Found 480 article(s) for author 'Financial Services'

Harvard Business School Broadcast (Podcast)

Harvard Business School Broadcast (Podcast). Jan Rivkin, George Serafeim, William Kerr, June 20, 2019, Audio, “Bloomberg Businessweek Editor Joel Weber talks about Businessweek Best B-Schools rankings. Scott Sperling, Co-President at Thomas Lee Partners, explains why companies are taking longer to go public. Sal Khan, Founder of Khan Academy, talks about launching a partnership with NWEA. John Connaughton, Co-Managing Partner at Bain Capital, discusses opportunities in private equity investing. Jan Rivkin, Senior Associate Dean at Harvard Business School, talks about the HBS MBA program. George Serafeim, Professor of Business Administration at Harvard Business School, shares his thoughts on ESG and impact investing. Kelley Morrell, Head of Tactical Opportunities at Blackstone, talks opportunities beyond traditional private equity. Bill Kerr, Professor of Business Administration at Harvard Business School, discusses managing the future of work. Jonathan Nelson, Founder and CEO at Providence Equity, talks about investing in live events and the value of content. Hosts: Carol Massar and Jason Kelly. Producer: Paul Brennan.Link

 

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Patient Capital: The Challenges and Promises of Long-Term Investing

Patient Capital: The Challenges and Promises of Long-Term Investing. Victoria Ivashina, Josh Lerner, 2019, Book, “How to overcome barriers to the long-term investments that are essential for solving the world’s biggest problems. There has never been a greater need for long-term investments to tackle the world’s most difficult problems, such as climate change and decaying infrastructure. And it is increasingly unlikely that the public sector will be willing or able to fill this gap. If these critical needs are to be met, the major pools of long-term, patient capital—including pensions, sovereign wealth funds, university endowments, and wealthy individuals and families—will have to play a large role. In this accessible and authoritative account of long-term capital investment, two leading experts on the subject, Harvard Business School professors Victoria Ivashina and Josh Lerner, highlight the significant hurdles facing long-term investors and propose concrete ways to overcome these difficulties.Link

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How Central-Bank Independence Dies

How Central-Bank Independence Dies. Kenneth Rogoff, May 31, 2019, Opinion, “Since the world’s major central banks came to the global economy’s rescue in 2008, they have had more and more tasks foisted upon them, even as some politicians question their expanded role and others seek to undermine their policymaking autonomy. To escape this dilemma, monetary authorities must get back to doing what they do best.Link

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The Role of Gatekeepers in Capital Markets

The Role of Gatekeepers in Capital Markets. Suraj Srinivasan, May 2019, Paper, “Gatekeepers in financial markets have the power to provide the institutional stability, fortitude and direction necessary for the development and the smooth functioning of capital markets. At the same time, they are often motivated by their own private incentives. This, along with the trade-offs they face and the at-times unintended consequences of the regulations they propose and enforce, can undermine their effectiveness. A thorough understanding of gatekeepers and their roles can thus illuminate academics, the financial community and regulators on how such gatekeepers can be the most effective and generate the greatest benefits for capital markets. Since gatekeeping roles and the literature they have inspired encompass a wide array of institutions and agencies, our overview concentrates on those that the conference papers appearing in this volume focus on. We conclude that collectively, the papers contribute to significant progress, point out some crucial areas that call for further investigation, and offer opportunities for future research.Link

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VC: An American History

VC: An American History. Tom Nicholas, 2019, Book, “A major exploration of venture financing, from its origins in the whaling industry to Silicon Valley, that shows how venture capital created an epicenter for the development of high-tech innovation. VC tells the riveting story of how the industry arose from the United States’ long-running orientation toward entrepreneurship. Venture capital has been driven from the start by the pull of outsized returns through a skewed distribution of payoffs―a faith in low-probability but substantial financial rewards that rarely materialize. Whether the gamble is a whaling voyage setting sail from New Bedford or the newest startup in Silicon Valley, VC is not just a model of finance that has proven difficult to replicate in other countries. It is a state of mind exemplified by an appetite for risk-taking, a bold spirit of adventure, and an unbridled quest for improbable wealth through investment in innovation.Link

