Finance
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- February 2021
- Article
A Dynamic Theory of Multiple Borrowing
By: Daniel Green and Ernest LiuMultiple borrowing—a borrower obtains overlapping loans from multiple lenders—is a common phenomenon in many credit markets. We build a highly tractable, dynamic model of multiple borrowing and show that, because overlapping creditors may impose default externalities on each other, expanding financial access by introducing more lenders may severely backfire. Capital allocation is distorted away from the most productive uses. Entrepreneurs choose inefficient endeavors with low returns-to-scale. These problems are exacerbated when investments become more pledgeable or when borrowers have access to more lenders, explaining why increased access to finance does not always improve outcomes.
- February 2021
- Article
A Dynamic Theory of Multiple Borrowing
By: Daniel Green and Ernest LiuMultiple borrowing—a borrower obtains overlapping loans from multiple lenders—is a common phenomenon in many credit markets. We build a highly tractable, dynamic model of multiple borrowing and show that, because overlapping creditors may impose default externalities on each other, expanding financial access by introducing more lenders may...
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- January 2021
- Case
Carnival Corporation: Cruising Through COVID-19
By: Stuart C. Gilson and Sarah AbbottIn 2020, in response to Covid-19, the cruise industry paused. Carnival was the largest cruise operator, and CEO Arnold Donald positioned the company to survive.
- January 2021
- Case
Carnival Corporation: Cruising Through COVID-19
By: Stuart C. Gilson and Sarah AbbottIn 2020, in response to Covid-19, the cruise industry paused. Carnival was the largest cruise operator, and CEO Arnold Donald positioned the company to survive.
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- January 2021
- Case
mPharma (A)
By: Rembrand Koning, John D. Macomber, Pippa Tubman Armerding and Wale LawalmPharma pioneered electronic prescriptions in Ghana, and aimed to increase drug affordability and accessibility in Africa, but the company remained unprofitable. Following investor concerns about mPharma's business, CEO Gregory Rockson considered alternative business models and services that could increase mPharma's profitability and impact.
- January 2021
- Case
mPharma (A)
By: Rembrand Koning, John D. Macomber, Pippa Tubman Armerding and Wale LawalmPharma pioneered electronic prescriptions in Ghana, and aimed to increase drug affordability and accessibility in Africa, but the company remained unprofitable. Following investor concerns about mPharma's business, CEO Gregory Rockson considered alternative business models and services that could increase mPharma's profitability and impact.
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
A Dynamic Theory of Multiple Borrowing
- February 2021 |
- Article |
- Journal of Financial Economics
Carnival Corporation: Cruising Through COVID-19
- January 2021 |
- Case |
- Faculty Research
Roofstock: The Cloud of Real Estate Investing
- January 2021 |
- Teaching Note |
- Faculty Research
mPharma (B)
- January 2021 |
- Supplement |
- Faculty Research
mPharma (A)
- January 2021 |
- Case |
- Faculty Research
Love It or List It: An Aging Asset on Sixth Ave
- January 2021 |
- Case |
- Faculty Research
Love It or List It: An Aging Asset on Sixth Ave
- January 2021 |
- Teaching Note |
- Faculty Research
A Half-Deal
- January 2021 |
- Supplement |
- Faculty Research
Harvard Business Publishing
Seminars & Conferences
- 29 Jan 2021