Experience Stern | News & Events

Excerpt from CNC World -- "So a natural progression as a country gets wealthier is that the growth rate has started to slow down. The other thing is that China is facing a number of tradeoffs since it's grown over the last several decades. Particularly in things like the environment. So it's really time for China to sort of think about what is the quality of growth. And I think anything in the 5 to 7 percent range is actually quite healthy as long as the economy is reforming, moving to a consumption-based economy and moving to an innovation-based economy. So I think it's good news."

Excerpt from Barron's -- "There’s no doubt that the strong deterioration of the Russian economy — which is just starting to happen now but will continue over the course of 2015 in a strong way — is going to hurt Putin’s popularity. But if you ask me to project into 2018: will there be more social discontent, more serious opposition, will he require more force domestically to ensure a smooth election? The answer to all those things is yes."

Excerpt from Sovereign Wealth Center -- "'If you’re trying to build a large position in an asset, you don’t want to to see a run up in the price of the asset,' says Robert Whitelaw, chairman of the finance department at New York University’s Leonard N. Stern School of Business. 'People will front-run you. Conversely, if people know you have a long position, they may know you’re going to sell and front-run by shorting on the way down.'"

Excerpt from Nightly Business Report -- "What's interesting is that [the sharing economy] is also expanding the set of people who can get access to nice things... if you look at the demographics of people who are using Rent the Runway, they're very different from the demographics of the buyers of this high-end apparel."

Excerpt from The Huffington Post -- "According to a working paper by Alexander Ljungqvist and Michael Smolyansky, economists at New York University, corporate tax breaks at the state level don’t help create jobs. There’s one exception: Tax cuts do help create jobs and boost incomes when they are implemented during recessions, the paper says."

Excerpt from CBS News -- "Raghubir cautions against falling for marketing tricks such as limiting quantities or availability of certain items in order to create a sense of urgency. 'Anything which crunches time or crunches the availability of a product is something that consumers then want to exert their independence on... and then,, oh, it's only available now. I better rush and get there before this deal is over,' says Raghubir."

Excerpt from Bloomberg -- "In the short run, what's happening is that technological innovation is increasingly capital-intensive, skill-biased and labor saving. So, take the factory of the future... You might have 1000 machines or 1000 robots, one or two workers manning those machines, and a third guy sweeping the floor. And even the guy sweeping the floor right now can be replaced by a Roomba robot who can do it faster and cheaper."

Excerpt from Financial Times -- "I think that there's been a tremendous focus in business school space on relying on purely experiential methods as a way of getting some interesting content about globalization across to students and so, huge emphasis on getting interesting people together and taking them to interesting places. But the notion is, if that's all we do, then we should probably just confess that we're a specialized branch of the travel and hospitality sector unless we can actually identify things that happen in our classrooms that complement these experiential activities."

Excerpt from Nightly Business Report -- "I think it's a potentially very significant effect in the sense that these products become a political argument for a terror group or a foreign government or an ethnic group that disagrees with a certain idea and to the extent that these creative companies are going to back down and cave to these wishes. This is going to have an effect in many ways on the creative side of the business in the sense that if I'm a producer or an actor or a writer, engaging one of these politically sensitive subjects becomes very risky for me because if my movie never gets out, I may never get paid for having produced the movie in the first place."

Excerpt from China Economic Review -- "In a way, volatility is a bad thing, especially when you see what it’s doing in Russia. But it’s also a good thing, in that it’s the markets responding to new information. And if the markets don’t respond to new information, then they don’t provide their correct function. With the collapse in oil prices, for one thing, that’s probably good news for China, and you’d expect the Chinese economy to respond positively to that because its cost of energy is going to go down. So volatility is a risk to investors, but it’s also essential to the functioning of the economy."

Excerpt from The Washington Post -- "Greater education would do three things to mitigate income inequality. First, as more people move out of the low-skill pool into the high-skill pool, the number of people earning higher incomes would increase in absolute terms. Second, augmenting the supply of high-skilled workers would slow the rapid rate of increase in their wages. And third, on the other end of the spectrum, the more education drives people into higher-skilled, higher-wage areas, the more those who enter or remain in low-skill sections of the job market stand to gain."

Excerpt from TIME -- "The U.S. will remain the world’s most powerful nation for years to come, but that status doesn’t carry as much weight as it used to. Advantages enjoyed for decades are fading as new powers push for new rules and standards—in international politics, the global marketplace and online. Globalization will continue to spread new ideas, speed the flow of information, lift nations out of poverty and drive global consumption. But it’s less likely than before to promote American values and an American worldview."