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Fretting about Modest Risks Is a Mistake

Fretting about Modest Risks Is a Mistake. Matthew Rabin, Max Bazerman, April 29, 2019, “Managers often engage in risk-averse behavior, and economists, decision analysts, and managers treat risk aversion as a preference. In many cases, acting in a risk-averse manner is a mistake, but managers can correct this mistake with greater reflection. This article provides guidance on how individuals and organizations can move toward greater reflection and a more profitable aggregate portfolio of decisions. Inconsistency in risk preferences across decisions is a costly mistake for both individuals and for organizations.Link

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Dollar Dominance in Trade and Finance

Dollar Dominance in Trade and Finance. Gita Gopinath, 2019, Book Chapter, “According to the major paradigm in international macroeconomics, namely the Mundell-Fleming paradigm (Mundell 1963; Fleming 1962), the importance of a country’s currency in international trade is tied closely to its share in world trade. This is because each country is assumed to export its goods in its own currency. That is, if we consider trade among the United States, India, and Japan, the assumption is that all exports from the United States are invoiced in dollars, all exports from Japan are invoiced in yen, and all exports from India are invoiced in rupees. Further, because the paradigm assumes that prices are sticky in the exporter’s currency, exchange rate fluctuations across countries affect their bilateral terms of trade, defined as the ratio of the at-the-dock price of imports to that of exports.Link

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Smart Development Banks

Smart Development Banks. Ricardo Hausmann, 2019, Paper, “The conventional paradigm about development banks is that these institutions exist to target well-identified market failures. However, market failures are not directly observable and can only be ascertained with a suitable learning process. Hence, the question is how do the policymakers know what activities should be promoted, how do they learn about the obstacles to the creation of new activities? Rather than assuming that the government has arrived at the right list of market failures and uses development banks to close some well-identified market gaps, we suggest that development banks can be in charge of identifying these market failures through their loan-screening and lending activities to guide their operations and provide critical inputs for the design of productive development policies. In fact, they can also identify government failures that stand in the way of development and call for needed public inputs. This intelligence role of development banks is similar to the role that modern theories of financial intermediation assign to banks as institutions with a comparative advantage in producing and processing information. However, while private banks focus on information on private returns, development banks would potentially produce and organize information about social returns.Link

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Private Equity: A Casebook

Private Equity: A Casebook. Paul Gompers, Victoria Ivashina, Richard Ruback, 2019, Book, “’Private Equity’ is an advanced applied corporate finance book with a mixture of chapters devoted to exploring a range of topics from a private equity investor’s perspective. The goal is to understand why and which practices are likely to deliver sustained profitability in the future. The book is a collection of cases based on actual investment decisions at different stages for process tackled by experienced industry professionals. The majority of the chapters deal with growth equity and buyout investments. However, a range of size targets and investments in different geographical markets are covered as well. These markets include several developed economies and emerging markets like China, Russia, Turkey, Egypt and Argentina. This compilation of cases is rich in institutional details, information about different markets, and segments of the industry as well as different players and their investment practices – it is a unique insight into the key alternative asset class.Link

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Prices or Quantities Can Dominate Banking and Borrowing

Prices or Quantities Can Dominate Banking and Borrowing. Martin Weitzman, March 10, 2019, Paper, “The possibility of intertemporal banking and borrowing of tradeable permits is often viewed as tilting the various policy debates about optimal pollution control instruments toward favoring such time‐flexible quantities. The present paper shows that this view can be misleading, at least for the simplest dynamic extension of the original “prices vs. quantities” information structure. The model of this paper allows the firms to know and act upon the realization of uncertain future costs two full periods ahead of the regulators. For any given circumstance, the paper shows that either a fixed price or a fixed quantity is superior in expected welfare to time‐flexible banking and borrowing. Furthermore, the standard original formula for the comparative advantage of prices over quantities contains sufficient information to completely characterize the regulatory role of intertemporal banking and borrowing. The logic and implications of these results are analyzed and discussed.” Link

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