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- All HBS Web (217)
- Faculty Publications (62)
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- All HBS Web (217)
- Faculty Publications (62)
- 26 Jun 2020
- Working Paper Summaries
Weak Credit Covenants
- November 2021
- Article
Borrower Leakage from Costly Screening: Evidence from SME Lending in Peru
By: Irani Arraiz, Miriam Bruhn, Benjamin N. Roth, Claudia Ruiz-Ortega and Rodolfo Stucchi
We provide evidence that commercial lenders in Peru suffer leakages in their loan approval process. Leveraging a discontinuity in the loan approval process of a large bank, we find that receiving a loan approval from the bank causes loan applicants to receive offers...
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Keywords:
Information Spillovers;
SME Lending;
Financial Inclusion;
Banks and Banking;
Financing and Loans;
Small Business;
Information;
Peru
Arraiz, Irani, Miriam Bruhn, Benjamin N. Roth, Claudia Ruiz-Ortega, and Rodolfo Stucchi. "Borrower Leakage from Costly Screening: Evidence from SME Lending in Peru." Journal of Development Economics 153 (November 2021).
- February 2006
- Case
Fraikin SA
By: W. Carl Kester, Vincent Marie Dessain and Monika Stachowiak
Provides an example of a so-called "whole business" securitization. In early 2004, Fraikin, France's leading industrial vehicle rental company, compares several alternatives for refinancing a large bridge loan within a year. Presents three primary options: a classic...
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Keywords:
Debt Securities;
Transportation;
Renting or Rental;
Transportation Industry;
Service Industry;
France
Kester, W. Carl, Vincent Marie Dessain, and Monika Stachowiak. "Fraikin SA." Harvard Business School Case 206-090, February 2006.
- 2022
- Working Paper
Distributional Consequences of Monetary Policy Across Races: Evidence from the U.S. Credit Register
By: Laura Alfaro, Ester Faia and Camelia Minoiu
We examine the consequences of monetary policy on racial disparities, focusing on the role of bank lending to firms through collateral and selection channels. Leveraging comprehensive loan-level data from the U.S. credit register (Y-14Q) of the Federal Reserve, we show...
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Keywords:
Monetary Policy Transmission;
Inequity;
Credit Registry;
Wealth;
Collateral Channel;
Selection;
Racial Disparity;
Racial Inequality;
Equality and Inequality;
Banks and Banking;
Credit;
Governing Rules, Regulations, and Reforms;
Banking Industry;
United States
Alfaro, Laura, Ester Faia, and Camelia Minoiu. "Distributional Consequences of Monetary Policy Across Races: Evidence from the U.S. Credit Register." Harvard Business School Working Paper, No. 22-068, April 2022.
- 17 Jan 2013
- News
Private equity: Shift-Ctrl-Dell
- 2022
- Working Paper
High-Yield Debt Covenants and Their Real Effects
By: Falk Bräuning, Victoria Ivashina and Ali Ozdagli
High-yield debt including leveraged loans is characterized by incurrence financial covenants, or “cov-lite” provisions. A traditional loan agreement includes maintenance covenants, which require continuous compliance with the covenant threshold, and their violation...
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Bräuning, Falk, Victoria Ivashina, and Ali Ozdagli. "High-Yield Debt Covenants and Their Real Effects." NBER Working Paper Series, No. 29888, March 2022.
- 2010
- Other Unpublished Work
Why Takeover Vulnerability Matters to Debtholders
By: Joan Farre-Mensa
Recent work documents that firms that are more vulnerable to takeover have higher borrowing costs. This paper investigates the reasons behind this stylized fact. My results show that firms with few antitakeover defenses face a higher cost of debt because lenders are...
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Keywords:
Acquisition;
Borrowing and Debt;
Cost;
Equity;
Banks and Banking;
Investment Portfolio;
Risk Management;
Agreements and Arrangements;
Business and Shareholder Relations;
Conflict and Resolution
Farre-Mensa, Joan. "Why Takeover Vulnerability Matters to Debtholders." 2010.
