The Wharton School

In 1881, American entrepreneur and industrialist Joseph Wharton established the world’s first collegiate school of business at the University of Pennsylvania — a radical idea that revolutionized both business practice and higher education.

Since then, the Wharton School has continued innovating to meet mounting global demand for new ideas, deeper insights, and  transformative leadership. We blaze trails, from the nation’s first collegiate center for entrepreneurship in 1973 to our latest research centers in alternative investments and neuroscience.

Wharton's faculty members generate the intellectual innovations that fuel business growth around the world. Actively engaged with the leading global companies, governments, and non-profit organizations, they represent the world's most comprehensive source of business knowledge.

For more information, see the Research, Directory & Publications site.

Search results

Now showing 1 - 10 of 4063
  • Publication
    Neighborhood Loyalty or Neighborhood Entrapment? Explaining Unmeasured Sources of Reduced Geographic Mobility
    (2019-05-01) Mishra, Prakash
    This paper develops a simple self-selection utility model for leaving a neighborhood. This opens the door for a simple reduced form approach that leverages a hierarchical Bayesian model to obtain an annualized latent push and pull factor for each neighborhood. Posterior analysis indicates that common predictors of neighborhood quality and inputs to classical utility functions systematically under-predict the number of people who stay in a neighborhood. Such underprediction of out-migration can either be viewed as an unexplained variation due to neighborhood \loyalty" or as financial barriers to mobility. I isolate this residual, referred to as an \inertia," isolated using a quasi-experimental matching method that uses variation in push factor to isolate eects on pull factors. I show the inertia measure can be explained by measures of financial access including distance to a bank branch, local rates of second mortgage, and redevelopment certifications. The residual from these financial measures is shown to correlate with existence of anchor institutions like charter schools. This methodology creates a robust measure of not only the local push- and pull-factors by neighborhood, but also is suggestive of an economic approach to appraising local community strength.
  • Publication
    Optimizing the Allocation of Funds of an NFL Team under the Salary Cap, while Considering Player Talent
    (2016-01-01) Mulholland, Jason
    Every NFL team faces the complex decision of choosing how to allocate salaries to each position while being limited by the salary cap. In this paper, we use regression strategies to focus on identifying what positions are worth greater investment under the assumption that players are paid in an efficient market. Using a combination of many univariate regression models, we identify that the positions at which it is worth investing in elite players are quarterback, guard, defensive tackle, and free safety. Additionally, we consider the possibility that markets are not actually efficient through separate regressions and detect that the optimal way to take advantage of inefficiency is through skilled drafting to find players who can provide significant win contributions early in their careers (since they are being paid the relatively low salaries of rookie contracts).
  • Publication
    The Nonprofit Sector: Examining the Paths and Pathways to Leadership Development
    (2008-05-10) Jiang, Lisa
    A changing nonprofit environment, stronger demands for nonprofit services and an impending leadership deficit has caused the nonprofit sector to place an even greater emphasis on leadership and leadership development. This research examines the changes in the sector and the skills required of leaders to adapt to these changes. Interviews with current nonprofit leaders, aspiring leaders and directors of nonprofit management programs shed light on the trends in leadership development, the challenges and opportunities, and recommendations for the sector. Aspiring nonprofit leaders, universities and nonprofit organizations can all play a role in ensuring the future success of the nonprofit sector by developing quality leaders.
  • Publication
    The Visible Hand In Housing Market: Singapore’s Housing Model And Its Implications On Hong Kong
    (2020-05-01) Qiu, Jennifer Zijun
    Some scholars believe that there exists a distinctive East Asian model of integrating social welfare and economic development, as witnessed in the four “Asian Tigers”, that sets itself apart from the “three worlds of capitalism” (liberal, conservative, social democratic) suggested by Esping-Anderson. Specifically, Singapore and Hong Kong, despite being bastions of laissez-faire policies, have some of the world’s largest government-backed public housing markets, with 81% and 46% of residents residing in public housing respectively. Yet, Singapore is seen as a model for housing policymaking while Hong Kong remains the most unaffordable housing market in the world for 9 consecutive years. This paper discusses the housing outcomes of these two cities and their seemingly similar yet diverging housing policies, exploring what implications the Singapore model has on East Asian cities such as Hong Kong.
  • Publication
    War and Peace in International Islamic Finance
    (2010-05-01) Wang, Shawn
    Islamic Finance is more than an asset class – it is a way of life lived by 1.6 billion Muslims around the world. But its reach goes even further – non-Islamic countries, governments, and businesses, have all invested in or issued Islamic securities for one reason or another. With the ongoing push of globalization of trade and finance, Islamic financial flows, long a localized phenomenon, have become international. The rise of Islamic Finance transactions between the Islamic and Non-Islamic worlds has led to peace between civilizations and war within civilizations. The Islamic and Non-Islamic world are becoming increasingly interdependent and reliant, while within these worlds intense competition and infighting is ensuing – so-called "internecine fights" – in order to see who can be the friendliest to the alien culture while somewhat staying true to their own. Islam has never been particularly united, with Islamic jurisdictions disagreeing and sometimes downright contradicting each other interpreting the same verses