Experience Stern | News & Events

Excerpt from Bloomberg Markets -- "The researchers looked specifically at the difference between what the banks paid creditors for borrowing money and what investors earned from owning U.S. government debt. They subtracted that number from the same measurement for smaller banks and, taking into account differences in risk unrelated to bank size, determined the value of the implicit government subsidy."

Excerpt from The Wall Street Journal -- "Three economists—Enrichetta Ravina of Columbia Business School, Luis Viceira of Harvard Business School and Ingo Walter of New York University's Stern School of Business—analyzed the holdings and trades of more than 260 ultrawealthy families between 2000 and 2009. The data came from an unnamed private company that consolidates account information for the wealthy."

Excerpt from Nightly Business Report -- "Every director gets one vote so at the end of the day splitting the roles doesn't change that dynamic and sometimes it's appropriate to split the roles if there's a transition in the CEO role or if the company is going through a certain event in its life -- a transaction, or new leadership -- there are specific instances where splitting the role can be very effective and helpful in arranging or facilitating a transition, but really it is not one size fits all. I think one of the good elements of our governance system is that we allow for different cases and different contexts to respond to the needs of the particular situation."

Excerpt from Bloomberg -- "I think one of the biggest problems that they're facing is that this introduction of the product has kind of damaged and threatened the golden goose within the organization, which is this Windows PC operating system business."

Excerpt from CNN -- "If American and Western consumers want to help people get out of poverty, it is important for them to have a presence in countries like Bangladesh, according to Posner. 'The reality is there are four-million people, mostly young women, working in these factories in Bangladesh. They're often the only breadwinners in their families.'”

Excerpt from Fortune -- "'Markets look happy, but what is going on in the general economy is not,' says Roubini. 'We are stuck in a two-year boom and bust cycle. That's what I am most worried about.'"

Excerpt from Harvard Gazette -- "In research described earlier this year in the Personality and Social Psychology Bulletin, Elinor Amit, a College Fellow in psychology, along with two collaborators, Cheryl Wakslak and Yaacov Trope, showed that people increasingly prefer to communicate verbally (versus visually) with people who are distant (versus close) — socially, geographically, or temporally."

Excerpt from CNBC -- "Stocks aren't in bubble territory as yet, but a 'huge rally in risk assets' over the next two years puts markets in danger of a big crash, renowned economist Nouriel Roubini said on Tuesday."

Excerpt from TIME -- "NYU professor Nouriel Roubini, who correctly anticipated the 2008 financial crisis, has argued that Bernanke’s policies are failing to help the economy and are instead fueling a stock market bubble that will end in a financial crisis."

Excerpt from Financial Times -- "Apple’s actions can be explained by two features of the tax code: its treatment of foreign income and its bias towards debt over equity."

Excerpt from Bloomberg -- "A so-called resolution authority for the repo market, to orderly liquidate repurchase agreements and prevent fire sales of underlying assets during periods of financial stress, was proposed as a way to reduce risks in March 2012 by New York University Stern School of Business professors Viral Acharya and T. Sabri Oncu in a paper presented at a Federal Reserve conference in Washington."

Excerpt from Financial News -- "Of all the massive regulatory reforms adopted since 2008, Basel III is the main effort to constrain systemic risk. But considering the size of the markets and the major banks that dominate them, it may not be enough."

Excerpt from The Daily Beast -- "According to Joseph Porac, George Daly Professor in business leadership at New York University’s Stern School of Business, superstar CEOs—executives who have amassed reputations, awards, and piles of press clippings—are on the shortest leashes. Over the course of their careers, about 15 percent of CEOs will be fired or pushed out."

Excerpt from Fast Company -- "'This lack of a delete button on the Internet is in fact a significant issue,' Schmidt said. 'There are times when erasure [of data] is the right thing...and there are times when it is inappropriate. How do we decide? We have to have that debate now.'"

Excerpt from The Wall Street Journal -- "In Equity Risk Premiums (ERP): Determinants, Estimation and Implications–The 2013 Edition, Aswath Damodaran, professor of finance at New York University, found that ERPs varied widely in short periods. In fact, implied ERPs ranged from 4.2% to a high value of 8% between September and late November 2008."

Excerpt from CNBC -- "As content has gone digital, Sundararajan said, content creators and publishers have changed the rules, which used to be guided by copyright law. Now they're determined by the endless contracts consumers never read but must assent to before buying a 99-cent tune. 'These contracts are more restrictive—they're really circumventing copyright law, and consumers don't seem to notice.'"

Excerpt from The Week -- "Social labels aren't born dangerous. There's nothing inherently problematic about labeling a person 'right-handed' or 'black' or 'working class,' but those labels are harmful to the extent that they become associated with meaningful character traits."

Excerpt from The New York Times -- "Mr. Posner said Disney’s move — apparel represents less than a fifth of the nearly $40 billion in annual sales of its licensed products — might encourage other Western brands to leave Bangladesh. 'Now other companies feel they have a green light.'”

Excerpt from Strategy + Business -- "How do firms that are breaking the rules try to cover up their tracks? According to a recent study, companies that are systematically involved in price fixing employ a variety of accounting and governance practices designed to throw off regulators and avoid liability."

Excerpt from The New York Times -- "Ask the workers in those factories, mostly young women, what they want. They will tell you two things. First, they want to keep their jobs, desperately. Bangladesh is one of the poorest countries in the world, and the rapid expansion of the garment sector in recent years has put food on the table for many, lifting families out of extreme poverty. Second, they want to be treated with dignity, which begins with going to work in a safe and secure environment."

Excerpt from The New York Times -- “'Income is increasingly difficult to nail down,' said Aswath Damodaran, a finance professor at New York University. 'It is like nailing jelly to the wall. And the problem is only going to get worse rather than better.'”

Excerpt from Yahoo! Voices -- "The book The Righteous Mind by Jonathan Haidt moves into the psychology of political parties and political persuasion. People naturally accuse the other parties of not thinking clearly and following logic. Each views the other as duped! Yet in his work, he points out that since there are strong logical arguments that follow most parties, these rational choices are based on their intuition."

Excerpt from Bloomberg Businessweek -- "New York University business professor David Yermack routinely teaches students how executives and major corporations have managed to skirt the law. By exposing students to questionable legal and ethical behavior, he says, the goal is to help them 'formulate their own response when they encounter similar situations.'”

Excerpt from CNBC -- "The exit from the Fed's QE and zero-interest-rate policies will be treacherous: Exiting too fast will crash the real economy, while exiting too slowly will first create a huge bubble and then crash the financial system. If the exit cannot be navigated successfully, a dovish Fed is more likely to blow bubbles."

Excerpt from the Harvard Business Review -- "The future of social influence marketing will depend on robust analytics to increase our understanding of what drives behavioral change. Mistaking any of the myriad confounding factors for influence can lead to costly mistakes—in marketing strategy and in public policy."