Paul Healy is the James R. Williston Professor and Senior Associate Dean for Research at the Harvard Business School. His research covers a broad range of topics, including financial analysis, Wall Street research, corruption, governance, mergers and acquisitions, and business ethics. He joined the HBS faculty in 1998, after fourteen years on the faculty at the M.I.T. Sloan School of Management, where he received awards for teaching excellence in 1991, 1992, and 1997. He received accounting and finance degrees from Victoria University in New Zealand (1976 and 1977) and a Ph.D. from the University of Rochester (1981). He has published widely in the leading academic and practitioner journals, has received numerous research rewards, and is the co-author of one of the leading financial analysis textbooks. He has taught MBA and executive courses on accounting, financial analysis, corporate boards, and ethical leadership.
Featured Work
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When the Crowd Fights Corruption
Corruption is the greatest impediment to conducting business in Russia, according to leaders recently surveyed by the World Economic Forum. Indeed, it's a problem in many emerging markets. The paper on which this article is based argues that businesses have a role to play in combatting it.
The paper focuses on RosPil--an anticorruption entity in Russia set up by Alexey Navalny, a crusader against public and private malfeasance in that country. As of December 2011, RosPil claimed to have prevented the granting of dubious contracts worth US $1 billion. The organization holds corrupt politicians' and bureaucrats' feet to the fire largely through Internet-based crowd-sourcing, whereby people (often anonymous) identify requests for government issued tenders that are designed to generate kickbacks.
Should entities like RosPil be supported? Should companies fashion their own responses to corruption? On the one hand, there are obvious public-relations and political risks; on the other hand, corruption can erode a firm's competitiveness, the trust of customers and employees, and even the very legitimacy of capitalism.
We argue that heads of many multinational companies are well positioned to combat corruption in emerging markets. Those leaders have the power to enforce politicies in their organizations and networks, and they enjoy the ability to organize others in the industray against this pernicious threat.
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Business Analysis and Valuation: Using Financial Statements, Text and Cases
5th Edition
This book provides a framework for business analysis that can be used in a variety of contexts. The four analysis steps include:
- Strategy analysis: Identifying a firm's strategy and understanding any sources of competitive advantage;
- Accounting analysis: Assessing how a firm's financial statements reflect its economics, and determining whether any adjustments are needed;
- Financial analysis: Evaluating a firm's performance using ratios and cash flow data; and
- Prospective analysis: Forecasting future performance and estimating value.
These steps are then applied to a variety of business contexts, including securities analysis, credit analysis, merger & acquisition decisions, and governance.
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The Stock Selection and Performance of Buy-Side Analysts (forthcoming)
Regulators and academics have emphasized the conflicts of interest faced by Wall Street (sell-side) analysts. In contrast, analysts who work for investment firms, known as buy-side analysts, do not face these conflicts and, as a result, presumably make superior investment recommendations. this research focuses on buy- and sell-side analysts' decisions on which stocks to recommend, and the performance of those recommendations. It shows that, in contrast to popular perceptions, Wall Street analysts' recommendations, although more optimistic, are more profitable than those for buy-side peers. This performance difference reflects buy-side analysts' incentives to recommend only large liquid stocks.
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Causes and Consequences of Firm Disclosures of Anticorruption Efforts
Multinationals frequently operate in locations where laws against corruption are not widely enforced. We examine ratings of self-reported anticorruption efforts for 480 multinationals to better understand what factors underlie their efforts and their performance consequences. Not surprisingly, country and industry corruption risks, as well as regulatory enforcement and monitoring, are important drivers of firms' anti-corruption efforts. Performance tests suggest that firms' decisions on how to manage corruption risk are as much ethical as economic.
Co-authored by George Serafeim
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Fighting Corruption at Siemens
On November 15, 2006, German prosecutors raided offices and homes of Siemens AG staff as part of an ongoing investigation into bribery. The subsequent investigations covered business representing 60% of Siemens' revenues and spanned operations in Asia, Africa, Europe, the Middle East, and the Americas. Through interviews with key Siemens executives and supporting internal materials, this multimedia case takes a look at how one of the world's largest companies faced corruption head-on.
Publications
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Article
| Harvard Business Review
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When the Crowd Fights Corruption
Paul M. Healy and Karthik Ramanna
Corruption is the greatest impediment to conducting business in Russia, according to leaders recently surveyed by the World Economic Forum. Indeed, it's a problem in many emerging markets, and businesses have a role to play in combating it, according to Healy and Ramanna. The authors focus on RosPil—an anticorruption entity in Russia set up by Alexey Navalny, a crusader against public and private malfeasance in that country. As of December 2011, RosPil claimed to have prevented the granting of dubious contracts worth US$1.3 billion. The organization holds corrupt politicians' and bureaucrats' feet to the fire largely through internet-based crowdsourcing, whereby often-anonymous people identify requests for government-issued tenders that are designed to generate kickbacks. Should entities like RosPil be supported, and should companies fashion their own responses to corruption? On the one hand, there are obvious public-relations and political risks; on the other hand, corruption can erode a firm's competitiveness, the trust of customers and employees, and even the very legitimacy of capitalism. The authors argue that heads of many multinational companies are well positioned to combat corruption in emerging markets. Those leaders have the power to enforce policies in their organizations and networks, and they enjoy the ability to organize others in the industry against this pernicious threat.
Keywords: corruption;
emerging economies;
entrepreneurship;
globalization;
Crime and Corruption;
Entrepreneurship;
Ethics;
Globalization;
Russia;
Georgia (nation, Asia);
India;
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Book
| 2013
Business Analysis and Valuation: Using Financial Statements, Text and Cases
Krishna G. Palepu and Paul M. Healy
This book provides a framework for business analysis and has been used by business schools throughout the world. It provides a foundation for analysis using four key steps: 1) Strategy analysis: Identifying a firm's strategy and understanding sources of its competitive advantage; 2) Accounting analysis: Assessing how a firm's financial statements reflect its economics and determining whether any adjustments are needed. This new edition (5th ed) specifically covers measurement questions for firms reporting under US GAAP and International Standards; 3) Financial analysis: Evaluating a firm's performance using ratios and cash flow data; and 4) Forecasting future performance and estimating its value. These steps are applied to a variety of business contexts, including securities analysis, credit analysis, merger & acquisition decisions, and governance. The book includes a broad range of classic and new HBS cases to illustrate the concepts and applications.
Keywords: Valuation;
Financial Statements;
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Book
| Forthcoming
Wall Street Research: Past, Present, and Future
Boris Groysberg and Paul M. Healy
Wall Street equity analysts provide research products and services on publicly-traded companies to institutional and retail investors to help them make more profitable investment decisions. During the last ten years Wall Street research has been battered by a series of shocks. As concerns over conflicts of interest mounted, the integrity of research output was questioned, leading to transformative regulatory changes. New technologies emerged to democratize information and change the way that stocks are traded, threatening the industry's product and business model. There were upheavals and stagnation in established core financial markets such as the U.S., Japan and Western Europe. And burgeoning new markets in countries such as China and India raised potential challenges to the dominance of leading firms. Our research tells a fascinating story of an industry that has proved remarkably resilient in resolving economic and regulatory challenges. It provides practitioners and scholars with a deeper understanding of the forces that have shaped the industry and accounted for its resilience, and how these are likely to influence its future.
Keywords: financial analysts;
investment banks;
conflicts of interest;
Accounting;
Financial Institutions;
Financial Services Industry;
United States;
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Book
| 2013
Business Analysis and Valuation: Using Financial Statements, Text and Cases
Krishna G. Palepu and Paul M. Healy
This book provides a framework for business analysis and has been used by business schools throughout the world. It provides a foundation for analysis using four key steps: 1) Strategy analysis: Identifying a firm's strategy and understanding sources of its competitive advantage; 2) Accounting analysis: Assessing how a firm's financial statements reflect its economics and determining whether any adjustments are needed. This new edition (5th ed) specifically covers measurement questions for firms reporting under US GAAP and International Standards; 3) Financial analysis: Evaluating a firm's performance using ratios and cash flow data; and 4) Forecasting future performance and estimating its value. These steps are applied to a variety of business contexts, including securities analysis, credit analysis, merger & acquisition decisions, and governance. The book includes a broad range of classic and new HBS cases to illustrate the concepts and applications.
Keywords: Valuation;
Financial Statements;
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Text Book
| 2007
Business Analysis and Valuation: Using Financial Statements
Paul M. Healy and Krishna G. Palepu
Financial statements are the basis for a wide range of business analysis. Managers, securities analysts, bankers, and consultants all use them to make business decisions. There is strong demand among business students for course materials that provide a framework for using financial statement data in a variety of business analysis and valuation contexts. The fourth edition of Business Analysis and Valuation: Using Financial Statements allows you to undertake financial statement analysis using a four-part framework—(1) business strategy analysis for developing an understanding of a firm's competitive strategy; (2) accounting analysis for representing the firm's business economics and strategy in its financial statements and for developing adjusted accounting measures of performance; (3) financial analysis for ratio analysis and cash flow measures of operating; and (4) prospective analysis. Then, you'll learn how to apply these tools in a variety of decision contexts, including securities analysis, credit analysis, corporate financing policies analysis, mergers and acquisitions analysis, and governance and communication analysis.
Keywords: Financial Statements;
Decision Choices and Conditions;
Framework;
Management Analysis, Tools, and Techniques;
Valuation;
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Casebook
| 2003
Business Analysis and Valuation Using Financial Statements: Text and Cases
Krishna G. Palepu, Paul M. Healy and Victor L. Bernard
Keywords: Theory;
Valuation;
Finance;
Reports;
Cases;
Information;
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Book
| 2002
Reading Financial Reports
William J. Bruns, Paul M. Healy, J. H. Hertenstein, Robert S. Kaplan and Sharon M. McKinnon
Keywords: Finance;
Reports;
Citation: Bruns, William J., Paul M. Healy, J. H. Hertenstein, Robert S. Kaplan, and Sharon M. McKinnon. Reading Financial Reports. 2nd ed. Business Fundamentals . Boston: Harvard Business School Press, 2002.
