Experience Stern | News & Events

Excerpt from RealClearMarkets -- "The argument goes that a simple leverage ratio, which could be based on liabilities or assets, does not afford regulators a sufficiently granular control mechanism. Thus, the NYU Stern School explains, 'a private investor would rarely make a decision based on a single ratio, and neither should a regulator.'"

Excerpt from the Stamford Advocate -- "'Is there going to be an effect for New York and Connecticut — I would say yes,' White said. 'Is it going to be large, probably not. Frankfurt would be the primary beneficiary because the major barrier is going to arise between Britain and the rest of Europe. There isn’t going to be any new barrier between Britain and the U.S. or between Britain and Singapore.'"

Excerpt from Bloomberg -- "'Uber is a one-of-a-kind company, in good ways and bad ways. It’s going to be a case study,' said Aswath Damodaran, a finance professor at New York University. 'This is a cash-burning machine.'"

Excerpt from OZY -- "'It’s one thing to trust someone enough for them to ship you a package, but it’s a completely different thing to have a stranger sleep in your spare bedroom,' says Sundararajan. The establishment of 'more robust digital trust networks' — automatic vetting of drivers, connection with hosts’ Facebook profiles, ratings and comment systems — allowed platforms like Lyft, Couchsurfing and meal-sharing app EatWith to take off."

Excerpt from CFO -- "In their book, Baruch Lev and Feng Gu demonstrate that corporate reports have lost most of their usefulness in doing what they are supposed to do: provide investors with information that they can use to make optimal investment decisions. Their shocking conclusion is that the very pricey financial report only provides five percent of the information that investors base their decisions on. Lev and Gu propose a new method called the ‘Resources & Consequences Report’."

Excerpt from The Atlantic -- "'There have been so many violations in recent years that have led to massive penalties on the part of firms that it tells me that the culture is not working,' he says, suggesting that financial punishment can only do so much to induce better behavior."

Excerpt from The Hill -- "A study conducted by the NYU Stern School of Business found than more than 99 percent of the EB-5 projects qualify as Targeted Employment Areas."

Excerpt from Bloomberg -- "On a scale of 1 to 10, it was -1. I think it was probably the most tone-deaf response I've seen to this type of issue, I think, possible ever. He used the term 're-accommodate' as if he was trying to put a good spin on it. It just took a bad situation and made it worse."

Excerpt from The Australian -- "[Alter] believes it’s possible that half of us now suffer from some form of behavioural addiction. And while this is bad news for adults who wish to escape their smartphone screens, it’s even worse news for children. Their impulse ­control is still a work in progress. They don’t think about the costs and benefits of their behaviour. If left to their own devices – literally, figuratively – kids do not stand a chance against such sophisticated technologies."

Excerpt from Forbes -- "After campaigning on the idea monetary policy should be more restrictive, it wouldn’t be surprising that, now in office, Trump sought central bankers with policy prescriptions are more aligned with his goal of speeding up the pace of growth. Additionally, Trump could 'interfere in the normal operations of Federal Reserve policy not just through personnel but by directly commenting on it,' said Kim Schoenholtz, an economics professor at the NYU Stern School of Business. 'There’s a huge degree of uncertainty about what the President will do.'"

Excerpt from Inc. -- "What's more, China could retaliate by raising tariffs on U.S. goods, suggests Ari Ginsberg, a management professor at New York University's Stern School of Business where he has a focus on international business. He notes that this will be especially problematic for startups that sell products to Chinese consumers, as their profit margins could shrink."

Excerpt from Guru Focus -- "Aswath argues that in the current environment, cash earns a low return. If you were to take cash as a standalone asset, its low return would translate into a high price-earnings (P/E) multiple. In other words, cash does increase a company’s valuation because it produces a terrible return. With this being the case, the professor argues that how the P/E multiple is used should be reconsidered in the current environment. Specifically, he believes 'we have to separate companies into their cash and operating parts, and deal with the two separately because they are so different in terms of risk and earnings power.'"
 

Excerpt from CNBC -- "'We have to be careful, very much, of overheating the economy very quickly with infrastructure financing and lower taxes,' Altman told CNBC Thursday. 'That, in many cases, could be a recipe for disaster if, in fact, the deficit financing and the amount of debt that has to be raised to finance it is excessive.'"

