Experience Stern | News & Events

Excerpt from Crain's New York -- "'The role of elite business schools should be to identify those big issues that have material relevance in the world,' said Mr. Henry, 44. 'If you have a deep interest in finance, we can make you a far more effective allocator of capital and a more impactful professional.'"

Excerpt from Bloomberg -- "JPMorgan has been singled out by regulators with 'unprecedented aggressiveness,' NYU’s Smith said in an e-mail. 'Most of these settlements either would not have been necessary or would have been for much lesser amounts in Weill’s time.'”

Excerpt from Forbes -- "[Baumols' Cost Disease] is the idea that it’s much easier to improve productivity in some areas than it is in others. Specifically, Baumol is addressing the difficulty of improving labour productivity in services as against the ease with which it can be increased in manufacturing. It is this which tells us that we should expect health care and college costs to rise faster than general inflation because these are largely services provided by human labour."

Excerpt from CNBC -- "'If there is not an agreement, the resulting financial damage could even tip us into a recession,' especially because the economy is growing at a relatively paltry rate of 1.5 to 2 percent, the New York University economist said."

Excerpt from The Chicago Tribune -- "NYU's Sundararajan said consumers have clearly seen value in online services like Airbnb and Uber and regulators should create space for them. 'I'm not arguing that we should not have any regulation at all,' he said. 'But these are clearly things that people want and things that aren't inherently unsafe. So let's create a simple framework.'"

Excerpt from The New York Times -- "Aswath Damodaran, a professor of finance at the Stern School of Business at New York University, is among those who think that too many companies rely too heavily on the performance of their shares when computing executive compensation. 'I’m a great believer in markets, but sometimes we need more attention paid to what did this management do to the value of the company and less to what did this management do to the price of the stock,' he said. 'I would like to see compensation systems where managers are rewarded based on what kind of projects they are working on and how big their returns on invested capital are.'”

Excerpt from Forbes -- "To explore the new implications of this vastly improved evolutionary theory for business, we recently organized a one-day symposium at Stern titled 'Darwin’s Business: New Evolutionary Thinking About Cooperation, Groups, Firms and Societies.' The conference featured an international roster of experts on evolution, economics, and human nature."

Excerpt from Financial Times -- "We find that a significant determinant of an optimal asymptotic government debt or government debt-GDP ratio is how interest rate risks are correlated with risks to fundamentals that threaten to widen or narrow inequality in after-tax and after-transfer incomes."

Excerpt from The New York Times -- "I strongly recommend that the G.A.O. study the work of Professors Warburton, Anginer and Acharya and of Professors Kelly, Lustig and Van Nieuwerburgh carefully, while assessing the industry arguments with a great deal of skepticism."

Excerpt from Forbes -- "Haidt argues that the six intuitive foundations of morality are caring, fairness, liberty, loyalty, authority and sanctity. The traits of caring, fairness and liberty resonate with both liberals and conservatives. But liberals are ambivalent about notions of loyalty, authority and sanctity. One could argue this ambivalence undermines solid, decisive leadership and thus truly holds back societal progress."

Excerpt from Marketplace -- "White says Bernanke’s daring moves kept the economy from going off a cliff. At the same time, he says, Bernanke broke with convention to change the culture of the notoriously cryptic Fed, making it 'a more open, less mysterious place.'”

Excerpt from Scientific American -- "'A pervasive problem around the world is that city governments are not strong enough,' Romer said, citing the example of New York City seizing land from private property owners in 1811 to construct the present street grid. 'Very few city governments in the world can do what New York City did in 1811, and that's what is holding us back.'"

Excerpt from CNBC -- "Twitter's valuation is in the eye of the beholder, Aswath Damodaran of the New York University Stern School of Business said Tuesday. 'I really think it depends on what you call yourself. If you're a trader, then all bets are off. You're betting on price,' he said. 'If you're an investor and you think about value, I think at $20 billion, an awful lot has to go right for that $20 billion to be a break-even, forget about making money.'"