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Book
| 2000
Business Analysis and Valuation
Paul M. Healy, Krishna G. Palepu and Victor L. Bernard
Keywords: Valuation;
Theory;
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Book
| 1996
Business Analysis and Valuation Using Financial Statements
Victor L Bernard, Paul M. Healy and Krishna G. Palepu
Keywords: Financial Statements;
Valuation;
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Article
| Management Science
| Forthcoming
The Stock Selection and Performance of Buy-Side Analysts
Boris Groysberg, Paul Healy, George Serafeim and Devin Shanthikumar
Prior research on equity analysts focuses almost exclusively on those employed by sell-side investment banks and brokerage houses. Yet investment firms undertake their own buy-side research and their analysts face different stock selection and recommendation incentives than their sell-side peers. We examine the selection and performance of stocks recommended by analysts at a large investment firm relative to those of sell-side analysts from mid-1997 to 2004. We find that the buy-side firm's analysts issue less optimistic recommendations for stocks with larger market capitalizations and lower return volatility than their sell-side peers, consistent with their facing fewer conflicts of interest and having a preference for liquid stocks. Tests with no controls for these effects indicate that annualized buy-side Strong Buy/Buy recommendations underperform those for sell-side peers by 5.9% using market-adjusted returns and by 3.8% using four-factor model abnormal returns. However, these findings are driven by differences in the stocks recommended and their market capitalization. After controlling for these selection effects, we find no difference in the performance of the buy- and sell-side analysts' Strong Buy/Buy recommendations.
Keywords: buy-side analysts;
sell-side analysts;
stock recommendations;
recommendation optimism;
recommendation performance;
investment recommendations;
conflicts of interest;
Financial Markets;
Financial Institutions;
Financial Services Industry;
United States;
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Article
| Harvard Business Review
|
When the Crowd Fights Corruption
Paul M. Healy and Karthik Ramanna
Corruption is the greatest impediment to conducting business in Russia, according to leaders recently surveyed by the World Economic Forum. Indeed, it's a problem in many emerging markets, and businesses have a role to play in combating it, according to Healy and Ramanna. The authors focus on RosPil—an anticorruption entity in Russia set up by Alexey Navalny, a crusader against public and private malfeasance in that country. As of December 2011, RosPil claimed to have prevented the granting of dubious contracts worth US$1.3 billion. The organization holds corrupt politicians' and bureaucrats' feet to the fire largely through internet-based crowdsourcing, whereby often-anonymous people identify requests for government-issued tenders that are designed to generate kickbacks. Should entities like RosPil be supported, and should companies fashion their own responses to corruption? On the one hand, there are obvious public-relations and political risks; on the other hand, corruption can erode a firm's competitiveness, the trust of customers and employees, and even the very legitimacy of capitalism. The authors argue that heads of many multinational companies are well positioned to combat corruption in emerging markets. Those leaders have the power to enforce policies in their organizations and networks, and they enjoy the ability to organize others in the industry against this pernicious threat.
Keywords: corruption;
emerging economies;
entrepreneurship;
globalization;
Crime and Corruption;
Entrepreneurship;
Ethics;
Globalization;
Russia;
Georgia (nation, Asia);
India;
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Article
| Harvard Business Review
|
What Makes Analysts Say 'Buy'?
Boris Groysberg, Paul M. Healy, Nitin Nohria and George Serafeim
Citation: Groysberg, Boris, Paul M. Healy, Nitin Nohria, and George Serafeim. " What Makes Analysts Say 'Buy'?" Harvard Business Review 90, no. 11 (November 2012).
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Article
| Financial Analysts Journal
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What Factors Drive Analyst Forecasts?
Boris Groysberg, Paul Healy, Nitin Nohria and George Serafeim
A firm's competitive environment, its strategic choices, and its internal capabilities are considered important determinants of its future performance. Yet there is little evidence on whether analysts' forecasts of firm performance actually reflect any of these factors and which are considered most important. We use survey data from 967 analysts ranking 837 companies to judge how their forecasts are related to evaluations of firms' industry competitiveness, strategic choices, and internal capabilities. Forecasts are generally associated with many of the factors that money managers rate as important in their assessments of analyst contributions, including industry growth and competitiveness, low-price strategy, strategy execution, top management quality, innovation, and performance-driven culture. We also find wide variation across variables for ratings consistency among analysts covering the same firm. On average, consistency is higher for sell-side than buy-side analysts, consistent with sell-side analysts facing greater incentives to herd.
Keywords: Competition;
Forecasting and Prediction;
Industry Growth;
Judgments;
Performance;
Valuation;
Price;
Quality;
Innovation and Invention;
Organizational Culture;
Competency and Skills;
Surveys;
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Article
| Journal of Accounting Research
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What Drives Sell-Side Analyst Compensation at High-Status Investment Banks?
Boris Groysberg, Paul M. Healy and David A. Maber
We use proprietary data from a major investment bank to investigate factors associated with analysts' annual compensation. We find compensation to be positively related to "All-Star" recognition, investment-banking contributions, the size of analysts' portfolios, and whether an analyst is identified as a top stock picker by The Wall Street Journal. We find no evidence that compensation is related to earnings forecast accuracy. But consistent with prior studies, we find analyst turnover to be related to forecast accuracy, suggesting that analyst forecasting incentives are primarily termination based. Additional analyses indicate that "All-Star" recognition proxies for buy-side client votes on analyst research quality used to allocate commissions across banks and analysts. Taken as a whole, our evidence is consistent with analyst compensation being designed to reward actions that increase brokerage and investment-banking revenues. To assess the generality of our findings, we test the same relations using compensation data from a second high-status bank and obtain similar results.
Keywords: Investment Banking;
Research;
Compensation and Benefits;
Investment Portfolio;
Forecasting and Prediction;
Resource Allocation;
Status and Position;
Business Earnings;
Quality;
Revenue;
Stocks;
Voting;
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Journal Article
| Journal of Financial Transformation
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Can Research Committees Add Value for Investors? An Analysis of Lehman Brothers' Ten Uncommon Values® Recommendations
Boris Groysberg, Paul M. Healy and Yang Gui
Since 1949 Lehman Brothers has used an investment committee to select the top ten recommendations made by its analysts each year. We examine the performance of this committee's recommendations and find that on average its selections generated abnormal returns of 2.7% at the recommendation announcement and 4.5% for the remainder of the year. This performance cannot be explained by changes in analyst recommendations and/or target prices that accompany the committee report. Nor was it due to analyst screening ability since the returns were higher than those that earned from investing in analysts' top stock picks that were not selected by the committee. Finally, we find that abnormal announcement returns and trading volume at the report publication are correlated with market-adjusted returns for the prior year's stock selections, suggesting that investors believe that a successful process in one year is likely to be repeated the following year. We believe that these findings are particularly interesting given recent efforts to require firms to use research recommendation committees to improve the quality of research.
Keywords: Forecasting and Prediction;
Stocks;
Financial Markets;
Investment;
Investment Return;
Governing Rules, Regulations, and Reforms;
Performance Expectations;
Groups and Teams;
Research;
Value Creation;
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Article
| Financial Analysts Journal
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Buy-Side vs. Sell-Side Analysts' Earnings Forecasts
Boris Groysberg, Paul M. Healy and Craig James Chapman
We compare the earnings forecast performance of analysts at a large buy-side firm to that of sell-side analysts. Our tests show that the buy-side firm analysts make more optimistic and less accurate forecasts than their counterparts on the sell-side. These performance differences appear to be partially explained by the buy-side's higher retention of poor-performing analysts and by differences in performance benchmarks used to evaluate buy- and sell-side analysts.
Keywords: Motivation and Incentives;
Business Earnings;
Private Equity;
Retention;
Forecasting and Prediction;
Performance Effectiveness;
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Article
| Journal of Accounting & Economics
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Which Types of Analyst Firms Are More Optimistic?
Amanda Paige Cowen, Boris Groysberg and Paul Healy
Keywords: Business Ventures;
Citation: Cowen, Amanda Paige, Boris Groysberg, and Paul Healy. " Which Types of Analyst Firms Are More Optimistic?" Journal of Accounting & Economics 41, nos. 1-2 (April 2006): 119–146. ( Winner of Emerald Management Reviews. Citation of Excellence .)
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Article
| Harvard Business Review
|
How the Quest for Efficiency Corroded the Market
Paul M. Healy and Krishna G. Palepu
Keywords: Performance Efficiency;
Markets;
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Article
| Journal of Economic Perspectives
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The Fall of Enron
Paul M. Healy and Krishna G. Palepu
Keywords: Crime and Corruption;
Citation: Healy, Paul M., and Krishna G. Palepu. " The Fall of Enron." Journal of Economic Perspectives 17, no. 2 (spring 2003).
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Article
| Financial Times
|
Audit the audit committees: VIEWPOINT PAUL HEALY AND KRISHNA PALEPU: After Enron, boards must change the focus and provide greater financial transparency
P. M. Healy
Keywords: Accounting Audits;
Crime and Corruption;
Finance;
Governance;
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Article
| Journal of Accounting Research
|
R&D Accounting and the Tradeoff between Relevance and Objectivity
P. M. Healy
Keywords: Research and Development;
Accounting;
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Article
| Journal of Accounting Research
|
Analyst Specialization and Conglomerate Stock Breakups
Stuart C. Gilson, Paul M. Healy, Christopher F. Noe and Krishna G. Palepu
Keywords: Stocks;
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Article
| Journal of Accounting & Economics
|
Information Asymmetry, Corporate Disclosure, and the Capital Markets: A Review of the Empirical Disclosure Literature
Paul M. Healy and Krishna G. Palepu
Keywords: Information;
Markets;
Corporate Disclosure;
Capital;
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Article
| Accounting Horizons
|
A Review of the Earnings Management Literature and its Implications for Standard Setting
Paul M. Healy and James Wahlen
Keywords: Money;
Management;
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Article
| Contemporary Accounting Research
|
Stock Performance and Intermediation Changes Surrounding Sustained Increases in Disclosure
Paul M. Healy, Amy P. Hutton and Krishna G. Palepu
Keywords: Stocks;
Performance;
Change;
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Article
| Journal of Accounting & Economics
|
Discussion of Earnings-based Bonus Plans and Earnings Management by Business Unit Managers
Paul M. Healy
Keywords: Management;
Compensation and Benefits;
Earnings Management;
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Article
| Journal of Corporate Finance
|
The Performance of International Joint Ventures: A Study of The Merchant Banking Industry In Singapore
Paul M. Healy, Andrew Alford and Ng Kah Hwa
Keywords: Performance;
Joint Ventures;
Banks and Banking;
Banking Industry;
Singapore;
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Article
| MIT Sloan Management Review
|
Which Takeovers are Profitable: Strategic or Financial?