- 10 Dec 2013
- First Look
First Look: December 10
Brands The case explores the collateralization of intellectual property in a loan agreement between a highly leveraged apparel company and a large U.S. bank. Leveraging...
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Keywords:
Sean Silverthorne
- August 2006 (Revised February 2009)
- Case
Medco Energi Internasional
In late 2004, Hilmi Panigoro, CEO of the publicly traded Indonesian oil company Medco Energi Internasional, is striving to regain majority control of the company his brother Arifin founded in 1980. The Asian financial crisis of 1999 led to a major restructuring that...
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Keywords:
Leveraged Buyouts;
Family Business;
Restructuring;
Financing and Loans;
Ownership Stake;
Business and Shareholder Relations;
Indonesia;
Singapore
Villalonga, Belen, Raphael Amit, and Christopher Hartman. "Medco Energi Internasional." Harvard Business School Case 207-021, August 2006. (Revised February 2009.)
- September 2006
- Supplement
Medco Energi Internasional (CW)
In late 2004, Hilmi Panigoro, CEO of the publicly traded Indonesian oil company Medco Energi Internasional, is striving to regain majority control of the company his brother Arifin founded in 1980. The Asian financial crisis of 1999 led to a major restructuring that...
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- July 2023 (Revised August 2023)
- Case
Revenue Recognition at Stride Funding: Making Sense of Revenues for a Fintech Startup
By: Paul M. Healy and Jung Koo Kang
The case explores the challenges of revenue recognition and financial reporting for Stride Funding (Stride), a fintech startup that has disrupted the student loan market. Stride leveraged proprietary machine learning and financial models to underwrite alternative...
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Keywords:
Revenue Recognition;
Financial Reporting;
Entrepreneurial Finance;
Business Startups;
Growth and Development Strategy;
Governance Compliance;
Accrual Accounting;
Financial Services Industry;
United States
Healy, Paul M., and Jung Koo Kang. "Revenue Recognition at Stride Funding: Making Sense of Revenues for a Fintech Startup." Harvard Business School Case 124-015, July 2023. (Revised August 2023.)
- August 2016 (Revised February 2017)
- Case
Songy 2011: Restructuring to Survive (or, Surviving to Restructure?)
By: Charles F. Wu
In 2011, Songy Partners, an Atlanta-based real estate developer, was facing three distressed investments within their portfolio each with distinct sets of challenges. Having weathered a myriad of issues during the global financial crisis that included operational...
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Keywords:
Real Estate;
Distressed Debt;
Global Financial Crisis;
Foreclosure;
Partnership;
Partners and Partnerships;
Valuation;
Global Range;
Insolvency and Bankruptcy;
Property;
Financial Crisis;
Real Estate Industry;
Atlanta
Wu, Charles F. "Songy 2011: Restructuring to Survive (or, Surviving to Restructure?)." Harvard Business School Case 217-012, August 2016. (Revised February 2017.)
- August 2016
- Teaching Note
Songy 2011: Restructuring to Survive (Or, Surviving to Restructure?)
By: Charles F. Wu and Alexander W. Schultz
In 2011, Songy Partners, an Atlanta based real estate developer, was facing three distressed investments within their portfolio each with distinct sets of challenges. Having weathered a myriad of issues during the Global Financial Crisis which included operational...
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- 29 Oct 2000
- Research & Ideas
Building a Powerful Prestige Brand
consumers had to pay for merchandise with cash. This, the entrepreneur believed, precluded a consumer from making a spontaneous purchase. In the late 1940s, banks did not usually provide loans for consumer purchases other than housing....
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- April 2023
- Case
Burning the Sails to Save the Ship: The Pilati Family Dilemma
By: Lauren Cohen, Hao Gao, Jiawei Ye and Grace Headinger
Octavian Graf Pilati, rising generation member of an Austrian princely family, prepared to sell the palace his family had held for over three hundred years. In recent years, the Pilati family lands had been leveraged as loan collateral for an international venture that...