Excerpt from Bloomberg -- "Led by Alexis Tsipras, [the Syriza party] aims to increase wages, expand the number of government jobs and persuade the European Central Bank and the euro area to write-off some Greek debt. 'None of these actions has a chance of being accepted by Greece’s lenders,' said Nicholas Economides, an economics professor at New York University’s Stern Business School. 'If Syriza insists on these policies, Greece will have to leave the euro with extremely dire consequences.'"

Excerpt from strategy + business -- "Overall, the findings suggest that a CEO’s vacation activity—although perhaps not the most obvious metric—convincingly contributes to and reflects a company’s fortunes, and provides a novel way for investors and competitors to gauge a particular firm’s short-term outlook."

Excerpt from Forbes -- "Amazon investors have been willing to give Amazon the benefit of the doubt (or the benefit of time) with an expectation that as Amazon expands, it will figure out the margins piece. Aswath Damodaran, author of 'The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit' and a finance professor at NYU, found that the median pre-tax operating margin for a US retailer with at least $1 billion in sales is 7.67%."

Excerpt from CCTV -- "'Anytime a new market opens up, there are political risks and legal risks. There is foreign investment in Cuba today, but it’s relatively limited, and so you’re operating in an environment of some uncertainty. But as we’ve seen in socialist economies that have opened up and reformed, most famously China, when you're poised for growth and the economy is growing at 5 or 10 percent a year, we think the opportunities will far outweigh the uncertainties for any company,' Foudy said."

Excerpt from Financial Times -- "'Steady incomes and a social safety net are characteristics of a healthy economy which has moved past simply getting people to work for a living to creating a higher quality of existence,' says Arun Sundararajan, a professor at New York University’s Stern School. 'I worry that this could slip away.'"

Excerpt from The New York Times -- "Aswath Damodaran, a professor at N.Y.U.'s Stern School of Business, has long argued about the danger of companies that try to return to the growth stage of their life cycle. These technology companies, he said, are run by people afflicted with something he calls the Steve Jobs syndrome. 'We have created an incentive structure where C.E.O.s want to be stars,' Damodaran explained. 'To be a star, you’ve got to be the next Steve Jobs — somebody who has actually grown a company to be a massive, large-market cap company.' But, he went on, 'it’s extremely dangerous at companies when you focus on the exception rather than the rule.'"

Excerpt from San Francisco Chronicle -- "'They’re investing in Uber basically because of greed,' he said. 'They don’t want to be left out of the next Facebook. I don’t think deep thinking is going on; they want to be in this game because everyone else is.'"

Excerpt from WIRED -- "'The space that Peers has entered—providing the safety net for the providers of the sharing economy—is potentially huge, and really important,' says NYU Stern professor Arun Sundararajan, who has been studying the economic impact of the sharing economy and, full disclosure, is currently working on a research project with Peers."

Excerpt from CCTV -- "We don't know how this election is going to go. If not enough people vote for the president, and he needs a 60% majority in Parliament, then we will have elections and we'll see who wins. It's possible that the left wins and then we will have a serious problem. So, it's possible. It's not out of the question at all."

Excerpt from LinkedIn -- "After a stunning currency collapse, Russia is now fully in the grips of an economic crisis. How deep is the chaos? Here are five stats that put Russia’s woes in context."

Excerpt from Financial Express -- "Don’t fall for the hype from managers and analysts. Be wary of macro stories. Weigh the company’s competitive advantages and whether they are sustainable. Also, focus not only on the promising company but on how competition, customers and the market is changing."

Excerpt from American Banker -- "The proliferation of settlements in an array of financial markets in recent years makes it clear that banks must show they have made credible and persistent efforts to keep their people in line. They must be able to demonstrate that they have organized themselves into proactively watchful and compliant organizations, with thousands of middle managers who are well trained, motivated and rewarded for spotting and fixing trouble before it happens. This functional approach to controlling behavior is the essence of the much-discussed cultural issue in banks."

Excerpt from Financial Times -- "Relative share price movements also contain useful information. Viral Acharya and his colleagues at NYU’s Volatility Institute have convincingly argued that the extent to which a given bank’s share price falls on days when the broader stock market declines is a decent proxy for the riskiness of the bank’s specific business model and mix of assets. On down days, safer banks should fall less than fragile ones."