Paul M. Healy, Krishna G. Palepu and Richard S. Ruback
Keywords: Integration;
Profit;
Strategy;
Finance;
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Article
| Journal of Applied Corporate Finance
|
Using Capital Structure to Communicate with Investors: The Case of CUC International
Paul M. Healy and Krishna G. Palepu
Keywords: Capital Structure;
Communication;
Investment;
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Article
| Journal of Accounting Research
|
Discussion of a Market-Based Evaluation of Discretionary Accrual Models
Paul M. Healy
Keywords: Markets;
Finance;
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Article
| Journal of Financial Economics
|
The Challenges of Investor Communication: The Case of CUC International, Inc.
Paul M. Healy and Krishna G. Palepu
Keywords: Communication;
Business Ventures;
Problems and Challenges;
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Article
| Accounting Horizons
|
The Effect of Firms' Financial Disclosure Strategies on Stock Prices
Krishna G. Palepu and Paul M. Healy
Keywords: Strategy;
Stocks;
Finance;
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Article
| Journal of Financial Economics
|
Does Corporate Performance Improve after Mergers?
Paul M. Healy, Krishna G. Palepu and Richard S. Ruback
Keywords: Mergers and Acquisitions;
Performance;
Business Ventures;
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Article
| Accounting Today
|
How Management Bonus Plans Affect Reported Earnings
Paul M. Healy
Keywords: Management;
Compensation and Benefits;
Business Earnings;
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Article
| Journal of Accounting Research
|
Earnings and Risk Changes Surrounding Primary Stock Offers
Paul M. Healy and Krishna G. Palepu
Keywords: Risk and Uncertainty;
Business Earnings;
Change;
Stocks;
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Article
| Journal of Accounting & Economics
|
Effectiveness of Accounting-Based Dividend Covenants
Paul M. Healy and Krishna G. Palepu
Keywords: Accounting;
Money;
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Article
| Continental Bank Journal of Applied Corporate Finance
|
How Do Investors Interpret Firms' Financial Decisions
Paul M. Healy and Krishna G. Palepu
Keywords: Finance;
Decision Making;
Investment;
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Article
| Accounting Review
|
Earnings and Stock Splits
Paul Asquith, Paul M. Healy and Krishna G. Palepu
Keywords: Profit;
Stocks;
Business Earnings;
Citation: Asquith, Paul, Paul M. Healy, and Krishna G. Palepu. " Earnings and Stock Splits." Accounting Review 64, no. 3 (July 1989): 387–403.
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Article
| Journal of Accounting, Auditing & Finance
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Dividend Decisions and Earnings
Paul M. Healy and Franco Modigliani
Keywords: Stocks;
Finance;
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Article
| Journal of Financial Economics
|
Earnings Information Conveyed by Dividend Initiations and Omissions
Paul M. Healy and Krishna G. Palepu
Keywords: Information;
Money;
Business and Shareholder Relations;
Business Earnings;
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Article
| Journal of Accounting & Economics
|
The Effect of Accounting Procedure Changes on CEO's Cash Salary and Bonus Compensation
Paul M. Healy, Sok-Hyon Kang and Krishna G. Palepu
Keywords: Accounting;
Change;
Compensation and Benefits;
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Article
| Journal of Accounting and Public Policy
|
Auditor Changes Following Big Eight Mergers with Non-Big Eight Audit Firms
Paul M. Healy and Tom Lys
Keywords: Accounting Audits;
Change;
Business Ventures;
Mergers and Acquisitions;
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Article
| Journal of Accounting & Economics
|
The Effect of Bonus Schemes on Accounting Decisions
Paul M. Healy
Keywords: Compensation and Benefits;
Accounting;
Decision Making;
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Working Paper
| HBS Working Paper Series
| 2012
Causes and Consequences of Firms' Self-Reported Anticorruption Efforts
Paul Healy and George Serafeim
We use Transparency International's ratings of self-reported anticorruption efforts for 480 corporations to examine factors underlying firms' efforts and their consequences. We find that firms with high anticorruption efforts are domiciled in countries with low corruption ratings and strong anticorruption enforcement, operate in high corruption risk industries, have recently faced a corruption enforcement action, employ a Big Four audit firm, and have a higher percentage of independent directors. Controlling for these effects, we find that firms with abnormally low anticorruption efforts have relatively higher subsequent media allegations of corruption. They also report higher future sales growth and show a negative relation between profitability change and sales growth in high corruption geographic segments compared to firms with high anticorruption efforts. The net effect on valuation from sales growth and profitability is close to zero. We conclude that, on average, firms' self-reported anticorruption efforts reflect real efforts to combat corruption and are not merely cheap talk.
Keywords: corruption;
bribery;
sustainability;
reporting;
accountability;
disclosure;
international business;
corporate sustainability;
social responsibility;
Crime and Corruption;
Profit;
Corporate Disclosure;
Policy;
Growth and Development;
Law Enforcement;
Performance;
Sales;
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Working Paper
| HBS Working Paper Series
| 2011
What Impedes Oil and Gas Companies' Transparency?
Paul Healy, Venkat Kuppuswamy and George Serafeim
We examine determinants of oil and gas companies' transparency in reporting on business activities in host countries where they operate. We find that our index of transparency across host countries is lower the more corrupt the host country, the higher the number of nationalizations in that host country in the past, and the fewer the number of oil and gas companies operating in the host country. The results of additional tests are consistent with the risk of expropriation being a barrier to information disclosure about firm performance. In contrast, we find no evidence that disclosure of government payments is related to proprietary costs. Moreover, holding the host country constant we find that firms coming from more corrupt home countries are less transparent about their government payment.
Keywords: Crime and Corruption;
Corporate Disclosure;
Financial Reporting;
Energy Industry;
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Working Paper
| HBS Working Paper Series
| 2011
Market Competition, Government Efficiency, and Profitability Around the World
Paul M. Healy, George Serafeim, Suraj Srinivasan and Gwen Yu
We examine how cross-country differences in product, capital, and labor market competition, and government efficiency affect the rate of mean reversion of corporate profitability. Using a sample of 42,337 unique firms from 49 countries, we find that corporate profitability mean reverts faster in countries where product and capital markets are more competitive. Moreover, holding constant product, capital, and labor market competition we find that profitability mean reverts faster in countries with less efficient governments. The findings suggest that country-level factors have an economically significant impact on the rate of corporate profitability mean reversion. The study has implications for forecasting profitability and equity valuation in a global context.
Keywords: Profit;
Competition;
Government and Politics;
Labor;
Markets;
Capital Markets;
Valuation;
Forecasting and Prediction;
Equity;
Performance Efficiency;
Product;
Country;
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Teaching Note
| HBS Case Collection
|
2013
The Fall of Enron (TN)
Paul Healy
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Case
| HBS Case Collection
|
2013
Growing Financial Services in India: Aditya Birla Financial Services Group
Paul M. Healy and Rachna Tahilyani
Citation: Healy, Paul M., and Rachna Tahilyani. "Growing Financial Services in India: Aditya Birla Financial Services Group." Harvard Business School Case 113-059, April 2013.
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Case
| HBS Case Collection
|
2013
Value Partners and the Evergrande Situation
Paul Healy and Keith Chi-ho Wong
In June 2012, Cheah Cheng-Hye and his colleagues at Value Partners, a Hong-Kong-based investment firm, received a copy of a short-seller report alleging that Evergrande, one of China's largest property developers, was using fraudulent accounting and paying bribes to secure business. Evergrande's stock plummeted, and Value Partners, which had a sizable holding of Evergrande stock, had to determine how to respond to the allegations. The case provides an opportunity to review Value Partners' research approach to investing in Chinese companies and to assess the merits of the Evergrande allegations.
Keywords: asset management;
financial analysis;
value investing;
China;
Asset Management;
Crime and Corruption;
Financial Services Industry;
China;
Citation: Healy, Paul, and Keith Chi-ho Wong. "Value Partners and the Evergrande Situation." Harvard Business School Case 113-113, April 2013.
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Case
| HBS Case Collection
|
2013
BTG Pactual: Preserving a Partnership Culture
Paul M. Healy
Keywords: stock market;
IPO;
investment banking;
corporate lending;
Initial Public Offering;
Investment Banking;
Banking Industry;
Brazil;
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Teaching Plan
| HBS Case Collection
|
2013
Corruption at Siemens (TP) (A), (B), (C) and (D)
Paul Healy
This teaching plan is designed to be used in conjunction with the case Corruption at Siemens (A), HBS No. 108033 [and its related B and C cases] to help faculty deepen students' comprehension of business issues and to energize classroom discussion.
Keywords: corruption;
management;
Management;
Medical Devices and Supplies Industry;
Germany;
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Background Note
| HBS Case Collection
|
2013
Apartheid in South Africa
Paul Healy
A short history of Apartheid in So Africa
Keywords: Apartheid;
South Africa;
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Supplement
| HBS Case Collection
|
2013
Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy (B)
Paul Healy, Clayton S. Rose and Penelope Rossano
Keywords: stockholders;
Activist Investors;
corruption;
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Case
| HBS Case Collection
|
2012
(Revised from original 2012 version)
Rospil.info
Paul Healy, Karthik Ramanna and Matthew Shaffer
What should business leaders do about corruption? In December 2011, four HBS alumni met to debate how to engage the unprecedented protests against Vladimir Putin's corrupt government, which had erupted in Russia in response to alleged fraud in the recent parliamentary elections. A notable figure in the protests was anti-corruption blogger Alexey Navalny. Navalny used publicly available requests for tender, "crowd-sourcing," and volunteer experts to discover, expose, and encourage prosecution of corrupt dealings by the Russian government. These efforts made Navalny a cause célèbre in Western media and a popular figure with Russia's tech-savvy population. But was Navalny the right figure for business leaders in Russia to organize around? What were the risks of getting involved with a politically volatile activist?
