Christopher J. Malloy
Associate Professor of Business Administration, Marvin Bower Fellow
Christopher Malloy is an Associate Professor in the Finance Unit and Marvin Bower Fellow at Harvard Business School, and a Faculty Research Fellow at the National Bureau of Economic Research. Prior to joining HBS in 2007, Professor Malloy was an Assistant Professor in the Finance Department at London Business School, where he was on faculty from 2003-2007. Professor Malloy currently teaches the first semester core finance course at HBS, and has previously taught courses in equity investment management and behavioural finance. His research focuses on asset pricing, investments and portfolio choice, labour economics, behavioural finance, and empirical corporate finance. His research has appeared in the Journal of Political Economy and the Journal of Finance, and been described in The Financial Times, The Wall Street Journal, The New York Times, and various other media outlets. Professor Malloy received a PhD in Finance and an MBA from The University of Chicago Graduate School of Business, and a BA in Economics from Yale University. Before beginning his doctoral studies, he worked at the Board of Governors of the Federal Reserve System in Washington, DC in the Monetary and Financial Studies Section.
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Article
| Review of Financial Studies
| Forthcoming
Misvaluing Innovation
Lauren Cohen, Karl Diether and Christopher Malloy
We demonstrate that a firm's ability to innovate is predictable, persistent, and relatively simple to compute, and yet the stock market ignores the implications of past successes when valuing future innovation. We show that two firms that invest the exact same in research and development (R&D) can have quite divergent, but predictably divergent, future paths. Our approach is based on the simple premise that while future outcomes associated with R&D investment are uncertain, the past track records of firms may give insight into their potential for future success. We show that a long-short portfolio strategy that takes advantage of the information in past track records earns abnormal returns of roughly 11% per year. Importantly, these past track records also predict divergent future real outcomes in patents, patent citations, and new product innovations.
Keywords: innovation;
Return Predictability;
R＆D;
Citation: Cohen, Lauren, Karl Diether, and Christopher Malloy. " Misvaluing Innovation." Review of Financial Studies (forthcoming).
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Article
| Journal of Political Economy
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Do Powerful Politicians Cause Corporate Downsizing?
Lauren Cohen, Joshua Coval and Christopher J. Malloy
This paper employs a new empirical approach for identifying the impact of government spending on the private sector. Our key innovation is to use changes in congressional committee chairmanship as a source of exogenous variation in state-level federal expenditures. In doing so, we show that fiscal spending shocks appear to significantly dampen corporate sector investment and employment activity. This retrenchment follows both Senate and House committee chair changes, occurs in large and small firms and within large and small states, and is most pronounced among geographically concentrated firms. The effects are economically meaningful and the mechanism-entirely distinct from the more traditional interest rate and tax channels-suggests new considerations in assessing the impact of government spending on private sector economic activity.
Keywords: Spending;
Private Sector;
Taxation;
Innovation and Invention;
Interest Rates;
Business and Government Relations;
Investment;
Employment;
Power and Influence;
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Article
| Journal of Finance
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Decoding Inside Information
Lauren Cohen, Christopher Malloy and Lukasz Pomorski
Using a simple empirical strategy, we decode the information in insider trading. Exploiting the fact that insiders trade for a variety of reasons, we show that there is predictable, identifiable "routine" insider trading that is not informative for the future of firms. Stripping away the trades of routine insiders leaves a set of information-rich trades by "opportunistic" insiders that contain all the predictive power in the insider trading universe. A portfolio strategy that focuses solely on opportunistic traders yields value-weighted abnormal returns of 82 basis points per month, while the abnormal returns associated with routine traders are essentially zero. Further, opportunistic insiders predict future firm-specific news, as well as announcement returns around future analyst forecasts, management forecasts, and earnings announcements, while routine traders do not. The most informed opportunistic traders are local non-senior insiders, who come from geographically concentrated, poorly governed firms. Lastly, opportunistic traders are significantly more likely to have SEC enforcement action taken against them and reduce their trading following waves of SEC insider trading enforcement.
