Financial markets

The “boring” world of institutional investment is ripe with possibility.

The sector is a test case for how new technology will play out.

Research finds that these fees are an outsized source of revenue for banks in poor communities.

A distinctive brand is good for business, of course. But you’d be surprised how important it is to a firm’s overall performance. We studied how customer perceptions of brand differentiation related to stock price over the course of 11 years in 275 “monobrand” companies such as AT&T, Krispy Kreme Doughnuts, and Reebok. (Customer brand-perceptions data […]

A flurry of news can be very distracting.

To the list of reasons to resent Wall Street, now add another: It’s a wet blanket on innovation. A new study by Mary Benner of the Wharton School (published this year in Organization Science) examines the way securities analysts research and report on incumbent firms in industries undergoing disruptive change. She finds that analysts tend […]

Four approaches.

BlackRock’s CEO on the dangers of short-termism

Illegal? Maybe not, but many of today’s accounting moves are clearly aggressive. Shareholders—and their representatives on corporate boards—need to be aware of six danger zones.

Human judgment still matters deeply.

The clear method for understanding how price reflects the market's expectations.

Freshwater economists take notice: Greece is as saltwater as it gets.

The stock market isn't always rational; often it's swayed by superstitions. A case in point is the bump the market gets when Punxsutawney Phil doesn't...

Companies are increasingly paying for acquisitions with stock rather than cash. But both they and the companies they acquire need to understand just how big a difference that decision can make to the value shareholders will get from a deal.

The issues are structural.

A proposal.

The current credit crunch has added new urgency to discussions about redesigning the rules of the game for global capital markets. Clearly, risk management has lagged behind innovation in the financial system, and existing regulatory frameworks and institutions need to be updated to keep pace. But too often, proposals for reform reflect outdated thinking based […]

It's a distraction tactic, according to one study.

Not long ago I asked the officer of a regional investment banking firm why the price-earnings ratio for a small publicly held company was so low. “After all,” I said, “this company has the potential to grow since it’s in the dental equipment industry. It seems to me it warrants a high ratio.” “Don’t you […]

The key is to make a science of expecting the unexpected.