Keywords: Leadership;
Crime and Corruption;
Government and Politics;
Social and Collaborative Networks;
Blogs;
Information Industry;
Russia;
Citation: Healy, Paul, Karthik Ramanna, and Matthew Shaffer. " Rospil.info." Harvard Business School Case 112-033, June 2012. (Revised from original February 2012 version.)
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Case
| HBS Case Collection
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2013
(Revised from original 2008 version)
The Fall of Enron
Paul Healy and Krishna Palepu
The case traces the rise of Enron, covering the company's business innovations, personnel management, and risk management processes. It then examines the company's dramatic fall including the extension of its trading model into questionable new businesses, the financial reporting problems, and governance breakdowns inside and outside the firm. The case offers students an opportunity to explore why Enron failed and to understand the systemic problems in governance that affected its board of directors, the audit committee, the external auditors, and financial analysts.
Keywords: Risk Management;
Governing and Advisory Boards;
Management Practices and Processes;
Crime and Corruption;
Financial Reporting;
Corporate Governance;
Citation: Healy, Paul, and Krishna Palepu. " The Fall of Enron." Harvard Business School Case 109-039, January 2013. (Revised from original November 2008 version.)
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Case
| HBS Case Collection
|
2013
(Revised from original 2010 version)
Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy (A)
Paul Healy, Clayton S. Rose and Aldo Sesia
Aubrey McClendon, founder and CEO of Chesapeake Energy, was, according to Fortune Magazine, the highest paid U.S. CEO in 2008 receiving over $100 million in total compensation. McClendon received this compensation despite a significant drop in the company's stock price and financial performance during the year. The (A) case addresses the specifics of the compensation and the rationale for the compensation from the perspective of Chesapeake's board and its compensation committee including McClendon's role in consummating several joint ventures, which the board and committee believed positioned the company for future growth in the relatively young industry of unconventional natural gas exploration and extraction. In addition, the (A) case describes the role of the compensation committee and the company's executive performance measurement factors.
Keywords: Financial Statements;
Financial Reporting;
Price;
Stock Options;
Valuation;
Joint Ventures;
Business Growth and Maturation;
Economic Growth;
Growth and Development Strategy;
Change Management;
Energy Industry;
United States;
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Teaching Note
| HBS Case Collection
|
2012
Fighting Corruption at Siemens
Paul Healy
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Case
| HBS Case Collection
|
2012
Fighting Corruption at Siemens
Paul Healy and Djordjija Petkoski
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Case
| HBS Case Collection
|
2012
(Revised from original 2011 version)
Gerson Lehrman Group: Managing Risks
Boris Groysberg, Paul Healy and Sarah L. Abbott
It was June 2011 and Alexander Saint-Amand, President and CEO of Gerson Lehrman Group, the largest expert network firm globally, has found his firm once again in the midst of controversy. This controversy centered around a number of insider trading cases that had been brought against consultants working for competing expert network firms. While GLG was in no way implicated in these cases, and GLG had invested significantly in its compliance policies and controls in order to prevent the mishandling of public information, the entire industry was being impacted. Saint-Amand is faced with the challenge of deciding how best to handle this crisis.
Keywords: Risk Management;
Citation: Groysberg, Boris, Paul Healy, and Sarah L. Abbott. " Gerson Lehrman Group: Managing Risks." Harvard Business School Case 412-004, January 2012. (Revised from original September 2011 version.)
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Case
| HBS Case Collection
|
2011
(Revised from original 2011 version)
Wealth Management Crisis at UBS (A)
Paul M. Healy, George Serafeim and David Lane
The case describes the challenges that UBS faced as a result of the U.S. Department of Justice (DOJ) investigation for tax fraud, that claimed that UBS had helped some 52,000 U.S. residents hide billions of dollars in untaxed assets in secret Swiss accounts between 2000 and 2007, depriving the U.S. Treasury of hundreds of millions of dollars in taxes.
Keywords: Misleading and Fraudulent Advertising;
Competitive Strategy;
Taxation;
Risk Management;
Global Strategy;
Asset Management;
Emerging Markets;
Ethics;
Problems and Challenges;
Governing Rules, Regulations, and Reforms;
Financial Services Industry;
United States;
Switzerland;
Citation: Healy, Paul M., George Serafeim, and David Lane. " Wealth Management Crisis at UBS (A)." Harvard Business School Case 111-082, October 2011. (Revised from original March 2011 version.)
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Teaching Note
| HBS Case Collection
|
2011
Subprime Crisis and Fair-Value Accounting (TN)
Paul Healy, Krishna G. Palepu and George Serafeim
Teaching Note for 109-031.
Keywords: Fair Value Accounting;
Mortgages;
Standards;
Financial Crisis;
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Supplement
| HBS Case Collection
|
2011
Wealth Management Crisis at UBS (B)
Paul M. Healy, George Serafeim and David Lane
The case describes the resolution of the U.S. Department of Justice (DOJ) investigation for tax fraud and the increasing pressure on the wealth management business.
Keywords: Wealth;
Taxation;
Crime and Corruption;
Ethics;
Governance;
Competitive Advantage;
Business and Government Relations;
Asset Management;
Globalization;
United States;
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Tool
|
2011
(Revised from original 2003 version)
Business Analysis and Valuation Model (Version 5)
Paul M. Healy, Krishna G. Palepu and Jonathan Barnett
Once you enter company financial statements, this software enables you to standardize them to a common format, make any needed adjustments to the company's accounting, and make assumptions about the company's future performance. The model then provides financial ratios for the company, with benchmarks for the U.S. economy, company pro forma financial statements, and a company valuation using several standard valuation techniques. Available only in a CD-ROM, Windows-only format.
Keywords: Financial Statements;
Standards;
Mathematical Methods;
Valuation;
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Case
| HBS Case Collection
|
2011
Sidoti & Company: Launching a Micro-Cap Product
Boris Groysberg, Paul M. Healy and Sarah Abbott
It is 2010 and Sidoti & Company, a New York-based brokerage firm specializing in small capitalization stocks, has just launched a new product- micro cap stock research. The firm has hired a group of five analysts who will produce written research reports on micro-cap stocks, that is, publicly traded stocks with a market capitalization of less than $250 million. Peter Sidoti, Sidoti & Company's founder and CEO, knows that there is demand for this product. However, he is not entirely certain how this new business will function, both with respect to how the product is distributed and to how Sidoti & Company will get compensated for it. The case discusses Sidoti & Company's business model, and how the new business fits with, and differs from, that model. It discusses the challenges Sidoti faces in making this new business a success.
Keywords: Business Model;
Financial Strategy;
Product Launch;
Strategic Planning;
Corporate Strategy;
Financial Services Industry;
New York (city, NY);
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Case
| HBS Case Collection
|
2010
Morgan Asset Management
Boris Groysberg, Paul M. Healy and Sarah Abbott
It is 2010 and Guillermo Araoz, the equity research director at Morgan Asset Management (MAM), is considering his research budget for the year. Due to recent declines in the equity markets and MAM's sale of its mutual funds business, MAM has seen a decline in its assets under management and, consequently, in its research budget. The case describes the investment process at MAM, including how stocks are selected and portfolios are constructed, and discusses the way in which the research budget supports this process. Araoz is faced with the challenge of how best to allocate this smaller research budget without negatively impacting the firm's investment process and investment performance.
Keywords: Budgets and Budgeting;
Asset Management;
Financial Strategy;
Investment;
Resource Allocation;
Research and Development;
Financial Services Industry;
Citation: Groysberg, Boris, Paul M. Healy, and Sarah Abbott. " Morgan Asset Management." Harvard Business School Case 411-058, November 2010.
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Case
| HBS Case Collection
|
2013
(Revised from original 2009 version)
Eddie Bauer (A)
Paul Healy, Sharon Katz and Aldo Sesia
In June 2005, Eddie Bauer, the specialty apparel retailer, emerged from bankruptcy. Under the plan of reorganization former creditors converted their debt into common shares, taking 100% ownership in the reconstituted company. Large banks-including Bank of America and J.P. Morgan Chase-were among the former creditors. In October 2005, Eddie Bauer stock was selling for $24 per share. Analysts were projecting target prices ranging from $22 to $35 per share. Account managers at Bank of America and J.P. Morgan Chase needed to assess whether to hold or sell their shares in Eddie Bauer.
Keywords: Financial Statements;
Mergers and Acquisitions;
Restructuring;
Insolvency and Bankruptcy;
Stock Shares;
Valuation;
Apparel and Accessories Industry;
Retail Industry;
United States;
Citation: Healy, Paul, Sharon Katz, and Aldo Sesia. " Eddie Bauer (A)." Harvard Business School Case 110-008, February 2013. (Revised from original August 2009 version.)
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Supplement
| HBS Case Collection
|
2010
(Revised from original 2009 version)
Eddie Bauer (B)
Paul M. Healy, Sharon P. Katz and Aldo Sesia
In February 2007, shareholders of Eddie Bauer, the specialty apparel retailer, were scheduled to vote on management's proposed sale of the company to two private equity firms. More than 50% of outstanding shares in Eddie Bauer needed to be voted in favor of the deal for it to be finalized. Shareholders needed to decide whether to vote for or against the proposed sale, which was fully endorsed by the board of Eddie Bauer.
Keywords: Financial Statements;
Mergers and Acquisitions;
Governing and Advisory Boards;
Privatization;
Valuation;
Apparel and Accessories Industry;
Retail Industry;
United States;
Citation: Healy, Paul M., Sharon P. Katz, and Aldo Sesia. " Eddie Bauer (B)." Harvard Business School Supplement 110-009, August 2010. (Revised from original August 2009 version.)
