Experience Stern | News & Events

Excerpt from WalletHub -- "There are hundreds of millions of credit cards issued in the US and most people with a credit card have multiple pieces of plastic in their wallet. To successfully launch a new card into a crowded market you need a gimmick. Another card simply offering 2% cashback would get lost. But a card with a gimmick of 1% on purchases and 1% on payments is different. The segment may not be that large but it is better than being unsuccessful. Although for the issuer it is a bit counter-intuitive as the banks make most of their money on people who carry a balance and pay the high rates of interest. Giving people an incentive to pay right away eliminates the interest charge revenue stream."

Excerpt from WalletHub -- "A 2% incentive on purchase versus a 1% on purchase and 1% on payment has differential implications for credit risk (the likelihood that customers may not be able to repay the amount they borrowed and the credit balance will go into default.) With an incentive to pay off credit card balances, the credit card company walks a tight rope between encouraging a credit card balance (on which it will charge interest, and so, make money), and taking on a potentially delinquent asset which will need the services of a debt collector, and, may, only result in partial repayment, if any."

Excerpt from Adweek -- "Brands that do retain their spend are more likely to retain the relationship they have with a consumer, which has come to expect business from these brands—even in a pandemic, said Thomai Serdari, a strategist in luxury marketing and branding and adjunct professor at NYU Stern."

Excerpt from Financial Times -- "If earnings calls move markets, and markets are increasingly focused on the impact ESG can have on companies’ financial performance, then what role should ESG play in the quarterly calls that executives hold with investment analysts? That is the question Kevin Eckerle and Tensie Whelan of NYU Stern’s Center for Sustainable Business and Brian Tomlinson, a research director with Chief Executives for Corporate Purpose (CECP), tackle in a paper out today, which can be found here." 

Excerpt from InvestorPlace -- "When Peloton launched its IPO, NYU Stern finance professor Aswath Damodaran estimated that the shares were worth between $18 and $19, about 36% below its IPO price. 'I think the problem here is you have fundamentally a good business model, but I just don’t think it can scale up enough to justify the market cap,' Damodaran said last September."

Excerpt from PBS -- “These are the eternal debates in American history,' said Richard Sylla, a professor emeritus of economic and financial history at New York University. 'It’s a bit like what Andrew Hamilton was facing in 1790,' he said, describing the plan to have the new federal government assume the Revolutionary War debts of the states, despite protests of a bailout. It was, he said, as Hamilton framed it, 'the price of liberty.'”

Excerpt from Forbes India -- "Commonly known as the ‘dean of valuation’, Aswath Damodaran, professor of valuation at Stern School of Business at New York University (NYU), discusses his book Narrative and Numbers, how to value companies during the Covid-19 pandemic, challenges for emerging markets, why venture capitalists don't value companies and more."

Excerpt from Financial Times -- "In his book The Great Reversal, Thomas Philippon, a professor at the New York University Stern School of Business, argues that the US has given up on free markets while Europe has finally embraced them. Twenty years ago, air travel, telephone services and internet access were all significantly cheaper in the US than in Europe. Nowadays, thanks to the concentration of corporate power in the US and the increasing competitiveness of the European single market, the reverse is true"

Excerpt from The Atlantic -- "Haidt’s writing and interviews, and our conversations, have clarified for me why we are so tempted to surround ourselves with only like-minded people and caricature those with whom we disagree. He has helped me understand why intellectual honesty is so elusive, why our divisions run so deep, and what steps we need to take to overcome the antipathy that characterizes so much of modern politics. He is also a model of what it means to be a public intellectual."

Excerpt from The Wall Street Journal -- "And it might. Economists at the International Monetary Fund predict this will be the largest global recession since the Great Depression. Anindya Ghose, professor of business at New York University’s Stern School of Business, says even the big tech companies will “see a much bleaker scenario” in coming months, and perhaps beyond, with revenue potentially depressed for a long time if reopening leads to new waves of infections and additional shutdowns."

