed. The results are consistent with the idea that trading patterns are associated with short-run excess comovement of stock returns.

    Keywords: Stocks; Investment Return; Market Transactions; Volume; Mathematical Methods; Japan;

    Citation:

    Greenwood, Robin, and Nathan Sosner. "Trading Patterns and Excess Comovement of Stock Returns." Financial Analysts Journal 63, no. 5 (September–October 2007). View Details
  20. Short- and Long-term Demand Curves for Stocks: Theory and Evidence on the Dynamics of Arbitrage

    I develop a framework to analyze demand curves for multiple risky securities at extended horizons in a setting with limits-to-arbitrage. Following an unexpected change in uninformed investor demand for several assets, I predict returns of each security to be proportional to the contribution of that security's demand shock to the risk of a diversified arbitrage portfolio. I show that securities that are not affected by demand shocks but are correlated with securities undergoing changes in demand should experience returns related to their hedging role in arbitrageur's portfolios. Finally, I predict a negative cross-sectional relation between post-event returns and the initial return associated with the change in demand. I confirm these predictions using data from a unique redefinition of the Nikkei 225 index in Japan, in which 255 stocks simultaneously undergo significant changes in index investor demand, causing more than ¥2,000 billion of trading in one week and large price changes followed by subsequent reversals for all of the reweighted stocks.

    Keywords: Framework; Demand and Consumers; Change; Risk and Uncertainty; Debt Securities; Forecasting and Prediction; Stocks; Assets; Investment Portfolio; System Shocks; Price; Japan;

    Citation:

    Greenwood, Robin. "Short- and Long-term Demand Curves for Stocks: Theory and Evidence on the Dynamics of Arbitrage." Journal of Financial Economics 75, no. 3 (March 2005): 607–649. View Details
  21. The Maturity of Debt Issues and Predictable Variation in Bond Returns

    The maturity of new debt issues predicts excess bond returns. When the share of long-term debt issues in total debt issues is high, future excess bond returns are low. This predictive power comes in two parts. First, inflation, the real short-term rate, and the term spread predict excess bond returns. Second, these same variables explain the long-term share, and together account for much of its own ability to predict excess bond returns. The results are consistent with survey evidence that firms use debt market conditions in an effort to determine the lowest-cost maturity at which to borrow.

    Keywords: Borrowing and Debt; Bonds; Investment Return; Financial Markets; Forecasting and Prediction;

    Citation:

    Baker, Malcolm, Robin Greenwood, and Jeffrey Wurgler. "The Maturity of Debt Issues and Predictable Variation in Bond Returns." Journal of Financial Economics 70, no. 2 (November 2003): 261–291. View Details

Managerial Publications

  1. How to Make Finance Work

    Once a sleepy old boys' club, the U.S. financial sector is now a dynamic and growing business that attracts the best and the brightest. It is tempting to declare the industry a roaring success. But its purpose is to serve the needs of U.S. households and firms, and by this standard its performance has been mixed. The sector's growth has been beneficial for U.S. corporations, which enjoy ready access to the deepest capital markets in the world. Venture capital, for example, and the public equity markets that support it, has channeled money to innovative ideas that have transformed industries and generated new ones. The rest of the economy, however, has not been well served by the financial sector's boom. First, the shift from deposit-based banking to a market-based "shadow banking" system, without adequate regulatory adjustments, has left the financial system vulnerable to crisis. Second, trillions of dollars have been steered into residential real estate and away from more productive investments. Third, the cost of professional investment management is too high, which drains talent from other industries. The financial sector could promote the health and competitiveness of the U.S. economy by increasing capital and liquidity requirements, reorienting the discussion around housing finance reform from keeping mortgage credit cheap to ensuring financial stability, and instituting measures that compel asset managers to compete on the true value of the services they provide.

    Keywords: Business Ventures; Value; Competitive Advantage; Investment; Performance Evaluation; Household Characteristics; Financial Crisis; Finance; Financial Services Industry; United States;

    Citation:

    Greenwood, Robin, and David S. Scharfstein. "How to Make Finance Work." Harvard Business Review 90, no. 3 (March 2012). View Details
  2. When (Not) to Listen to Activist Investors

    Keywords: Investment;

    Citation:

    Greenwood, Robin, and Michael Schor. "When (Not) to Listen to Activist Investors." Special Issue on HBS Centennial Harvard Business Review 86, no. 1 (January 2008). View Details

Cases and Teaching Materials

  1. Williams, 2002

    Williams, a Tulsa, Oklahoma-based firm in various energy businesses, must decide whether to accept a financing package offered by Berkshire Hathaway and Lehman Brothers. The proposed one-year credit facility would provide the firm with financial resources in a difficult period.