Excerpt from Slate -- "Curbing interest rates for certain classes of popular credit products could save consumers money (cheap credit) or it could merely lead people to be unable to access credit (like when price controls create supply shortages). Sumit Agarwal, Souphala Chomsisengphet, Neale Mahoney, and Johannes Stroebel look at one such regulation—the 2009 Credit Card Accountability Responsibility and Disclosure (CARD) Act—and find that it's saved people lots of money..."

Excerpt from Bloomberg -- "It is easy to be skeptical about disclosure requirements of this kind. Will consumers pay any attention? It turns out that many of them do so. Sumit Agarwal of the National University of Singapore (along with co-authors from the University of Chicago, New York University and the U.S. Treasury Department) finds that the consequence of the nudge was to reduce interest payments by $74 million a year."

Excerpt from The Wall Street Journal -- "Executives in the class will identify and challenge conceptual frameworks about products and pricing that have restricted their creativity and have kept them thinking about business the same way for years. For example, if a cellphone doesn't work, a traditional assumption would be that its battery needs to be recharged. Mr. Williams wants his students to reject traditional assumptions and think in terms of 'unreasonable provocation'—thoughts that will get creative juices flowing. A better question, he says, could be why a cellphone needs a battery at all."

Excerpt from Bloomberg TV -- "There's only really been one platform that I would argue has the most robust revenue model that's been able to charge their users, and that's LinkedIn. LinkedIn gets 53% of their revenue from the tools that recruiters use, 20% from people like you and me who want to InMail more people, and then 23% from advertising, so they're really the only platform that's been able to charge users."

Excerpt from Bloomberg -- “'Bernanke was suggesting in his own way that too much importance is given to gold, it’s too hyped,' said Nouriel Roubini, professor of economics and international business at New York University. 'Gold is not a currency.'”

Excerpt from Crain's New York -- "'It isn't possible to sustain the type of growth rate you see early on with startup companies, yet management grows up in an environment where they expect to,' said ­Jeffrey Carr, clinical professor of marketing and entrepreneurship at NYU Stern School of Business, noting that even big companies, such as Apple and Microsoft, can run into problems managing growth."

Excerpt from Seeking Alpha -- "If you are an investor or even a corporate manager, you may believe that these brand name rankings matter little, since all they do is parse the value of a company into its component parts. These rankings do, however, raise interesting questions about the power of a brand name and how it manifests itself in earnings power and in value."

Excerpt from The Economist -- "A 2013 study found that publicly quoted companies where executive compensation is linked to the stockmarket invest considerably less than private firms and are less responsive to new investment opportunities. The authors state that 'our results are most consistent with the view that public firms’ investment decisions are affected by managerial short-termism.'”

Excerpt from WIRED -- "Watson is a thinking machine that needs supercomputers at the moment (this isn’t a theoretical requirement). Google is a retrieval machine with a scalable architecture of massive amounts of simple processors and storage. Together, these IT competencies would provide a formidable combination of a machine that can remember, know, and think. Interestingly, IBM has the capability—despite the reality that IT-based competencies are not easy to replicate—to assemble a “good enough” version of such a search engine. And while Google could probably build a Watson, it would take years to do so, and Google isn’t used to playing catch-up (not to mention this kind of approach goes against its DNA for how it thinks about search)."

Excerpt from Financial Times -- "The correlations between the shocks are time varying and modeled using the dynamic conditional correlation model of Engle (2002)."

Excerpt from Bloomberg TV -- "I think these guys [at Twitter] have carved out a really nice niche for themselves, and again to go from 30 million to half a billion [in revenue] in three years? This is an impressive company. One of the things to mention: 2,000 employees. They've been hiring 50 people a month for the last three years."

Excerpt from PBS -- "I'm like Warren Buffett. I don't buy something if I don't understand it. And for all I know, the person who created Bitcoins would be like King Henry VIII in Britain, who decided suddenly to double the amount of British money units around, and there was a big inflation."