Experience Stern | News & Events

Excerpt from The Economist -- "Mr Bazot calculates a unit cost for finance by comparing the sector’s income with the stock of financial assets—'the real cost of the creation and maintenance of one euro of financial service over one year'. He finds that, outside France (where it has been stable), the unit cost has increased over the past 40 years; a 2012 paper by Thomas Philippon of New York University found a similar result for America."

Excerpt from The Economist -- "A much better policy, says Mr Angel, is to 'make room'—not with a detailed master plan of the sort that gave rise to ugly artificial cities such as Brasília, but with a 'platform' that can be built upon like Manhattan’s now-famous street grid. It was adopted in 1811 and allowed the island to be developed over time. Today’s fast-growing cities should establish expansion areas that can accommodate expected growth, plan arterial roads and public spaces, and secure the rights for both, says Mr Angel. This way streets can be built and infrastructure put in as needed."

Excerpt from Big Data -- "In financial markets, a larger question for society is how we might improve market conditions for all investors and create a marketplace that is best for society. Quite incredibly, the answer is with the additional transparency through big data that are made available to all."

Excerpt from Reuters -- "America and China are the world’s two major powers, with the largest economies and militaries. The stakes are high for them to practice what they preach on foreign policy: their words and actions influence the global economy, as well as the behavior of allies and enemies. The problem: Xi Jinping and Barack Obama want to have their foreign policy cake and eat it, too. For both leaders, international engagement isn’t top of mind: they want to downplay their global leadership roles in order to focus on more pressing concerns at home."

Excerpt from Project Syndicate -- "Despite China’s widely discussed economic slowdown, annual GDP growth remains above 7%, implying little cause for alarm – at least for now. The question is whether the government’s efforts to implement structural reforms and transform the economy’s growth model are working – that is, whether internal imbalances continue to threaten long-term economic performance. Given that China remains the global economy’s most important growth engine, the answer matters to everyone."

Excerpt from The Hindu -- "Appointment of such experts on international markets (financial, commodities, and services) in key government departments would pave the way for effective policy formulation in improving access for Indian companies to global markets, attracting global capital, and mitigating the impact of global forces on the volatility in Indian commodity and financial markets due to spill-over effects, [Subrahmanyam] said."

The 15th biennial conference of the International Society for Justice Research (ISJR) will convene academics and thought leaders in the field to discuss three major themes.

Excerpt from Thomson Reuters -- "This list of top researchers around the globe have earned their distinction by publishing the highest number of articles that rank among those most frequently cited by fellow researchers."

Excerpt from Fortune -- "Peter Henry, dean of New York University’s Stern School of Business and author of the book Turnaround: Third World Lessons for First World Growth, told me last year, 'We are at a critical point in time and advanced countries are off track.' The discipline we need is not fiscal austerity but a 'sustained commitment to prosperity that is both vigilant and flexible–and values what is good for the public as a whole,' he says. It’s encouraging to see disciplined policy in democracies, as we began to see in 1994 in Brazil, Henry told me."

Excerpt from The Huffington Post -- "'There are emotional reasons for why [customers] are loyal, in spite of new information that there might be safety issues,' Erdem said. 'For example, these people may have memories of GM cars. They may remember things growing up with their families in a GM car... It's not rational,' Erdem said."

Excerpt from Forbes -- "Cooley also expects Yellen to address the slow down but not harp on it instead focusing on labor. 'Its important for people to be willing to take a more detailed look at what is happening in the labor markets,' he said. 'That is where signs of price pressure are going to show up. The great recession cast a very long shadow – particularly over labor markets. We are going to see labor markets getting better but only in small segments.'"

Excerpt from Bloomberg -- "The underwriting slowdown 'is part of an aggregation of things that is affecting Citigroup all at once,' Roy Smith, a finance professor at New York University’s Stern School of Business and a former partner at Goldman Sachs Group Inc., said by telephone. 'The effort to impose a big increase in internal controls is one that is clearly very labor-intensive.'"

Excerpt from Reuters -- "The study by professors at New York University and McGill University in Montreal - which looked at informed trading activity in equity options before merger and acquisition announcements from January 1996 through December 2012 - showed 25 percent of the deals had some sort of unusual activity taking place 30 days before the deal announcement."