Keywords: Strategy;
Financial Markets;
Forecasting and Prediction;
Law Enforcement;
Opportunities;
Geographic Location;
Business Earnings;
Citation: Cohen, Lauren, Christopher Malloy, and Lukasz Pomorski. " Decoding Inside Information." Journal of Finance 67, no. 3 (June 2012): 1009–1043. (Winner of Chicago Quantitative Alliance Academic Paper Competition. First Prize presented by Chicago Quantitative Alliance. Winner of Institute for Quantitative Investment Research (INQUIRE) Grant presented by Institute for Quantitative Investment Research.)
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Article
| Management Science
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Hiring Cheerleaders: Board Appointments of 'Independent' Directors
Lauren Cohen, Andrea Frazzini and Christopher Malloy
We provide evidence that firms appoint independent directors who are overly sympathetic to management, while still technically independent according to regulatory definitions. We explore a subset of independent directors for whom we have detailed, micro-level data on their views regarding the firm prior to being appointed to the board: sell-side analysts who are subsequently appointed to the boards of companies they previously covered. We find that boards appoint overly optimistic analysts who are also poor relative performers. The magnitude of the optimistic bias is large: 82.0% of appointed recommendations are strong-buy/buy recommendations, compared to 56.9% for all other analyst recommendations. We also show that appointed analysts' optimism is stronger at precisely those times when firms' benefits are larger. Lastly, we find that appointing firms are more likely to have management on the board nominating committee, appear to be poorly governed, and increase earnings management and CEO compensation following these board appointments.
Keywords: Recruitment;
Management;
Corporate Governance;
Performance;
Governing and Advisory Boards;
Executive Compensation;
Governing Rules, Regulations, and Reforms;
Prejudice and Bias;
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Article
| Harvard Business Review
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The Power of Alumni Networks
Lauren Cohen and Christopher J. Malloy
Keywords: Education;
Networks;
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Journal Article
| Journal of Finance
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Sell-Side School Ties
Lauren H. Cohen, Christopher J. Malloy and Andrea Frazzini
We study the impact of social networks on agents' ability to gather superior information about firms. Exploiting novel data on the educational backgrounds of sell side equity analysts and senior officers of firms, we test the hypothesis that analysts' school ties to senior officers impart comparative information advantages in the production of analyst research. We find evidence that analysts outperform on their stock recommendations when they have an educational link to the company. A simple portfolio strategy of going long the buy recommendations with school ties and going short buy recommendations without ties earns returns of 6.60% per year. We test whether Regulation FD, targeted at impeding selective disclosure, constrained the use of direct access to senior management. We find a large effect: pre-Reg FD the return premium from school ties was 9.36% per year, while post-Reg FD the return premium was nearly zero and insignificant. In contrast, in an environment that did not change selective disclosure regulation (the U.K.), the analyst school-tie premium has remained large and significant over the entire sample period.
Keywords: Investment Return;
Investment Portfolio;
Corporate Disclosure;
Governing Rules, Regulations, and Reforms;
Knowledge Acquisition;
Social and Collaborative Networks;
Citation: Cohen, Lauren H., Christopher J. Malloy, and Andrea Frazzini. " Sell-Side School Ties." Journal of Finance 65, no. 4 (August 2010): 1409–1437. (Winner of the 2010 Smith Breeden Prize, Distinguished Paper, for the best paper in the Journal of Finance.)
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Journal Article
| Journal of Finance
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Long-Run Stockholder Consumption Risk and Asset Returns
Christopher J. Malloy, Tobias J. Moskowitz and Annette Vissing-Jorgensen
We provide new evidence on the success of long-run risks in asset pricing by focusing on the risks borne by stockholders. Exploiting micro-level household consumption data, we show that long-run stockholder consumption risk better captures cross-sectional variation in average asset returns than aggregate or non-stockholder consumption risk, and provides more plausible economic magnitudes. We find that risk aversion estimates around 10 can match observed risk premia for the wealthiest stockholders across sets of test assets that include the 25 Fama and French size and value portfolios, the market portfolio, bond portfolios, and the entire cross-section of stocks.
