Experience Stern | News & Events

Excerpt from Reuters -- "The study by professors at New York University and McGill University in Montreal - which looked at informed trading activity in equity options before merger and acquisition announcements from January 1996 through December 2012 - showed 25 percent of the deals had some sort of unusual activity taking place 30 days before the deal announcement."

Excerpt from WAMC -- "Widely recognized for research on the intuitive foundations of morality, Jonathan Haidt, Social psychologist and Professor of Ethical Leadership at New York University’s Stern School of Business, uses moral psychology to understand hyper-partisanship in American politics."

Excerpt from Yahoo! Finance -- "A new academic study by researchers at NYU’s Stern School of Business and McGill University and detailed in the New York Times found persuasive evidence of trading on nonpublic information in one-quarter of merger-and-acquisition transactions from 1996 through 2012."

Excerpt from Bloomberg -- "'This may be the first time we have seen a large number of high profile M&A deals in a low-growth environment in which countries might argue that mergers that reduce local employment should be stopped,' said Roy Smith, a professor at New York University’s Stern School of Business."

Excerpt from CNBC -- "Damodaran also alluded to regulatory risk and insurance questions that still face the company. 'In a sense, what Uber does in most cities is already illegal. So, [for a $17 billion valuation] you almost have to have the assumption that at some point in time the regulations are going to change to allow them to operate big time,' he said. 'Because if they don't change, Uber's going to have to spend a lot of money fighting these regulations in city after city to get its business going.'"

Excerpt from The Hill -- "The U.S. government's decision to relinquish its historic role in Internet governance has set in motion a transition with no clear resolution. The Department of Commerce has asked the Internet Corporation for Assigned Names and Numbers (ICANN) to "convene stakeholders across the global Internet community to craft an appropriate transition plan," but where this will lead is anyone's guess. What is clear is that the transition provides both the opportunity for, and the necessity of, undertaking a fundamental reevaluation of ICANN's accountability mechanisms."

Excerpt from Entrepreneur -- "According to NYU professor and researcher Arun Sundararajan, the dress-rental company represents a key aspect of the sharing economy because it democratizes luxury. 'Sure, they're doing it for fashion, but they highlight the broader promise of the sharing economy: access without ownership,' he says."

Excerpt from Fortune -- "Roy Smith, a professor at NYU’s Stern School of Business, tells Fortune he is not surprised by Allergan’s release of the Morgan Stanley e-mails. Smith believes such tactics have the potential to garner Allergan a more attractive offer from Valeant, or even another buyer. 'If it causes some doubt among the Allergan shareholders that might be receiving this, then that’s not so bad,' he says."

Excerpt from CNBC -- "And if a small investor does get taken, so to speak, in a volatile IPO, then there's no one to really blame but the investor, said Aswath Damodaran, a finance professor at the Stern School of Business at New York University. 'I don't see these online platforms as doing something that bankers don't do already. If they are going to attract small investors, and investors buy into their sales pitch, then that's a chance they take,' Damodaran said. 'If they want to play the game, let them play the game.'"

Excerpt from The New York Times -- "A quarter of all public company deals may involve some kind of insider trading, according to the study by two professors at the Stern School of Business at New York University and one professor from McGill University. The study, perhaps the most detailed and exhaustive of its kind, examined hundreds of transactions from 1996 through the end of 2012. The professors examined stock option movements — when an investor buys an option to acquire a stock in the future at a set price — as a way of determining whether unusual activity took place in the 30 days before a deal’s announcement."

Excerpt from VoxEU -- "In Giglio, Maggiori, and Stroebel (2014), we provide direct tests for the presence of infinitely-lived bubbles. We exploit a unique feature of residential housing markets in the UK and Singapore, where property ownership takes the form of either very long-term leaseholds or freeholds."

Excerpt from CCTV -- "I'm looking to the examples of Paris and Amsterdam where Airbnb did face trouble a couple of years ago, but... through open dialogue with the regulators, with the city mayors, with the officials, they've come to sort of an understanding that this is, in fact, good for the city's economy, and they've put together a new regulatory framework that is inclusive of Airbnb and... brings the hosts under the legal umbrella."

Excerpt from Livemint -- "Joel Hasbrouck and Gideon Saar, in a paper published by the Journal of Financial Markets, wrote that low-latency activity (read HFT) improves traditional market quality measures such as spreads, depth and volatility and that they need not work to the detriment of long-term investors."

Excerpt from NPR -- "'When it comes to moral judgments,' [Haidt] says, 'we think we are scientists discovering the truth, but actually we are lawyers arguing for positions we arrived at by other means.'"

Excerpt from Bloomberg Businessweek -- "On one of our first days on the road, we talked to a bowling alley owner who was doing an excellent job of using the Spence Signaling model, which says that potential employees may want to 'signal' their qualifications by taking some action (education, for example) that sets them apart from the masses. Economists love this model—Michael Spence won the Nobel Prize for it—and it gets presented to students in many MBA economics and human resources classes."

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?"

The 7th Annual Conference of the Society for Financial Econometrics (SoFiE) will be held in Toronto at the University of Toronto’s Rotman School of Management from June 11 to 13, 2014.

Excerpt from Fortune -- "College is an excellent investment. We need to make sure that college is affordable and we need to be very clear about the kinds of college education that generate returns and those that don't."

Excerpt from MetroMBA -- "Dean Peter Henry of the Stern School of Business met with 37 part-time MBAs from East China Normal University (ECNU) as part of their NYU Stern Custom Program: East China Normal University (ECNU) International Enterprise Management Elite Program. The two-week program integrated high-end NYU Stern courses in global strategy, marketing, finance and operations, and visits with practitioners. Students gained insights on the current global corporate landscape, studied how international companies are operated and managed, and explored ways for Chinese companies to expand globally."

Excerpt from Entrepreneur -- "Success as an entrepreneur is 'less about the idea and more about the person,' Blecharczyk told an audience at a conference on the sharing economy at New York University’s Stern School of Business last week. 'All along the way, people said, "No, this isn’t going to work, don’t do this."'"

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."