Excerpt from Yahoo News -- "One theory, according to Professor Justin Kruger is that people who are often late tend to grossly underestimate how long it will take them to do common tasks."

Excerpt from ICAS -- "'We may not want to dictate how people live but one consequence of stepping away is that now there’s a gap where others can step in,' added Robert Salomon, Associate Professor of Management and Organisations at New York University’s Stern School of Business. 'That’s one of the broader issues of leaving that void in Asia.'"

Excerpt from Racked -- "'Amazon’s algorithm is complicated,' says Galloway, 'but it generally favors what sells the most. So if you search booties, it’ll likely show you what’s three years old, and not the new shoes sold on Macy’s or Net-a-Porter. That’s not great for fashion labels constantly putting out new collections.'"

Excerpt from CNBC -- "The core competence now in the markets is storytelling. And it's painting a huge vision and then making progress against that vision, and you're able to establish this anti-gravity-like trajectory for your stock. And Tesla's in that anti-gravity bucket because on any rational measure, this doesn't make sense."

Excerpt from Kellogg Insight -- "Despite the fact that federal employees have relatively stable jobs and knew the situation was temporary, the shutdown led workers to reduce their spending by about 10%. Baker and his coauthor, Constantine Yannelis, an assistant professor at the New York University Stern School of Business, also found that furloughed employees cut expenses by about twice as much as employees who were required to continue going into the office, partly because the stay-at-home workers had no commuting costs and could perform some household tasks instead of paying others, such as childcare."

Excerpt from the Harvard Business Review -- "Almost all customers want their products to be as inexpensive as possible. So firms try to respond to this by delivering the value that they think their customers want. But great CEOs understand that the responsibility of defining greatness is the firm’s, not the customer’s."

Excerpt from Tell Me Something I Don't Know -- "There's actually a great deal of research in psychology that suggests that using payments or incentives to motivate certain types of behaviors can actually get you worse results. ... Why did the incentives backfire? It turns out that the incentives actually turned that altruistic act into an economic one."

Excerpt from Forbes -- "The decline in worker training is concerning, especially given that increase in automation will likely mean that workers need different skills than before. ... I recommend a new NBER working paper by NYU’s German Gutierrez and Thomas Philippon trying to explain why corporate investment is low relative to what Tobin's Q models would predict."

Excerpt from the Financial Times -- "Aswath Damodaran, a finance professor at New York University, highlights some myths about valuation. A common one is that the more quantitative or complicated a model, the more accurate the valuation. Instead, Mr Damodaran argues for keeping things simple. With Aramco, he is for the moment getting his wish: there are few reliable numbers. Nevertheless, a reasonable estimate of Aramco’s total value is possible by working through assumptions about its costs."

Excerpt from the Economic Times -- "According to experts, this private label duel between India's top two ecommerce companies has happened in step with shifting consumer behaviour. 'Consumers have gotten more comfortable with private labels and consider them as interchangeable with national brands,' says Ghose of the Stern School of Business. 'It is this change in consumer behaviour that online retailers like Amazon and Flipkart have capitalised on and are leveraging and harnessing to the full extent.'"

Excerpt from The Wall Street Journal -- "'The great majority of college students want to learn. They’re perfectly reasonable, and they’re uncomfortable with a lot of what’s going on,' Mr. Haidt, a psychologist and professor of ethical leadership at New York University’s Stern School of Business, tells me during a recent visit to his office. 'But on each campus there are some true believers who have reoriented their lives around the fight against evil.'"

Excerpt from Fox Business -- "I think that we have not had a public discussion about man-made climate change and whether carbon and other greenhouse gases are causing that man-made climate change. And we cannot have that conversation in the Congress. Obviously, that is not the right place to do it. It's become such a political discussion. The EPA, given their technical background, I think is probably the closest we will come to an organized public debate. And I think in the first year that the Endangerment Rule was rolled out and carbon dioxide was labeled a pollutant, there were a number of problems, I think, with that process. It was rushed. The actual source research that they used, we have 10 more years now of information. We have 10 more years of climate models misfiring. And I think we need to look at it with fresh eyes."