More from these Authors

• Article | Journal of Finance | June 2020

  Lazy Prices

  Lauren Cohen, Christopher J. Malloy and Quoc Nguyen

  We explore the implications of a subtle "default" choice that firms make in their regular reporting practices, namely that firms typically repeat what they most recently reported. Using the complete history of regular quarterly and annual filings by U.S. corporations from 1995 to 2014, we show that when firms make an active change in their reporting practices, this conveys an important signal about the firm. Changes to the language and construction of financial reports have strong implications for firms' future returns: a portfolio that shorts "changers" and buys "non-changers" earns up to 188 basis points per month (over 22% per year) in abnormal returns in the future. These reporting changes are concentrated in the management discussion (MD&A) section. Changes in language referring to the executive (CEO and CFO) team, or regarding litigation, are especially informative for future returns.

  Keywords: information; default behavior; inertia; firms; annual reports; disclosure; Information; Business or Company Management; Behavior; Corporate Disclosure; Financial Reporting; United States;

  Citation:

  Cohen, Lauren, Christopher J. Malloy, and Quoc Nguyen. "Lazy Prices." Journal of Finance 75, no. 3 (June 2020): 1371–1415. (Winner of the First Prize, Chicago Quantitative Alliance Academic Paper Competition, 2016. Winner of the Jack Treynor Prize for superior work in the field of investment management and financial markets, sponsored by the Q-Group,The Institute for Quantitative Research in Finance, 2016. Winner of the Hillcrest Behavioral Finance Prize, 2016.)  View Details

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• Case | HBS Case Collection | March 2020 (Revised May 2020)

  Generation Investment Management

  Vikram S. Gandhi and Sarah Mehta

  By January 2020, sustainable investment firm Generation Investment Management (Generation), founded in London in 2004, had grown from a shared vision among seven founders to a 90-person firm managing $27 billion in public and private equity. Throughout its history, Generation had worked towards its mission of seeking to generate superior financial returns by investing in sustainable companies that created long-term value. The case examines Generation’s investment process in general, and in particular with respect to a global manufacturer of agricultural equipment. It also examines some of the strategic decisions and challenges facing the firm.

  Keywords: sustainable investing; Climate Change; Environmental Sustainability; Finance; Equity; Governance; Private Equity; Public Equity; Financial Markets; Investment; Investment Return; Investment Activism; Investment Funds; Investment Portfolio; Institutional Investing; Corporate Social Responsibility and Impact; Financial Services Industry; United Kingdom; England; London;

  Citation:

  Gandhi, Vikram S., and Sarah Mehta. "Generation Investment Management." Harvard Business School Case 820-033, March 2020. (Revised May 2020.)  View Details

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• Teaching Note | HBS Case Collection | November 2019 (Revised May 2020)

  Innovation at Uber: The Launch of Express POOL

  Chiara Farronato and Sarah Mehta

  Teaching Note for HBS No. 619-003. Set in March 2018, the Case follows ride-sharing company Uber as it develops and launches a new product called Express POOL. The Teaching Note offers guidance for instructors who wish to use the case either with or without its dataset (Spreadsheet Supplement, HBS no. 619-702) and video short (Multimedia/Video Supplement, HBS No. 620-702).

  Keywords: Innovation and Management; Innovation Leadership; Innovation Strategy; Technological Innovation; Technology; Mobile Technology; Software; Technology Platform; Decision Making; Technology Industry; California; San Francisco;

  Citation:

  Farronato, Chiara, and Sarah Mehta. "Innovation at Uber: The Launch of Express POOL." Harvard Business School Teaching Note 620-034, November 2019. (Revised May 2020.)  View Details

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