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Supplement
| HBS Case Collection
|
2010
(Revised from original 2009 version)
Eddie Bauer (C)
Paul M. Healy, Sharon P. Katz and Aldo Sesia
The Eddie Bauer (C) case describes what happened and the outlook for the retailer.
Keywords: Mergers and Acquisitions;
Decision Choices and Conditions;
Voting;
Governing and Advisory Boards;
Apparel and Accessories Industry;
Retail Industry;
United States;
Citation: Healy, Paul M., Sharon P. Katz, and Aldo Sesia. " Eddie Bauer (C)." Harvard Business School Supplement 110-010, August 2010. (Revised from original August 2009 version.)
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Case
| HBS Case Collection
|
2010
(Revised from original 2010 version)
Credit Suisse Group: Managing Equity Research as a Business
Boris Groysberg, Paul M. Healy and Sarah Abbott
In 2003, in the midst of industry turmoil and company-specific challenges, Stefano Natella was named Global Head of Equity Research at Credit Suisse. Over a six-year period, Natella implemented and refined a new methodology for valuing equity research analysts, both individually and as a collective unit. Natella's system, known as the 'Scorecard' was also used as the basis for compensating, hiring, and promoting analysts. Over time, the Scorecard was refined to allow Credit Suisse to improve its customer service efforts in a way that maximized profitability for the firm.
Keywords: Business Model;
Change Management;
Customer Satisfaction;
Compensation and Benefits;
Selection and Staffing;
Balanced Scorecard;
Organizational Change and Adaptation;
Financial Services Industry;
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Teaching Note
| HBS Case Collection
|
2009
Eddie Bauer (TN) (A), (B) and (C)
Paul M. Healy and Sharon P. Katz
Teaching Note for [110008] [110009], and [110010].
Keywords: Apparel and Accessories Industry;
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Case
| HBS Case Collection
|
2009
(Revised from original 2008 version)
Subprime Crisis and Fair-Value Accounting
Paul M. Healy, Krishna G. Palepu and George Serafeim
This case examines the challenges in implementing fair value accounting for mortgage instruments, the role of accounting in the sub-prime crisis, and proposals for revising accounting standards given the crisis.
Keywords: Fair Value Accounting;
Financial Crisis;
Debt Securities;
Mortgages;
Standards;
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Case
| HBS Case Collection
|
2009
(Revised from original 2005 version)
Financial Reporting Problems at Molex, Inc. (A)
Paul M. Healy
Following an accounting problem at Molex, the firm's auditors request changes in management. The board of directors has to decide whether the auditors' concerns have merit or whether, as management argues, the accounting issue is immaterial.
Keywords: Accounting Audits;
Financial Reporting;
Governing and Advisory Boards;
Resignation and Termination;
Managerial Roles;
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Case
| HBS Case Collection
|
2009
(Revised from original 2008 version)
Corruption at Siemens (A)
Paul M. Healy and Maria Loumioti
Keywords: Crime and Corruption;
Electronics Industry;
Citation: Healy, Paul M., and Maria Loumioti. " Corruption at Siemens (A)." Harvard Business School Case 108-033, May 2009. (Revised from original June 2008 version.)
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Supplement
| HBS Case Collection
|
2009
(Revised from original 2008 version)
Corruption at Siemens (B)
Paul M. Healy and Maria Loumioti
Keywords: Crime and Corruption;
Citation: Healy, Paul M., and Maria Loumioti. " Corruption at Siemens (B)." Harvard Business School Supplement 108-034, May 2009. (Revised from original June 2008 version.)
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Supplement
| HBS Case Collection
|
2009
(Revised from original 2008 version)
Corruption at Siemens (C)
Paul M. Healy and Maria Loumioti
Keywords: Crime and Corruption;
Citation: Healy, Paul M., and Maria Loumioti. " Corruption at Siemens (C)." Harvard Business School Supplement 108-035, May 2009. (Revised from original June 2008 version.)
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Supplement
| HBS Case Collection
|
2009
(Revised from original 2008 version)
Corruption at Siemens (D)
Paul M. Healy and Maria Loumioti
Keywords: Crime and Corruption;
Citation: Healy, Paul M., and Maria Loumioti. " Corruption at Siemens (D)." Harvard Business School Supplement 108-036, May 2009. (Revised from original June 2008 version.)
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Teaching Note
| HBS Case Collection
|
2008
(Revised from original 2007 version)
Revenue Recognition Problems in the Communications Equipment Industry (TN)
Paul M. Healy
Keywords: Problems and Challenges;
Revenue;
Communications Industry;
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Teaching Note
| HBS Case Collection
|
2008
(Revised from original 2007 version)
Prudential Securities (TN)
Paul M. Healy, Boris Groysberg and Geoff Marietta
Keywords: Financial Instruments;
Financial Services Industry;
Citation: Healy, Paul M., Boris Groysberg, and Geoff Marietta. " Prudential Securities (TN)." Harvard Business School Teaching Note 108-027, January 2008. (Revised from original September 2007 version.)
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Case
| HBS Case Collection
|
2007
Valuation at Novartis
Paul M. Healy
Keywords: Valuation;
Pharmaceutical Industry;
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Teaching Note
| HBS Case Collection
|
2007
(Revised from original 2005 version)
Financial Reporting Problems at Molex, Inc. (TN) (A), (B) & (C)
Paul M. Healy
Keywords: Financial Reporting;
Problems and Challenges;
Accounting Industry;
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Teaching Note
| HBS Case Collection
|
2007
Merrill Lynch in 2003: Sunny Skies Ahead? (TN)
Paul M. Healy
Keywords: Financial Services Industry;
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Teaching Note
| HBS Case Collection
|
2007
DICOM Group plc and Captiva Software Corp. (TN)
Paul M. Healy
Keywords: Software;
Technology;
Information Technology Industry;
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Case
| HBS Case Collection
|
2007
(Revised from original 2006 version)
Revenue Recognition Problems in the Communications Equipment Industry
Paul M. Healy and Arjuna J Costa
Designed to explore recognition issues in the context of a potential market downturn. In late 2000, Lucent Technologies reports multiple revisions to its recent financial results due to revenue recognition problems, leading to a dramatic decline in its stock price. This disclosure comes in the wake of a period of spectacular growth for the communications equipment industry during the 1990s. From the perspective of a securities analyst covering the industry, are the troubles at Lucent indicative of larger revenue recognition issues throughout the industry? Facilitates a discussion of potential early warning signs of the risks faced by Lucent's competitors.
Keywords: Corporate Disclosure;
Revenue Recognition;
Policy;
Supply and Industry;
Performance;
Communications Industry;
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Case
| HBS Case Collection
|
2007
(Revised from original 2005 version)
DICOM Group plc and Captiva Software Corp.
Paul M. Healy
Compares two companies in the information capture software industry. Asks students to analyze and compare the performance of two companies (one in the United Kingdom and the other in the United States) from the perspective of a buy-side analyst reporting to the manager of the firm's Global Technology Fund. The analyst must decide whether to recommend one or both stocks to the fund manager. Provides an opportunity to compare the differences in terminology, presentation of financial reports, and accounting methods for the U.S. and U.K. firms.
Keywords: History;
Financial Management;
Environmental Accounting;
Activity Based Costing and Management;
Financial Reporting;
Performance;
Performance Evaluation;
Financial Statements;
Economic Growth;
Fair Value Accounting;
Information Industry;
Computer Industry;
United Kingdom;
United States;
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Teaching Note
| HBS Case Collection
|
2007
(Revised from original 2007 version)
10 Uncommon Values®: Optimizing the Stock-Selection Process (TN)
Boris Groysberg and Paul M. Healy
Keywords: Stocks;
Values and Beliefs;
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Case
| HBS Case Collection
|
2007
(Revised from original 2004 version)
10 Uncommon Values®: Optimizing the Stock-Selection Process
Paul M. Healy and Boris Groysberg
In 2003, Steve Hash, research director at Lehman Brothers, prepared to initiate the firm's "Ten Uncommon Values" stock-picking process for the year. An investment committee had to pick the 10 best stocks from about 100 stock ideas presented by the firm's analysts. The performance of the stocks selected for the Ten Uncommon Values had historically been strong--an investment strategy to acquire the recommended stocks and hold them for one year would have outperformed the S&P 500 for 39 of the last 54 years. However, during the latest three years--2000 to 2002--the recommendations had performed poorly, generating an average return of -22.5% vs. -11.7% for the S&P 500. Hash pondered several questions: What was the importance of the Ten Uncommon Values for Lehman Brothers and its clients? How much time and effort should the firm put into the process of selecting stocks for the report? How many members should be on the Investment Policy Committee, and who should be selected? What should the process for selection be? Should analysts whose stocks were selected be compensated for their picks? Finally, should they continue the process? Teaching Purpose: Using both qualitative and quantitative data, to allow students to discuss a range of issues: the optimal process of selecting stocks, the optimal size of the committee, how much time to spend with each analyst, private or public voting on stocks by the committee members, the right decision-making process, and whether incentives play a role in the process.
Keywords: Stocks;
Investment;
Financial Strategy;
Decision Making;
Groups and Teams;
Financial Services Industry;
United States;
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Teaching Note
| HBS Case Collection
|
2007
HBS Financial Accounting Tutorial (TN)
David F. Hawkins and Paul M. Healy
Keywords: Accounting;
Finance;
Information;
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Tutorial
|
2007
HBS Financial Accounting Tutorial
David F. Hawkins and Paul M. Healy
Keywords: Accounting;
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Supplement
| HBS Case Collection
|
2006
Financial Reporting Problems at Molex, Inc. (C)
Paul M. Healy
Keywords: Financial Reporting;
Problems and Challenges;
Technology Industry;
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Supplement
| HBS Case Collection
|
2006
Financial Reporting Problems at Molex, Inc. (B)
Paul M. Healy
Keywords: Financial Reporting;
Problems and Challenges;
Technology Industry;
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Case
| HBS Case Collection
|
2006
Nokia in 2003
Paul M. Healy
Examines the challenges facing a money manager who owns stock in Nokia, the leading wireless handset provider. Two analysts covering the stock make very different predictions about the economies of the industry, Nokia's future performance, and stock recommendations. Whose advice should the money manager follow?