Keywords: Asset Pricing;
Stocks;
Investment Return;
Investment Portfolio;
Risk Management;
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Journal Article
| Journal of Finance
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Rewriting History
Alexander Ljungqvist, Christopher J. Malloy and Felicia Marston
We document widespread ex post changes to the historical contents of the I/B/E/S analyst stock recommendations database. Across a sequence of seven downloads of the entire I/B/E/S recommendations database, obtained between 2000 and 2007, we find that between 6,594 (1.6%) and 97,579 (21.7%) of matched observations are different from one download to the next. The changes, which include alterations of recommendation levels, additions and deletions of records, and removal of analyst names, are non-random in nature: They cluster by analyst reputation, brokerage firm size and status, and recommendation boldness. The changes have a large and significant impact on the classification of trading signals and back-tests of three stylized facts: The profitability of trading signals, the profitability of changes in consensus recommendations, and persistence in individual analyst stock-picking ability.
Keywords: Competency and Skills;
Stocks;
Profit;
Market Transactions;
Reputation;
Financial Services Industry;
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Journal Article
| Journal of Investment Management
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Shorting Demand and Predictability of Returns
Lauren Cohen, Karl B. Diether and Christopher J. Malloy
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Article
| Journal of Political Economy
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The Small World of Investing: Board Connections and Mutual Fund Returns
Lauren Cohen, Andrea Frazzini and Christopher J. Malloy
This paper uses social networks to identify information transfer in security markets. We focus on connections between mutual fund managers and corporate board members via shared education networks. We find that portfolio managers place larger bets on firms they are connected to through their network, and perform significantly better on these holdings relative to their non-connected holdings. A replicating portfolio of connected stocks outperforms a replicating portfolio of non-connected stocks by up to 7.8% per year. Returns are concentrated around corporate news announcements, consistent with mutual fund managers gaining an informational advantage through the education networks. Our results suggest that social networks may be an important mechanism for information flow into asset prices.
Keywords: Financial Markets;
Information Management;
Social and Collaborative Networks;
Announcements;
Investment Portfolio;
Investment Return;
Investment Funds;
Asset Pricing;
Governing and Advisory Boards;
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Article
| Journal of Finance
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Supply and Demand Shifts in the Shorting Market
Lauren Cohen, Karl B. Diether and Christopher J. Malloy
Using proprietary data on stock loan fees and quantities from a large institutional investor, we examine the link between the shorting market and stock prices. Employing a unique identification strategy, we isolate shifts in the supply and demand for shorting. We find that shorting demand is an important predictor of future stock returns: An increase in shorting demand leads to negative abnormal returns of 2.98% in the following month. Second, we show that our results are stronger in environments with less public information flow, suggesting that the shorting market is an important mechanism for private information revelation.
Keywords: Data and Data Sets;
Stocks;
Financing and Loans;
Price;
Strategy;
Demand and Consumers;
Forecasting and Prediction;
Investment Return;
Markets;
Information;
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Article
| Journal of Finance
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The Geography of Equity Analysis
Christopher J. Malloy
I provide evidence that geographically proximate analysts are more accurate than other analysts. Stock returns immediately surrounding forecast revisions suggest that local analysts impact prices more than other analysts. These effects are strongest for firms located in small cities and remote areas. Collectively these results suggest that geographically proximate analysts possess an information advantage over other analysts, and that this advantage translates into better performance. The well-documented underwriter affiliation bias in stock recommendations is concentrated among distant affiliated analysts; recommendations by local affiliated analysts are unbiased. This finding reveals a geographic component to the agency problems in the industry.
Keywords: Geographic Location;
Stocks;
Investment Return;
Forecasting and Prediction;
Price;
Performance;
Equity;
Information;
Prejudice and Bias;
Agency Theory;
Citation: Malloy, Christopher J. " The Geography of Equity Analysis." Journal of Finance 60, no. 2 (April 2005): 719–755. ( Nominated for Smith Breeden Prize. Best Paper For the best finance research paper published in the Journal of Finance presented by Smith Breeden Associates, Inc. .)
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Article
| Journal of Finance
|
Differences of Opinion and the Cross-Section of Stock Returns
Karl B. Diether, Christopher J. Malloy and Anna Scherbina
We provide evidence that stocks with higher dispersion in analysts' earnings forecasts earn lower future returns than otherwise similar stocks. This effect is most pronounced in small stocks, and stocks that have performed poorly over the past year. Interpreting dispersion in analysts' forecasts as a proxy for differences in opinion about a stock, we show that this evidence is consistent with the hypothesis that prices will reflect the optimistic view whenever investors with the lowest valuations do not trade. By contrast, our evidence is inconsistent with a view that dispersion in analysts' forecasts proxies for risk.