    Keywords: Financial Management; Crisis Management; Credit; Capital Structure; Financial Strategy; Financing and Loans; Financial Instruments; Energy Industry; United States;

    Citation:

    Coval, Joshua, Robin Greenwood, and Peter Tufano. "Williams, 2002." Harvard Business School Case 203-068, December 2002. (Revised October 2013.) View Details
  2. Assured Guaranty

    To be used as an aid in teaching the Assured Guaranty case, #213100.

    Keywords: Insurance; value investing; investment; behavioral finance; Valuation; Insurance; Behavioral Finance; Financial Services Industry;

    Citation:

    Greenwood, Robin, Adi Sunderam, and Jared Dourdeville. "Assured Guaranty." Harvard Business School Teaching Note 213-131, June 2013. View Details
  3. Blackstone Alternative Asset Management

    This case explores reasons for Blackstone Alternative Asset Management's (BAAM's) growth from 2007-2013, a time when the overall fund of hedge funds industry contracted substantially. Additionally, the case analyzes evolving business models and value propositions within the fund of hedge funds industry. J. Tomilson Hill, CEO of BAAM and Vice-Chairman of The Blackstone Group, is the protagonist. At the time of the case, BAAM was considering two potential directions for future growth: 1) providing hedge fund products for the defined contribution pension space, and 2) beginning direct internal "manufacturing" of investments. In the context of the current fund of hedge funds industry, the case considers challenges and opportunities for these potential new areas for growth.

    Keywords: hedge fund; fund of hedge funds; hedge fund industry growth; fund of hedge funds industry growth; evolving business models; value propositions in the fund of hege funds industry; Financial Services Industry; New York (city, NY);

    Citation:

    Greenwood, Robin, Luis M. Viceira, and Jared Dourdeville. "Blackstone Alternative Asset Management." Harvard Business School Case 213-129, June 2013. (Revised July 2013.) View Details
  4. H Partners and Six Flags

    Teaching Note for #211090 & #211096

    Keywords: Behavioral Finance; Private Equity; Insolvency and Bankruptcy; Debt Securities; Bonds; Investment; Entertainment and Recreation Industry; Financial Services Industry; United States;

    Citation:

    Greenwood, Robin, Julie Messina, and Jared Dourdeville. "H Partners and Six Flags ." Harvard Business School Teaching Note 213-122, May 2013. (Revised August 2013.) View Details
  5. Assured Guaranty (CW)

    Keywords: Insurance; value investing; Investments; behavioral finance; Valuation; Insurance; Investment; Behavioral Finance; Insurance Industry;

    Citation:

    Greenwood, Robin, Adi Sunderam, and Jared Dourdeville. "Assured Guaranty (CW)." Harvard Business School Spreadsheet Supplement 213-724, March 2013. View Details
  6. Assured Guaranty

    Nate Katz at Yokun Ridge Capital Management is evaluating an investment in Assured Guaranty, a municipal bond insurance company that is trading at a discount to book value.

    Keywords: Insurance; value investing; Investments; behavioral finance; Valuation; Insurance; Behavioral Finance; Financial Services Industry;

    Citation:

    Greenwood, Robin, Adi Sunderam, and Jared Dourdeville. "Assured Guaranty." Harvard Business School Case 213-100, February 2013. View Details
  7. Martingale Asset Management LP in 2008, 130/30 Funds, and a Low-Volatility Strategy (TN)

    Teaching Note for 209-047.

    Citation:

    Greenwood, Robin, and Luis M. Viceira. "Martingale Asset Management LP in 2008, 130/30 Funds, and a Low-Volatility Strategy (TN)." Harvard Business School Teaching Note 211-079, January 2011. (Revised June 2012.) View Details
  8. Hayman Capital Management

    In late December 2011, Hayman Capital founder and portfolio manager Kyle Bass was reviewing Japanese government budget projections for 2012. The projections appeared contrary to Hayman Capital's views on Japan, where the fund had built a bearish position. Japan had the world's highest debt burden, whether expressed as a percentage of GDP or government revenue. Guided by recent global events, Bass forecast that Japan would soon experience increases in interest rates, a devaluation of the currency, and eventually, a restructuring of the country's debt.

