Securities
While financial statements, ratios, and market data are still important tools, McNichols warns investors that such data has become significantly less useful in predicting bankruptcy.
Corporate bankruptcies, like earthquakes, are rare events. But when they do occur, says Maureen F. McNichols of...
Article originally appeared in the Stanford Report on March 4, 2013.
If you get $10,000 to invest, where would you put it? Stocks? Bonds? A savings account? Your choice may be guided by more than your financial savvy. It could be in your genes.
New research shows a correlation between genetic...
Research shows that fair-value calculations provide a far more accurate indicator of a bank's risk of failure than calculations based largely on historical cost.
It has been four years since Wall Street and the banking industry imploded under the weight of mortgage-backed securities, but the...
"Allowing firms to focus on the risks they are in business to take, while hedging against risks that they are not in business to take, can add value."
Francisco Pérez-GonzálezAssistant Professor of finance, Stanford GSB
Financial derivatives have been in the doghouse of public opinion ever...
In 2007, Federal Reserve Chairman Ben Bernanke famously reassured Congress that the deepening crisis in subprime mortgages affected only a small part of the financial system and would be "contained."
We all know how that worked out. By September 2008, the panic had engulfed not only big banks and...
Six of the ten biggest corporate bankruptcies in history have occurred since late 2008 — and all ten of the top ten, if you include companies that escaped bankruptcy by being bailed out. The names are etched in our memories: Lehman Brothers, General Motors, Chrysler, A.I.G., Fannie Mae, and...
Debt, debt, and more debt. Four years after the financial crash of 2008, world banks continue to have enormous debts on their balance sheets, a time bomb that regulators, researchers, and bankers are still debating the best ways to defuse.
In mid-April, Moody’s, one of the most influential ratings...
STANFORD GRADUATE SCHOOL OF BUSINESS — By now, nearly everyone knows that the financial meltdown of 2007, and the subsequent recession, began with the collapse of the housing market and the subprime securities market, the funder of millions of mortgages.Understanding exactly what happened, and why...