Experience Stern | News & Events

Excerpt from Pix11 -- "NYU Stern School of Business Professor Russell Winer said the pandemic did not create retail problems, it just exposed already vulnerable companies. 'I view the COVID-19 crisis as an accelerator,' Winer said. 'The brands having trouble before, are going to continue to have trouble.'"

Excerpt from Fortune -- "The European Union is in trouble. From the start, its countries haven’t been on equal footing. But COVID-19 has shone a stark light on the dissimilarities between its national economies. The crisis has also laid bare that EU members have significantly different views on what obligations they have to one another."

Excerpt from CNBC -- "New York University finance professor and the “dean of valuation” Aswath Damodaran said on CNBC’s “Power Lunch” that the market rebound could pave the way for initial public offerings. Damodaran said that private companies that are positioned to take advantage of changes after the virus passes should be able to access public markets."

Excerpt from S&P Global -- "Policymakers also want to keep the auto industry afloat, but that usually means the major automakers, not the suppliers, said Joseph Foudy, an economics professor at New York University's Stern School of Business."

Excerpt from Seeking Alpha -- "Edward Altman is best known for inventing the Z-Score, but he also did the earliest research into the recovery rates of defaulted debt. His research, and that of the rating agencies, has shown that on average, senior secured bank debt recovers 70 cents on the dollar, senior unsecured bonds recover 40%, and junior unsecured bonds, which rank higher than preferred shares, recover 15%. Crucially, the 15% recovery rate for junior subordinated bonds, is the mean rate."

Excerpt from Retail Dive -- "Furthermore, it's unclear what reopening retail looks like, as many consumers are likely to remain wary of congregating in stores unnecessarily. And, while there may be some pent-up demand for new things, that may not include new clothes, according to Thomai Serdari, a professor of luxury marketing and branding at New York University's Stern School of Business."

Excerpt from Bloomberg -- "Long term I'm bullish about the prospects of the sharing economy and the kinds of behavior changes that we're seeing occur because of the shock are probably going to work significantly in favor of the sharing econmy platform in the long run, but they do have a rough few months ahead of them."

Excerpt from The New York Times -- “'The role of influencers is growing exponentially,' said Allen Adamson, a marketing consultant and a professor at New York University, who estimated that a good social influencer could earn $200,000-$300,000 per year. 'When people think of endorsements they think of beer and soft drinks, but that’s changed.'"

Excerpt from Yahoo Finance -- "The working paper, published in the Centre for Economic Policy Research and cowritten with Julian Kozlowski, Senior Economist in the Research Division of the Federal Reserve Bank of St. Louis, and Venky Venkateswaran, Associate Professor of Economics at New York University's Stern School of Business, encourages policymakers not to underestimate the impact of the pandemic on businesses and consumers, and shows how and why economic interventions (such as the $2-trillion CARES Act), will make a marked difference for our economic recovery down the line."

Excerpt from The Washington Post -- “'As long as Elon Musk continues to produce amazing products and add tens of billions of dollars of shareholder value, he will continue to play by a different set of rules than the rest of us,' said Scott Galloway, a professor at the New York University Stern School of Business and a Musk critic. 'Is it the errant missives of an eccentric billionaire? Or is it dangerous? And the answer is yes and that it is.'”

Excerpt from The New York Times -- “'The firms that were the top dogs going into the crisis also happen to have the most resilient business models because they can do everything online,' said Thomas Philippon, a professor of finance at New York University. 'It turns out Amazon was one of the most successful businesses in the U.S., and on top of it, they are the ones who can keep processing orders.'”

Excerpt from Bloomberg -- "We cannot continue with the lockdown as is, but relaxing measures may be trial and errors, says former Bank of England governor and Bloomberg Opinion columnist Mervyn King. Speaking to Daybreak Europe’s Caroline Hepker and Matt Miller, Lord King says the government must suspend the process of businesses going under, whilst state loans may eventually have to be converted into grants for companies."
 

Excerpt from Business Insider -- "The first is what I call my bargain-basement bucket. These are companies that you know will be around after this crisis is done. You're gonna be able to get them at a price you could not have got them three months ago. Travel companies, Expedia, Booking, maybe even a couple of the oil companies, Conoco and ExxonMobil. The second is a much riskier strategy. You're buying stocks that are distressed, potentially could go under, but if they turn around, these could be the companies that pay off tenfold, twentyfold. There, you'd include some of the more troubled airlines, Delta, American, United. There is a chance they will not make it. With a payoff, you get a big upside."

