Experience Stern | News & Events

Excerpt from The New York Times -- “'It’s become the new flight to safety,' Aswath Damodaran, a New York University finance professor who studies the stock market, said of investors flocking to Big Tech. Companies that are rich, flexible and digital are benefiting in the pandemic — and that describes the tech Goliaths, he said, adding, 'This crisis has strengthened what was already a strong hand.'”

Excerpt from The New York Times -- "According to a 2012 study by the economists Bryan Bollinger and Kenneth Gillingham, a carbon tax that induced a family to install solar panels could be expected to stimulate a neighbor’s copycat installation within four months, on average. Let another four months pass, and each of these two will have spawned additional installations of their own, for a total of four."

Excerpt from Business of Fashion -- “'The more digital the school year is going to be, the more difficult it is going to be for retail,' said Steven Marotta, managing director of research and equity at C.L. King & Associates. … 'We do think that there is a significant business still to be had, even if it's not as promising as previous years.” Whether they are staying home or not, kids are going to be active. … Alixandra Barasch, a marketing professor at NYU’s Stern School of Business who studies consumer trends, said she sees an opportunity for brands to sell statement pieces and accessories to kids this season."

Excerpt from The New York Times -- "'Covid was the perfect positive storm for these guys,' said Thomas Philippon, a professor of finance at New York University. The companies’ deeper encroachment into American lives can be seen in web traffic numbers for Alphabet, Facebook and Amazon, which own the four most visited sites in the country. The traffic on these sites was immense before the pandemic, but daily visits increased sharply in March, when stay-at-home orders began, with Facebook up 15 percent and YouTube 10 percent, according to SimilarWeb, an online data provider."

Excerpt from Vogue Australia -- "As one of the most fashionable figures in politics, Obama was also credited with having a rather large economic impact within the fashion industry. In fact, a 2010 study conducted by Professor David Yermack from New York University’s Stern School of Business found that, when the former First Lady stepped out in a particular style, the value of the label she was wearing jumped up approximately US$14 million."

Excerpt from MarketWatch -- “'There’s an inverse monotonic relationship between privacy and value,' Vasant Dhar, a professor in the NYU Stern School of Business, where he is director of the Center for Data Science, told MarketWatch in an email message. 'The more someone knows about you (less privacy), the more value to them. CCPA introduces friction (you now have to DEAL with being ACCOUNTABLE etc compared to the Wild West days, so that’s a cost), and it makes it harder to link data which is where a lot of value lies.'"

Excerpt from Vanity Fair -- "Futurist Amy Webb fact checks futuristic scenes from movies including 'Blade Runner 2049,' 'Gattaca,' 'The Matrix,' 'Ex Machina,' 'WALL-E,' ‘2001: A Space Odyssey,’ ‘Total Recall’ and analyzes their probability, craft, and execution."

Excerpt from The Toronto Star -- "Most teenagers are checking their phones 150 times per day—that is, once every six minutes. Add it all up and they’re spending more than seven hours a day looking at their smartphones—and that’s outside of school or homework! As New York University marketing professor Adam Alter points out, this means that over the course of their lives our kids are going to spend at least seven years immersed in their phones."

Excerpt from Reuters -- "But in the end, alternatives exist, said Nicholas Economides, a New York University economics professor who studies online marketplaces.'Having other options definitely makes it a bit harder to say something is anticompetitive,' Economides said, speaking generally about app stores."

Excerpt from BNN Bloomberg -- “'Sensorium looks like one the best funded VR-related experiments out there,' said Joost van Dreunen, an adjunct assistant professor at New York University’s Stern School of Business, adding it’s a risky bet given how early-days the industry is. 'We have to ask the question: If Covid-19 benefitted every other aspect of gaming in recent months, where is the evidence that consumer adoption of VR has accelerated?'”

Excerpt from Australian Broadcasting Corporation (ABC) News -- "There are plenty of aggressively confident people out there, but it doesn't mean they always know what they're talking about. Last year, a former governor of the Bank of England, Mervyn King, even criticised the current generation of policymakers for failing to acknowledge how much the world had changed since the global financial crisis. He also wanted to know why they were so resistant to new ways of thinking."

Excerpt from Interesting Engineering -- "It is time to talk about our addiction to technology. We might not have a Walking Dead-style zombie apocalypse to deal with, but we do have plenty of technology zombies walking around. NYU professor Adam Alter thinks this is really happening. In his book Irresistible, Dr. Alter discusses the addictive perils of modern technology, and gives some eye-opening statistics, like how an average millennial picks up their phone 150 times a day."

Excerpt from Barron's -- "Critics point out that there’s no guarantee that a stock’s value will continue to rise after the split. They also take issue with the expanded-ownership argument. Average trading volume—measured by dollar amounts traded—don’t change much post-split, according to a widely cited academic paper by Josef Lakonishok and Baruch Lev."

