Experience Stern | News & Events

Excerpt from The Wall Street Journal -- "The junk-bond default rate rose to 2.6% from 2.1% this year and will likely jump to 4.3% in 2016, breaching the 30-year average of 3.8% for the first time since 2009, said New York University Finance Professor Edward Altman, inventor of the most commonly used default-prediction formula. ... 'In most high-default periods we’ve seen in the past, the rise in default rates precedes a recession,' said Mr. Altman, who has been studying the subject for more than 50 years."

Excerpt from The Washington Post -- "'Her speech there is the kind of thing she would talk about in class,' said Tom Pugel, an economics professor at New York University who took Yellen’s course in macroeconomics when he was a young doctoral student at Harvard University. 'You’re still seeing someone who comes at this from a professorial point of view.'"

Excerpt from International Business Times -- "'This time the FCC used like a bazooka, the most strong and wide-ranging section of the act, the Title II. It’s extremely unlikely that, on the same grounds [as 2014], it will be ruled against. I expect it will be upheld,' said Nicholas Economides, a professor of economics at NYU Stern School of Business who has defended the regulations on regulations before Congress in October."

Excerpt from Poets & Quants -- "'There’s what you learn and there’s what you take away from the program,' Long says. 'What I learned is a lot of powerful techniques in working with data and how to present it in a way that is meaningful for the business. What I took away from the program was not just that but really this new awareness of all of these topics to learn more about.' ... Stern was driven to add a master of science in accounting to respond to a need from both prospective students and employers. Members of the admissions team were constantly hearing from people who wanted an accounting MS that would give them the required educational preparation to become CPAs, says Isser Gallogly, assistant dean of MBA admissions at Stern, and head of admissions for the accounting program."

Excerpt from Engineering News-Record -- "The ENR Top 250 International Contractors survey provides an annual snapshot of the cross-border activities of the world’s largest contractors. Here, we take a longer perspective, using data from the 2005-15 surveys to analyze the globalization of the world’s largest contractors and identify actionable strategy implications."

Excerpt from Credit.com -- "'We find that regulatory limits on credit card fees reduced overall borrowing costs to consumers by an annualized 1.7% of average daily balances, with a decline of more than 5.5% for consumers with the lowest FICO scores,' the paper said."

Excerpt from Reuters -- "Despite promising in early 2013 to be a global service by 2014, the company has yet to open offices outside the United States. Lyft is currently in about 150 U.S. cities. 'I don't think Lyft wants to or can,' become a global ride service, said Aswath Damodaran, a professor of finance at New York University's Stern School of Business. 'It is a company with much smaller ambitions.'"

Excerpt from The Huffington Post -- "An independent central bank is a device to overcome the problem of time consistency: the concern that policymakers will renege in the future on a policy promise made today. Keeping inflation low and stable requires a credible policy commitment to price stability that will, from time to time, be highly unpopular. When inflation rises, the central bank must promptly raise interest rates. And, should deflation threaten and the policy rate hit the zero bound, the central bank must respond by using its balance sheet flexibility. In this way, an independent central bank improves economic performance: it can achieve lower and more stable inflation rate without sacrificing long-run economic growth."

Building a World Changing Startup: A talk with Michael Baum, CEO of Founder.org

Excerpt from The Street.com -- "Enron's collapse was driven by governance weaknesses, auditing inefficiencies and accounting problems, and significant strides were made afterward in correcting the first two of those problems, said Baruch Lev. An accounting and finance professor at New York University's Stern School of Business, Lev testified before Congress after Enron's fall and has written five books including Winning Investors Over, published in 2012. 'Corporate boards are now more independent than they used to be, and they have committees that are completely composed of independent board members, like the audit committee,' he noted."

Excerpt from Salt Lake City Weekly -- "The study points out that Salt Lake City's lack of density is essentially the cause of lack of vibrancy. Downtown currently has an estimated population of just over 5,000 residents. But, according to the study, nearly 58,000 more residents would move downtown from nearby metro areas if it were feasible."

Excerpt from Bloomberg -- "The coal mine of Yahoo has canaries dying everywhere. Everyone that has watched [Marissa Mayer's] tenure really closely, whether it's her senior managers, her colleagues, or the hedge fund guy who put her in the CEO spot, they've either sold all their shares and headed for the hills or they've left the company, and the numbers speak for themselves."

