Experience Stern | News & Events

Excerpt from Barron's -- "Benchmark deviants can swing high—or low. Funds with high active share—the percentage of holdings that differ from the fund's benchmark index—tend to outperform, so long as managers pick the right securities. Yakov Amihud, a professor of finance at New York University's Leonard N. Stern School of Business, says his research shows that every 10% deviation from an index affects annual return by eight percentage points."
 

Excerpt from MarketWatch -- "'The CEO of Equifax said that the breach is "disappointing" when he should have said it is a disaster of no less consequence than a car manufacturer telling you your tires are defective and are putting you at grave risk,' Dhar, who studies cybersecurity and financial technology, said. 'This is NO different and it reflects an old-world CEO mentality of treating this as a technical problem instead of a business one.'"

Excerpt from Global Finance -- "With new designs representing less than 10% of jewelry sales last year, accelerating the pace of product innovation will be key. 'Conventional strategies will not work,' says Serdari. 'Bogliolo must be as daring as when he was Diesel’s CEO and as proud as the Bulgari family has been. Not a small challenge, even for someone as capable as Bogliolo.'"

Excerpt from Inc. -- "Government policy, Sundararajan said, should favor business models that treat workers less as footloose labor and more as microbusinesses. 'We should really encourage those platforms that are inducing the creation of tiny businesses, where people are making pricing decisions, they are making inventory decisions, they are merchandising, they are building a brand through the online reputation system,' Sundararajan said."

The NYU Stern Center for Global Economy and Business will host the Economic Outlook Forum on September 6, 2017.

Excerpt from Nikkei Asian Review -- "In their book 'The End of Accounting,' professors Baruch Lev of New York University and Feng Gu of the State University of New York at Buffalo argue that stock prices are now about 50% determined by financial information such as profit and assets, compared with 80-90% until the 1980s."

Excerpt from Poets & Quants -- "While many executives enter business schools to master balance sheets and refine their leadership style, they quickly learn that the MBA is really a guide to decision-making. At New York University, for example, Renee Vieira, executive director of Time Warner’s global leadership development program, considers 'Professional Responsibility' to be the most valuable course that she took. ... 'Being a successful leader is not only about having financial, strategic, marketing, and operational acumen,' she adds, 'it is truly about who you are as a person and how you lead and inspire those around you.'"

Excerpt from Financial Sense -- "'We need to face these issues,' Sylla said. 'We do have to face up to some of these debt problems, and we've been lucky with these low interest rates... Maybe the outlook isn't so bad if we normalize interest rates and the economy keeps growing. I think that we would get back to more normal times instead of the interesting times we had for the last 40 years or so.'"

Excerpt from Bloomberg View -- "The authors look at historical episodes where competition increased -- an unusual wave of new companies in the 1990s, and increased Chinese competition in the 2000s. In each situation, industries where competition increased more also tended to invest more. Again, this is consistent with the story that market power is holding back the U.S. economy. Gutierrez and Philippon have another paper where they test eight different economic theories to explain falling business investment, and find that market power -- along with corporate short-termism -- is the most likely explanation."

Excerpt from CBC -- "Taxing robots is a particularly a bad idea in an era of low productivity growth, according to Robert Seamans, an associate professor of management at New York University. 'The existing empirical evidence suggests that robots boost productivity growth, so a tax on robots would limit that productivity,' he says."

NYU Stern welcomes new faculty for the 2017-2018 academic year.

Excerpt from Missoula Independent -- "David Yermack, a professor of finance at New York University and bitcoin expert, says mining companies have no special reason for secrecy beyond 'standard security concerns.' Mine locations are usually dictated by access to cheap electricity (in Project Spokane's case, power is supplied by the Séliš Ksanka Ql'ispé Dam, according to Northwestern Energy documents posted online). 'Knowing the location of a bitcoin mine would not be particularly valuable information, except perhaps to potential competitors who might move to the area and try to exploit the same cheap sources of electricity,' Yermack says."

Excerpt from IR Magazine -- "The number of listed companies in the US hit a peak of 7,428 in 1996. In 2015 that figure had fallen to 3,754, according to data from Alexander Ljungqvist, director of the Salomon Center for the Study of Financial Institutions at NYU Stern."

