Faculty & Research

• HBS Book

We all struggle with difficult conversations, but we're often not very good at easy ones either. Though we do it all the time, conversation is one of the most complex, demanding, and delicate of all human tasks, rife with possibilities for misinterpretation and misunderstanding. And yet, conversations can also be a source of great joy, each one offering an opportunity to express who we are and learn who others are—to feel connected, loved, and alive. In TALK, I show why conversing a little more effectively can make a big difference in the quality of our close personal relationships as well as our professional success. Drawing on the new science of conversation, I distill lessons that show how we can better understand, learn from, and delight each other. The key is the TALKmaxims: Topics Asking, Levity, and Kindness.

• Review of Accounting Studies 29, no. 4 (December 2024): 3413–3448.

We study the effects of mood as a source of human bias on regulators’ oversight and enforcement decisions. We use weather at facilities at the time of an OSHA inspection to proxy for the OSHA compliance officers’ mood. We find that during periods of good mood due to sunny weather, the number of workplace safety violations and dollar penalties assessed by the officer decrease. These effects are more pronounced when OSHA officers have more discretion. In turn, the effect of mood on oversight and enforcement decisions can be mitigated by increased monitoring by the regional OSHA office. Furthermore, our results suggest that there is a slightly higher incidence of workplace accidents after “good mood” inspections. Overall, our findings show that regulators’ mood results in bias in the oversight of firms.

• Business & Environment Initiative

Using large language models to measure firms' climate solution products and services, we find that high-climate solution firms exhibit lower stock returns and higher market valuation multiples. Their stock prices respond positively to events signaling increased demand for climate solutions. These firms also show higher future profitability during periods of regulatory uncertainty, unexpected increases in climate concerns, and when a larger share of their sales occurs in states with climate plans and stronger public support for addressing climate change. Overall, our results indicate that high-climate solution firms, whose business benefits as climate transition risks materialize, hedge investors against such risks.

• Featured Case

This case explores a critical decision facing the Myeloma Investment Fund (MIF) as it evaluates two investment opportunities aimed at accelerating a cure for multiple myeloma. The MIF, a venture philanthropy fund, must choose between two distinct paths. One option is a high-risk academic startup that is developing a new, early-stage technology. This startup’s innovation could lead to breakthroughs in treating myeloma, but it is far from clinical trials and carries significant uncertainty. The other option is an established company with a promising drug already in Phase II trials, offering the potential for quicker patient impact and a lower risk profile. The case highlights several key trade-offs for the MIF: the potential for groundbreaking innovation versus more immediate patient outcomes, higher risk versus greater certainty, and the challenge of balancing financial returns with the fund’s mission. MIF must weigh the long-term potential of supporting early-stage science against the possibility of providing patients with a treatment that could make a difference sooner.

• Featured Case

Quantum computing may be the most important nascent computing technology of the 21st century. It has the potential to impact industries ranging from drug discovery to cybersecurity. Google's Quantum AI is one of the leaders in quantum research. This case explores the technological underpinnings of quantum computing and Google's strategy to capitalize on the new technology. Four key questions are posed in the case: 1) what business model(s) should Google adopt to deliver quantum computing? 2) Google is focused on superconducting materials but alternative approaches, such as neutral atoms, have emerged as viable, less expensive, but less effective. Should Google hedge its bets or stick with superconductors? 3) How should quantum computing services/machines be priced? And 4) Could Google accelerate its progress with more resources?

• HBS Working Paper

Existing literature often separates research on the design of innovations from their implementation and use, neglecting the role of selection—how organizations choose which innovations to implement. Although scholars suggest scientific approaches for selecting novel technologies, there is limited research on how these methods are practically employed in decision-making. This study addresses this gap by examining how organizations decide which innovations to implement and how the selection process influences their design and use. Drawing on a two-year ethnographic study, the research explores how 13 dyadic pairs of entrepreneurial firms and health system committees piloted AI-based medical diagnostic innovations. Committees, composed of members with polarized views on AI, formed coalitions reflecting these views.

• Working Paper

Property tax revenues – the largest discretionary source of revenue for local governments - adjust at a pace that is inconsistent with property values in the US. We show that this form of revenue smoothing may be rooted in the political economy of municipalities. Measures of local budget stressors are positively related to upward assessments of a property’s value. Moreover, municipalities are significantly more likely to reassess in up markets as opposed to down – consistent with maximizing tax base and revenue collected. Using micro-level evidence from just-passing school referenda in Illinois, these shocks to municipal liabilities lead to significant increases in property assessments without any associated increases in market values or transactions.