of the Quran, but the strains are becoming particularly visible as international flows of money get increasingly diverted to Islamic investments and securities. Islamic Finance is unavoidably prone to conflict. In the non-Islamic world, the appearance of such an abundance of foreign wealth seeking a home has led to an intense competition to play host – with countries slashing tax rates and courting investors in a beggar-thy-neighbor race. This paper examines the rise of International Islamic Finance and discusses how conventional Islamic finance theory is ill-suited to the realities of the global Islamic landscape. Specifically, there is not enough attention paid to the possible areas of conflict that arise in interpretations of Islamic law that pertain to financial transactions. It then looks at examples of how practical issues in Islamic Finance are exposing conflict areas between Islamic and non-Islamic players, but perversely, is building cooperation and understanding between the worlds.
  • Publication
    Using Government Data To Predict The Price And Returns Of Timber Real Estate Investment TrustsUsing Government Data To Predict The Price And Returns Of Timber Real Estate Investment Trusts
    (2020-05-01) Portmann, Johann Marcos
    Timber REITs are an understudied asset class with many direct drivers of value not seen in other REITs. With only a few Timber REITs listed on the NYSE, the idiosyncrasies between each stock means that it is difficult to draw conclusions at a non-stock-specific levels. Unlike other types of REITs, it may be feasible to predict value-metrics for Timber REITs based on readily available historical government data. This data can predict the behavior of the REITs’ stock movements without accounting for market conditions but is not useful when using an excess return model based on a market-benchmark approach. However, the selection of an appropriate benchmark for Timber REITs may not be clear-cut.
  • Publication
    An Investigation of Private Equity Buyout Performance During the 2007-2009 Financial Crisis
    (2018-01-01) Jordaan, Frederick W. R.
    This paper investigates the net-of-fees performance of North American and European Private Equity Buyout Funds (vintages 2002 – 2007) that invested in the 2007-2009 financial crisis. To evaluate performance this study looks at both absolute return metrics such as Internal Rate of Return (IRR) and Total Value to Paid-In (TVPI) and the relative public market equivalent (PME) method conceived by Kaplan and Schoar (2005). This research builds on a 2015 Gianfrate and Loewenthal study by utilizing an updated March 31st, 2018 Preqin Private Equity Cash Flow database to gather date-specific fund-level cash flow data on 249 buyout funds as well as Bloomberg historical return data on ten public equity indices. The present study found a mean buyout IRR of 12% and a TVPI of 1.68, slightly lower than that observed in prior research. However, overall 2002-2007 buyout funds did substantially and consistently outperform their respective public market benchmarks with an average PME, calculated using relevant public benchmarks, of 1.11 for North American buyout funds and 1.10 for European buyout funds. The study also observed a significant downward PME trend on the vintage level between 2002 and 2007 as well as a positive relationship between fund size and performance.
  • Publication
    Implications of an Assigned Devil's Advocate Role in a Negotiations Context
    (2018-01-01) Kasi, Nithya
    This paper seeks to examine the implications of an assigned devil’s advocate role on group dynamics such as group trust, cohesion, and accuracy. 148 participants were recruited through the Wharton Behavioral Lab and randomly assigned to a group of four, either with or without an assigned devil’s advocate. Individually, participants prepared a Lost at Sea survival task. Then, each group was tasked with coming up with a single group solution as preparation for a negotiation against another group, with the assigned devil’s advocates acting as such. The participants then individually reported on perceived group trust and cohesion. This study found that assigned devil’s advocacy has significant effects on group cohesion and accuracy, with the presence of devil’s advocates lowering reported group cohesion levels but enhancing accuracy of group solutions, with no significant impact on reported trust levels. These findings suggest that devil’s advocacy may be more appropriate for one-time group interactions, as opposed to ongoing relationships.
  • Publication
    Emotion Regulation and Incivility: keep it civil even though it may not be honest
    (2019-05-01) Qu, Amy Shu Yi
    Emotions are an inescapable a part of our daily experiences and we spend much of our time regulating them either deliberately or subconsciously. While we understand what it means to regulate our emotions and the toll it can take, it remains unclear how another individual’s perceptions of our emotion regulation patterns may vary, especially when our behavior crosses the line into incivility. Building on theories of emotion regulation and incivility, this paper proposes that perceptions of emotion regulation can change based on displays of incivility, which occur when emotion regulation or lack thereof reach an extreme. In a study with a simulated online customer service interaction, this paper finds that (1) civility increases perceptions of trust, (2) angry uncivil behavior is viewed as the most honest but least moral, and (3) angry civil behavior is viewed as particularly benevolent. This research shows how while civility may increase trust, honest and authentic behavior may not always be viewed in a positive manner.
  • Publication
    Vaccine Companies Versus the Retail Investor
    (2021-01-01) Tian, Stephanie
    The price reactions of COVID-19 vaccine development candidate companies are examined in order to explain how prices behave in highly-publicized scenarios and how retail investors are impacted. Findings indicate that retail investors were susceptible to inappropriate timing of the market and sustained losses on average. Various methods of prior analysis and their limitations are introduced including observation of trading volume makeup, event-themed reactions, and financial statement extraction that may guide subsequent navigation of volatile trading landscapes. Portfolio methods of mitigating losses due to lack of information or misinformation are also explained.