Finance in Weak Institutional Environments

Posted: 18 Aug 2006

See all articles by Mihir A. Desai

Mihir A. Desai

Harvard Business School - Finance Unit; National Bureau of Economic Research (NBER)

Date Written: 2006


This module note describes the sixth module in the International Finance course at Harvard Business School. The module explores the issues confronting firms that operate in weak institutional environments. The cases examine situations where investor protections are limited and how firms can respond to these environments, how they impact the financing choices of firms, and the possibility of non-national recourse in response to an expropriation. The module note provides instructors with an overview of the module, the cases and the teaching notes, and explains how this module fits into the overall International Finance course. There is a brief description of the framework developed in the course and the note explains the application of this framework to the cases in this module. The module note includes descriptions of the two cases in the module and the analysis required in each case; an explanation of the learning objectives and suggested assignment questions for the cases; and information on additional materials useful in teaching the cases. The module note concludes with references to the relevant academic literature and a bibliography.

Suggested Citation

Desai, Mihir A., Finance in Weak Institutional Environments (2006). HBS Publishing Module Note No.: 5-206-127, Available at SSRN:

Mihir A. Desai (Contact Author)

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6693 (Phone)
617-496-6592 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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