Research
Research
- June 2020
- Administrative Science Quarterly
Parallel Play: Startups, Nascent Markets, and the Effective Design of a Business Model
By: Rory McDonald and Kathleen Eisenhardt
| Prior research advances several explanations for entrepreneurial success in nascent markets but leaves a key imperative unexplored: the business model. By studying five ventures in the same nascent market, we develop a novel theoretical framework for understanding how...
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- May 2020
- Case
Valuing Peloton
| Peloton Interactive, a well-known venture-capital-backed unicorn in the connected fitness space, recently had gone public with a market capitalization of over $8.0 billion. However, in the weeks following its public debut, Peloton’s stock price had fallen by over 25%....
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- May 21, 2020
- NEJM Catalyst
Using the Balanced Scorecard for Successful Health Care M&A Integration
By: Robert S. Kaplan
| The failure of merged organizations to achieve stated goals is commonplace. In health care, the challenge is exacerbated by the industry’s third-party payer system and multiple stakeholders, especially the physicians in the merging entities. This article describes how...
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- May 2020
- Journal of Financial Economics
The Creation and Evolution of Entrepreneurial Public Markets
By: 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...
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- May–June 2020
- Harvard Business Review
The New-Market Conundrum
By: Rory McDonald and Kathleen M. Eisenhardt
| Brand-new markets are like the wormholes of science fiction, where the usual rules of time and space do not apply. When a market has just been born, the forces of competition there are constantly in flux, it’s unclear who your customers really are, and conventional...
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- 2020
- Financial Analysts Journal
Public Sentiment and the Price of Corporate Sustainability
By: George Serafeim
| Combining corporate sustainability performance scores based on environmental, social, and governance (ESG) data with big data measuring public sentiment about a company’s sustainability performance, I find that the valuation premium paid for companies with strong...
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- April 2020
- Teaching Material
Cambridge Franchise Partners
By: Richard S. Ruback, Royce Yudkoff and Ahron Rosenfeld
| Cambridge Franchise Partners (CFP) was established by Matt Perelman and Alex Sloane (both HBS ’15) to pursue a roll-up strategy in the quick service restaurant (QSR) sector. Burger King (BK) approved CFP’s request to become a franchisee and presented it with the...
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- April 2020
- Teaching Material
Oaktree: Pierre Foods Investment
By: Victoria Ivashina, Michael Harmon and Terrence Shu
| Teaching Note for HBS No. 219-018. This case is a setting to discuss “loan to own” investment strategy that is often pursued by distressed investors. The aftermath of the 2007 financial crisis left many companies with poor liquidity and limited ability to obtain...
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- April 2020
- Case
Cisco Systems and OpenDNS: Strategic Integration (B)
By: Andy Wu and David Wang
| With more than 72,000 employees and revenues approaching the $50B mark, Cisco Systems is one of the largest information technology and networking firms globally. As the company grew and expanded into different lines of businesses, Cisco consistently looked outwards for...
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- April 2020
- Teaching Material
Oaktree: Pierre Foods Investment
By: Victoria Ivashina and Terrence Shu
| This case is a setting to discuss “loan to own” investment strategy that is often pursued by distressed investors. The aftermath of the 2007 financial crisis left many companies with poor liquidity and limited ability to obtain credit. One of these companies was Pierre...
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- April 2020
- Case
Amazon in China and India
By: Krishna G. Palepu and Kairavi Dey
| Amazon has been unsuccessful in its efforts to develop a business in China. Even though Amazon was an early entrant into China’s e-commerce space, its domestic rivals, especially Alibaba, created innovative business models uniquely suited for the conditions in China....
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- Forthcoming
- Review of Financial Studies
Evaluating Firm-Level Expected-Return Proxies: Implications for Estimating Treatment Effects
By: Charles M.C. Lee, Eric C. So and Charles C.Y. Wang
| We introduce a parsimonious framework for choosing among alternative expected-return proxies (ERPs) when estimating treatment effects. By comparing ERPs’ measurement-error variances in the cross section and in time series, we provide new evidence on the relative...
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- 2020
- Working Paper
Corporate Resilience and Response During COVID-19
By: Alex Cheema-Fox, Bridget LaPerla, George Serafeim and Hui (Stacie) Wang
| The coronavirus pandemic caused a sharp market decline while raising heterogeneous responses across companies related to their employees, supply chain and, repurposing of operations to provide needed products and services. We study whether during the 2020 COVID-19...
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- April 2020
- Case
CredEx Fintech: Business Model Transformation During the Digital Era
By: Laura Huang, Xu Han and Raphael Amit
| Founded in 2010, CredEx has been a fast and constant innovator in the microfinance industry in China. Tang Xia, CEO and co-founder of CredEx, has led the company through a number of profound business model innovations in response to external environment changes, which...
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