Excerpt from WAMC -- "Widely recognized for research on the intuitive foundations of morality, Jonathan Haidt, Social psychologist and Professor of Ethical Leadership at New York University’s Stern School of Business, uses moral psychology to understand hyper-partisanship in American politics."

Excerpt from Yahoo! Finance -- "A new academic study by researchers at NYU’s Stern School of Business and McGill University and detailed in the New York Times found persuasive evidence of trading on nonpublic information in one-quarter of merger-and-acquisition transactions from 1996 through 2012."

Excerpt from Bloomberg -- "'This may be the first time we have seen a large number of high profile M&A deals in a low-growth environment in which countries might argue that mergers that reduce local employment should be stopped,' said Roy Smith, a professor at New York University’s Stern School of Business."

Excerpt from CNBC -- "Damodaran also alluded to regulatory risk and insurance questions that still face the company. 'In a sense, what Uber does in most cities is already illegal. So, [for a $17 billion valuation] you almost have to have the assumption that at some point in time the regulations are going to change to allow them to operate big time,' he said. 'Because if they don't change, Uber's going to have to spend a lot of money fighting these regulations in city after city to get its business going.'"

Excerpt from The Hill -- "The U.S. government's decision to relinquish its historic role in Internet governance has set in motion a transition with no clear resolution. The Department of Commerce has asked the Internet Corporation for Assigned Names and Numbers (ICANN) to "convene stakeholders across the global Internet community to craft an appropriate transition plan," but where this will lead is anyone's guess. What is clear is that the transition provides both the opportunity for, and the necessity of, undertaking a fundamental reevaluation of ICANN's accountability mechanisms."

Excerpt from Entrepreneur -- "According to NYU professor and researcher Arun Sundararajan, the dress-rental company represents a key aspect of the sharing economy because it democratizes luxury. 'Sure, they're doing it for fashion, but they highlight the broader promise of the sharing economy: access without ownership,' he says."

Excerpt from Fortune -- "Roy Smith, a professor at NYU’s Stern School of Business, tells Fortune he is not surprised by Allergan’s release of the Morgan Stanley e-mails. Smith believes such tactics have the potential to garner Allergan a more attractive offer from Valeant, or even another buyer. 'If it causes some doubt among the Allergan shareholders that might be receiving this, then that’s not so bad,' he says."

Excerpt from CNBC -- "And if a small investor does get taken, so to speak, in a volatile IPO, then there's no one to really blame but the investor, said Aswath Damodaran, a finance professor at the Stern School of Business at New York University. 'I don't see these online platforms as doing something that bankers don't do already. If they are going to attract small investors, and investors buy into their sales pitch, then that's a chance they take,' Damodaran said. 'If they want to play the game, let them play the game.'"

Excerpt from The New York Times -- "A quarter of all public company deals may involve some kind of insider trading, according to the study by two professors at the Stern School of Business at New York University and one professor from McGill University. The study, perhaps the most detailed and exhaustive of its kind, examined hundreds of transactions from 1996 through the end of 2012. The professors examined stock option movements — when an investor buys an option to acquire a stock in the future at a set price — as a way of determining whether unusual activity took place in the 30 days before a deal’s announcement."

Excerpt from VoxEU -- "In Giglio, Maggiori, and Stroebel (2014), we provide direct tests for the presence of infinitely-lived bubbles. We exploit a unique feature of residential housing markets in the UK and Singapore, where property ownership takes the form of either very long-term leaseholds or freeholds."

Excerpt from CCTV -- "I'm looking to the examples of Paris and Amsterdam where Airbnb did face trouble a couple of years ago, but... through open dialogue with the regulators, with the city mayors, with the officials, they've come to sort of an understanding that this is, in fact, good for the city's economy, and they've put together a new regulatory framework that is inclusive of Airbnb and... brings the hosts under the legal umbrella."

Excerpt from Livemint -- "Joel Hasbrouck and Gideon Saar, in a paper published by the Journal of Financial Markets, wrote that low-latency activity (read HFT) improves traditional market quality measures such as spreads, depth and volatility and that they need not work to the detriment of long-term investors."