    Keywords: investment management; macroeconomics; speculative bubbles; credit; Japan; government policy; behavioral finance; Financial Management; Price Bubble; Credit; Financial Strategy; Behavioral Finance; Government and Politics; Macroeconomics; Financial Services Industry; Japan;

    Citation:

    Greenwood, Robin, Julie Messina, and Jared Dourdeville. "Hayman Capital Management." Harvard Business School Case 212-091, March 2012. (Revised October 2012.) View Details
  9. Hayman Capital Management

    Citation:

    Greenwood, Robin, Julie Messina, and Jared Dourdeville. "Hayman Capital Management." Harvard Business School Spreadsheet Supplement 212-711, April 2012. View Details
  10. Citigroup's Exchange Offer

    Citigroup faced considerable distress in early 2009. In late 2008, the bank had accepted $45 billion in preferred equity from the United States government via the Troubled Assets Relief Program (TARP). Yet, the stock had continued to slide in early 2009. In late February, the company announced that it would convert as much as $50 billion of preferred stock into common stock, at $3.25 per share. The case asks students to evaluate the pricing of preferred stock relative to common stock at this time. As the case takes place during a period of considerable uncertainty in global capital markets, and conventional sources of arbitrage capital have been depleted, the apparent mispricing may not be as attractive as it initially seems. In the B and C cases, students must decide whether their view of the appropriate pricing changes, when the apparent mispricing worsens. A final additional teaching point relates to the formation of a synthetic short position using the options markets.

    Keywords: Financial Crisis; Capital Markets; Banks and Banking; Stocks; Price; Globalized Markets and Industries; Financial Services Industry;

    Citation:

    Greenwood, Robin, and James Quinn. "Citigroup's Exchange Offer." Harvard Business School Case 210-009, July 2009. (Revised May 2013.) View Details
  11. Citigroup's Exchange Offer (B)

    Citigroup faced considerable distress in early 2009. In late 2008, the bank had accepted $45 billion in preferred equity from the United States government via the Troubled Assets Relief Program (TARP). Yet, the stock had continued to slide in early 2009. In late February, the company announced that it would convert as much as $50 billion of preferred stock into common stock, at $3.25 per share. The case asks students to evaluate the pricing of preferred stock relative to common stock at this time. As the case takes place during a period of considerable uncertainty in global capital markets, and conventional sources of arbitrage capital have been depleted, the apparent mispricing may not be as attractive as it initially seems. In the B and C case, students must decide whether their view of the appropriate pricing changes, when the apparent mispricing worsens. A final additional teaching point relates to the formation of a synthetic short position using the options markets.

    Keywords: Financial Instruments; Financial Services Industry;

    Citation:

    Greenwood, Robin, and James Quinn. "Citigroup's Exchange Offer (B)." Harvard Business School Supplement 210-004, September 2009. (Revised June 2011.) View Details
  12. Citigroup's Exchange Offer (C)

    Citigroup faced considerable distress in early 2009. In late 2008, the bank had accepted $45 billion in preferred equity from the United States government via the Troubled Assets Relief Program (TARP). Yet, the stock had continued to slide in early 2009. In late February, the company announced that it would convert as much as $50 billion of preferred stock into common stock, at $3.25 per share. The case asks students to evaluate the pricing of preferred stock relative to common stock at this time. As the case takes place during a period of considerable uncertainty in global capital markets, and conventional sources of arbitrage capital have been depleted, the apparent mispricing may not be as attractive as it initially seems. In the B and C case, students must decide whether their view of the appropriate pricing changes, when the apparent mispricing worsens. A final additional teaching point relates to the formation of a synthetic short position using the options markets.

    Keywords: Financial Instruments; Financial Services Industry;

    Citation:

    Greenwood, Robin, and James Quinn. "Citigroup's Exchange Offer (C)." Harvard Business School Supplement 210-015, September 2009. (Revised June 2011.) View Details
  13. Investor Demand

    This conceptual note describes a series of cases on the investor demand approach to investment strategy and management. The cases demonstrate how and why securities market dislocations are driven by non-fundamental demand. I use the cases to progressively build a decision making framework for active investing in public markets. This note serves as an extended guide to the ideas in the cases, and is aimed at instructors forming their own course in Behavioral Finance or Investment Management.

    Keywords: Investment;

    Citation:

    Greenwood, Robin. "Investor Demand." Harvard Business School Module Note 211-101, April 2011. (Revised April 2011.) View Details
  14. Gold in 2011: Bubble or Safe Haven Asset?

    Case explores the pricing of gold in 2011. Is the pricing justified or are we in a speculative bubble? What data are useful in determining a view on this question?

