Experience Stern | News & Events

Excerpt from The Wall Street Journal -- "Pankaj Ghemawat, global professor of management and strategy at the New York University Stern School of Business and a co-author of the survey, says that improving connectivity between sub-Saharan African nations—enabling more efficient movement of people, goods and information across borders—would make a vast difference to the continent’s economic prospects."

Excerpt from Financial News -- "It would be momentous and unprecedented for the Fed openly to force a bank to break up. But the power to do so under Dodd-Frank is certainly there, though the process is complex and can be appealed. Dudley’s cultural workshop may actually be less about culture and more a blunt warning to those banks the Fed considers to be moving too slowly in transforming themselves into the well-managed entities it wants. Those banks know who they are. As Dudley says, they need to 'get on with it'."

Excerpt from Financial Times -- "In the adverse scenario of the ECB stress tests, capital adequacy is 5.5 per cent of risk-weighted assets while our measure is 5.5 per cent of total quasi assets. When risk weights do not adequately reflect risk, which has been widely observed for both European and US financial reports, then this measure of capital adequacy can be highly misleading. In an earlier study, Acharya, Engle and Pierret ('Testing Macroprudential Stress Tests: The Risk of Regulatory Risk Weights', Journal of Monetary Economics, 2014), we found that risk weights were negatively related to conventional measures of firm risk."

Excerpt from Luxury Daily -- "During the '"7": The Forces Shaping Prestige in 2014' session, L2 Think Tank boss Scott Galloway pointed out that Apple’s acquisition of CEOs from Burberry and Saint Laurent indicates that the brand is forcefully moving toward the luxury sector. The founder also warned that luxury brands will begin to face increasing disruption from outsiders."

Excerpt from the New York Post -- "It was a 'solid continuation of past progress,' according to New York University economics professor Joe Foudy, who said the highlight was that employment gains were scattered over 'a mix of industries.'"
 

Excerpt from Daily Mail -- "Roubini reckons hinting at that famous Chinese economic 'bubble' that credit fueled investment, will result in more bad assets for the banks and shadow banks, more bad investments in real estate, infrastructure and excess manufacturing capacity and more non-performing assets in the public sector."
 

Excerpt from The Huffington Post -- "...the biggest worry of all should be the most important person in the room. The reaction of that one person to your presentation is probably going to be the biggest factor in whether or not your presentation will be successful at accomplishing your goal. And that's true whether there are two people or 20 in the room."

Excerpt from WIRED -- "Coding education has taken off in recent years, driven by reports that the demand for quality programmers in America is drastically outpacing the supply. So everyone from the White House to Google has jumped on the coding bandwagon. Meanwhile, bootcamps have sprung up across the country. But the challenge is there’s no way for employers to know that the so-called graduates of these programs are any good. 'They’re new. They don’t have track records, so it’s hard to look at a person who’s graduating and evaluate and screen them,' says Prasanna Tambe, an NYU professor specializing in IT work force."

Excerpt from The Wall Street Journal -- "Professor Altman’s research found that serial bankruptcy filers had a significantly worse financial profile than the average sample of reorganized companies—whether measured in terms of corporate liquidity, solvency, profitability or leverage. Moreover, he predicted that serial filings would likely increase in the context of the increased predilection of investors and other stakeholders to focus Chapter 11 activity and reorganization plans on financial re-engineering, as opposed to operational performance improvement, of the distressed business."

Excerpt from Washington Monthly -- "Economist Thomas Philippon found that financial services themselves have become less, not more, efficient over this time period. The unit cost of financial services, or the percentage of assets it costs to produce all financial issuances, was relatively high at the dawn of the twentieth century, but declined to below 2 percent between 1901 and 1960. However, it has increased since the 1960s, and is back to levels seen at the early twentieth century. Whatever finance is doing, it isn’t doing it more cheaply."

Excerpt from Straits Times -- "No president can sustain an expensive, ambitious foreign policy without reliable public support. In America, that support is no longer there - and unless there is another major terrorist attack on US soil, it isn't coming back in the foreseeable future."

Excerpt from Quartz -- "Looking ahead at the future of Ferguson after the events of recent weeks, it seems certain that the overwhelming African-American majority will press for empowerment in municipal affairs. This transition needs to come with a parallel effort to strengthen the municipal economy."
 

Excerpt from Harvard Business Review -- "But what many economists generally gloss over is a notion that I will argue is highly complementary to market failures: management failures. For policy-making purposes economists assume that all businesses act rationally in the pursuit of profits. The possibility that that might not be the case is generally ignored, or even when mentioned, quickly finessed."

