Experience Stern | News & Events

Excerpt from Yahoo Finance -- "Speaking about the Z-score, if you compare the average Z-score of companies in 2007 with the average in 2016, which is the last time we looked at it, guess what. The average is actually lower today than it was in 2007, and 2007 was right before the great financial crisis, and of course, in ’08 and ’09 we saw a tremendous increase in corporate bond defaults and loans."

Excerpt from the Financial Times -- "In Tectonic Shifts in Financial Markets, Henry Kaufman offers a scorching account of how Wall Street got into this mess, how it failed to get out, and what to do now. Coming from a pivotal figure in modern finance, now in his 90th year, it will command attention. Kaufman was at high school with Alan Greenspan; at the New York Federal Reserve with Paul Volcker; running research at Salomon Brothers as it created the US mortgage market and dominated bond trading; and on the board of Lehman Brothers in the years before disaster hit."

Excerpt from Business Insider -- "'A culture of overwork is damaging because it turns brief binges of hard work into a long-term strategy, and, worse still, an expectation. When managers start measuring the worth of their employees according to how quickly they return emails at 3 a.m., that particular work culture is broken,' Adam Alter, a professor at NYU’s Stern School of Business, told Business Insider in an email."

Excerpt from Bloomberg View -- "New York University finance professor Jeffrey Wurgler didn't take things quite that far in a 2011 essay, but he did warn that 'the increasing popularity of index-linked investing may well be reducing its ability to deliver its advertised benefits while at the same time increasing its broader economic costs.'"

Excerpt from PFSK -- "Think about AI as the next layer of technology that will be integrated into everything we do and much of the technology we use, and that includes mixed reality interfaces and devices. Simply put, AI is a branch of computer science in which computers are programmed to do things that normally require human intelligence. This includes learning, reasoning, problem-solving, understanding language, and perceiving a situation or environment. AI is an extremely large, broad field that uses its own computer languages and even special kids of computer networks, which are modeled on our human brains."

Excerpt from Quartz -- "...in our study, we found that having digital photos was not as effective as physical photos. In fact, the ease of instantaneously sharing digital photos may inhibit how often we talk about our experiences. Back in the old days, we’d wait until we finished a roll of film and then bring it to the store to get printed. So waiting for the pictures kept the experience top of mind. Then, we’d take the pictures around to our friends one by one (or group by group) and get to share our experience over and over again. Now, we simply post it on social media once and we’re done."

Excerpt from the Financial Times -- "'There is no clear pathway I can see for Uber to go from a high-revenue growth company to a profitable company,' says Aswath Damodaran, a professor of finance at the Stern School of Business. 'Normally the story for start-ups is that as revenues grow economies of scale will kick in, but that story is tough to tell with Uber.'"

Excerpt from The Australian -- "[Haidt] is a social psychologist and the professor of ethical leadership at New York University. His groundbreaking work, The Righteous Mind, identifies that all of us build our political outlook on six moral foundations."

Excerpt from MIT Technology Review -- "'Uber could scale back its bet on autonomous cars, and still give a multi-hundred fold return to its early investors,' says Sundararajan."

Excerpt from Bloomberg -- "'The simple, honest truth is, if you’re talking about what the world’s going to be like 10 years from now, it’s hard to know,' he says. 'The best focus for people is to make the transitions as effective and painless as possible as opposed to worrying about what the end point is.'"

Excerpt from Bloomberg View -- "Over the last five years, consumers have been spending more and more time on mobile devices. From 2012-2016, we've come from 10% of our time to nearly 25% on these devices. This is telling companies there is a lot of opportunity for monetization."

Excerpt from Bloomberg -- "I think obviously Trump's election was a signal event, but, that said, companies were starting to sense a more protectionist climate well before Trump's election or even Brexit. I remember Jeff Immelt coming to NYU Stern to do the MBA commencement address in May 2016 and his whole point was the world has turned more protectionistic and therefore, GE was going to localize. So, that's a fairly early but very influential example of how some companies are trying to change their strategy."

Excerpt from Fashionista -- "'[A product drop] doesn't conform to traditional fashion release timing, so it's unpredictable and, therefore, the products seem scarce,' NYU Stern School of Business Associate Professor of Marketing Adam Alter tells Fashionista. 'Scarcity makes them desirable because they aren't available to just anyone — they're only available to people who happen to be tuned in to the product's release.'"

