Experience Stern | News & Events

Excerpt from New York Magazine -- "As Adam Alter, a psychologist at NYU who has studied name effects, explained in an email, 'When people aren’t sure what the candidates believe, they’re often swayed by irrelevant information, like the candidates’ names.'"

Excerpt from Fox Business -- "Joseph Foudy says boomers’ longer career is positive for Social Security and other entitlement programs since it means people will be paying into the system longer. However, he adds 'it’s also disheartening how tough it is for Millenials. It’s not just the short-term hurdle of having to find a job, but it also means they aren’t building necessary skills most learn at entry-levels jobs and this hinders their entire careers. It’s a loss to the country’s potential productivity.'"

Excerpt from CNNMoney -- "While he doesn't believe China is at risk of a crash, Roubini says growth in the world's second largest economy will probably 'surprise to the downside.' He expects Chinese GDP to grow 7% this year then fall to 6.5% next year. It could slow further if policy makers fail to implement structural reforms aimed at making China's economic model sustainable, he added."

Excerpt from Bloomberg -- "As important as it is to have resilience in the US economy, we live in an interconnected world. And, specifically, Europe is an important market for us. The European recovery remains anemic. A recent Bloomberg poll shows that roughly 3/4 of financial professionals are concerned about deflation. We're seeing some deflation in Portugal and Greece. In your mind, is the European Central Bank doing enough to ward off deflation? Is deflation a concern of yours? And then, finally, is the European Central Bank doing enough to encourage the kinds of structural reforms that you alluded to in the United States that also need to happen in Europe: labor market reform, and so on?"

Excerpt from American Banker -- "'This book alleges that Fannie Mae and Freddie Mac were run as the largest hedge fund on the planet. The four authors, all professors at the Leonard N. Stern School of Business at New York University, argue that Fannie and Freddie should get out of the business of promoting homeownership for low-income households.' — Kate Berry, reporter at American Banker"

Excerpt from Quartz -- "There’s no question Uber, which connects private drivers with people looking for rides, is a fast-growing concern that serves a real need in the market. But Aswath Damodaran, a New York University professor who makes a habit of publicly analyzing start-up values, says that the number is likely wishful thinking and a more accurate valuation is probably closer to $6 billion."

Excerpt from Crain's New York Business -- "'Small businesses are struggling with lower demand and the expectation of greater value while their rent and other costs aren't going down proportionally,' said Jeffrey Carr, clinical professor of marketing and entrepreneurship at New York University Stern School of Business."

Excerpt from The Globe and Mail -- "'This is a setting that is very easy to be manipulated either by one individual bank or by a group of them,' said Rosa Abrantes-Metz, an associate professor with New York University's business school, whose research identified a series of unusual trades before the gold benchmark was announced. 'It completely lacks oversight and involves a very small group of competitors, so it is easy to co-ordinate behaviour,' she said."

Excerpt from Bloomberg -- "During my time at the Bank of England, I often commented on the inverse relationship between the success of Aston Villa and the performance of the U.K. economy. During the past three years, as the economy started to recover, Aston Villa struggled. Its current turmoil bodes well for the strength of the recovery. In the longer term, the U.K. will continue to benefit from its ability to attract talent from around the world, whereas the England football team suffers from being forced to select only English players."

Excerpt from Business Insider -- "David Yermack, a finance professor at New York University, has written a wonderful paper showing a correlation between the times CEOs take private jets to their vacation homes and movements in the company's stock. It is, perhaps, not surprising that CEOs go on vacation after announcing good news, and that they stay in the office when bad news is announced — propelling their stock up and down, respectively."

Excerpt from The Economist -- "'Collective attempts at liquidation to meet withdrawal requests would lead to ruinous fire sales,' write Stephen Cecchetti of Brandeis University and Kim Schoenholtz of New York University. 'After this happened even once, people would simply flock to the narrow banks, and there would be no source of lending.' To prevent this, the authors argue, governments would have to intervene to save the 'not-so-narrow intermediaries.'"

Excerpt from Forbes -- "If you can engage your strengths, you’ll find more gratification in work; if you find gratification, you’ll shift into a more positive, approach-oriented mindset; and in such a mindset it will be easier for you to see the bigger picture—the contribution you are making to a larger enterprise—within which your job might turn into a calling. Work at its best, then, is about connection, engagement, and commitment."

