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Egan, Mark L. Remove Egan, Mark L. →

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  • April 2023
  • Supplement

Project Helios: Harvesting the Sun
By: Mark Egan and Scott Mayfield
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  • December 2022
  • Article

Conflicting Interests and the Effect of Fiduciary Duty: Evidence from Variable Annuities
By: Mark Egan, Shan Ge and Johnny Tang
We examine the variable annuity market to study conflicts of interest and the effect of fiduciary duty in brokerage markets. Insurers typically pay brokers higher commissions for selling more expensive annuities. Our results indicate that sales are four times as...  View Details
Keywords: Variable Annuity; Brokers; Fiduciary Duty; Finance; Investment; Insurance; Conflict of Interests; Financial Services Industry; Insurance Industry; United States
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  • 2022
  • Working Paper

How Do Investors Value ESG?
By: Malcolm Baker, Mark Egan and Suproteem K. Sarkar
Environmental, social, and governance (ESG) objectives have risen to near the top of the agenda for corporate executives and boards, driven in large part by their perceptions of shareholder interest. We quantify the value that shareholders place on ESG using a revealed...  View Details
Keywords: Investment; Investment Portfolio; Corporate Social Responsibility and Impact; Business and Shareholder Relations; Environmental Sustainability; Governance; Financial Services Industry; United States
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  • Article

Recovering Investor Expectations from Demand for Index Funds
By: Mark Egan, Alexander J. MacKay and Hanbin Yang
We use a revealed-preference approach to estimate investor expectations of stock market returns. Using data on demand for index funds that follow the S&P 500, we develop and estimate a model of investor choice to flexibly recover the time-varying distribution of...  View Details
Keywords: Stock Market Expectations; Demand Estimation; Exchange-traded Funds (ETFs); Demand and Consumers; Investment
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  • Article

The Value of Intermediation in the Stock Market
By: Marco Di Maggio, Mark Egan and Francesco Franzoni
We estimate a structural model of broker choice to quantitatively decompose the value that institutional investors attach to broker services. Studying over 300 million institutional equity trades, we find that investors are sensitive to both explicit and implicit...  View Details
Keywords: Financial Intermediation; Institutional Investors; Research Analysts; Broker Networks; Equity Trading; Institutional Investing
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  • Article

The Cross Section of Bank Value
By: Mark Egan, Stefan Lewellen and Adi Sunderam
We study the determinants of value creation in U.S. commercial banks. We develop novel measures of individual banks' productivities at collecting deposits and making loans. We relate these measures to bank market values and find that deposit productivity is responsible...  View Details
Keywords: Productivity; Banks and Banking; Valuation; Performance Productivity; Value Creation; United States
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  • May 2022
  • Article

When Harry Fired Sally: The Double Standard in Punishing Misconduct
By: Mark Egan, Gregor Matvos and Amit Seru
We examine gender differences in misconduct punishment in the financial advisory industry. We find evidence of a “gender punishment gap”: following an incident of misconduct, female advisers are 20% more likely to lose their jobs and 30% less likely to find new jobs...  View Details
Keywords: Financial Advisers; Brokers; Gender Discrimination; Consumer Finance; Financial Misconduct And Fraud; FINRA; Financial Institutions; Employees; Crime and Corruption; Gender; Prejudice and Bias; Personal Finance; Financial Services Industry
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  • Article

A Better Way to Assess Managerial Performance
By: Mihir Desai, Mark Egan and Scott Mayfield
Total shareholder return (TSR) has become the definitive metric for gauging performance. Unlike accounting measures such as revenue growth or earnings per share that reflect the past, TSR is based on share price and thus captures investor expectations of what will...  View Details
Keywords: Total Shareholder Return; Buybacks; Core Operating Shareholder Return; Management; Operations; Performance; Measurement and Metrics
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  • March 2022
  • Case

Abu Issa Holding: Navigating the Qatar Blockade
By: Mark Egan and Youssef Abdel Aal
The case follows Ashraf Abu Issa, CEO and chairman of Abu Issa Holding (AIH), as he contemplated the fate of his company’s regional expansion. AIH was a Qatari diversified holding company, whose primary business was luxury retailing and distribution. Abu Issa had set...  View Details
Keywords: Luxury Retail; Expansion; Equity; Business Divisions; Growth and Development; Market Entry and Exit; Cross-Cultural and Cross-Border Issues; Consumer Products Industry; Saudi Arabia; United Arab Emirates
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  • 2023
  • Working Paper

