Harvard Business School Working Knowledge

Labor Market Shocks and the Demand for Trade Protection: Evidence from Online Surveys

Tue, 05/28/2019 - 00:00
Rafael Di Tella and Dani Rodrik study how people’s opinions about trade protectionism and compensatory financial transfers change when presented with six different types of shocks, all of which have the same effect on local labor markets.by Rafael Di Tella and Dani Rodrik9232Rafael M. Di Tella6448Working Paper Summaries

Investor Lawsuits Against Auditors Are Falling, and That's Bad News for Capital Markets

Tue, 05/28/2019 - 00:00
It's becoming more difficult for investors to sue corporate auditors, which can weaken trust in US capital markets, says Suraj Srinivasan.by Martha Lagace9224Suraj Srinivasan10700Research & Ideas

Voting Trusts and Antitrust: Rethinking the Role of Shareholder Rights and Private Litigation in Public Regulation, 1880s to 1930s

Mon, 05/27/2019 - 00:00
Historically, judges were reluctant to intervene in corporations’ internal affairs and displayed a particular wariness of shareholders’ derivative suits. By the end of the 19th century, however, they had begun to revise their views and to see shareholders’ private actions as useful checks on economic concentration.by Naomi R. Lamoreaux and Laura Phillips Sawyer9229Laura Phillips Sawyer693127Working Paper Summaries

These Entrepreneurs Take a Pragmatic Approach to Solving Social Problems

Thu, 05/23/2019 - 00:00
Using business to create social change has been at the center of many entrepreneurial efforts by Harvard Business School alumni. Howard Stevenson discusses their pragmatic approaches to overcoming long odds.by Dina Gerdeman9223Howard H. Stevenson6560Book

Forgiving Student Loan Debt Leads to Better Jobs, Stronger Consumers

Wed, 05/22/2019 - 00:00
Without the burden of student loan debt, people seek higher-paying careers, stabilize their finances, and contribute to the economy, says Marco Di Maggio.by Dina Gerdeman9228Marco Di Maggio697248Research & Ideas

rTSR: When Do Relative Performance Metrics Capture Relative Performance?

Tue, 05/21/2019 - 00:00
Managers are increasingly evaluated based on relative performance metrics, particularly relative total shareholder returns (rTSR). A significant portion of firms make relatively poor choices in the design and selection of rTSR, a result of weak governance and an overreliance on compensation consultants.by Paul Ma, Jee-Eun Shin, and Charles C. Y. Wang9227Charles C.Y. Wang651677Working Paper Summaries

If the Key to Business Success Is Focus, Why Does Amazon Work?

Tue, 05/21/2019 - 00:00
Re: Sunil Gupta9225Sunil Gupta261323Cold Call Podcast

Activist CEOs Are Rising Up—and Their Customers Are Listening

Mon, 05/20/2019 - 00:00
Are product sales affected by the CEO's stance on political and social issues? Michael Toffel and Aaron Chatterji study how consumers react to vocal chief executives.by Michael Blanding9129Michael W. Toffel386263Research & Ideas

The Unconventional Capitalism That Shapes Business History

Wed, 05/15/2019 - 00:00
Geoffrey G. Jones reports out on a business hiastory research conference studying the many shades of capitalism around the world and through time.by Geoffrey G. Jones9222Geoffrey G. Jones24276Tarun Khanna6491Sudev J. Sheth1050517Research Event

'Ethics Bots' and Other Ways to Move Your Code of Business Conduct beyond Puffery

Wed, 05/15/2019 - 00:00
Digital technologies such as artificial intelligence and robotics allow companies to create more effective codes of business conduct, says Eugene Soltes. But technology isn't the only solution.by Michael Blanding9216Eugene F. Soltes541710Research & Ideas

Do Experts Listen to Other Experts? Field Experimental Evidence from Scientific Peer Review

Tue, 05/14/2019 - 00:00
Influence is a fundamental aspect of collective decisions. It is thus crucial to consider not only the composition of evaluation panels but also their deliberation process. This study illuminates drivers of influence among an elite population of experts and contributes to our understanding of resource allocation in science and other expert domains.by Misha Teplitskiy, Hardeep Ranu, Gary Gray, Michael Menietti, Eva Guinan, and Karim R. Lakhani9221Karim R. Lakhani240491Working Paper Summaries

The Changing Landscape of Auditor Litigation and Its Implications for Audit Quality

Mon, 05/13/2019 - 00:00
Data from 1996 to 2016 shows that shareholder litigation against auditors has declined in recent years. Empirical evidence shows that Rule 10b-5, the Securities Act statute used for class action lawsuits, has lost its bite for use against auditors. This decline is driven, at least in part, by the Supreme Court’s narrowing of liability standards. These findings suggest weakened shareholder protection with profound implications for investors.by Colleen Honigsberg, Shivaram Rajgopal, and Suraj Srinivasan9220Suraj Srinivasan10700Working Paper Summaries

The Unexpected Way Whistleblowers Reduce Government Fraud

Mon, 05/13/2019 - 00:00
Even unfounded allegations by whistleblowers can force government contractors to renegotiate their terms, say Jonas Heese and Gerardo Perez Cavazos.by Kristen Senz9218Jonas Heese740159Gerardo Perez Cavazos775813Research & Ideas

Consumer Inertia and Market Power

Fri, 05/10/2019 - 00:00
Consumers are often more likely to buy a product if they have purchased it previously. This paper provides a means to estimate the magnitude of this phenomenon of consumer inertia.by Alexander MacKay and Marc Remer9219Working Paper Summaries

Bank Boards: What Has Changed Since the Financial Crisis?

Wed, 05/08/2019 - 00:00
Since the 2008 financial crisis, bank boards have not improved their cultural or gender diversity compared to other companies nor are they better qualified than before the crisis. Outside directorships of bank directors and the extent of CEOs also being Chairman also remains the same. However, there is some evidence of better risk oversight both from managers and the board.by Shiva Rajgopal, Suraj Srinivasan, and Forester Wong9215Suraj Srinivasan10700Working Paper Summaries

Managers: Are You Prepared to Handle Religion in the Workplace?

Tue, 05/07/2019 - 00:00
Re: Derek C. M. van Bever9214Derek C. M. van Bever672704Cold Call Podcast

Consumers Blame Business for Global Health Problems. Can Business Become the Solution?

Mon, 05/06/2019 - 00:00
3QUESTIONS Millions of people have been harmed by cigarettes, defective merchandise, pollution, addiction and other business by-products. Pioneering companies are exploring healthier ways to operate, say Amy C. Edmondson and Dr. Howard K. Koh.by Danielle Kost9213Amy C. Edmondson6451Research & Ideas

How To Ask Better Questions

Thu, 05/02/2019 - 00:00
To make the best decisions, managers must ask the right questions. This collection of past studies by Harvard Business School researchers will help you gather the critical information you need to prepare for decisions.by Kristen Senz9212Sharpening Your Skills

What Should the Leadership of YouTube Do?

Wed, 05/01/2019 - 00:00
CEO Susan Wojcicki and YouTube leadership must decide how to balance growth goals with criticism for posting controversial—but popular—videos. What should YouTube do? asks James Heskett.by James Heskett9210James L. Heskett6842What Do You Think?

Rehabilitating Corporate Purpose

Wed, 05/01/2019 - 00:00
Malcolm S. Salter rebuts shareholder value maximization as a de facto expression of the institutional purpose guiding many managers’ decision and proposes an alternative.by Malcolm S. Salter9211Malcolm S. Salter6545Working Paper Summaries