Finance
By Anat Admati and Martin Hellwig
An edited version of the following text appeared as an op-ed in Financial Times, June 3, 2011.
Full text version appeared online in "Martin Wolf's Economists' Forum," FT.com, June 6, 2011.
Bankers on both sides of the Atlantic are lobbying furiously against...
STANFORD GRADUATE SCHOOL OF BUSINESS—How should companies price goods that they ship between their own divisions correlated companies?
Internationally, that quandary confronts the producers of nearly half of all U.S. imported goods, a third of all U.S. exports, and a huge proportion of global...
STANFORD GRADUATE SCHOOL OF BUSINESS—For years, return on investment (ROI) and related financial accounting ratios have been widely used as key measures of business profitability. But what three accounting professors from the Stanford Graduate School of Business recently discovered was that,...
STANFORD GRADUATE SCHOOL OF BUSINESS—More companies than ever before are issuing convertible bonds as a way to raise capital. According to conventional wisdom, these hybrids—part bond, part stock—attract investors because they promise the security of a bond, plus the option to convert to equity...
STANFORD GRADUATE SCHOOL OF BUSINESS—Entrepreneurial activities are prone to failure. Limited resources, lack of market history, and inability to widely communicate product quality make it difficult for most startups to survive. Prior research indicates that venture capital funding is the most...
STANFORD GRADUATE SCHOOL OF BUSINESS — There's good news for supporters of the Waxman-Markey climate bill from Professor Stefan Reichelstein. Although passed by the U.S. House of Representatives in June 2009, the bill is expected to spur a contentious debate in the Senate starting this fall....
STANFORD GRADUATE SCHOOL OF BUSINESS—Since World War II, financial institutions have come to own a far greater proportion of stocks than private households have. Just after the war, individual citizens owned 90% of the stock market; by 2006, they owned only 30%. And the trend is not restricted...
STANFORD GRADUATE SCHOOL OF BUSINESS—Over the past decade, companies increasingly have been called on to create more value for their owners. Led by aggressive institutional shareholders like the California Public Employees Retirement System and fueled by widely published reports of overcompensated...
STANFORD GRADUATE SCHOOL OF BUSINESS—You might think that the head of state of a global power would be an unlikely individual to jump into a technical debate on accounting standards. Yet in 2003 French President Jacques Chirac did just that—taking an active role in voicing concern regarding the...
STANFORD GRADUATE SCHOOL OF BUSINESS—Major accounting fraud aside, there are few business activities the news media seem to delight in exposing as much as excessive executive compensation. But recent research shows that these types of headlines might not make all that much difference in how...