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Keywords:
Family Office;
Family;
Plant-Based Agribusiness;
Agribusiness;
Family Business;
Property;
Identity;
Culture;
Ethics;
Insolvency and Bankruptcy;
Governance;
Crisis Management;
Family and Family Relationships;
Agriculture and Agribusiness Industry;
Real Estate Industry;
Austria
Cohen, Lauren, Hao Gao, Jiawei Ye, and Grace Headinger. "Burning the Sails to Save the Ship: The Pilati Family Dilemma." Harvard Business School Case 223-081, April 2023.
- 2020
- Working Paper
Is Accounting Useful for Forecasting GDP Growth? A Machine Learning Perspective
We provide a comprehensive examination of whether, to what extent, and which accounting variables are useful for improving the predictive accuracy of GDP growth forecasts. We leverage statistical models that accommodate a broad set of (341) variables—outnumbering the...
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Keywords:
Big Data;
Elastic Net;
GDP Growth;
Machine Learning;
Macro Forecasting;
Short Fat Data;
Accounting;
Economic Growth;
Forecasting and Prediction;
Analytics and Data Science
Datar, Srikant, Apurv Jain, Charles C.Y. Wang, and Siyu Zhang. "Is Accounting Useful for Forecasting GDP Growth? A Machine Learning Perspective." Harvard Business School Working Paper, No. 21-113, December 2020.
- 2023
- Working Paper
The Value of Professional Ties in B2B Markets
By: Navid Mojir and Sriya Anbil
We study how a particular form of social ties (i.e., professional ties proxied by past employment) affects price and profitability in business-to-business (B2B) markets. While most of the work on social ties focuses on information diffusion in business-to-consumer...
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Keywords:
Professional Ties;
Social Ties;
Business-to-business Marketing;
B2B Marketing;
Repo;
Individual Connections;
B2B Pricing;
Pricing;
Decision-making In Financial Markets;
Marketing;
Relationships;
Price;
Financial Markets;
Decision Making
Mojir, Navid, and Sriya Anbil. "The Value of Professional Ties in B2B Markets." Harvard Business School Working Paper, No. 22-037, November 2021. (Revised September 2023.)
- April 2005 (Revised August 2011)
- Case
Berkshire Partners: Bidding for Carter's
By: Malcolm P. Baker and James Quinn
A five-member team from Berkshire Partners must recommend a final bid and financial structure for a leveraged buyout of William Carter Co., a leading producer of children's apparel. Investorcorp, a global investment group, has put the company up for auction. Goldman...
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Keywords:
Leveraged Buyouts;
Capital Structure;
Private Equity;
Financing and Loans;
Auctions;
Bids and Bidding;
Valuation;
Apparel and Accessories Industry
Baker, Malcolm P., and James Quinn. "Berkshire Partners: Bidding for Carter's." Harvard Business School Case 205-058, April 2005. (Revised August 2011.)
- June 1991
- Case
Continental Carriers, Inc.
By: W. Carl Kester
A U.S. trucking company is considering using debt for the first time to acquire another company. The directors of the company are divided in their opinion of the likely impact of leverage on Continental Carriers' performance. Their differences must be reconciled and a...
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Keywords:
Debt Securities;
Financing and Loans;
Acquisition;
Borrowing and Debt;
Equity;
Transportation Industry;
United States
Kester, W. Carl. "Continental Carriers, Inc." Harvard Business School Case 291-080, June 1991.
- Article
Towards Robust and Reliable Algorithmic Recourse
By: Sohini Upadhyay, Shalmali Joshi and Himabindu Lakkaraju
As predictive models are increasingly being deployed in high-stakes decision making (e.g., loan
approvals), there has been growing interest in post-hoc techniques which provide recourse to affected
individuals. These techniques generate recourses under the assumption...
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Keywords:
Machine Learning Models;
Algorithmic Recourse;
Decision Making;
Forecasting and Prediction
Upadhyay, Sohini, Shalmali Joshi, and Himabindu Lakkaraju. "Towards Robust and Reliable Algorithmic Recourse." Advances in Neural Information Processing Systems (NeurIPS) 34 (2021).