Keywords: Stocks;
Forecasting and Prediction;
Price;
Valuation;
Investment Return;
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Other Unpublished Work
| 2011
Friends in High Places
Lauren Cohen and Christopher Malloy
We demonstrate that personal connections amongst U.S. politicians have a significant impact on Congressional voting behavior. Networks based on alumni connections between politicians, as well as common seat locations on the chamber floor, are consistent predictors of voting behavior. For the former, we estimate sharp measures that control for common characteristics of the network, as well as heterogeneous impacts of a common network characteristic across votes. For common seat locations, we identify a set of plausibly exogenously assigned seats (Freshman Senators), and find a strong impact of seat location networks on voting. We find that the effect of each network is close to 60% as large as the effect of state-level considerations. The network effects we identify are stronger for more tightly linked networks, and at times when votes are most valuable.
Keywords: Voting;
Geographic Location;
Government Legislation;
Network Effects;
Behavior;
Social and Collaborative Networks;
United States;
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Working Paper
| 2013
Resident Networks and Firm Trade
Lauren Cohen, Umit G. Gurun and Christopher J. Malloy
We demonstrate that simply by using the ethnic makeup surrounding a firm's location, we can predict, on average, which trade links are valuable for firms. Using customs and port authority data on the international shipments of all U.S. publicly-traded firms, we show that firms are significantly more likely to trade with countries that have a strong resident population near their firm headquarters. We use the formation of World War II Japanese Internment Camps to isolate exogenous shocks to local ethnic populations, and identify a causal link between local networks and firm trade links. Firms that exploit their local networks (strategic traders) see significant increases in future sales growth and profitability, and outperform other importers and exporters by 5%-7% per year in risk-adjusted stock returns. In sum, our results document a surprisingly large impact of immigrants' economic role as conduits of information for firms in their new countries.
Keywords: Information networks;
trade links;
firm behavior;
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Working Paper
| HBS Working Paper Series
| 2012
Legislating Stock Prices
Lauren Cohen, Karl Diether and Christopher Malloy
In this paper we demonstrate that legislation has a simple, yet previously undetected impact on firm stock prices. While it is understood that the government and firms have an important relationship, it remains difficult to determine which firms any given piece of legislation will affect, and how it will affect them. By observing the actions of legislators whose constituents are the affected firms, we can gather insights into the likely impact of government legislation on firms. Specifically, focusing attention on "interested" legislators' behavior captures important information seemingly ignored by the market. A long-short portfolio based on these legislators' views earns abnormal returns of over 90 basis points per month following the passage of legislation. Further, the more complex the legislation, the more difficulty the market has in assessing the impact of these bills. Consistent with the legislator incentive mechanism, the more concentrated the legislator's interest in the industry, the more informative are her votes for future returns.
Keywords: Legislators;
firms;
economic interests;
returns;
Government Legislation;
Stocks;
Price;
Business and Government Relations;
Behavior;
Citation: Cohen, Lauren, Karl Diether, and Christopher Malloy. " Legislating Stock Prices." Harvard Business School Working Paper, No. 13–010, July 2012.
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Supplement
| HBS Case Collection
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2013
AQR's Momentum Funds (A) (CW)
Lauren Cohen and Christopher J. Malloy
Citation: Cohen, Lauren, and Christopher J. Malloy. " AQR's Momentum Funds (A) (CW)." Harvard Business School Spreadsheet Supplement 213-722, February 2013.
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Supplement
| HBS Case Collection
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2013
Dimensional Fund Advisors (DFA)'s Entry into the Retirement Market (CW)
Lauren Cohen and Christopher J. Malloy
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Supplement
| HBS Case Collection
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2013
AQR's Delta Strategy (CW)
Lauren Cohen and Christopher J. Malloy
Citation: Cohen, Lauren, and Christopher J. Malloy. " AQR's Delta Strategy (CW)." Harvard Business School Spreadsheet Supplement 213-711, February 2013.