Excerpt from Economic Times -- "Well, there is no question that the global economy is now in a financial crisis, perhaps unprecedented in its type and quite different than the one in 2008-2009. The extent of this crisis and how long it will last is very much related to the virus and its continued devastation to the global economy. Early indications are that in terms of bankruptcies, defaults, credit issues, this year will perhaps be a record-breaking one."

Excerpt from Business Insider -- "COVID-19 has presented an opportunity to envision our lives when turned upside down, powder redistributed. We can start over. We hoard relationships and the accoutrements of a life others have fashioned for us. We often don't know any better, or don't have the confidence to draw outside the lines until we're older."

Excerpt from U.S. News -- "Adds Acharya: 'It's possible this may not just be [a] phenomenon of three months.' Indeed, new estimates from the European Commission predicted the EU economy could shrink by 7.4% this year, compared to previous predictions of 1.2% growth."

Excerpt from BBC -- "He warned of 'unprecedented' recession. Professor Roubini foresaw the financial crisis in 2008 before many others. 'During the global financial crisis it took about three years until output fell sharply' he told the BBC's Talking Asia programme from his home in New York."

Excerpt from Adweek -- "Additionally, Allen Adamson, founder of marketing firm Metaforce and adjunct professor at New York University’s Stern School of Business, said acquisitions are sometimes used as catalysts to “get your own people to move faster” and the internal competition between Walmart and Jet staffers could have forced each team to work harder."

Excerpt from Quartz -- “'It’s a phase in the evolution of ride hailing that we expected to see at some point, where [ride-hailing companies] would rely less on aggressive discounting and prices would go up,' says Arun Sundararajan, a professor at New York University’s Stern School of Business who focuses on the sharing economy. 'We would have reached a point where prices were in line with what people are willing to pay for a higher quality product—we’re just reaching that point faster.'"

Excerpt from The New York Times -- "The opposition among conservative Republicans to the lockdown — designed to protect American from contact with the coronavirus — presents an interesting corollary to the moral foundations theory developed by Jonathan Haidt of N.Y.U. and Jesse Graham of the University of Utah. In essence, the theory posits that conservatives are more preoccupied with notions of purity and disgust than liberals."

Excerpt from Salt Lake Tribune -- "The first observation is they moved to something called ‘stay-at-home stocks,’ said Haran Segram, a clinical assistant professor of finance at New York University’s Stern School of Business. Segram, who teaches a course in the valuation of stocks, defines that term as companies consumers will keep using or use more often while social isolating."

Excerpt from Marketing Dive -- "'That kind of public statement is rare, but it does happen when you have somebody who has strong moral convictions, sees things going wrong and knows that, in their position, they can make a fuss about it,' Tensie Whelan, director of the NYU Stern Center for Sustainable Business, said in a phone interview."

Excerpt from Retail Dive -- "'With a few years of experience in buying online and several painful experiences of having to return the product, consumers realize that e-commerce is not a guarantee of seamless shopping,' said Thomai Serdari, a marketing and branding professor at New York University's Stern School of Business, and author of the forthcoming book 'Rethinking Luxury Fashion: The Role of Cultural Intelligence in Creative Strategy.'"

Excerpt from Global Finance Magazine -- "Viral V. Acharya, C.V. Starr Professor of Economics at New York University’s Stern School of Business and a former deputy governor of the Reserve Bank of India, speaks with Global Finance about the fallout of the coronavirus epidemic."

Excerpt from Newsy -- "'The platforms are taking the initiative and being more aggressive generally in how they approach the coronavirus crisis,' said Paul Barrett, deputy director of New York University's Stern Center for Business and Human Rights and author of several studies on disinformation. 'I think there's a lot of evidence of a lot of goodwill and a lot of energy being invested here, but they can't get everything.'"

Excerpt from Newsweek -- "This pandemic is a watershed event for America. How we collectively manage the coming months will determine whether we will further polarize along generational lines or emerge a truly multi-generational society. Let's choose the latter. #InThisTogether"

Excerpt from China Daily -- "Michael Spence, professor of economics at New York University’s Stern School of Business and a Nobel Prize winner for economics, said there would have to be substantial input from China if the system was to be reformed. 'If it happens, China will have to play a major role. If China is left out, it won’t work — just like if the US or Europe were not there,' he said."