When they are wrong about quarterly earnings forecasts, analysts may stubbornly stick to their erroneous views, a tendency that might contribute to market bubbles and busts, according to research coauthored by John Beshears of the Stanford Graduate School of Business.
The 2008 turmoil in world oil prices was not caused by an imbalance of supply and demand, argues Professor Kenneth Singleton of the Stanford Graduate School of Business. Instead there was an "economically and statistically significant effect of investor flows on futures prices."
When it comes to gift giving, most people are simply not paying enough attention to what others want says Professor Frank Flynn. They miss the boat by ignoring direct requests, wrongly assuming that going a different route will be seen as more thoughtful than something the recipient specifically requested.
Eliminating sales quotas boosts company profits says Professor Harikesh Nair. In one case, the new sales compensation plan without quotas resulted in a 9% improvement in overall revenues, which translates to about $1 million of incremental revenues per month.
Text of Letter Published in Financial Times
Text of Letter Published in Financial Times
(View the letter as it appears in the Financial Times; subscription required to access)
August 2, 2011
Ask consumers to study the price of an expensive foreign car. Then ask them whether a "foreign product," such as a meal in an Italian restaurant, seems expensive. According to research coauthored by Christian Wheeler of the Stanford Graduate School of Business the idea that foreign is expensive may transfer from the car to other goods.
Originally published by Thomson Reuters-GRC, June 14, 2011.
Young companies that adopt structured systems to run their operations in their early years grow three times faster than competitors and have a lower rate of CEO turnover, according to an award-winning research paper.