Excerpt from Livemint -- "In December 2015, though, a study published by The Centre for Business and Human Rights at New York University’s Stern School of Business—Beyond the Tip of the Iceberg: Bangladesh’s Forgotten Apparel Workers—shone some sharp light on matters. The authors, Sarah Labowitz and Dorothée Baumann-Pauly, claimed among other things that even after 3,425 inspections by trackers of the Accord, the Alliance and overseers International Labour Organization, 'only eight factories have passed final inspection'."

Excerpt from MetroMBA -- "'New York City is an epicenter of global business and a thriving hub of innovation that companies from multinationals to technology firms to startups call home,' NYU Stern Dean Peter Henry said in the press release. ... 'We are honored to work with SRW&Co. and to welcome AGLP participants to our campus, where they will have access to some of our most celebrated faculty and participate in stimulating conversation on key topics for both the ASEAN region and the global economy,' Zemel would go on to say."

Excerpt from CNBC -- "'It continues to be a bet on the iPhone, with a great deal riding on how well the iPhone 8 does,' Aswath Damodaran, a professor of corporate finance and valuation at New York University's Stern School of Business, told CNBC in an email. 'If it does well, I think [Apple] will make the trillion dollar market cap,' he said. 'If the iPhone 8 does badly, all bets are off.'"

Excerpt from Cheddar -- "'I think by saying that, 'I want to go public in 18-36 months'...what Dara is doing is re-insuring investors... The choice of Dara is very clearly a signal that investors are serious about taking Uber rapidly to profitability.'"

Excerpt from WalletHub -- "'The buyer should take his/her time and not be rushed. Shop around -- this includes shopping for financing, which means visiting local banks, credit unions, etc. Ask lots of questions.'"

Excerpt from Business Insider -- "Treasury Secretary Steven Mnuchin has said it will take up to two years for the economy to sustain this pace. But some economists have said the target is too high. That's partly because new technologies are not producing the same kind of productivity growth that they did before the Great Recession, said Gian Luca Clementi, an associate professor of economics at New York University’s Stern School of Business. 'If anything, President Trump has brought about a lot of policy uncertainty, and that is just bad news for the economy,' he told Business Insider."

Excerpt from CNBC -- "There was a bipartisan report in 2012 on economic recovery and jobs and competitiveness in the United States which told us that, by 2020, we were going to be 1.5 million skilled, college educated, workers short in the United States... So that suggests that you've got to do two things. One, you've got to grow those workers. You've got to find a way to create more educational ability within the country. But while you're trying to catch up on that front, you've also got to encourage immigration of skilled workers. And so, if you really want an agenda that's going to drive shared prosperity, a pro-immigration agenda is a pro-growth agenda."

Excerpt from Bloomberg -- "Late last year, a study by a New York University professor, Thomas Philippon, and a graduate student, German Gutierrez, examined the reasons R&D spending has been weaker than expected since at least 2002 but plunged after the Great Recession.They found only three factors that at least mathematically appeared to correlate with the drop in R&D. One was an increase in index investors."

Excerpt from the Los Angeles Times -- "Although Skynet was programmed to make decisions, it couldn’t learn how to interpret new kinds of data, especially if the information broke any of its established rules. So it is with our president, who operates with a retrograde understanding of modern warfare."

Excerpt from CNBC -- "'Both economies and markets have essentially assumed that this is a lot of noise,' [Spence] said. 'The worrying scenario is that there's rising risk that's not properly perceived.'"

Excerpt from RT -- "'We're certainly going to see a great deal of advancement in convenience and in comfort because of artificial intelligence and robotics. Today's AIs are solving the problem of perception--being able to see what's around you and make sense of it, and of national language processing--being able to communicate like humans. And so across a wide range of both businesses and in the household, we're going to see a lot of convenience. But in many ways, every generation that has this kind of revolutionary for their time technology enjoys the same kinds of benefits.'"

Excerpt from Fast Company -- "[Improving the company's value is] likely what he’ll do for Uber, says Arun Sundararajan, professor at NYU Stern Business School and author of The Sharing Economy. 'My guess is that the board has brought him in as someone who can rapidly take them to short-term profitability,' he says."