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Case
| HBS Case Collection
|
2012
(Revised from original 2011 version)
Quadriserv and the Short Selling Market
Lauren Cohen and Christopher Malloy
Keywords: Stocks;
Financial Services Industry;
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Teaching Note
| HBS Case Collection
|
2012
(Revised from original 2011 version)
Quadriserv and the Short Selling Market (TN)
Lauren Cohen, Christopher Malloy and Timothy Gray
Keywords: Market Transactions;
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Teaching Note
| HBS Case Collection
|
2013
(Revised from original 2012 version)
Dimensional Fund Advisors (DFA)'s Entry into the Retirement Market (TN)
Lauren Cohen, Christopher Malloy and Timothy Gray
Keywords: Retirement;
Investment Funds;
Financial Services Industry;
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Case
| HBS Case Collection
|
2012
(Revised from original 2011 version)
Fundamental Analysis in Emerging Markets: Autoweb Holdings
Lauren Cohen and Christopher Malloy
Keywords: Finance;
Emerging Markets;
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Case
| HBS Case Collection
|
2012
(Revised from original 2011 version)
Fundamental Analysis in Emerging Markets: Tren Anuncio Ràpido
Lauren Cohen and Christopher Malloy
Keywords: Emerging Markets;
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Case
| HBS Case Collection
|
2012
(Revised from original 2011 version)
AQR's DELTA Strategy
Daniel Bergstresser, Lauren Cohen, Randolph Cohen and Christopher Malloy
In the summer of 2008, AQR Capital Management was considering the launch of a new hedge fund strategy. The proposed DELTA portfolio would offer investors exposure to a basket of nine major hedge fund strategies. The DELTA strategy would be innovative in two ways. First, in terms of its structure, AQR would implement these underlying strategies using a well-defined investment process, with the goal being to deliver exposure to a well-diversified portfolio of hedge fund strategies. Second, it terms of its fees, the new DELTA strategy would charge investors relatively lower fees: 1% management fees plus 10% of performance over a cash hurdle (or, alternatively, a management fee of 2% only). This fee structure was low relative to the industry, where 2% management fees plus 20% of performance, often with no hurdle, was standard.
Keywords: Investment Portfolio;
Investment Funds;
Financial Strategy;
Financial Services Industry;
Citation: Bergstresser, Daniel, Lauren Cohen, Randolph Cohen, and Christopher Malloy. " AQR's DELTA Strategy." Harvard Business School Case 212-038, March 2012. (Revised from original October 2011 version.)
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Case
| HBS Case Collection
|
2012
(Revised from original 2012 version)
Dimensional Fund Advisors (DFA)'s Entry into the Retirement Market
Lauren Cohen and Christopher Malloy
This case examines Dimensional Fund Advisors (DFA)'s decision to enter the retirement market with their new "Dimensional Managed DC" product, a complete retirement solution that aimed to provide investors with what they really wanted: the same standard of living in retirement that they had while working. The case considers the challenges of entering the fiercely competitive retirement market, introduces students to the large literature on the behavioral biases of individual investors, and asks students to evaluate an innovative new financial product designed to automate the process of retirement investing.
Keywords: Retirement;
Asset Management;
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Background Note
| HBS Case Collection
|
2012
(Revised from original 2012 version)
Introduction to Short Selling
Lauren Cohen and Christopher Malloy
Citation: Cohen, Lauren, and Christopher Malloy. " Introduction to Short Selling." Harvard Business School Background Note 212-079, March 2012. (Revised from original March 2012 version.)
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Teaching Note
| HBS Case Collection
|
2013
(Revised from original 2012 version)
AQR's DELTA Strategy (TN)
Daniel Bergstresser, Lauren Cohen, Christopher Malloy, Randolph Cohen and Timothy Gray
Citation: Bergstresser, Daniel, Lauren Cohen, Christopher Malloy, Randolph Cohen, and Timothy Gray. " AQR's DELTA Strategy (TN)." Harvard Business School Teaching Note 212-084, February 2013. (Revised from original March 2012 version.)