Excerpt from Fox Business -- "I think it's less about Uber and it's about the sharing economy. This is the biggest thing that investors have been excited about in a long time. The reason why? The sharing economy - it's not just an economic revolution, it's a behavioral revolution. These companies like Uber are shaping and changing behavior."

Excerpt from Fox Business -- "You've got to be about sales and distribution at this point. You've got the platform, it's all about making that pitch pitch-perfect for the venues - what are the advantages in making the change because they're steeped in inertia, these whole point-of-sale systems. That's going to be the big challenge for you guys."

Excerpt from Techonomy -- "Conversely, big cities—as progressive as they might be—often struggle to attract sharing platforms because of their strict and complex regulations. Such cities should be updating their regulations, Sundararajan said, because cities that embrace the sharing economy will see more economic growth than cities that don’t."

Excerpt from Fortune -- "Kim Schoenholtz, a professor at NYU Stern School of Business, said that, to make a real difference, the ECB would have to buy around €1 trillion in assets, but said that would involve buying all manner of low-quality debt and would trigger yet another political storm. 'Unfortunately, it’s very difficult for them to have a substantial impact without breaking glass,' Schoenholtz said."

Excerpt from Financial Times -- "Scott Galloway, clinical professor of marketing at the NYU Stern School of Business and founder of L2, a think-tank for digital innovation, advises: 'The best collaborations let bloggers do what they do best: curate content that resonates with their established audience. Discerning readers will quickly detect when a blogger has gone corporate.'"

Excerpt from The Globe and Mail -- "Figuring out the backdating issue began in the 1990s with research by David Yermack, a finance professor at New York University. His work showed that several companies were awarding options and then seeing the stock price rise after the grant date. He believed executives were using insider information to pick the dates, knowing positive news was in the works which would drive up the price. (This is known as spring-loading)."

Excerpt from Business Insider -- "Since that was more than three times higher than any other NBA team had sold for and matched the price tag for the most expensive sports franchise sale in US history (the sale of the Los Angeles Dodgers in 2012), the bid raised questions about whether a sports franchise can be valued, how it is priced and whether there is an ego premium embedded in this particular offer. I am not a Clippers fan, but I love sports, and these questions not only deserve answers but have broader implications for valuing entertainment and media businesses."

Excerpt from The Huffington Post -- "Economist William Baumol noticed that in certain of our endeavors labor costs continue to rise though labor productivity does not increase. His famous example was a Beethoven quartet which takes exactly as much time to play today as it did one hundred years ago and with exactly the same number of players. But those musicians now make more money."

Excerpt from Harvard Business Review -- "Boeing’s decision to minimize its assets was made with Wall Street in mind. RONA is used by financial analysts to judge managers and companies, and the fixation on this kind of metric has influenced the choices of many firms. In fact, research by the economists John Asker, Joan Farre-Mensa, and Alexander Ljungqvist shows that a desire to maximize short-term share price leads publicly held companies to invest only about half as much in assets as their privately held counterparts do."

Excerpt from CNBC-TV18 -- "Nobel laureate and an acknowledged authority on growth and policy in developing countries, Spence feels that on policy side, the government should have an open approach. 'The potential in India is enormous. The human capital, the talent and so on, it’s just a matter of getting the obstacles out of the way,' he told CNBC-TV18’s Latha Venkatesh."

Excerpt from Project Syndicate -- "The main causes of these trends are clear. Anemic economic recovery has provided an opening for populist parties, promoting protectionist policies, to blame foreign trade and foreign workers for the prolonged malaise. Add to this the rise in income and wealth inequality in most countries, and it is no wonder that the perception of a winner-take-all economy that benefits only elites and distorts the political system has become widespread. Nowadays, both advanced economies (like the United States, where unlimited financing of elected officials by financially powerful business interests is simply legalized corruption) and emerging markets (where oligarchs often dominate the economy and the political system) seem to be run for the few."

Excerpt from The Wall Street Journal -- "Psychologists have long known that different cultures tend to think differently. In China and Japan, people think more communally, in terms of relationships. By contrast, people are more individualistic in what psychologist Joseph Henrich, in commenting on the new paper, calls 'WEIRD cultures.' WEIRD stands for Western, educated, industrialized, rich and democratic. Dr. Henrich's point is that cultures like these are actually a tiny minority of all human societies, both geographically and historically. But almost all psychologists study only these WEIRD folks."