- Table View
- List View
A Note on Corporate Entrepreneurship: Challenge or Opportunity?
by Bhaskar ChakravortiThis note provides an overview of the rationale and the challenges associated with building new businesses within established companies. It provides a framework for understanding why corporations pursue entrepreneurial ventures and the various levers that they employ. The note offers a comparison of the various approaches, with examples, and their pros and cons.
Note on Corporate Governance Systems: The United States, Japan, and Germany
by Robert W. Lightfoot W. Carl KesterDescribes and compares the corporate governance systems commonly found in the United States, Japan, and Germany.
Note on Corporate Strategy
by Mikolaj Jan PiskorskiIntroduces students to the study of corporate strategy. Focuses on questions of scope and ownership. Examines both horizontal and vertical integration. Underscores the point that economies of scope, or the existence of relationship-specific investments, are insufficient to explain effective corporate strategy unless there are important obstacles to contractual solutions.
Note on Corporate Venture Capital
by Josh LernerProvides an overview of corporate venture investment.
Note on Credit Derivatives
by George Chacko Kate Hao Anders Sjoman Peter HechtProvides the basic underlying model for credit risk analysis, as well as covers basic credit risk derivatives, such as asset swaps, credit default swaps, total return of rate swaps, and credit spread options.
Note on Cross-Border Valuation
by W. Carl Kester Julia MorleyProvides a fundamental technical review of valuation techniques used to assess cross-border investments. Discusses the discounting of free cash flows with a weighted average cost of capital, the use of adjusted present value, and the importance of considering real options. Special concerns such as foreign-exchange risk, country risks, and so forth are also discussed.
Note on Currency Crises
by Brian P. Irwin Robert E. KennedyIntroduces students to theories about why currency crises occur. Discusses whether crises can be predicted.
Note on Customer Management
by Das NarayandasLays out a framework for the management of customers using examples of forms in a variety of industries.
Note on Developing Start-Up Strategies
by Amar V. BhideProvides students with a workable framework for analyzing new ventures. Stresses the importance of matching analytical tasks to the type of venture contemplated.
Note on Diversification as a Strategy
by Michael E. Porter Malcolm S. SalterPresents a discussion of corporate diversification. Covers historical background, the concept of strategy for a diversified company, and concepts of value creation.
Note on Duration and Convexity
by George Chacko Vincent Dessain Anders Sjoman Peter HechtThis case explores two measures of price sensitivity: duration and convexity. These measures are normally used to gauge how sensitive a bond's price is to a change in interest-rate levels. However, as concepts, both duration and convexity have wider application: duration and convexity take into account any change for any risk factor affecting the price of any financial instrument.
Note on Economic Inequality
by Aldo Sesia Clayton RoseFor over half a century, most of the world's economies have enjoyed steady growth and prosperity. However, beginning in the 1980s, and continuing essentially unabated to the present, the gap between the "haves" and the "have-nots" in developed countries has widened, with a small proportion of the population reaping an increasingly larger share of a country's economic rewards. This growing economic inequality has been particularly pronounced in the United States, but the phenomenon has also occurred in many nations, among them Germany, Japan and Sweden. This note provides background on aspects of economic inequality. It begins by describing both income inequality and wealth inequality, providing an explanation of two widely used metrics and data that show increasing inequalities over time. It then moves to the factors that might contribute to this inequality, as well to propositions of economic and social consequences that might result from the widening gap. Finally, it addresses the issue of "equality of opportunity" or social mobility.
Note on Evaluating Empirical Research
by Michael I. NortonThis note is intended to provide students with a basic understanding of how to evaluate empirical research papers. While reading both case studies and empirical research require close attention and scrutiny, evaluating empirical research requires a different "lens"-this note briefly outlines how to adopt this mindset. It includes a review of the major sections of an empirical research paper (Introduction, Method, Results, and Discussion), as well as guidelines on how to evaluate each section.
Note on Exchange Rate Determination
by David M. MeerschwamDiscusses exchange rate determination in world of flexible rates. The fundamentals of supply of and demand for foreign exchange are explained.
Note on Financial Analysis
by Erich A. HelfertServes as an introduction to funds flows and ratio analysis. Includes basic discussion of these tools as assists in the analyst's or manager's job. Supplementary material includes problem set and answers.
Note on Financial Contracting: "Deals"
by William A. SahlmanDescribes the issues involved in designing and evaluating financial contracts between users and suppliers of capital and between companies and employees. A simple conceptual framework is introduced and some critical issues addressed: 1) How is cash allocated? 2) How is risk allocated? and 3) What are the incentives for all parties in the deal? The emphasis in the note is on providing the reader with a set of questions that must be addressed when designing and evaluating any deals. Created for use in Entrepreneurial Finance. Can be used to provide general background reading or as an assignment for a day devoted to the discussion of deals.
Note on Financial Forecasting
by Erich A. HelfertIntroduction to basic techniques of constructing pro forma statements and cash budgets. Illustrated by examples, supplemented by exercises.
Note on Flexible Spending Accounts, Health Reimbursement Arrangements, and Health Savings Accounts
by Regina E. Herzlinger Joann M. LaingDescribes the current use of Flexible Savings Accounts, Health Savings Accounts, and how Reimbursement Account vendors are shaping the market. Identifies current and future market players, third-party administrators and processors, and includes a discussion of the current political situation as it applies to these vehicles.
Note on Foreign Currency Swaps
by W. Carl KesterProvides descriptive background about the development of an international market for currency swaps and, by means of a detailed example, instructs readers in the determination of swap flows and all-in costs of financing using market swap rates. A rewritten version of an earlier note.
Note on Foreign Direct Investment
by Debora L. Spar Julia KouBetween 1985 and 1990, the global economy witnessed an unprecedented surge in flows of foreign direct investment (FDI). This sudden increase called back into prominence the range of questions that have long surrounded FDI. What causes firms to expand or contract their purchase of foreign assets? How do patterns of investment affect trade and development? What is the impact of FDI on host countries? This note explores these questions in some detail and includes data summarizing recent trends in FDI flows.
Note on Foreign Exchange
by William B. Allen Scott P. MasonDescribes the operation of foreign exchange markets, including bid-offer spreads, cross rates, reciprocal rates, and forward rates. Provides several examples to demonstrate calculation of outright forward rates using discount and premium points quoted in the London Financial Times. Other examples demonstrate interest rate parity, and hedging foreign debt using long-dated forwards.
Note on Franchising
by Paul A. Gompers Catherine ConneelyExamines the motivations for franchising. Examines the academic literature in the area and draws implications for franchising patterns. Also provides data on franchising patterns.
A Note on Franchising (Abridged)
by Paul A. GompersExamines the motivations for franchising. Examines the academic literature in the area and draws implications for franchising patterns. Also provides data on franchising patterns.
Note on Free Cash Flow Valuation Models
by William A. SahlmanExplores some of the issues involved in valuing cash flow streams. A simple model is presented that reveals the effect on value of changing assumptions about the appropriate discount rate, the level of profitability, the growth rate of sales, the asset intensity ratio, and the leverage ratio. Helps students address some of the following issues: 1) What is the definition of cash flow? 2) What effects do changes in the discount rate have on valuation? 3) How sensitive is value to changes in assumptions about the underlying characteristics of the cash flow stream? 4) How does growth affect value? 5) How does the use of leverage affect value? 6) What are price-to-earnings ratios? and 7) What factors affect price-to-earnings ratios?