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Case
| HBS Case Collection
|
2012
(Revised from original 2010 version)
AQR's Momentum Funds (A)
Daniel Baird Bergstresser, Lauren H. Cohen, Randolph Cohen and Christopher J. Malloy
AQR is a hedge fund based in Greenwich, Connecticut, that is considering offering a wholly new line of product to retail investors, namely the ability to invest in the price phenomenon known as momentum. There is a large body of empirical evidence supporting momentum across many different asset classes and countries. However, up until this point, momentum was a strategy employed nearly exclusively by hedge funds, and thus not an available investment strategy to most individual investors. This case highlights the difficulties in implementing this “mutual fund-itizing” of a hedge fund product, along with the challenges that the open-end and regulatory features that a mutual fund poses to many successful strategies implemented in other contexts. In addition, it gives students the ability to calculate and interpret various horizons of correlations between many popular investment strategies using long time-series data and then thinking about the potential complementarities of strategies from a portfolio construction context.
Keywords: Financial Strategy;
Investment Funds;
Investment Portfolio;
Governing Rules, Regulations, and Reforms;
Product Development;
Financial Services Industry;
Greenwich;
Citation: Bergstresser, Daniel Baird, Lauren H. Cohen, Randolph Cohen, and Christopher J. Malloy. " AQR's Momentum Funds (A)." Harvard Business School Case 211-025, March 2012. (Revised from original September 2010 version.)
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Teaching Note
| HBS Case Collection
|
2013
(Revised from original 2012 version)
AQR's Momentum Funds (TN) (A) and (B)
Daniel Bergstresser, Lauren Cohen, Christopher Malloy, Randolph Cohen and Timothy Gray
Citation: Bergstresser, Daniel, Lauren Cohen, Christopher Malloy, Randolph Cohen, and Timothy Gray. " AQR's Momentum Funds (TN) (A) and (B)." Harvard Business School Teaching Note 212-083, February 2013. (Revised from original March 2012 version.)
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Module Note
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2012
Alpha: The Market for Information
Christopher J. Malloy
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Case
| HBS Case Collection
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2012
(Revised from original 2011 version)
Recorded Future: Searching the Web for Alpha
Christopher Malloy
Keywords: Web;
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Teaching Note
| HBS Case Collection
|
2012
Recorded Future: Searching the Web for Alpha (TN)
Christopher Malloy and Timothy Gray
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Teaching Note
| HBS Case Collection
|
2012
(Revised from original 2012 version)
Business Intelligence Advisors (BIA), Inc.: Finding the Hidden Meaning in Corporate Disclosures (TN)
Lauren Cohen, Christopher Malloy and Timothy Gray
Keywords: Corporate Disclosure;
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Case
| HBS Case Collection
|
2012
(Revised from original 2011 version)
Business Intelligence Advisors (BIA), Inc.: Finding the Hidden Meaning in Corporate Disclosures
Lauren Cohen and Christopher Malloy
Keywords: Governing and Advisory Boards;
Information;
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Teaching Note
| HBS Case Collection
|
2012
Fundamental Analysis in Emerging Markets: Autoweb Holdings and Tren Anuncio Ràpido (TN)
Lauren Cohen, Christopher Malloy and Tim Gray
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Teaching Note
| HBS Case Collection
|
2011
(Revised from original 2010 version)
Miracle Life Inc. (TN)
Lauren H. Cohen and Christopher J. Malloy
Teaching Note for [210039].
Citation: Cohen, Lauren H., and Christopher J. Malloy. " Miracle Life Inc. (TN)." Harvard Business School Teaching Note 210-069, September 2011. (Revised from original April 2010 version.)
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Supplement
| HBS Case Collection
|
2011
(Revised from original 2011 version)
AQR's Momentum Funds (B)
Daniel Baird Bergstresser, Lauren H. Cohen, Randolph Cohen and Christopher J. Malloy
This is a (B) case for AQR's Momentum Funds. It follows the first year of performance of the funds after launching, and gives students a critical inflection point for analyzing the nascent stages of a new product launch and the potential path dependence of the product depending on initial returns. It allows students to wrestle with the way forward given these conditions, and how (if at all) it changes their views, pitch, and perspective on the strategy, and traditional long-short strategies more generally.