What Drives Variation in Investor Portfolios? Estimating the Roles of Beliefs and Risk Preferences
By: Mark Egan, Alexander MacKay and Hanbin Yang
We present an empirical model of portfolio choice that allows for nonparametric estimation of investors’ (subjective) expectations and risk preferences. Using a comprehensive dataset of 401(k) plans from 2009 through 2019, we explore the heterogeneity in asset...  View Details
Keywords: Stock Market Expectations; Demand Estimation; Retirement Planning; Defined Contribution Retirement Plan; 401 (K); Finance; Investment Portfolio; Investment; Retirement; Behavioral Finance; Financial Services Industry; United States
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  • March 2021
  • Teaching Note

Transformation at Citizens Bank
By: Mark Egan
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  • February 2021
  • Teaching Note

Satrix: Competing in the Passive Asset Management Industry in South Africa
By: Mark Egan
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  • February 2021
  • Teaching Note

Highfields Capital and McDonald's
By: Mark Egan
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  • February 2021 (Revised February 2021)
  • Teaching Note

Project Helios: Harvesting the Sun
By: Mark Egan and E. Scott Mayfield
Teaching Note for HBS Case No. 219-009.  View Details
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  • August 2020 (Revised December 2020)
  • Case

Satrix: Competing in the Passive Asset Management Industry in South Africa
By: Mark Egan, Pippa Tubman Armerding and Dilyana Karadzhova Botha
In late 2017, Satrix, one of the largest passive asset management firms in South Africa and a pioneer in the industry since 2000, had to decide its strategy going forward in a market where passive asset management had become increasingly commoditized and...  View Details
Keywords: Asset Management; Investment Funds; Competition; Competitive Strategy; Financial Services Industry; South Africa; Africa
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  • February 2020
  • Case

Highfields Capital and McDonald's
By: Mark Egan and Robin Greenwood
McDonald’s reported its fifth consecutive quarter of declining same-store sales growth in early 2015. Despite McDonald’s recent poor performance, Jonathon S. Jacobson, the founder and Chief Investment Officer of Boston-based Highfields Capital Management, had initiated...  View Details
Keywords: McDonald's; Stocks; Performance Improvement; Operations; Finance; Restructuring; Value Creation; Financial Services Industry
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  • February 2020 (Revised January 2021)
  • Case

Transformation at Citizens Bank
By: Mark Egan
Related
  • 2021
  • Working Paper

Recovering Investor Expectations from Demand for Index Funds
By: Mark Egan, Alexander J. MacKay and Hanbin Yang
We use a revealed-preference approach to estimate investor expectations of stock market returns. Using data on demand for index funds that follow the S&P 500, we develop and estimate a model of investor choice to flexibly recover the time-varying distribution of...  View Details
Keywords: Stock Market Expectations; Demand Estimation; Exchange-traded Funds (ETFs); Demand and Consumers; Investment; United States
Related
  • 2021
  • Working Paper

The Value of Intermediation in the Stock Market
By: Marco Di Maggio, Mark Egan and Francesco Franzoni
We estimate a structural model of broker choice to quantitatively decompose the value that institutional investors attach to broker services. Studying over 300 million institutional equity trades, we find that investors are sensitive to both explicit and implicit...  View Details
Keywords: Financial Intermediation; Institutional Investors; Research Analysts; Broker Networks; Equity Trading; Institutional Investing; Financial Services Industry
Related
  • June 2019
  • Article

Brokers vs. Retail Investors: Conflicting Interests and Dominated Products
By: Mark Egan
I study how brokers distort household investment decisions. Using a novel convertible bond dataset, I find that consumers often purchase dominated bonds—cheap and expensive versions of otherwise identical bonds coexist in the market. The empirical evidence suggests...  View Details
Keywords: Brokers; Fiduciary Standard; Consumer Finance; Structured Products; Household; Investment; Decisions; Motivation and Incentives; Conflict of Interests
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