    Keywords: Inflation and Deflation; Money; Asset Management; Investment; Price Bubble; Policy; Risk Management;

    Citation:

    Greenwood, Robin, and Benjamin Steiner. "Gold in 2011: Bubble or Safe Haven Asset?" Harvard Business School Case 211-095, March 2011. (Revised April 2011.) View Details
  15. The Nikkei 225 Reconstitution (TN)

    Teaching note to 207109.

    Citation:

    Greenwood, Robin. "The Nikkei 225 Reconstitution (TN)." Harvard Business School Teaching Note 207-110, March 2007. (Revised March 2011.) View Details
  16. Livedoor (TN)

    Teaching Note for [206138].

    Citation:

    Greenwood, Robin. "Livedoor (TN)." Harvard Business School Teaching Note 209-025, July 2008. (Revised March 2011.) View Details
  17. H Partners and Six Flags

    Rehan Jaffer, the founder of hedge fund H Partners, is considering what to do with his investment in Six Flags. H Partners had invested a significant amount of the firm's capital in the senior bonds of U.S.-based Six Flags, following that company's bankruptcy filing.

    Keywords: Behavioral Finance; Private Equity; Insolvency and Bankruptcy; Debt Securities; Bonds; Investment; Entertainment and Recreation Industry; Financial Services Industry; United States;

    Citation:

    Greenwood, Robin, and Michael Gorzynski. "H Partners and Six Flags." Harvard Business School Case 211-090, March 2011. (Revised May 2013.) View Details
  18. Gold in 2011 (CW)

    Courseware for case 211095.

    Keywords: Price; Price Bubble; Metals and Minerals; Data and Data Sets;

    Citation:

    Greenwood, Robin. "Gold in 2011 (CW)." Harvard Business School Spreadsheet Supplement 211-716, March 2011. View Details
  19. H Partners and Six Flags (CW)

    Spreadsheet for case 211090.

    Citation:

    Greenwood, Robin. "H Partners and Six Flags (CW)." Harvard Business School Spreadsheet Supplement 211-715, March 2011. View Details
  20. H Partners and Six Flags (B)

    Rehan Jaffer, the founder of hedge fund H Partners, is considering what to do with his investment in Six Flags. H Partners had invested a significant amount of the firm's capital in the senior bonds of U.S.-based Six Flags, following that company's bankruptcy filing.

    Keywords: Equity; Insolvency and Bankruptcy; Business and Shareholder Relations; Price; Acquisition; Decisions; Borrowing and Debt; Investment Funds; Opportunities; Bonds; Investment Activism; Financial Services Industry; United States;

    Citation:

    Greenwood, Robin, and Michael Gorzynski. "H Partners and Six Flags (B)." Harvard Business School Supplement 211-096, March 2011. View Details
  21. Williams, 2002 (CW)

    Spreadsheet supplement for product number 203068.

    Keywords: Energy Industry; United States;

    Citation:

    Greenwood, Robin. "Williams, 2002 (CW)." Harvard Business School Spreadsheet Supplement 211-711, February 2011. (Revised October 2013.) View Details
  22. Citigroup's Exchange Offer (TN)

    Teaching Note for 210009.

    Keywords: Equity; Government and Politics; Stocks; Price; Capital; Banks and Banking; Performance Evaluation; Risk and Uncertainty; Capital Markets; Banking Industry; Financial Services Industry; United States;

    Citation:

    Greenwood, Robin. "Citigroup's Exchange Offer (TN)." Harvard Business School Teaching Note 211-087, February 2011. View Details
  23. MacroMarkets LLC

    MacroMarkets co-founder and CEO Samuel Masucci III is meeting with a strategic partner for his firm. Co-founded with Yale University Professor Robert Shiller, MacroMarkets' main innovation is the "MacroShare," which allows investors to take long or short, levered or unlevered, positions based on the value of any index. Both Shiller and Masucci are hopeful that MacroShares can help investors hedge all kinds of macroeconomic risks, including exposure to residential housing. The firm has ”battle-tested” two products—one linked to oil, and one linked to housing—with mixed success and is evaluating its strategy going forward. Specifically, Masucci wonders whether the MacroShare structure might come to replace the ETF as the predominant technology for index trading.

