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• Case | HBS Case Collection | November 2020

  The 1,000-Year Plan: Lee Kum Kee and Sustaining a Family Culture

  Lauren Cohen, Dawn H. Lau and Billy Chan

  Lee Kum Kee was a family business based in Hong Kong. The fourth generation came up with a long-term plan to ensure the sustainability of the family mission and values, which was to be kind, loving, healthy, and happy; to treat others well; and to help the whole community thrive. The case discusses the family's ideas on how to implement this plan, with the involvement of the next generation.

  Keywords: Family Business; Mission and Purpose; Values and Beliefs; Business and Community Relations; Organizational Structure; Strategic Planning;

  Citation:

  Cohen, Lauren, Dawn H. Lau, and Billy Chan. "The 1,000-Year Plan: Lee Kum Kee and Sustaining a Family Culture." Harvard Business School Case 221-047, November 2020.  View Details

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• Article | Management Science | November 2020

  Casting Conference Calls

  Lauren Cohen, Dong Lou, Christopher J. Malloy, Lauren Cohen, Dong Lou and Christopher J. Malloy

  We explore a subtle but important mechanism through which firms can control information flow to the markets. We find that firms that “cast” their conference calls by disproportionately calling on bullish analysts tend to underperform in the future. Firms that call on more favorable analysts experience more negative future earnings surprises and more future earnings restatements. A long-short portfolio that exploits this differential firm behavior earns abnormal returns of up to 149 basis points per month or almost 18 percent per year. We find similar evidence in an international sample of earnings call transcripts from the UK, Canada, France, and Japan. Firms with higher discretionary accruals, firms that barely meet/exceed earnings expectations, and firms (and their executives) that are about to issue equity, sell shares, and exercise options, are all significantly more likely to cast their earnings calls.

  Keywords: strategic release; firms; conference calls; Information; Strategy; Asset Pricing;

  Citation:

  Cohen, Lauren, Dong Lou, and Christopher J. Malloy. "Casting Conference Calls." Management Science 66, no. 11 (November 2020): 5015–5039. (Winner of the First Prize, Crowell Memorial Award for Best Paper in Quantitative Investments, PanAgora Asset Management, 2014.)  View Details

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• Article | Management Science | November 2020

  Casting Conference Calls

  Lauren Cohen, Dong Lou, Christopher J. Malloy, Lauren Cohen, Dong Lou and Christopher J. Malloy

  We explore a subtle but important mechanism through which firms can control information flow to the markets. We find that firms that “cast” their conference calls by disproportionately calling on bullish analysts tend to underperform in the future. Firms that call on more favorable analysts experience more negative future earnings surprises and more future earnings restatements. A long-short portfolio that exploits this differential firm behavior earns abnormal returns of up to 149 basis points per month or almost 18 percent per year. We find similar evidence in an international sample of earnings call transcripts from the UK, Canada, France, and Japan. Firms with higher discretionary accruals, firms that barely meet/exceed earnings expectations, and firms (and their executives) that are about to issue equity, sell shares, and exercise options, are all significantly more likely to cast their earnings calls.

  Keywords: strategic release; firms; conference calls; Information; Strategy; Asset Pricing;

  Citation:

  Cohen, Lauren, Dong Lou, and Christopher J. Malloy. "Casting Conference Calls." Management Science 66, no. 11 (November 2020): 5015–5039. (Winner of the First Prize, Crowell Memorial Award for Best Paper in Quantitative Investments, PanAgora Asset Management, 2014.)  View Details

  CiteView DetailsSSRNSSRNFind at HarvardFind at Harvard

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