Finance
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- February 2023
- Article
Disruption and Credit Markets
By: Bo Becker and Victoria IvashinaWe show that over the past half century innovative disruptions were central to understanding corporate defaults. In a given year, industries experiencing abnormally high VC or IPO activity subsequently see higher default rates, higher segment exits by conglomerates, and higher yields on bonds issued by the firms in these industries. Overall, we find that disruption is a broad phenomenon, negatively affecting incumbent firms across the spectrum of age, valuation, and levers, with the exception of very large and low-leverage firms, which confirms our central hypothesis.
- February 2023
- Article
Disruption and Credit Markets
By: Bo Becker and Victoria IvashinaWe show that over the past half century innovative disruptions were central to understanding corporate defaults. In a given year, industries experiencing abnormally high VC or IPO activity subsequently see higher default rates, higher segment exits by conglomerates, and higher yields on bonds issued by the firms in these industries. Overall, we...
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- February 2023
- Article
OTC Intermediaries
By: Andrea L. Eisfeldt, Bernard Herskovic, Sriram Rajan and Emil SiriwardaneWe study the effect of dealer exit on prices and quantities in a model of an over-the-counter (OTC) market featuring a core-periphery network with bilateral trading costs. The model is calibrated using regulatory data on the entire U.S. credit default swap (CDS) market between 2010-2013. Prices depend crucially on the risk-bearing capacity of core dealers, yet unlike standard models featuring a dealer sector, we allow for heterogeneity in dealer risk-bearing capacity. This heterogeneity is quantitatively important. Depending on how well dealers share risk, the exit of a single dealer can cause credit spreads to rise by 8 to 24%.
- February 2023
- Article
OTC Intermediaries
By: Andrea L. Eisfeldt, Bernard Herskovic, Sriram Rajan and Emil SiriwardaneWe study the effect of dealer exit on prices and quantities in a model of an over-the-counter (OTC) market featuring a core-periphery network with bilateral trading costs. The model is calibrated using regulatory data on the entire U.S. credit default swap (CDS) market between 2010-2013. Prices depend crucially on the risk-bearing capacity of core...
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- January 2023
- Case
Lupoli Companies: Riverwalk - Making an Impact
By: Richard S. Ruback, Marco Di Maggio, Dave Habeeb and Ruth Page- January 2023
- Case
Lupoli Companies: Riverwalk - Making an Impact
By: Richard S. Ruback, Marco Di Maggio, Dave Habeeb and Ruth Page
About the Unit
Our strategy is to assemble and nurture a faculty whose interests and skills complement each other, and who work well together:
a) to produce a broad range of finance-related research that is published in top-tier scientific and practitioner journals, and that addresses issues of present and future importance to managers (including regulators and policy makers);
b) to develop highly-relevant and intellectually rigorous MBA and executive education courses; and
c) to mentor future academics through the Business Economics doctoral program.
Our applied focus and access to business organizations are major advantages which are reinforced by our students and our case-based approach. We have a faculty with broad expertise, and we have resources, field contacts, and institutional support, all of which we can leverage to do richer work and be more productive than we could at other institutions.
Recent Publications
Disruption and Credit Markets
- February 2023 |
- Article |
- Journal of Finance
OTC Intermediaries
- February 2023 |
- Article |
- Review of Financial Studies
Lupoli Companies: Riverwalk - Making an Impact
- January 2023 |
- Case |
- Faculty Research
Too Many Managers: The Strategic Use of Titles to Avoid Overtime Payments
- 2023 |
- Working Paper |
- Faculty Research
Hidden Alpha
- 2022 |
- Working Paper |
- Faculty Research
Technical Note on ESG and Impact Investing in Real Estate
- December 2022 |
- Technical Note |
- Faculty Research
The Economics of Growing the Cartwright Family
- December 2022 |
- Case |
- Faculty Research
Managing Pain in the Midst of an Opioid Epidemic
- December 2022 |
- Case |
- Faculty Research
Harvard Business Publishing
Seminars & Conferences
There are no upcoming events.