    Keywords: Macroeconomics; Financial Instruments; Financial Markets; Investment Funds; Investment Portfolio; Innovation and Invention; Risk Management; Product Positioning; Demand and Consumers; Financial Services Industry;

    Citation:

    Greenwood, Robin, and Luis M. Viceira. "MacroMarkets LLC." Harvard Business School Case 211-006, July 2010. (Revised January 2011.) View Details
  24. NEC Electronics

    Why do shares in NEC Electronics, a publicly listed subsidiary of Japan conglomerate NEC, trade at a discount to their fundamental value? Can Perry Capital, a U.S. hedge fund, restructure this subsidiary and generate significant returns? This case provides students with an opportunity to analyze Perry's decision to invest in NEC Electronics. In doing so, it asks for the reasons that NEC might take actions that destroy value and shift value away from NECE's minority shareholders. The events covered allow for a discussion of how ownership concentration constrains restructuring alternatives, how hedge fund investors might confront controlling shareholders, and how the mispricing of agency costs can give rise to ownership structures that allow for minority shareholder expropriation.

    Keywords: Restructuring; Private Equity; Investment Return; Ownership Stake; Business and Shareholder Relations; Financial Services Industry; Japan;

    Citation:

    Foley, C. Fritz, Robin Greenwood, and James Quinn. "NEC Electronics." Harvard Business School Case 209-001, October 2008. (Revised November 2010.) View Details
  25. NEC Electronics (TN)

    Teaching Note for [209001].

    Keywords: Information Technology Industry;

    Citation:

    Foley, C. Fritz, and Robin Greenwood. "NEC Electronics (TN)." Harvard Business School Teaching Note 209-028, March 2009. (Revised November 2010.) View Details
  26. TravelCenters of America

    A New York-based hedge fund must decide whether to invest in TravelCenters of America (TA), a recent spin-off from a U.S.-based real estate investment trust. The case confronts students with the question: To what extent is this spin-off opportunity attractive from a value-investing standpoint? Historically, spin-offs have been attractive investments because of supply-demand dynamics associated with their investor base. The case is an opportunity to ask whether the same dynamics will operate for TA.

    Keywords: Mergers and Acquisitions; Investment; Valuation; Real Estate Industry; Travel Industry; United States;

    Citation:

    Greenwood, Robin, Daniel Jacob Goldberg, and James Quinn. "TravelCenters of America." Harvard Business School Case 209-030, December 2008. (Revised July 2010.) View Details
  27. Tremblant Capital Group Exhibits (CW)

    Brett Barakett, CEO and founder of Tremblant Capital Group, a New York-based hedge fund, must decide what to do with his fund's position in Green Mountain Coffee Roasters, which has dropped in value by more than 40 percent in recent months. Tremblant is a hedge fund that specializes in forecasting consumer behavioral change, and capitalizes on the disconnect between stock prices and consumer behavior. In the case of Green Mountain Coffee, many other sophisticated investors have taken short positions in the stock, leading Barakett to question whether his fund had the right trade thesis.

    Keywords: Transformation; Decisions; Forecasting and Prediction; Cash Flow; Cost of Capital; Stocks; Investment Funds; Consumer Behavior; Business Strategy; Competitive Advantage; New York (state, US);

    Citation:

    Greenwood, Robin. "Tremblant Capital Group Exhibits (CW)." Harvard Business School Spreadsheet Supplement 210-710, May 2010. View Details
  28. Tremblant Capital Group

    Brett Barakett, CEO and founder of Tremblant Capital Group, a New York–based hedge fund, must decide what to do with his fund's position in Green Mountain Coffee Roasters, which has dropped in value by more than 40% in recent months. Tremblant is a hedge fund that specializes in forecasting consumer behavioral change and capitalizes on the disconnect between stock prices and consumer behavior. In the case of Green Mountain Coffee, many other sophisticated investors have taken short positions in the stock, leading Barakett to question whether his fund had the right trade thesis.

    Keywords: Business Earnings; Behavioral Finance; Stocks; Investment Funds; Consumer Behavior; Competitive Advantage; Financial Services Industry; New York (city, NY);

    Citation:

    Greenwood, Robin. "Tremblant Capital Group." Harvard Business School Case 210-071, April 2010. (Revised April 2010.) View Details
  29. Calculating Free Cash Flows

    Outlines the mechanics of calculating free cash flows from historical and proforma financial statements. Focuses on the mechanical process of transforming numbers from financial forecasts into cash flows.