Keywords: Financial Reporting;
Forecasting and Prediction;
Performance Effectiveness;
Performance Evaluation;
Problems and Challenges;
Electronics Industry;
Citation: Healy, Paul M. "Nokia in 2003." Harvard Business School Case 106-067, May 2006.
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Teaching Note
| HBS Case Collection
|
2006
(Revised from original 2005 version)
Financial Accounting: An Online Introductory Course (TN)
David F. Hawkins and Paul M. Healy
Keywords: Accounting;
Financial Reporting;
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Case
| HBS Case Collection
|
2005
(Revised from original 2002 version)
United Parcel Service's IPO
Paul M. Healy, Brett Laschinger and Ajay Shroff
Examines the valuation of United Parcel Service (UPS) at the time of its IPO in mid-1999. Offers students the opportunity to assess UPS's current performance relative to its major competitor, Federal Express (FedEx), and to judge whether that performance is sustainable. Students then make projections of UPS's future earnings performance, estimate on IPO price, and assess the reasonableness of their estimate compared to the valuation of FedEx and best-in-class leaders.
Keywords: Initial Public Offering;
Valuation;
Performance Evaluation;
Competition;
Shipping Industry;
Georgia (state, US);
Citation: Healy, Paul M., Brett Laschinger, and Ajay Shroff. " United Parcel Service's IPO." Harvard Business School Case 103-015, October 2005. (Revised from original October 2002 version.)
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Tutorial
|
2005
Prematriculation Financial Accounting Tutorial/Module
David F. Hawkins, Paul M. Healy and Ratna G. Sarkar
The Financial Accounting course is an introduction to the fundamental concepts of financial accounting in a management context. The course describes the business activities for Global Grocer, a small retail franchise specializing in gourmet foods and specialty kitchen implements from all over the world. In the course, students follow the story of Global Grocer from its inception through the first year of operation. The course teaches students how accounting systems are used to record the day-to-day economic activities of a business and places special emphasis on understanding accounting terminology. Students learn fundamental accounting concepts and then apply those concepts in a detailed examination of the financial statements used to describe the business. Throughout the course, students are presented with real-world challenges that require them to interpret the financial data to find answers.
Keywords: Accounting;
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Teaching Note
| HBS Case Collection
|
2005
Pre-matriculation Accounting Tutorial (TN)
David F. Hawkins and Paul M. Healy
Keywords: Accounting;
Citation: Hawkins, David F., and Paul M. Healy. "Pre-matriculation Accounting Tutorial (TN)." Harvard Business School Teaching Note 105-074, May 2005.
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Case
| HBS Case Collection
|
2005
Merrill Lynch in 2003: Sunny Skies Ahead?
Boris Groysberg, Paul M. Healy and David Kiron
Merrill Lynch (ML) is at a crossroads. Stan O'Neal became its CEO and implemented a radical cost-cutting program. In addition, the company dot-com continues to recover from the fallout from the Enron and dot-com scandals. What are the future prospects for ML? Can the firm compete against its traditional competitors or against the recently merged Goliaths of banking, such as Citigroup?
Keywords: Management Teams;
Forecasting and Prediction;
Financial Condition;
Investment;
Financial Services Industry;
Insurance Industry;
United States;
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Case
| HBS Case Collection
|
2005
(Revised from original 2004 version)
Prudential Securities
Boris Groysberg, Paul M. Healy and Amanda Cowen
Prudential Insurance Co. attempted to diversify into financial services by building an investment banking franchise. Prudential's initial foray into the industry was its acquisition of The Bache Group in 1982. In 2000, the company decided to exit investment banking. The firm adopted various strategic positions and human resource management strategies during the 18 years it struggled to compete successfully against prestigious incumbents. Although Prudential's efforts to establish a top-tier investment bank ultimately failed, other firms did succeed in this endeavor.
Keywords: Investment Banking;
Corporate Strategy;
Competitive Strategy;
Market Entry and Exit;
Diversification;
Mergers and Acquisitions;
Financial Services Industry;
Insurance Industry;
Citation: Groysberg, Boris, Paul M. Healy, and Amanda Cowen. " Prudential Securities." Harvard Business School Case 104-008, April 2005. (Revised from original May 2004 version.)
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Case
| HBS Case Collection
|
2005
(Revised from original 2004 version)
Valuation Ratios in the Restaurant Industry
Paul M. Healy and Krishna G. Palepu
Examines factors underlying differences in valuation multiples (price-earnings and price-to-book) across four firms in the restaurant industry.
Keywords: Valuation;
Activity Based Costing and Management;
Performance Effectiveness;
Performance Evaluation;
Management Analysis, Tools, and Techniques;
Earnings Management;
Service Operations;
Performance Efficiency;
Accounting Audits;
Customer Relationship Management;
Food and Beverage Industry;
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Teaching Note
| HBS Case Collection
|
2005
Valuation Ratios in the Restaurant Industry (TN)
Paul M. Healy
Teaching Note to (9-104-066).
Keywords: Food and Beverage Industry;
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Teaching Note
| HBS Case Collection
|
2003
City of New York, The (TN)
Paul M. Healy
Teaching Note for (9-198-030).
Keywords: New York (city, NY);
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Teaching Note
| HBS Case Collection
|
2003
CUC International, Inc. (A) (TN)
Paul M. Healy
Teaching Note for (9-192-099)
Keywords: Financial Services Industry;
-
Teaching Note
| HBS Case Collection
|
2003
United Parcel Service's IPO (TN)
Paul M. Healy
Teaching Note for (9-103-015).
Keywords: Distribution Industry;
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Teaching Note
| HBS Case Collection
|
2003
(Revised from original 2000 version)
Thermo Electron Corporation: Financial Analysis TN
Paul M. Healy
Citation: Healy, Paul M. "Thermo Electron Corporation: Financial Analysis TN." Harvard Business School Teaching Note 100-083, August 2003. (Revised from original February 2000 version.)
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Teaching Note
| HBS Case Collection
|
2003
(Revised from original 2000 version)
Boston Chicken, Inc. TN
Paul M. Healy
Teaching Note for (9-198-032).
Keywords: Food and Beverage Industry;
United States;
Citation: Healy, Paul M. " Boston Chicken, Inc. TN." Harvard Business School Teaching Note 100-084, August 2003. (Revised from original February 2000 version.)
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Teaching Note
| HBS Case Collection
|
2003
(Revised from original 2000 version)
Brierley Investments Limited TN
Paul M. Healy
Teaching Note for (9-100-014).
Keywords: Financial Services Industry;
New Zealand;
Citation: Healy, Paul M. " Brierley Investments Limited TN." Harvard Business School Teaching Note 100-085, August 2003. (Revised from original February 2000 version.)
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Teaching Note
| HBS Case Collection
|
2003
Krispy Kreme Doughnuts (TN)
Paul M. Healy
Teaching Note for (9-103-018).
Keywords: Food and Beverage Industry;
New York (city, NY);
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Teaching Note
| HBS Case Collection
|
2003
Valuation Ratios in the Airline Industry (TN)
Paul M. Healy
Teaching Note for (9-103-002).
Keywords: Valuation;
Air Transportation Industry;
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Teaching Note
| HBS Case Collection
|
2003
Computer Associates International Inc.: Governance and Investor Communication Challenge (TN)
Paul M. Healy
Teaching Note for (9-103-007).
Keywords: Computer Industry;
Information Technology Industry;
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Case
| HBS Case Collection
|
2003
(Revised from original 1999 version)
Pre-Paid Legal Services, Inc.
Paul M. Healy and Jacob Cohen
Pre-Paid Legal Services' business model reveals two key issues--managing the sales force and sales growth and managing claims. Students analyze the economics of the business and consider how to measure firm performance, how to evaluate and reward the sales force, and what services to offer. The case also discusses a Fortune article criticizing Pre-Paid Legal's method of reporting sales force commissions. Students are asked to evaluate Fortune's analysis and to recommend potential responses by Pre-Paid Legal's management.
Keywords: Financial Management;
Financial Strategy;
Salesforce Management;
Marketing Strategy;
Accrual Accounting;
Business Cycles;
Forecasting and Prediction;
Insurance;
Business Growth and Maturation;
Insurance Industry;
Citation: Healy, Paul M., and Jacob Cohen. " Pre-Paid Legal Services, Inc." Harvard Business School Case 100-037, July 2003. (Revised from original November 1999 version.)
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Case
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2003
(Revised from original 2003 version)
Valuation Ratios in the Airline Industry
Paul M. Healy, Krishna G. Palepu and Jonathan Barnett
Four firms in the airline industry illustrate the underlying differences in valuation multiples (price-earnings and price-to-book).
Keywords: Valuation;
Activity Based Costing and Management;
Accounting Audits;
Air Transportation Industry;
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Case
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2003
(Revised from original 2003 version)
Yahoo!'s Stock-Based Compensation (B)
Paul M. Healy and Jacob Cohen
Supplements the (A) case.
Keywords: Web Services Industry;
Technology Industry;
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Case
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2003
(Revised from original 2003 version)
Yahoo!'s Stock-Based Compensation (C)
Paul M. Healy and Jacob Cohen
Supplements the (A) case.
Keywords: Web Services Industry;
Technology Industry;
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Case
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2003
(Revised from original 2003 version)
Yahoo!'s Stock-Based Compensation (D)
Paul M. Healy and Jacob Cohen
Supplements the (A) case.
Keywords: Web Services Industry;
Technology Industry;
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Case
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2003
(Revised from original 2002 version)
Computer Associates International, Inc.: Governance and Investor Communication Challenge
Paul M. Healy and Krishna G. Palepu
Sanjay Kumar, the CEO of Computer Associates, faces investor communication challenges following the company's implementation of a new business model and the accompanying change method used to recognize revenue. Despite management's confidence that the new business model is working effectively, the firm's stock price falls significantly and a major shareholder challenges management through a proxy contest.
