tag:blogger.com,1999:blog-73323402026-03-23T02:35:04.062-04:00Finance News, Academic articles, and other things from FinanceProfessor.com. Remember Finance is not only important, but it is also fun!!!FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.comBlogger2506125tag:blogger.com,1999:blog-7332340.post-28547021345093265522017-06-22T00:20:00.001-04:002017-06-22T00:20:34.091-04:00

How I missed this for all these years is beyond me, but it fits my classes PERFECTLY!! When you have nothing to lose, you might as well take big risks!  See Galai and Masulis as well as very hail of Mary Pass ever, FedEx Saved From Bankruptcy With Blackjack Winnings - Business Insider: "When FedEx's funds dwindled to just $5,000, Smith realized he didn't have enough to fuel

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-37710737452459925682017-04-19T16:28:00.001-04:002017-04-19T16:28:20.266-04:00

Hey, stock analyst: Your bias is showing - MarketWatch: "...earnings surprises of firms headed by female, foreign or Democratic CEOs are systematically upward biased, the researchers write in their paper. In other words, because analysts have underestimated the CEOs who don’t belong to their in-group, those CEOs’ companies more often surprise the market when earnings are reported, boosting

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-62115030026303428752017-03-07T08:12:00.001-05:002017-03-07T08:12:18.692-05:00

great for class discussion from Barry Ritholtz: Excessive executive pay for plain dumb luck: Barry Ritholtz - Moneyweb: "You can place much of the blame on compensation consultants and the corporate boards that hire them. Boards are supposed to act on behalf of shareholders when they are considering the pay packages created by the former. But the relationships are riddled with conflicts that

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-85907175071289043572017-02-13T13:14:00.001-05:002017-02-13T13:14:08.722-05:00

Endowment Sweepstakes: How Tiny Houghton College Beat Harvard - The New York Times: "Compare the results with those of Houghton College, a liberal arts institution affiliated with the Wesleyan Church in the Genesee Valley in western New York. Houghton has just over a thousand students and an endowment of $46.4 million. Houghton emerged in the top quartile of all endowments, according to Nacubo,

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-18446823948167312252017-02-13T13:03:00.001-05:002017-02-13T13:03:39.932-05:00

An Ivy League professor who spent 4 months working in a South Bronx check-cashing store says we're getting it all wrong: "The three common reasons customers cited for using a check casher over a bank: cost, transparency, and service.  Lisa Servon couldn't kick the nagging feeling that the financial elite had it all wrong. The prevailing wisdom from bankers and policy makers went like this:

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-92162843382588445252017-02-03T08:58:00.001-05:002017-02-03T08:58:18.535-05:00

ASU Professor Debunks Stock-Market Myth | KJZZ: "The so-called “Weekend Effect” refers to the tendency of stock returns to be significantly lower on Mondays than the preceding Fridays. Some theories point to companies releasing bad news after the markets close on Fridays, leading to lower prices on Monday, but new research reveals the “Weekend Effect” hasn’t existed for years. " 'via Blog this'

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-8444630713015156312016-12-07T12:35:00.001-05:002016-12-07T12:35:17.028-05:00

Boeing Sweats Under Trump Spotlight as SoftBank Feels Warmth - Bloomberg Politics: "This is extraordinary,” said Mohan Tatikonda, a professor at Indiana University’s Kelley School of Business. “For a president to get involved at the level of spot locations, spot companies, spot plants, is I think unprecedented.” Stock Moves The president-elect’s moves had consequences for the market, with Boeing

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-28063165136300865852016-12-07T12:30:00.001-05:002016-12-07T12:30:09.217-05:00

Insider-Trading Prosecutions Backed by U.S. Supreme Court - Bloomberg Politics: "Ruling in its first insider-trading case in two decades, the justices unanimously said that people can be sent to prison for making trades even when the insider who provided the tip wasn’t trying to make money. The court said it’s enough if the insider gave the information as a gift to someone likely to trade on it."

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-23676492458402140512016-11-22T16:16:00.001-05:002016-11-23T15:32:18.228-05:00

Podcast episodes for Finance classes.  Primarily for my own classes, but useful in any finance class. For economics classes, here is a list I made as well. FOR A CORPORATE FINANCE class A mule trader (finance is not new): http://www.bloomberg.com/news/audio/2015-12-14/episode-6-meet-the-man-who-made-millions-trading-mules How finance has grown: http://www.bloomberg.com/news/audio/

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-8921641054528793412016-11-18T07:47:00.001-05:002016-11-18T07:47:40.583-05:00

A must read!! Yes a bit biased, but fascinating and telling.  The researchers rearranged the richest and poorest counties into "states" and then analyzed these new "states". The rich outlive the poor by up to 9.5 years in the United States, study says | News & Observer: "The poorest “state” was made up of actual counties from Alabama, Arkansas, Georgia, Illinois, Kentucky, Louisiana,

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-68446989150702302712016-11-15T10:25:00.002-05:002016-11-22T16:21:16.658-05:00

Here are some great podcast episodes for economic classes.  I use them (either reference them or make them available to my students).  Remember, my linking to them is not an endorsement of everything they say, but rather a way of getting us all to think about things a little differently) Economic Podcast Episodes * Why economics and politics don't mix: *  Introducing GDP:&

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-64747474658182103522016-10-27T08:38:00.001-04:002016-10-27T08:38:23.448-04:00