    Keywords: Financial Statements; Forecasting and Prediction; Cash Flow; Mathematical Methods;

    Citation:

    Greenwood, Robin, and David S. Scharfstein. "Calculating Free Cash Flows." Harvard Business School Background Note 206-028, October 2005. (Revised February 2010.) View Details
  30. Washington Mutual's Covered Bonds Courseware

    Washington Mutual issues 6 billion Euro of covered bonds in 2006. The objective of the case is to ask whether these bonds are mispriced in late 2008. The case is set in September 20008, and Washington Mutual is facing considerable distress due to mounting losses on its mortgage portfolio. Following investment bank Lehman Brother's Chapter 11 bankruptcy protection filing in mid September, the price of Washington Mutual's covered bonds has fallen to 75 per 100 of face value. As these bonds are over-collateralized, the case asks students to evaluate the underlying collateral portfolio in the event of liquidation, as well as assessing the likelihood of different outcomes. The case takes place during a period of considerable uncertainty in the global capital markets.

    Keywords: Banks and Banking; Bonds; Education; Information; Banking Industry;

    Citation:

    Bergstresser, Daniel Baird, Robin Greenwood, and James Quinn. "Washington Mutual's Covered Bonds Courseware." Harvard Business School Spreadsheet Supplement 209-724, March 2009. (Revised November 2009.) View Details
  31. Washington Mutual's Covered Bonds

    Washington Mutual issued 6 billion euro of covered bonds in 2006. The objective of the case is to ask whether these bonds are mispriced in late 2008. The case is set in September 2008, and Washington Mutual is facing considerable distress due to mounting losses in its mortgage portfolio. Following investment bank Lehman Brother's Chapter 11 bankruptcy protection filing in mid-September, the price of Washington Mutual's covered bonds has fallen to 75 per 100 of face value. As these bonds are overcollateralized, the case asks students to evaluate the underlying collateral portfolio in the event of liquidation, as well as assessing the likelihood of different outcomes. The case takes place during a period of considerable uncertainty in the global capital markets.

    Keywords: Capital Markets; Financial Liquidity; Bonds; Mortgages; Price; Banking Industry; United States;

    Citation:

    Bergstresser, Daniel Baird, Robin Greenwood, and James Quinn. "Washington Mutual's Covered Bonds." Harvard Business School Case 209-093, March 2009. (Revised October 2009.) View Details
  32. Washington Mutual's Covered Bonds (TN)

    Teaching Note for [209093].

    Keywords: Banks and Banking; Bonds; Banking Industry;

    Citation:

    Bergstresser, Daniel Baird, and Robin Greenwood. "Washington Mutual's Covered Bonds (TN)." Harvard Business School Teaching Note 209-130, March 2009. (Revised October 2009.) View Details
  33. TravelCenters of America (TN)

    Teaching Note for [209030].

    Keywords: Investment Funds; Valuation; Opportunities; Business Organization; Real Estate Industry; New York (state, US);

    Citation:

    Greenwood, Robin, and Daniel Jacob Goldberg. "TravelCenters of America (TN)." Harvard Business School Teaching Note 209-049, April 2009. View Details
  34. Aderans

    Steel Partners is a U.S.-based hedge fund that has made a large investment in Japan-based wigmaker Aderans. The case is set at the close of the annual meeting in May 2008, when shareholders have voted against all incumbent board members. Steel Partners must act quickly. The case serves as an overview of corporate governance issues in Japan, as well as describing the costs and benefits of the "stakeholder" view of corporate governance.

    Keywords: Voting; Investment; Corporate Governance; Governing and Advisory Boards; Ownership Stake; Business and Shareholder Relations; Japan;

    Citation:

    Greenwood, Robin, Rakesh Khurana, and Masako Egawa. "Aderans." Harvard Business School Case 209-090, March 2009. View Details
  35. Opportunity Partners (TN)

    Teaching Note for [208097].

    Citation:

    Greenwood, Robin. "Opportunity Partners (TN)." Harvard Business School Teaching Note 208-139, March 2008. (Revised January 2009.) View Details
  36. NEC Electronics (CW)

    Why do shares in NEC Electronics, a publicly listed subsidiary of Japan conglomerate NEC trade at a discount to their fundamental value? Can Perry Capital, a U.S. hedge fund, restructure this subsidiary and generate significant returns? This case provides students with an opportunity to analyze Perry's decision to invest in NEC Electronics. In doing so, it asks for the reasons that NEC might take actions that destroy value and shift value away from NECE's minority shareholders. The events covered allow for a discussion of how ownership concentration constrains restructuring alternatives, how hedge fund investors might confront controlling shareholders, and how the mis-pricing of agency costs can give rise to ownership structures that allow for minority shareholder expropriation.