Excerpt from CCTV -- "I think [Mario Draghi] will act. He said he's expected to buy assets. He hasn't said he's going to buy something specific, but he says he is expected to, and he also said that it's a unanimous decision. So he's pushing in that direction, but I think that there is resistance from Germany, and we'll see how it turns out. We're not sure."

Excerpt from The Wall Street Journal -- "Through data collected from 1984 to 2013, New York University Professor Edward Altman found two factors are most indicative of a debtor filing again: its profitability upon its first emergence and its leverage. The data reveals that for recidivist debtors, their financial profiles upon exiting their first bankruptcy tended to resemble that of other firms as they entered bankruptcy—namely too much debt and too much leverage. This data supports what restructuring professionals have experienced anecdotally. Sometimes a plan is premised on the best available recapitalization structure, which is not necessarily the right structure."

Excerpt from The Atlantic -- "The index finds that globalization began deepening once again last year after reaching a post-crisis plateau in 2012—but it’s far from the deeply connected world sold by globalization advocates."

Excerpt from Wealthtrack -- "In the seventies, [American corporations] had a lot of competition. Globalization was a factor in making corporations, for the first time in some decades, have a lot of international competition. And they suffered a little bit from that. And I think then, as they were suffering, academics said, oh, the corporations really need to do a better job and the way to do it is, picking up on Milton Friedman, they should focus on maximizing shareholder value. They shouldn't do all these other things. They shouldn't think about the workers that much, or the suppliers or the community. Just maximize profits. And this was an academic thing. I'm an academic. I saw it happen."

Excerpt from Marketplace -- "'Teaser marketing' has become the norm, Lieberman says. Those teases, trailers, viral marketing, piecemeal cast and crew announcements are coming earlier, thanks to the web and the crowded comic book movie market. 'They’re saying, "Look, don’t worry, don’t start shifting allegiances, because we’re coming with these movies every year for the next five-year period,"' Craig says."

Excerpt from Yahoo! Finance -- "Aswath Damodaran, professor at New York University Stern School of Business and an expert in equity valuation, nicely dismantled the idea that equity comp is not an expense in this February blog post, which uses Twitter as a case study."

Excerpt from Bloomberg -- "In the next decade, it could be the first time in 30 years that India is growing faster than China because China... has a movement from capital-intensive to labor-intensive growth. So growth in China could go towards 5% in the next few years, while India, with the right reform, could go towards 7%. So for the first time ever, the tortoise becomes the hare and the hare becomes the tortoise."

Excerpt from Marketplace -- "'There are a number of thing that’ll confuse people,' says Jack Jacoby, professor of marketing at NYU's Stern School of Business who says he is involved in 30 or 40 trademark disputes per year. In the case of Disney vs. Deadmau5,  Jacoby says the confusion case boils down to what’s in the mind of the person who picks a mau5head t-shirt off the rack-and whether they'll think the Deadmau5 item was made by, affiliated with or allowed by Disney. 'Disney’s saying "Wait, people may think that this comes from us,"' says Jacoby."

Excerpt from WWD -- "'They [Facebook, YouTube, Instagram] seem to be pulling away and starting to suck the oxygen out of the room for everyone else,' Scott Galloway, New York University marketing professor and cofounder of L2, told WWD. Twitter, which was among the top three platforms in last year’s study along with YouTube and Facebook, saw a complete flip, according to Galloway. He called it the 'most overvalued company' — surprised that despite being valued at $25 billion, more than Clorox, Coach and Abercrombie & Fitch combined, Twitter still has flat user growth."

Excerpt from Nature -- "Advocates for patients with rare diseases spend millions of dollars lobbying the US Congress each year — and it is money well spent, an economic analysis has found. Between 1998 and 2008, such efforts helped to increase new funding for rare-disease programmes by 3–15% each year at the US National Institutes of Health (NIH), according to a report to be published in Management Science (D. Hegde and B. N. Sampat Mgmt Sci. http://doi.org/fzs2vx; 2014)."

 

Excerpt from Harvard Business Review -- "The 2014 DHL Global Connectedness Index that one of us (Ghemawat) prepares with Steven Altman, and that was released on November 3, indicates that global connectedness started to deepen again in 2013 after its recovery stalled in 2012. In other words, there’s now a higher volume of information, capital, people, and trade flows between countries."

Excerpt from The American Bazaar -- "Recognition for Outstanding Contribution in Education – Dr. Geeta Menon: she is the 11th Dean of the Undergraduate College at NYU’s Leonard N. Stern School of Business and the Abraham Krasnoff Professor of Global Business and Professor of Marketing. She is a respected educator at the graduate and undergraduate levels, and has mentored many doctoral students who have gone on to become faculty members at top schools, including the University of Chicago, Cornell University and Dartmouth University."