Experience Stern | News & Events

Excerpt from Bloomberg TV -- "Underwriters have never had as much information on a stock before its gone public [as they did with Facebook] ... "

Excerpt from The New York Times Dealbook blog -- "'At $100 billion, everything has to go according to plan,' said Aswath Damodaran, a professor of finance at the New York University Stern School of Business. He thinks the company could be worth about a third less."

Excerpt from CNN -- "The real concern for everyone -- including regulators and taxpayers -- is not the level of pay handed out to executives, nor how profits in a company are divided between employees and shareholders, but rather, the incentives for risk-taking that bank pay apparently continues to create."

Excerpt from Project Syndicate -- "The Greek euro tragedy is reaching its final act: it is clear that either this year or next, Greece is highly likely to default on its debt and exit the euro zone."

Excerpt from NBC -- "'The ease of seeking sex partners through Craigslist's personal ads,' wrote Jason Chan and Anindya Ghose, 'has brought a culture of sexual openness to the younger generation not seen since the seventies.'"

Excerpt from Bloomberg -- "Individuals bought about 60 percent of the shares on sale in the IPO, Spain’s third-largest ever. Historically, about 30 percent of shares were sold to retail investors in IPOs, according to Alexander Ljungqvist, a finance professor at New York University’s Stern School of Business."

Excerpt from The Atlantic -- " ... a colleague recently sent me Xavier Gabaix and David Laibson's QJE paper 'Shrouded Attributes, Consumer Myopia, and Information Suppression in Competitive Markets.' The reason the paper is important is that last phrase about 'competitive markets.' It shows how all sorts of stuff we already knew could go on with monopolies can also occur under competition."

Excerpt from Portfolio -- "'If you can identify personal motivations and personal objectives, and you can integrate that into running your own business—that’s great. If you’re motivated by profit and want to start a million-dollar company and sell it off, that’s great too,' said Carr."

Excerpt from Bloomberg Businessweek -- "'The finance industry of 1900 was just as able as the finance industry of 2010 to produce loans, bonds, and stocks, and it was certainly doing it more cheaply,' says Thomas Phillippon. ... the 'finance industry’s share of [gross domestic product] is about 2 percentage points higher than it needs to be, and this would represent an annual misallocation of resources of about $280 billion for the U.S. alone.'"

Excerpt from the Next American City's Forefront -- "'The success or failure of the Urbanization Project doesn’t hinge on the success or failure of the Honduras experiment,' said Henry, who is already looking ahead to the opening of NYU Shanghai in 2013. 'The story in emerging markets is cities.' With twin campuses in both the Middle East and China, perhaps no business school is better positioned to lead the charge than Stern, with Romer in the vanguard chartering new ones. If the REDs are really a tool for imagining an urban future, then the one thing everyone involved wants to see — or fears — are dollar signs."

Excerpt from CFO Magazine -- "'In the knowledge economy,' wrote Baruch Lev, Stern School of Business professor of accounting and finance, in Measuring Business Excellence, a book he co-authored in 2004, 'differentiation has become a key success factor.'"

Excerpt from Barron's -- "Mattresses fit the private-equity profile because they had well-known brands with customer loyalty and ample cash flow to support large debt loads, says Roy C. Smith, a professor of entrepreneurship and finance at NYU Stern School of Business."

Excerpt from Bloomberg TV -- "There is a significant chance that things are not going to go well for Greece."

Excerpt from Financial Times -- "He refers to a broader study – 'Betting Against Beta' – by Andrea Frazzini and Lasse Hele Pedersen, in 2011, which looked at equity markets, government and corporate bonds and futures."

Excerpt from Gigaom -- "'I think the single biggest driver of risk for Facebook … comes down to ‘are they able to strike the right privacy balance?’,' [Sundararajan] told me during a recent interview. It’s kind of a chicken-and-egg problem: Facebook has to use and monetize consumer data into ad revenues to justify its lofty valuation, Sundararajan explained, but if it goes too far and turns off users, it risks losing those very users whose data it relies upon."

Excerpt from Bloomberg -- "'We think of JP Morgan as being one of the more systemic institutions because it is so big,' said Engle, who helped develop a model of systemic risk at the Stern school’s Volatility Institute. 'But because it is big, a loss like this is not going to bring it to its knees.'"

Excerpt from The New York Times -- "'I think the main factor holding long-term rates down now is very weak global economic growth, and I don’t see that changing soon,' [Damodaran] said. One indication that the world had truly recovered from the financial crisis would be a rise in 10-year Treasury yields to 4 percent, he said, but he did not see that prospect as imminent."

Excerpt from The Wall Street Journal -- People rush through experiences because they don't realize that slowing down consumption leads to more pleasure, a study [by Justin Kruger and co-authors] finds.

Excerpt from Financial Times -- "William Silber’s forthcoming biography of former US Federal Reserve chairman Paul Volcker will probably teach the median American reader more about macro-economics than Allan Meltzer’s multi-volume history of the Fed or Friedman and Schwartz’s Monetary History of the United States."

Excerpt from The Wall Street Journal -- "Aswath Damodaran, a finance professor at New York University and an expert on valuation, says Facebook probably is fairly valued at around $75 billion to $80 billion, assuming its revenues and earnings keep rising briskly and it can keep profit margins near 30%."

Excerpt from Bloomberg Businessweek -- " ... the only way the euro zone as a whole can stick to its inflation target is for the stronger countries, such as Germany, to permit inflation rates above the euro zone average. ... 'It’s simple arithmetic,' says Kermit Schoenholtz, director of the Center for Global Economy & Business at New York University’s Stern School of Business."

Excerpt from Bloomberg Businessweek -- "He may head France’s Socialist Party, but 'there is not a chance in the world that Hollande would try to implement old-fashioned socialism in France,' says Thomas Philippon, a French citizen and adviser to the Hollande campaign who is an economist at New York University’s Stern School of Business."

Excerpt from CFO Magazine -- "Economist Nouriel Roubini ... comments on Twitter that the result of the Greek election is 'much more serious than the French one as the former leads to chaos while Hollande will turn out to be a moderate.' Not only is Greece’s continuing membership in the European Union now 'at risk,' Roubini says, a 'negotiated exit' is the only option to restore growth in that country."

Excerpt from NPR -- "Paul Romer, an economist at NYU, came up with the idea: Establish a special zone in an impoverished country, and import the legal and political system from one or more rich countries."

Excerpt from Bloomberg -- "Lawrence White, an economics professor at New York University’s Stern School of Business, said it may be a long time before the two companies, which are now essentially paying interest to Treasury, can significantly reduce their debt."