Keywords: Business Earnings;
Earnings Management;
Stock Shares;
Problems and Challenges;
Communication Strategy;
Accrual Accounting;
Business Model;
Budgets and Budgeting;
Corporate Governance;
Revenue;
Computer Industry;
Information Technology Industry;
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Case
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2003
(Revised from original 2000 version)
Yahoo!'s Stock-Based Compensation
Paul M. Healy and Jacob Cohen
Amy Maislos, an investor in Internet and technology companies, was excited to read that Yahoo! had reported a positive net income for 1998 operations. During the late 1990s, stock prices of Internet companies had risen rapidly even though most companies were reporting losses. Amy believed that investors and Wall Street analysts would soon expect profits from tech companies. When she reviewed the annual report she noticed a compensation footnote that reported that if Yahoo! had booked an expense for stock options, the company would have experienced a loss for 1998 operations.
Keywords: Stock Options;
Online Technology;
Financial Statements;
Corporate Disclosure;
Business Earnings;
Earnings Management;
Information Technology Industry;
Citation: Healy, Paul M., and Jacob Cohen. " Yahoo!'s Stock-Based Compensation." Harvard Business School Case 101-059, January 2003. (Revised from original November 2000 version.)
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Teaching Note
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2002
(Revised from original 2000 version)
Pre-Paid Legal Services, Inc. TN
Paul M. Healy
Teaching Note for (9-100-037).
Keywords: Insurance Industry;
Citation: Healy, Paul M. " Pre-Paid Legal Services, Inc. TN." Harvard Business School Teaching Note 100-082, September 2002. (Revised from original February 2000 version.)
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Exercise
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2002
(Revised from original 2000 version)
Inventory Exercises
Paul M. Healy
Introduces students to the concepts of inventory valuation (LIFO and FIFO) using a simple example. They then get the chance to apply this knowledge to help understand the inventory footnote for California Steel Industries.
Keywords: Logistics;
Citation: Healy, Paul M. " Inventory Exercises." Harvard Business School Exercise 101-012, January 2002. (Revised from original September 2000 version.)
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Background Note
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2001
(Revised from original 2000 version)
Liability Reporting
Paul M. Healy and Preeti Choudhary
By examining key criteria for recognizing a liability, this case explores liability recognition in straightforward situations and then examines the most difficult reporting issues in recording liabilities. These often arise when: 1) uncertainty arises about whether an obligation has been incurred; or 2) measuring the value of the obligation is difficult.
Keywords: Financial Reporting;
Legal Liability;
Valuation;
Problems and Challenges;
Accounting Industry;
Citation: Healy, Paul M., and Preeti Choudhary. " Liability Reporting." Harvard Business School Background Note 101-016, November 2001. (Revised from original August 2000 version.)
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Background Note
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2001
Financial Reporting Environment, The
Paul M. Healy, Amy P. Hutton, Robert S. Kaplan and Krishna G. Palepu
Provides a framework for understanding the role of financial reporting and various intermediaries as mechanisms for reducing both adverse selection and moral hazard problems in capital markets. Financial reports reduce adverse selection by providing basic information for investors and their agents before they make initial capital resource allocation decisions. Subsequently, after capital is allocated to particular business ventures, financial reports reduce moral hazard between managers and investors by supplying information used in contracting between investors and managers to reduce conflicts of interests. Various institutional mechanisms and information intermediaries monitor and limit the manipulation of reported information by managers and constrain managers' ability to act in their own self-interest, rather than investors' interests. They also improve information production, reduce incentive conflicts, and enable capital markets to function effectively and efficiently, channeling the economy's savings to the most productive opportunities.
Keywords: Financial Reporting;
Financial Statements;
Capital Markets;
Venture Capital;
Corporate Disclosure;
Conflict of Interests;
Citation: Healy, Paul M., Amy P. Hutton, Robert S. Kaplan, and Krishna G. Palepu. " Financial Reporting Environment, The." Harvard Business School Background Note 102-029, September 2001.
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Teaching Note
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2001
Boeing Company's Accounting for Executive Stock Compensation, The
Paul M. Healy
Teaching Note for (9-100-031).
Keywords: United States;
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Teaching Note
| HBS Case Collection
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2001
Reporting Income for Dot-coms TN
Paul M. Healy
Teaching Note for (9-101-013).
Keywords: Web Services Industry;
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Background Note
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2001
(Revised from original 2000 version)
Revenue Recognition
Paul M. Healy
This case discusses revenue recognition in straightforward situations and then considers revenue transactions that may be more complex to record. Revenue recognition criteria can be implemented for the following situations: 1) Customers pay prior to delivery; 2) Products/services are provided over multiple years; 3) Credit-worthiness of the customer is questionable; and 4) Money-back guarantees are offered.
Keywords: Business Earnings;
Revenue Recognition;
Decision Making;
Financial Statements;
Citation: Healy, Paul M. " Revenue Recognition." Harvard Business School Background Note 101-017, February 2001. (Revised from original August 2000 version.)
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Background Note
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2001
(Revised from original 2000 version)
Expense Recognition
Paul M. Healy and Preeti Choudhary
Recording expenses is not often clear-cut and can require considerable management judgment. This case discusses expense recognition in straightforward situations and then considers expense transactions that may be more complex to record. It uses examples that include situations in which: 1) The value of resources consumed is difficult to define; 2) Resources provide benefits for multiple years; 3) Resources are consumed, but the timing and amount of future payments is uncertain; and 4) Unused resources have declined in value.
Keywords: Accounting;
Cost;
Financial Statements;
Citation: Healy, Paul M., and Preeti Choudhary. " Expense Recognition." Harvard Business School Background Note 101-015, February 2001. (Revised from original August 2000 version.)
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Background Note
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2001
(Revised from original 2000 version)
Asset Reporting
Paul M. Healy and Preeti Choudhary
Using historical cost and conservatism to identify and value assets, this case explains the criteria for asset reporting in straightforward situations and then examines scenarios where implementing the criteria for recognition and valuation of assets is conceptually challenging. These more complex situations occur when: 1) Ownership or control of a resource is uncertain; 2) The economic benefits from outlays are uncertain or difficult to quantify; or 3) Resource values have changed.
Keywords: Accounting;
Assets;
Problems and Challenges;
Accounting Industry;
Citation: Healy, Paul M., and Preeti Choudhary. " Asset Reporting." Harvard Business School Background Note 101-014, January 2001. (Revised from original August 2000 version.)
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Background Note
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2001
(Revised from original 2000 version)
Reporting Income for Dot-Coms
Paul M. Healy
Dot-coms provide unique financial reporting situations.
Keywords: Financial Reporting;
Capital;
Revenue;
Web Sites;
Web Services Industry;
Citation: Healy, Paul M. " Reporting Income for Dot-Coms." Harvard Business School Background Note 101-013, January 2001. (Revised from original August 2000 version.)
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Case
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2000
(Revised from original 1999 version)
Boeing Company's Accounting for Executive Stock Compensation, The
Paul M. Healy and Jacob Cohen
Executive stock options are experiencing increased use and the Financial Accounting Standards Board is proposing changes in accounting in the United States.
Keywords: History;
Stock Options;
Financial Reporting;
Financial Institutions;
Change Management;
Stock Shares;
Business History;
Cash Flow;
Value;
Fair Value Accounting;
United States;
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Background Note
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2000
(Revised from original 2000 version)
Accounting for Mergers & Acquisitions
Paul M. Healy and Jacob Cohen
Discusses merger and acquisition accounting.
Keywords: Mergers and Acquisitions;
Accounting;
Citation: Healy, Paul M., and Jacob Cohen. " Accounting for Mergers & Acquisitions." Harvard Business School Background Note 101-021, October 2000. (Revised from original August 2000 version.)
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Case
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2000
(Revised from original 2000 version)
Off-Balance Sheet Leases in the Restaurant Industry
Amy P. Hutton, Paul M. Healy and Jacob Cohen
Amid mounting concern by credit agencies about off-balance sheet liabilities, an analyst for one of the leading credit-rating agencies has been asked to make a presentation about off-balance sheet liabilities, the strategic analysis behind leasing versus purchasing property, and accounting for leases.
Keywords: Fair Value Accounting;
Property;
Leasing;
Financial Statements;
Capital Structure;
Credit;
Financial Services Industry;
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Case
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2000
MCI-WorldCom Combination, The (A)
Paul M. Healy and Jacob Cohen
Outlines the accounting decision faced by WorldCom in its acquisition of MCI. Two methods are discussed (purchase and pooling) and students are asked to evaluate which would be more suitable for WorldCom.
Keywords: International Accounting;
Mergers and Acquisitions;
Financial Strategy;
Horizontal Integration;
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Case
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2000
MCI-WorldCom Combination, The (B)
Paul M. Healy and Jacob Cohen
Supplements the (A) case.
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Background Note
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2000
Financial Statement and Ratio Analysis
Paul M. Healy and Jacob Cohen
Prepares students for financial ratio analysis.
Keywords: Business Education;
Financial Statements;
Theory;
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Case
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2000
Aerospace Technologies, Inc.
Paul M. Healy and Jacob Cohen
Ben Galil's privately held engineering consulting firm represents aerospace products manufacturers in Israeli government biddings. The company incurs expenses for years before getting paid. This case deals with the alternative methods for booking revenues and expenses (i.e., cash and accrual accounting). It examines whether the company is profitable and whether its current commission structure is sound.
Keywords: Accrual Accounting;
Accounting;
Revenue;
Cost;
Business or Company Management;
Profit;
Engineering;
Bids and Bidding;
Government and Politics;
Private Ownership;
Consulting Industry;
Israel;
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Case
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2000
(Revised from original 1998 version)
City of New York, The
Paul M. Healy
This case examines the economics of a municipality, and then explores its financial position from the perspective of a bond rating firm.
