In Sync: Why Stocks in Some Markets Move Together

When asked to predict activity in the stock market, J.P. Morgan replied that stock prices would fluctuate. Modern finance theory ascribes meaning to these fluctuations. The stocks of successful, well-run, or lucky companies rise. Those of unsuccessful, misgoverned, or unlucky companies fall. While portfolio managers view the volatility of individual stocks as a problem to be overcome through diversification, corporate executives watch their stocks rise … [ Read more ]

Another Great Depression?

Just after the nation’s founding, Alexander Hamilton took on a banking crisis with eerie parallels to today’s,

The Business of Business Education

Some critics charge that business schools are too academic and theoretical. But the research and mindset that they incubate have powerful real-world applications.

To Guide or Not to Guide

An investigation shows that investors suffer when firms stop giving quarterly earnings guidance.

The Diamond of Sustainable Growth

A study of history yields important clues about what helps economies enjoy sustained economic growth.

The Triumph of 1914

A new book argues that the origins of American financial dominance can be traced to a bold decision to close the New York Stock Exchange for more than four months.

All Systems Go

Capitalism comes in many blends and varieties around the globe. Which flavor is most effective at promoting economic growth?

Market Forces

It may be tempting to blame greedy CEOs and lazy boards for runaway executive pay. But a study shows top executives’ salaries are rising in direct proportion to top companies’ size and value.

Editor’s Note: as with almost all articles on executive compensation, this one assumes an efficient market for executive talent, which is an assumption I personally disagree with. Feel free to disagree by … [ Read more ]

A Penny Saved

Ever wonder why soap retails for $1.99 instead of $2.00? Behind this prevalent feature of retail gimmickry lies some sound psychology.

Jack Welch

The core or the center has three real jobs: people development, the resource allocation of people and dollars, and the transfer of intellectual capital between businesses.

Command and Control?

In most companies, management tries to shape employee behavior through a system of incentives and sanctions. But creating an environment that encourages self-regulation of behavior may be a more effective way to ensure that everybody follows the rules.

Automation’s Next Wave

In recent years, productivity-enhancing information technology has wrought significant changes in global labor markets. But the process may just be getting started.

Hot Off The Press

During a corporate crisis, the media can aggravate an already difficult situation. But by employing effective media relations, leaders can guide their companies safely through the storm.

Larry Bossidy

Larry Bossidy has led three Fortune 100 companies. After graduating from Colgate University in 1957 with a B.A. in Economics, he joined General Electric. In a 34-year career at GE, he served in a number of executive and financial positions, and was named vice chairman and executive officer of General Electric Company in 1984. In 1991, he became CEO of manufacturer AlliedSignal and engineered a … [ Read more ]

What’s a Stock Worth?

In a world where investors are inundated with advertisements for the latest and best ways to value stocks, it is easy to see why so many are overwhelmed by the choice in models and confused about their merits. It is worth noting, in the midst of all the hype, that valuation today is fundamentally not that different from valuation 20 or even 50 years ago. … [ Read more ]

Debunking the Myth of the Older Consumer

Advertisers pay a premium to reach Generation Xers. The question is why…

Editor’s Note: this article is part of an entire STERNBusiness issue, written back in 1999 – you can find this article on page 22; the other articles are all focused on the entertainment industry which may be of interest to you but the articles themselves are of little learning value…

The Brave New World of Telework

The advent of portable computing and the Internet has rapidly opened up possibilities for a new mode of work: teleworking. This new workstyle is more flexible and dynamic than telecommuting, which has typically simply meant working from home. Under telework, employees are based wherever their work happens to be.

But the growth of telework is a double-edged sword. The upside? Employees are able to work … [ Read more ]

Brand New or Brand Old: What History Teaches Us About the Endurance of Brands

“History is bunk” – Henry Ford

In general, most marketing experts have agreed with Ford’s conclusion. While some researchers have advocated using historical or longitudinal approaches to study marketing phenomena, others have dismissed the vast field of history as inherently subjective and hopelessly unscientific.

Banking on International Financial Stability

In their search for the root causes of international financial meltdowns, politicians and bureaucrats have been looking in the wrong places. The best defense against economic crises is good, solid banks.