Just a great article from PIMCO: Black Monday Revisited: Lessons From 29 Years of Market History | PIMCO Blog: "It was 29 years ago this month that world equity markets experienced a meltdown that became known as Black Monday (or Black Tuesday in Asian time zones). On 19 October, the Dow Jones Industrial Average plunged 23%, its largest-ever one-day percentage decline. As equity and bond

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-44090661480293549012016-10-25T23:14:00.001-04:002016-10-25T23:14:42.004-04:00

Research: Index Funds Are Fueling Out-of-Whack CEO Pay Packages:  "We found that when firms in an industry are more commonly owned, top managers receive pay packages that are much less performance-sensitive. In other words, these managers are rewarded less for outperforming their competitors. This difference in compensation has a sizeable effect. In industries with little common ownership,

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-38101166821154031742016-10-24T11:41:00.001-04:002016-10-24T11:41:13.189-04:00

Shaking Up Boards Would Help Keep Corporations Honest - Hartford Courant: While a somewhat extreme view, there is much truth in this.  Read the whole article not just this reading-bite:  "Where do such directors come from? In U.S. companies they are typically chosen by shareholders, but in a system so rigged that it may be the closest Western analog to a Soviet election. The incumbent

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-27480391816741672672016-10-24T10:43:00.001-04:002016-10-24T10:43:34.354-04:00

99% of actively managed US equity funds underperform: Surprised only by the 99%, I expected closer to 95-97%....wow... "Amin Rajan, chief executive of Create Research, the consultancy, said: “These numbers are scary. Active managers need a root and branch look at their investment processes to retain their relevance in today’s surreal investment landscape.” According to the analysis, 99 per cent

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-88101240885002683642016-10-14T08:28:00.001-04:002016-10-14T08:28:29.147-04:00

NYU professor explains how to value tech stocks: "Paint the technology sector with the same brush at your own peril, warns a finance professor. "Older technology companies are behaving very different from the younger technology companies," said Aswath Damodaran, professor of finance at the Stern School of Business at New York Univer" 'via Blog this'

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-79091071760384793462016-09-29T15:04:00.001-04:002016-09-29T15:04:30.233-04:00

Swedroe: ‘Incredible Shrinking Alpha’ Continues | ETF.com: "Highlighting the problem of survivorship bias, over the five-year period, nearly 21% of domestic equity funds, 21% of global/international equity funds and 14% of fixed-income funds were merged or liquidated."'via Blog this'

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-2516762703646109042016-04-11T11:35:00.000-04:002016-04-11T11:39:49.100-04:00

The floor of the New York Stock Exchange. (Photo credit: Wikipedia) This is really cool. So most finance classes traditionally talk about how trading floors worked in the past.  You know the drill: open outcry, specialist, floor brokers, etc.  But trading has changed so much, that armed with that knowledge only one would barely recognize today's marketplace made up of many

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-32275034612954424152016-04-11T10:54:00.001-04:002016-04-11T10:54:39.432-04:00

How can financial inclusion improve the lives of poor people? | International Development Journalism competition | The Guardian: There are no easy answers here: "Can access to financial services, formal and informal help the poorest earn a living, grow their businesses and create new jobs, thereby pulling whole communities out of poverty? When the aim is to create jobs then what is more

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-31791679754679817312016-03-24T09:12:00.003-04:002016-03-24T09:12:52.779-04:00

Offers a fascinating look at CEO pay that notes the difficulty in determining exactly how (or why) the CEO is paid as (s)he is. A look in: "For researchers seeking to understand CEO pay, theopacity of some of these instruments is of practicalinterest. Salary and bonus payments are the leastopaque; they are just cash payments. But even withthese simple instruments, investors and

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-8547559810505499982016-03-16T09:09:00.000-04:002016-03-16T09:11:28.296-04:00

This is the podcast I was speaking about in class the other day:

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-41591816618274795602016-02-25T10:25:00.003-05:002016-02-25T10:25:22.012-05:00

I use this in class, so figured I might as well make it available to everyone.  We look at merger waves, and also some at premiums. https://helpified.com/paths/mergers-and-acquistions

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-69415475566048905462016-02-25T10:06:00.002-05:002016-02-25T10:17:40.683-05:00

I have been putting together quite a few Helpifed paths for my classes.  Anyone can use them, but this one is on a topic that most finance textbooks (and seemingly most introductory stats classes do not cover (or at least the students do not remember by the time they reach my classes) A look at Fat Tails: https://helpified.com/paths/fat-tails-a-look-at-non-normal-distributions

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-38270979416899666282015-12-30T13:12:00.001-05:002015-12-30T13:12:32.430-05:00

Well worth your time! I just sent an email to SBU officials to have a screening on campus. Here is the trailer: POVERTY, INC. | Official Trailer from POVERTY, INC. | The Movie on Vimeo. Michael Matheson Miller on Poverty, Inc | EconTalk | Library of Economics and Liberty: "Michael Matheson Miller of the Acton Institute and the Director of the documentary Poverty, Inc., talks with EconTalk

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0tag:blogger.com,1999:blog-7332340.post-33893055689885157222015-11-25T10:28:00.001-05:002016-01-21T00:33:53.725-05:00

I have been using podcasts in class and I highly recommend that you do as well!  (or if you are no longer in class, enjoy and learn on your own!) Here are some of my favorites that are all pre-approved for extra credit assignments: Approved Podcasts (all also available on iTunes) Planet Money.  So well done.  I have to remind myself they have a staff of people and a budget.

FinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.com0