Excerpt from Zeit Online -- "For Menachem Brenner, a financial expert at New York University, that doesn't mean that the market isn't working. On the contrary. 'It's not just about psychology. The enormous uncertainty is real and it triggers volatility.'"

Excerpt from The Wall Street Journal -- "In late 2007, India banned rice exports. Worries about global rice shortages ensued. The U.S. had plenty of rice, but people nonetheless began to hoard, emptying store shelves. An analysis conducted by economists Harrison Hong, Áureo de Paula, Vishal Singh and Christopher Hansman found that prices among reputable retailers were slow to adjust higher, perhaps because the merchants didn’t want to be accused of gouging. Higher-income consumers hoarded more, perhaps because they had greater means, or because they were more attuned to the news on rice shortages."

Excerpt from The Washington Post -- "Moser has also researched the inverse of this phenomenon: restrictive immigration quotas, set in the 1920s, that kept out Eastern and Southern European scientists. Fields these scientists worked in recorded substantially less innovation — primarily because keeping out the foreign-born scientists made native-born ones less innovative."

Excerpt from The Washington Post -- “'There are really two Americas right now,' said Scott Galloway, a marketing professor at the New York University Stern School of Business and author of 'The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google.' 'There is Big Tech and there is everyone else. They can do what very few companies can do, which is play offense in the middle of a pandemic.'”

Excerpt from Frankfurter Allgemeine Zeitung (FAZ) -- "Researchers from the Stern School of Business at New York University have now investigated this in more detail using recently available data on the geographical distribution of friendship relationships on Facebook. As part of the 'Data for Good' project, the company is providing a 'Social Connectedness Index' (SCI), which determines the strength of the social connection between two locations based on Facebook friendships. In this way it can be determined which other places Facebook members of a city have particularly frequent contact with."

Excerpt from Adweek -- "It’s probably music to Jeff Bezos’ ears as he attempts to sell Go technology elsewhere: Anindya Ghose, professor of business at New York University’s Stern School of Business, said cashless transactions are going to get a boost now. 'Because of the pandemic, retailers will quickly adopt mobile payments and other forms of electronic payments,' he said. 'Contactless payments will now be the norm for retailers in many countries around the world.'"

Excerpt from Luxury Daily -- "'Bulgari Hotels is creating content that may help entertain those who take shelter at home during the COVID-19 pandemic,' said Thomai Serdari, director of fashion and luxury at Brand(x)Lux and Professor at NYU Stern."

Excerpt from Republic World -- "Will Covid-19 result in the acceleration of automation and will automation become part of our daily life? While presenting his research on how digital technologies transform society Arun Sundararajan, a professor at NYU Stern School of business had said "Crisis can be sort of a catalyst or can speed up changes that are on the way it almost can serve as an accelerant."

Excerpt from Bloomberg Law -- “'Companies now are frantically creating cash-flow models and all types of financial models to try and predict how long can we last with nobody buying our product. But those models are based on estimates. Nobody knows. We don’t know how long we’re going to be quarantined,' said Amal Shehata, an audit and accounting professor at New York University Stern School of Business."

Excerpt from L'Obs -- "Professor of economics and researcher at New York University (NYU), Thomas Philippon built with Callum Jones and Venky Venkateswaran a model to simulate the scenarios of confinement and deconfinement. It seeks to find the point of balance between health and economic constraints. How and when to confine and deconfine to save the most lives while minimizing the loss of economic activity?"

Excerpt from WIRED -- "Amazon did not reply to a query about activity on Mechanical Turk, but Panos Ipeirotis, an NYU professor who has studied Mechanical Turk workers, says he’s seen more Turkers recently from Canada, Italy, and Brazil in particular."

Excerpt from InvestorPlace -- "According to Ed Altman, a professor at the New York University Stern School of Business who created the Altman Z-Score to measure financial distress, a big chunk of so-called investment-grade bonds should be in the junk category already. Altman examined 350 BBB-rated U.S. companies as of the end of 2019 and determined that more than 30% of them, with $600 billion or more of bonds, should have been rated 'junk.'”