Excerpt from Bloomberg -- "'Because of the immediacy and the flexibility of the app, it does give them a certain advantage,' said Arun Sundararajan, professor at New York University’s business school who studies the sharing economy. 'For their size, they have immense amounts of regulatory battles. Uber seems to be a strong believer in using consumer collective action as one of the forces in their political battles.'"

Excerpt from Inc. -- "At least one academic report suggests chief executives tend to make significant stock gifts following a run up in share prices. And given the current frothy environment around tech stocks, where Facebook's own stock is at a near historic high of $107 a share as of Wednesday afternoon, the timing makes sense. 'The gift date itself on average represents a turning point in the stock's trajectory, with company prices moving lower in the months after a gift is made,' David Yermack, a professor of finance at the NYU Stern School of Business, wrote in a 2008 article in the Journal of Financial Economics."

Excerpt from Commercial Observer -- "Since the market rebound, EB-5 capital has become the most attractive source for many real estate developers to fill the gap in the capital stack for their projects. The EB-5 program provides a path to permanent residency for foreign citizens who invest at least $500,000 (pending reform legislation would raise this amount to at least $800,000) in a project that creates at least 10 jobs for U.S. workers."

Excerpt from World Financial Review -- "The disappearance of so many US banks, mostly by being absorbed into larger institutions, prompted us to write Genealogy of American Finance (2015). The book contains short, illustrated histories of the 50 largest financial holding companies recently operating in the United States, along with their 'family trees', that is, charts showing all the predecessor institutions that were acquired or merged together to form the current behemoths."

Excerpt from Digiday -- "Greg Coleman, BuzzFeed president and former president of ad tech firm Criteo, has been teaching a class at NYU’s Stern School of Business called 'digital media innovation.' Every week, Coleman invites his “friends,” including Rent the Runway founder Jennifer Hyman or BuzzFeed founder Jonah Peretti to guest lecture, and 75 percent of students’ grades are decided based on a final media project judged by VCs."

Excerpt from The New York Observer -- "'Businesses often use words like "limited", "rare", and "only one left" in order to create panic in the brain,' says NYU Stern Business School professor of consumer behavior Dr. Jacob Jacoby, who spoke to the Observer by phone. 'They trigger a reaction called "Loss Aversion"; when you’re more concerned with losing something than gaining something.'"

Excerpt from Harvard Business Review -- "Jonathan Haidt at New York University’s Stern School of Business shows in his research that when leaders are not just fair but self-sacrificing, their employees are actually moved and inspired to become more loyal and committed themselves. As a consequence, they are more likely to go out of their way to be helpful and friendly to other employees, thus creating a self-reinforcing cycle."

Excerpt from Risk Management Magazine -- "'Sentiment analysis has become a form of risk management and is emerging as a useful risk control tool for a variety of businesses,' said Vasant Dhar..."

Excerpt from Bloomberg -- "'Even quality audits and a relationship with the factory only get you so far,' says Sarah Labowitz, co-director of New York University’s Stern Center for Business and Human Rights. 'You have to tie compliance to business incentives. If a supplier improves working conditions, they get bigger and longer-term orders.'"

Excerpt from Forbes -- "Colette has been ahead of its time since its inception, trailblazing collaborations, new ways of merchandizing, fun combinations of product categories, and the embrace of constant change. As long as this mother daughter duo continues their complementary partnership, it will continue to be the one to watch. Other retailers can observe, learn, and be inspired to do their own experimenting."

Excerpt from Project Syndicate -- "...there is light at the end of the tunnel for the eurozone. A cyclical recovery is underway, supported by monetary easing for years to come and increasingly flexible fiscal rules. More risk sharing will start in the banking sector (with EU-wide deposit insurance up next), and eventually more ambitious proposals for a fiscal union will be adopted. Structural reforms – however slowly – will continue and gradually increase potential and actual growth."

Excerpt from Nikkei -- "Ginsberg posits that it is difficult if not impossible for powerful new ventures to take root in a country that does not welcome challenges to the status quo. Japan appears to fit that description, and, sure enough, the country has no unicorns -- yet."

In a new study, Professor Claudine Gartenberg of the NYU Stern School of Business and Professor Lamar Pierce of the Olin Business School at Washington University in St. Louis find that integrated banks – firms that both originate and then securitize a mortgage – with poor corporate governance are twice as likely to issue loans that will default compared to similar firms with strong governance.