    Keywords: Business Conglomerates; Business Subsidiaries; Restructuring; Decisions; Investment Return; Investment Funds; Price; Ownership; Agency Theory; Business and Shareholder Relations; Value Creation; Electronics Industry; Japan; United States;

    Citation:

    Foley, C. Fritz, Robin Greenwood, and James Quinn. "NEC Electronics (CW)." Harvard Business School Spreadsheet Supplement 209-711, November 2008. View Details
  37. Travel Centers of America (CW)

    Keywords: Food and Beverage Industry; Service Industry; Travel Industry;

    Citation:

    Greenwood, Robin, and James Quinn. "Travel Centers of America (CW)." Harvard Business School Spreadsheet Supplement 209-712, November 2008. View Details
  38. Kerr-McGee (CW)

    Citation:

    Greenwood, Robin, and James Quinn. "Kerr-McGee (CW)." Harvard Business School Spreadsheet Supplement 209-708, August 2008. (Revised August 2008.) View Details
  39. The Pilgrim Assurance Building Courseware

    Citation:

    Greenwood, Robin. "The Pilgrim Assurance Building Courseware." Harvard Business School Spreadsheet Supplement 209-706, July 2008. View Details
  40. The Pilgrim Assurance Building (TN)

    Teaching Note for [206078].

    Keywords: Real Estate Industry; Boston;

    Citation:

    Greenwood, Robin. "The Pilgrim Assurance Building (TN)." Harvard Business School Teaching Note 209-011, July 2008. View Details
  41. Opportunity Partners

    Philip Goldstein, the principal in a growing hedge fund and prominent activist investor, has taken a position in a Mexico-based closed-end fund. Following a hard-fought proxy contest in which he advocated for management to eliminate the fund's substantial discount, Goldstein earns a seat on the board of directors. Now he and the board are faced with the decision of how best to "unlock value" in the fund by delivering Net Asset Value to shareholders. The case, which provides rich detail on the workings of closed-end funds, invites students to examine the trade-offs among liquidating the fund, converting it to an open-end fund, or carrying out a self-tender offer. It also raises topics of fund selection and investing in country-specific funds such as Mexico.

    Keywords: Investment Activism; Investment Funds; Business and Shareholder Relations; Value; Financial Services Industry; Mexico;

    Citation:

    Greenwood, Robin, and James Quinn. "Opportunity Partners." Harvard Business School Case 208-097, January 2008. (Revised July 2008.) View Details
  42. Yamanote Kaikan

    In 2001, James O'Connell, president of Holyoke Japan, an affiliate of Larson Capital, a distress debt private equity firm, wants to bid on a 90 billion yen loan currently in default by the borrower, Sanjo Enterprises, for a popular wedding and banquet facility with an adjacent office tower in downtown Tokyo. O'Connell has to determine a bidding strategy, consider the competition, and price the deal.

    Keywords: Borrowing and Debt; Private Equity; Price; Bids and Bidding; Competition; Japan;

    Citation:

    Greenwood, Robin, Arthur I Segel, and Joshua Katzin. "Yamanote Kaikan." Harvard Business School Case 205-084, June 2005. (Revised May 2008.) View Details
  43. The Nikkei 225 Reconstitution

    Taka Haneda, a proprietary trader at the Tokyo office of Goldman Sachs, has just learned that the Nikkei 225 will undergo a significant redefinition over the coming week. He faces several billion dollars of customer orders, as well as the opportunity to commit the firm's capital to provide liquidity for the event. He must decide what positions to establish, and at what price he is willing to get out.

    Keywords: Financial Liquidity; Stocks; Investment Return; Price; Market Transactions; Financial Services Industry; Tokyo;

    Citation:

    Greenwood, Robin. "The Nikkei 225 Reconstitution." Harvard Business School Case 207-109, March 2007. (Revised March 2008.) View Details
  44. The Nikkei 225 Reconstitution (CW)

    Citation:

    Greenwood, Robin. "The Nikkei 225 Reconstitution (CW)." Harvard Business School Spreadsheet Supplement 208-717, March 2008. View Details
  45. Kerr-McGee (TN)

    Teaching Note for [207020].

    Keywords: Energy Industry; Chemical Industry; United States;

    Citation:

    Greenwood, Robin. "Kerr-McGee (TN)." Harvard Business School Teaching Note 208-135, February 2008. View Details
  46. The Pilgrim Assurance Building

    A local real estate developer has to decide how much to bid for a Boston office building in 2005.