On Friday, August 14, The Salomon Center for the Study of Financial Institutions will host a discussion on Quest for Restoring Financial Stability in India, featuring Professor Viral Acharya and moderated by Dean Raghu Sundaram.

Excerpt from Moneycontrol -- "I am extremely surprised that something that we built 50 years ago is popular even today. I think the secret to its longevity is three factors: first, it is a simple analytical tool involving five commonly found financial measures which helped distinguish between healthy and unhealthy companies. Second, it continues to be quite accurate, ranging between 80 to 90 percent accuracy for large companies. And third, it is free. Anyone can use it, test it, and if they do not like it, throw it out."

Excerpt from Greenpointers -- "Greenpointers asked Dawn Jo Branch where she found the image of Greenpoint garbage, but she hasn’t responded. More than 8,000 people have shared her post of trash in 'Seattle.' Unfortunately, this type of photographic trickery is common, explains Paul Barrett, deputy director of the NYU Stern Center for Business and Human Rights and researcher who investigates the spread of misinformation across social media."

Excerpt from Seeking Alpha -- "For further reading on the topic of treating stock based compensation in cash flow valuations I highly suggest this post by a fellow Seeking Alpha contributor as well as this post by NYU Professor Aswath Damodaran."

Excerpt from Nature -- "Personal economic advantage is more likely to persuade people to switch to solar power than campaigns focusing on public interest.Kenneth Gillingham at Yale University in New Haven, Connecticut, and his colleagues assessed the outcome of a grassroots campaign to convince people to outfit their homes with solar panels. The study used data collected in 29 Connecticut municipalities with more than 680,000 residents in total, and included information on rooftop solar-panel installations."

Excerpt from Business Today -- "Shadow banking isn't exactly a neoliberal (radical right) concept, it existed earlier, but as Prof. Nouriel Roubini of New York University and Prof. Stephen Mihm of the University of Georgia pointed out in their 2010 book "Crisis Economics" it entered mainstream financing in a big way and turned the rules of the game in the neoliberal era."

Excerpt from NY Mag -- "On the latest episode of the Pivot Schooled Live series, Kara Swisher and Scott Galloway discussed how much the supremacy of a company’s product still matters in 2020, and to what extent innovation has been co-opted by huge companies that can hire inexpensive labor and create the illusion of forward progress. Swisher contended that companies need to prove themselves to consumers to really succeed, but Galloway argued that a “cheap capital economy” that thrives on the exploitation of workers has taken over the American entrepreneurial model that had been ascendant since the 1970s."

Excerpt from Marketplace -- "Sylla said that historically, Wall Street has tended to gravitate toward the Republican Party because it’s perceived as the 'party of business.' He pointed out, though, that markets actually have performed better when Democrats are in charge, possibly because Democrats offer policies that pursue full employment. However, over time, Sylla noted, there’s been a shift with Democrats, who are not exactly 'pro-business,' but 'pro-policies that are good for business.'"

Excerpt from Poets & Quants -- “Business schools all over the world have been innovating new ways to teach business skills to young professionals, modernizing traditional MBA programs, and launching new, more specialized degrees in such fields as data analytics and chain supply management.”

Excerpt from Business Insider -- "'I am heartbroken by what happened to George Floyd,' Matthew Meade, 36, a vice president who works in risk management at the bank, wrote to his team in an email viewed by Business Insider. 'When I think of George, it is no longer a matter of if what happened was wrong or right,' Meade added. 'It's not about black versus white, it's about America versus racism.' Meade, who is currently pursuing an executive MBA at the NYU Stern School of Business, has spent nearly 10 years working at JPMorgan. In recent years, he's taken on a number of roles, at work and in his personal life, to improve the experiences of other young people of color. Later this month, he'll unpack some of those topics in 'Wisdom On the Way to Wall Street: 22 Steps to Navigate Your Road to Success,' his forthcoming book, which Meade will self-publish on August 22."

Excerpt from The Wall Street Journal -- "David Yermack, a New York University finance professor who has studied stock gifts, said he wasn’t familiar with the Karfunkels’ donation, but 'in general there’s a lot of circumstantial evidence that people backdate charitable gifts to local maximums in the stock price, when they could get the maximum charitable deduction.' He said the chances of such favorable timing are greater when the donor has ties to both sides of the transaction—as did Mr. Karfunkel with the congregation."

Excerpt from Pittsburgh Quarterly -- "'Right now, everyone wants to know what the ‘new normal’ will look like. I don’t have a satisfying answer for that question,' said Amy Webb, a futurist consultant and professor of strategic foresight at the NYU Stern School of Business. 'The new normal, at least for a long while, will be continued disruption.'"