Keywords: History;
Debt Securities;
Financial Management;
Valuation;
Financial Statements;
Government Administration;
Bonds;
Nonprofit Organizations;
Forecasting and Prediction;
Accounting Audits;
Citation: Healy, Paul M. " City of New York, The." Harvard Business School Case 198-030, April 2000. (Revised from original May 1998 version.)
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Case
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2000
(Revised from original 1997 version)
Adelphia Communications Corporation
Paul M. Healy
A bank officer must make a loan application decision for a large but financially troubled cable broadcaster.
Keywords: Financial Condition;
Financing and Loans;
Decision Choices and Conditions;
Contracts;
Telecommunications Industry;
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Teaching Note
| HBS Case Collection
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2000
Adelphia Communications Corporation TN
Paul M. Healy
Teaching Note for (9-198-031).
Keywords: Telecommunications Industry;
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Case
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1999
Brierley Investments Limited
Paul M. Healy
Brierley's is an investment company that has performed poorly in the New Zealand market. Management has prepared a report of the intrinsic value of the company's investments.
Keywords: Valuation;
Corporate Disclosure;
Financial Strategy;
Management Analysis, Tools, and Techniques;
Performance Evaluation;
Investment;
Business Strategy;
Financial Services Industry;
New Zealand;
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Case
| HBS Case Collection
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1999
Thermo Electron Corporation: Financial Analysis
Paul M. Healy and Souren G. Ouzounian
Keywords: Corporate Finance;
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Background Note
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1999
Emergence of an International Accounting Standards Setter, The
Paul M. Healy and Jacob Cohen
Provides students with an overview of recent developments in the setting of accounting standards at a global level.
Keywords: International Accounting;
Financial Statements;
Globalization;
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Case
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1999
(Revised from original 1997 version)
Boston Chicken, Inc.
Paul M. Healy
This case examines Boston Chicken's franchise strategy for growing its innovative restaurant business, and the associated accounting reporting issues that arise.
Keywords: Finance;
Financial Reporting;
Financing and Loans;
Franchise Ownership;
Performance Evaluation;
Business Growth and Maturation;
Food and Beverage Industry;
United States;
Citation: Healy, Paul M. " Boston Chicken, Inc." Harvard Business School Case 198-032, August 1999. (Revised from original September 1997 version.)
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Case
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1999
(Revised from original 1998 version)
Echlin vs. SPX
Paul M. Healy, Bjorn N. Jorgensen and Penny Joseph
Echlin has received a hostile takeover offer from SPX. Both companies have been undertaking major restructurings, and Echlin's shareholders face a difficult decision of whether to support current management or sell out to SPX. Students are asked to analyze the two companies and prepare letters explaining their positions from the CEOs of both companies to be sent to Echlin's shareholders
Keywords: History;
Integration;
Restructuring;
Investment Banking;
Mergers and Acquisitions;
Problems and Challenges;
Financial Statements;
Acquisition;
Business and Shareholder Relations;
Citation: Healy, Paul M., Bjorn N. Jorgensen, and Penny Joseph. " Echlin vs. SPX." Harvard Business School Case 199-010, January 1999. (Revised from original October 1998 version.)
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Case
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1996
(Revised from original version)
CUC International, Inc. (A)
Krishna G. Palepu and Paul M. Healy
The case series examines the role of financial reporting and corporate finance policies as vehicles for communication between managers and outside investors. This case describes management's concern that the company's stock is undervalued because analysts viewed the company's accounting as aggressive. Students are asked to advise CUC's management on ways to improve investor confidence.
Keywords: Financial Reporting;
Stocks;
Financial Management;
Decisions;
Economic Slowdown and Stagnation;
Management Style;
Management Practices and Processes;
Business and Shareholder Relations;
Value;
Financial Services Industry;
Citation: Palepu, Krishna G., and Paul M. Healy. " CUC International, Inc. (A)." Harvard Business School Case 192-099, October 1996. (Revised from original February 1992 version.)
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Supplement
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1995
(Revised from original version)
CUC International, Inc. (B)
Krishna G. Palepu and Paul M. Healy
Describes CUC's initial response to investors' concerns about the firm's accounting. Students are asked to evaluate this response.
Citation: Palepu, Krishna G., and Paul M. Healy. " CUC International, Inc. (B)." Harvard Business School Supplement 192-100, May 1995. (Revised from original February 1992 version.)
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Supplement
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1995
(Revised from original version)
CUC International, Inc. (C)
Krishna G. Palepu and Paul M. Healy
Describes analysts' and investors' reaction to CUC's initial response.
Citation: Palepu, Krishna G., and Paul M. Healy. " CUC International, Inc. (C)." Harvard Business School Supplement 192-101, May 1995. (Revised from original February 1992 version.)
Research Summary
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Research Summary
Wall Street Research
by
Paul M. Healy
Wall Street research helps to support a well-functioning capital market by providing investors with information about investment opportunitie, and corporate issuers with liquidity for their stocks. Yet surprisingly little is known about how Wall Street research actually works. Academic research has focused on analysts' earnings forecasts and stock recommendations, although investors appear to put little stock in this summary data. Regulators have focused on concerns about analysts' conflicts of interest that diminish the quality and integrity of analyst research. My research provides greater insights into how analysts perform their role as information intermediaries, how they are managed and rewarded, and how they really perform. Keywords: sell-side analysts;
brokerage;
investment banking;
buy-side analysts;
compensation;
Financial Services Industry;
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Research Summary
Corruption
by
Paul M. Healy
World Bank estimates indicate that as much as $1 trillion is paid in bribes throughout the world in a given year. Corruption has been shown to slow economic development. My research focuses on how corruption affects multinational companies. It discusses differences in companies’ commitments to fighting corruption and their implications for performance, as well as providing greater understanding for how companies become involved in corruption and the consequences of getting caught. Keywords: corruption;
Internal governance;
Teaching
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Teaching Interest
Leadership in Financial Organizations
by
Paul M. Healy
In the wake of the recent global economic crisis, financial organizations are confronted with volatile financial markets, heightened regulation, and increased public scrutiny of both performance and ethics. this course explores industry-specific subjects related to leadership, change management, ethics, and talent management, and is designed to help leaders of financial organizations navigate the difficult economic and regulatory climate. The course is offered in four of the world's leading financial centers.
Keywords: Financial Markets;
regulation;
management;
ethical behavior;
ethics;
Ethical Judgment;
talent management;
global;
financial institutions;
Management;
Finance;
Investment Banking;
Financial Institutions;
Talent and Talent Management;
Ethics;
Related Link: Executive Education LFO
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Teaching Interest
Strategic Financial Analysis
by
Paul M. Healy
This course focuses on the tools used to create economic value. It presents frameworks for assessing strategy, monitoring performance, forecasting capital utilization, valuing strategic assets, and reviewing restructuring opportunities. Participants learn to apply rigorous financial analysis as they evaluate business performance, weigh potential acquisitions, and assess global competition.
Keywords: strategic change;
restructuring;
Restructuring;
Strategy;
Related Link: http://www.exed.hbs.edu/programs/sfa/Pages/default.aspx
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Teaching Interest
Financial Reporting and Control
by
Paul M. Healy
Throughout their careers, business leaders are required to measure and evaluate their organization's economic performance, improve resource allocation and strategy implementation within their organizations, and build accountability for performance through effective external and internal governance. Top leadership in most organizations must also communicate performance information to external investors and other capital providers to ensure that their organizations are able to access capital on favorable terms. This course provides students with key concepts and frameworks that guide the effective design and use of performance measurement systems to accomplish these multiple complex goals.
Related Link: https://inside.hbs.edu/Departments/mba/academics/courses/Pages/rc_term_i.aspx
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Teaching Interest
Leadership and Corporate Accountability
by
Paul M. Healy
This course focuses on the responsibilities of companies, their leaders, and their boards. Its aim is to deepend students' understanding of the economic, legal, and ethical dimensions of these responsibilities and to provide practical guidance on driving performance that delivers on all three dimensions. These situations have the potential to define, for good and bad, the careers of executives involved, and to determine the sustainability of their firms. Through a series of difficult dilemmas set in different regions of the world, the course builds a framework for decision-making and explores the elements of effective governance.
Related Link: http://www.exed.hbs.edu/assets/Pages/video.aspx?videoid=1227
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Teaching Interest
Audit Committees in a New Era of Governance
by
Paul M. Healy
The last ten years has heightened demands on audit committees. Not only are they responsible for overseeing internal and external audits to ensure that investors receive accurate and transparent information, but they must ensure compliance with new accounting and regulatory rules and standards. This intensive program prepares audit committee members and chief financial officers to operate effectively in this new environment.
Related Link: http://www.exed.hbs.edu/programs/ac/Pages/default.aspx
Awards & Honors
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Paul M. Healy: Awarded an Honorary Doctorate in 2013 by the University of Turku (Turun yliopisto) in Finland.
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Paul M. Healy: Winner of the second place 2013 Hermes Fund Managers' Best Paper Prize for the paper "Causes and Consequences of Firm Disclosures of Anticorruption Efforts" (with George Serafeim, Harvard Business School Working Paper, No. 12–077, 2012).
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Paul M. Healy: Winner of the 2006 Emerald Management Reviews Citation of Excellence for "Which Types of Analyst Firms Are More Optimistic?" (with Amanda Paige Cowen and Boris Groysberg, Journal of Accounting & Economics, April 2006).
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Paul M. Healy: Business Analysis and Valuation Using Financial Statements (South-Western College Publishing, 1996), with Victor L. Bernard and Krishna G. Palepu, won the 1999 American Accounting Association Notable Contribution Award.
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Paul M. Healy: Recipient of the MIT Sloan School of Management Outstanding Teacher Award in 1997. Also a recipient of this award in 1991 and 1992.
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Paul M. Healy: Business Analysis and Valuation Using Financial Statements (South-Western College Publishing, 1996), with Victor L. Bernard and Krishna G. Palepu, won the 1997 Wildman Medal from the American Accounting Association.
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Paul M. Healy: Winner of the 1990 American Accounting Association Notable Contribution Award for the article "The Effect of Bonus Schemes on Accounting Decisions" (Journal of Accounting & Economics, April 1985).
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