Excerpt from Forbes -- "'It’s not so much about teaching Geopolitics 101, but instead teaching students how to use this knowledge to understand and anticipate global trends, which can be tricky,' says Dr Robert Faulkner, Academic Dean of the TRIUM Executive Global MBA program, at the London School of Economics. The program was launched at the turn of the millennium and, over the past 16 years has coached senior executives through a series of dramatic global changes. Offered through a partnership of some of the world’s leading education institutions – the New York University Stern School of Business, and HEC Paris make up the trio – TRIUM was the first Executive MBA of its kind, and was built with social political analysis at its core."

Excerpt from CNBC -- "... we hope there's some progress here. The fact that America attracts the brightest and hardest-working people in the world is one of the secret ingredients of our success, so I hope the president is listening. ... The men and women in that room are in an impossible position. You want to engage, you want to be seen as contributing to the dialogue, but the bottom line is, anyone who enters a photo shoot with Donald Trump usually leaves with less credibility... "

Excerpt from POTUS 2017 with Brian Lehrer -- "We think that the Volcker Rule basically was a mistake -- that any of the pieces of the Volcker Rule that you look at -- proprietary trading, investing in hedge funds, investing in private equity -- was not the cause of the financial crisis in 2008. It was a solution in search of a problem. Further, the implementation -- the tens of thousands of pages of comments, thousands of pages of regulation -- it's extremely complex. It is hitting small banks who have to still justify actions that are never going to be a serious problem here."

Excerpt from the San Francisco Chronicle -- "Despite Uber’s massive growth in cities served (662), drivers recruited (1.5 million) and fares charged ($20 billion in 2016), Uber has yet to see such rapid improvement in its profits per ride, said New York University business Professor Aswath Damodaran. Classic tech companies enjoy economies of scale, meaning that though they may lose money when they’re smaller, their profits mushroom as they grow. (See Facebook or Amazon.) Uber has yet to do that."

Excerpt from Bloomberg View -- "In an influential 2014 paper, Thomas Philippon speculated that financial industry profits and salaries rose spectacularly since 1980 because banks, securities firms and fund-management companies found new methods for extracting rent."

Excerpt from Global Public Investor -- "Populist rhetoric must not be allowed to lead to actions that could jeopardise the Fed’s independence. Recent US leaders have, for the most part, been supportive of the Fed. Before selecting Ben Bernanke as Fed chair, George W Bush said, ‘It’s this independence of the Fed that gives people not only here in America, but the world, confidence.’ We must hope that Trump is guided by the same spirit of responsibility."

Excerpt from the World Trademark Review -- “The research … casts serious doubt on the validity of the best evidence we have that trademark dilution actually exists. What has been reported as (and assumed to be) evidence of trademark dilution may actually be merely the result of nothing more than the subjects being surprised by seeing ads such as those for MERCEDES and INFINITI toothpaste employed in our studies. We are forced to reconsider the question the title of this paper: is dilution a unicorn?”

Excerpt from The Wall Street Journal -- "Menachem Brenner, a finance professor at New York University, and Dan Galai of the Hebrew University of Jerusalem called their version 'Sigma' and say they pitched it to various exchanges years before the Chicago Board Options Exchange rolled out its volatility index in 1993."

Excerpt from Bloomberg -- "I think this is a game-changer. You're going to have Amazon in the wealthiest, most affluent households, not once every other week but twice a week now. This threatens not only retailers, but it potentially disrupts CPG companies who Amazon is conspiring with half a billion consumers and fanatical investors to give it almost infinitely cheap capital to starch the margin from brands on behalf of consumers. And then you talk about potential disruption in the media market as shopper and in-store marketing gets challenged by what Amazon's going to do with their technology to let people bid on in-store marketing. ... I believe this is going to make Facebook's acquisition of Instagram the second-best acquisition of the decade, and this will be number one."

Excerpt from Bloomberg -- "'It’s quite possible that after a while you just realize it’s not worth the cost of tooling up to take it and you decide to drop it if the publicity has run its course,' said David Yermack, a professor at New York University Stern School of Business who studies bitcoin."

Excerpt from the Associated Press -- "But the $15 million-a-year Human Project is breaking ground with the scope of individual data it plans to collect simultaneously, says Dr. Vasant Dhar, editor-in-chief of the journal Big Data, which published a 2015 paper about the project. 'It is very ambitious,' the NYU information systems professor says."

Excerpt from the Economic Times -- "Experts suggest that both furniture upstarts may have to work hard to compete with the likes of Ikea. 'Innovative and savvy retailers like Ikea are combining customer identification and analytical capabilities of data from internet retailing with the time-tested advantages of face-to-face retailing,' says Anindya Ghose, Heinz Riehl chair professor of business at New York University’s Stern School of Business."