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• Article | Journal of Financial Economics | May 2020

  The Creation and Evolution of Entrepreneurial Public Markets

  Shai Bernstein, Abhishek Dev and Josh Lerner

  This paper explores the creation and evolution of new stock exchanges around the world geared towards entrepreneurial companies, known as second-tier exchanges. Using hand-collected novel data, we document the proliferation of these new stock exchanges that were created in a large number of countries, attracted a significant volume of global IPOs, were introduced fairly cyclically, and had lower listing requirements when compared to first-tier stock exchanges. We find that increases in demand for entrepreneurial capital—as proxied for by patenting, IPOs, and stock market valuations—led to a higher likelihood of the introduction of second-tier exchanges. We find no evidence that new second-tier exchanges diverted the existing flow of IPOs from established stock exchanges. Shareholder protection strongly predicted exchange success, even in countries with high levels of venture capital activity, patenting, and financial market development. Second-tier exchanges in countries with better shareholder protection allowed younger, less profitable, but faster-growing companies to raise more capital. These results highlight the importance of institutions in enabling the provision of entrepreneurial capital to young companies.

  Keywords: entrepreneurial finance; stock exchanges; Entrepreneurship; Finance; Initial Public Offering; Capital;

  Citation:

  Bernstein, Shai, Abhishek Dev, and Josh Lerner. "The Creation and Evolution of Entrepreneurial Public Markets." Journal of Financial Economics 136, no. 2 (May 2020): 307–329.  View Details

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• Technical Note | HBS Case Collection | December 2018 (Revised March 2020)

  Note on Economic Inequality (2020)

  Rebecca Henderson, Jessica A. Gover, Aldo Sesia and Mariana Oseguera Rodriguez

  For over half a century, most of the world's economies have enjoyed steady growth and prosperity. While this economic growth has reduced the number of people living in poverty, it has come with an increase in economic inequality. The gap between the "haves" and the "have-nots" in developed countries has widened, with a small proportion of the population reaping an increasingly larger share of a country's economic rewards. This growing economic inequality has been particularly pronounced in the United States, but the phenomenon has also occurred in many nations. This note provides background on aspects of economic inequality. It begins by describing both income inequality and wealth inequality, providing an explanation of two widely used metrics and data that show increasing inequalities over time. It then moves to the factors that might contribute to this inequality, as well to propositions of economic and social consequences that might result from the widening gap. Finally, it addresses the issue of "equality of opportunity" or social mobility. This is an update to the Note on Economic Inequality (2015). It provides additional information on economic inequality, including union membership and inequality and political polarization.

  Keywords: Economic inequalty; wealth inequality; equality of opportunity; political polarization; Economic Growth; Economics; Income; Wealth; Equality and Inequality; Society; Problems and Challenges;

  Citation:

  Henderson, Rebecca, Jessica A. Gover, Aldo Sesia, and Mariana Oseguera Rodriguez. "Note on Economic Inequality (2020)." Harvard Business School Technical Note 319-071, December 2018. (Revised March 2020.)  View Details

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• Case | HBS Case Collection | March 2020

  Redefining Mogul

  George Serafeim, Ethan Rouen and Sarah Gazzaniga

  Tiffany Pham taught herself to code and created a technology platform, Mogul, with the goal of providing girls and women around the world with information and opportunities. After several years Mogul had reached more than 146 million women around the world and had measurable outcomes in increasing the diversity of talent pipelines for major Fortune 500 companies that served as its clients. The case explores Pham’s journey in building Mogul and the idea of moving into other business lines, such as media or venture capital, making Mogul not just a place for people to connect but also a global brand.

  Keywords: women; inclusion; diversity; strategy; technology; media; entrepreneurship; branding; social impact;

  Citation:

  Serafeim, George, Ethan Rouen, and Sarah Gazzaniga. "Redefining Mogul." Harvard Business School Case 120-043, March 2020.  View Details

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