Keywords: Change;
Decision Choices and Conditions;
Investment Funds;
Product Launch;
Product;
Performance;
Perspective;
Strategy;
Citation: Bergstresser, Daniel Baird, Lauren H. Cohen, Randolph Cohen, and Christopher J. Malloy. " AQR's Momentum Funds (B)." Harvard Business School Supplement 211-075, May 2011. (Revised from original April 2011 version.)
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Case
| HBS Case Collection
|
2010
(Revised from original 2009 version)
Miracle Life, Inc.
Lauren H. Cohen and Christopher J. Malloy
Miracle Life is a firm with a unique setup and organizational structure. Specifically, it is a network marketing firm, also known as multi-level marketing (MLM) firm, which utilizes a large distributor base and depends on this individual distributor base to sell its products, giving explicit incentives for these individual distributors to both sell its products and sign up other distributors. The case gives students the opportunity to take the basic framework of Discounted Cash Flow (DCF) Analysis and apply it to two unique perspectives of an identical problem. The students will then use this DCF approach to rationalize observed stock prices, connecting the two, and further reconcile how a company's future plan for growth, and the plausibility of this plan, has implications jointly for DCF and stock prices.
Keywords: Finance;
Cash Flow;
Stocks;
Growth and Development Strategy;
Product Marketing;
Distribution;
Organizational Structure;
Citation: Cohen, Lauren H., and Christopher J. Malloy. " Miracle Life, Inc." Harvard Business School Case 210-039, November 2010. (Revised from original November 2009 version.)
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Case
| HBS Case Collection
|
2010
(Revised from original 2008 version)
PlanetTran
Lauren H. Cohen and Christopher J. Malloy
PlanetTran is an environmentally-friendly car service that utilizes a fleet of hybrid cars in providing livery service to corporations and individuals. The founder, Seth Riney, is evaluating outside funding options in order to expand the company, and has met several local venture capital (VC) firms, Riney must decide if the dilution he would have to undergo in order to accept a substantial capital investment was worth the added upside to the company that both he and the VCs envisioned.
Keywords: Business Growth and Maturation;
Venture Capital;
Investment;
Management Analysis, Tools, and Techniques;
Expansion;
Value;
Citation: Cohen, Lauren H., and Christopher J. Malloy. " PlanetTran." Harvard Business School Case 209-029, March 2010. (Revised from original October 2008 version.)
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Teaching Note
| HBS Case Collection
|
2010
(Revised from original 2009 version)
PlanetTran (TN)
Lauren H. Cohen and Christopher J. Malloy
Teaching Note for [209029].
Citation: Cohen, Lauren H., and Christopher J. Malloy. " PlanetTran (TN)." Harvard Business School Teaching Note 209-120, February 2010. (Revised from original March 2009 version.)
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Case
| HBS Case Collection
|
2012
(Revised from original 2008 version)
Tottenham Hotspur plc
Lauren H. Cohen, Joshua D. Coval and Christopher J. Malloy
Tottenham Hotspur Football Club is a publicly-owned professional soccer team based in London, England. The club's chairman, Daniel Levy, is contemplating a significant investment in physical assets, including the development of a new stadium as well as the acquisition of a new player. The team must decide if the expected cash flows associated with adding the stadium, the player, or both, warrant the considerable required investments in these assets
Keywords: Valuation;
Capital Budgeting;
Decisions;
Competency and Skills;
Cash Flow;
Investment;
Assets;
Buildings and Facilities;
Sports;
Sports Industry;
London;
Citation: Cohen, Lauren H., Joshua D. Coval, and Christopher J. Malloy. " Tottenham Hotspur plc." Harvard Business School Case 209-059, August 2012. (Revised from original November 2008 version.)
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Teaching Note
| HBS Case Collection
|
2009
(Revised from original 2009 version)
Tottenham Hotspur plc (TN)
Lauren H. Cohen, Joshua D. Coval and Christopher J. Malloy
Teaching Note for [209059].
Keywords: Sports Industry;
London;
Citation: Cohen, Lauren H., Joshua D. Coval, and Christopher J. Malloy. " Tottenham Hotspur plc (TN)." Harvard Business School Teaching Note 209-121, March 2009. (Revised from original March 2009 version.)
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