    Keywords: Buildings and Facilities; Decisions; Investment; Bids and Bidding; Real Estate Industry; Boston;

    Citation:

    Greenwood, Robin, David S. Scharfstein, and Arthur I Segel. "The Pilgrim Assurance Building." Harvard Business School Case 206-078, December 2005. (Revised April 2007.) View Details
  47. Kerr-McGee

    Activist investors Carl Icahn and Barry Rosenstein acquire a stake in Oklahoma-based company Kerr-McGee. They demand two board seats and ask the company to make several operational and financial changes, including the repurchase of equity and divestiture of their chemicals business. The case protagonist, Luke Corbett, CEO, opposes these changes.

    Keywords: Restructuring; Chemicals; Equity; Investment; Governance Controls; Managerial Roles; Chemical Industry; Energy Industry; United States;

    Citation:

    Greenwood, Robin, and Andre F. Perold. "Kerr-McGee." Harvard Business School Case 207-020, November 2006. (Revised July 2013.) View Details
  48. Livedoor

    The president of Fuji Television must decide how to respond to a competing bid for the shares of Nippon Broadcasting Systems (NBS). Livedoor, the other bidder, is a highly valued Internet company that has been accused of financial wizardry to keep its stock price high.

    Keywords: Stock Shares; Internet; Ethics; Television Entertainment; Behavioral Finance; Corporate Finance; Media and Broadcasting Industry; Japan;

    Citation:

    Greenwood, Robin, and Michael Schor. "Livedoor." Harvard Business School Case 206-138, April 2006. (Revised November 2006.) View Details
  49. Introduction to Valuation Multiples

    Outlines the definition and applicability of financial multiples and their relationship to discounted cash flow analysis.

    Keywords: Cash Flow; Valuation;

    Citation:

    Greenwood, Robin, and Lucy White. "Introduction to Valuation Multiples." Harvard Business School Background Note 206-095, February 2006. (Revised October 2006.) View Details
  50. Livedoor Courseware

    Keywords: Curriculum and Courses;

    Citation:

    Greenwood, Robin, and Michael Schor. "Livedoor Courseware." Harvard Business School Spreadsheet Supplement 206-713, April 2006. View Details
  51. Decision Trees

    This case introduces decision analysis. Using a simple example, it illustrates the use of probability trees and decision trees as tools for solving business problems.

    Keywords: Decision Making;

    Citation:

    Greenwood, Robin, and Lucy White. "Decision Trees." Harvard Business School Background Note 205-060, December 2004. (Revised March 2006.) View Details
  52. Subscriber Models

    Introduces the subscriber model as an alternative valuation framework for firms whose revenues can be traced to repeated transactions with customers.

    Keywords: Valuation; Corporate Finance;

    Citation:

    Desai, Mihir A., Robin Greenwood, and Lucy White. "Subscriber Models." Harvard Business School Background Note 205-061, December 2004. View Details
  53. Williams, 2002 (TN)

    Teaching Note to (9-203-068).

    Keywords: Energy Industry; United States;

    Citation:

    Greenwood, Robin. "Williams, 2002 (TN)." Harvard Business School Teaching Note 204-127, February 2004. (2003.)

    Coval, Joshua D., Peter Tufano, and Robin Greenwood. "Williams, 2002." Harvard Business School Case 203-068 (2003.) View Details

      Teaching

    1. Behavioral Finance and Value Investing

      I teach a case-based MBA-level course on Behavioral Finance and Value Investing. The course was last offered in the spring of 2009 and will be offered spring 2010.

      If you are an instructor, please email (rgreenwood@hbs.edu) or call me for a syllabus and cases and teaching notes.

      The course is organized around the following short modules, with a few cases in each module:

      [1] Introduction (Stock Price Manipulation; Closed End Fund Discounts)

      [2] Investor Psychology

      [3] Limits of Arbitrage (The Perfect Arbitrage Ideal; Imperfect Substitutes; Limited Capital; Short-sales Constraints)

      [4] The Corporate Response

      [5] Quantitative Investment Management

      [6] Special Situations and Value Investing

      Awards & Honors

    1. Review of Financial Studies. Distinguished Referee Award: Named a Distinguished Referee in 2009 by Review of Financial Studies.

    2. Doctoral Award for Excellence in Mentoring: Won the 2010 Doctoral Award for Excellence in Mentoring.

    Data and Appendices

    Corporate Debt Maturity (used in Baker, Greenwood, Wurgler JFE 2003)

    Nikkei 225 Data on Inclusions and Deletions (Used in Greenwood, Robin, JFE 2005)

    Internet Appendix for Greenwood, Hanson, Stein (2008), NBER Working Paper 13806

    Appendix for Greenwood and Hanson 2009, Catering to Characteristics

    (Last updated June 2009)