articles 1 to 10 of 664
The 'Social' Credit Score: Separating the Data from the Noise
A new wave of financial services start-ups is taking advantage of the era of "Big Data" by using information culled from social networks to assess the creditworthiness of loan applicants, particularly those with spotty or limited credit histories. But Wharton experts warn that it may take years to figure out what type of social data is useful in creating accurate consumer profiles. They note that the tried-and-true method of gauging the quality of a person's credit -- the FICO score -- is far from obsolete.
From: June 05, 2013
Investing in Gold: Does It Stack Up?
Gold has a timeless allure -- especially if you worry about stock market volatility, inflation, a decay of ordinary currency or the collapse of civilization. Yet not everyone agrees that gold offers the safe haven its promoters describe. How reliable can demand be for a commodity that very few people actually need? What is the proper role for gold in an investment portfolio? Why has its price been falling?
From: May 22, 2013
Research Roundup: Foreign Diversification, Social Comparisons and Consumer Identity
Is investing in foreign stocks still a good strategy for offsetting risk and boosting returns in your portfolio? How do social comparisons impact the different dimensions of trust that people can have for each other? How can companies use emotional cues to convey a particular identity to consumers? Wharton professors Karen Lewis, Maurice Schweitzer and Patti Williams, respectively, examined these issues -- and what they mean for business and consumers -- in recent research papers.
From: May 08, 2013
Still an Elusive Goal: Measuring the Impact and Success of Microfinance
Is microfinance an effective tool for bringing people out of poverty? Despite initial success, microfinance institutions have been criticized by many studies for not delivering on their earlier promise. David Roodman, keynote speaker at the 2013 Penn Microfinance Conference, took a rigorous look at some of these studies, and concluded that the yardsticks for measuring success in the microfinance sector are more complex than people realize.
From: April 24, 2013
The Mysterious World of Bitcoin: Does It Have Staying Power?
Just what exactly should we make of Bitcoin? The once-obscure digital currency has had quite a ride, with the value of a single Bitcoin soaring from $13 in January to a peak of $237 by mid-April before collapsing to $83 in a day and then recovering to around $134. The roller-coaster ride has raised many questions. Is Bitcoin a legitimate alternative currency -- an online replacement for dollars and euros, as backers claim? Or are we witnessing a giant bubble waiting to burst?
From: April 24, 2013
CDOs Are Back: Will They Lead to Another Financial Crisis?
Collateralized debt obligations (CDOs), the bad boys of the financial crisis of 2008, are coming back. With the Federal Reserve committed to keeping interest rates low, investors are driving demand once again for these structured securities, which are riskier but provide more bang for the buck than safer bets such as Treasuries and investment-grade corporate bonds. Could CDOs wreak havoc again? According to Wharton faculty, the CDO is not an inherently flawed security, so long as it is priced correctly and properly diversifies risk.
From: April 10, 2013
How VCs Are Driving a Tech-valuation 'Feeding Frenzy'
The impressive user bases and buzz that have quickly built around some social media sites are sending the firms' valuations sky-rocketing into the billions of dollars, despite the fact that many of the businesses have yet to completely monetize themselves. But are the high valuations for Pinterest, Spotify, Airbnb and other sites a sign of a building tech bubble? Wharton experts say no, but note that a VC-led "feeding frenzy" for all things tech is creating a bull market for a certain type of start-up.
From: April 10, 2013
When Dividends Pay Dividends -- and When They Don't
January's fiscal cliff deal in Washington removed a cloud of uncertainty that has hovered over the tax rate on dividend payments for years. For that and other reasons -- including pressure from shareholders that companies stop sitting on record piles of cash -- U.S. firms are stepping up their dividend payments. But there is no clear answer to what role dividends should play in an investor's portfolio, or whether they are really the best use of company profits.
From: March 27, 2013
Global Currency Battles: A Waiting Disaster or a Win for All?
To many, Japan's recent moves to devalue the yen looked like the spark that could ignite a global currency war -- a series of competitive devaluations that, last century, helped plunge the world into the Great Depression. Until now, central bankers have been resisting the urge to politicize exchange rates. However, while currency skirmishes can be dangerous and require monitoring, they are also necessary for establishing equilibrium in markets and will help in the global economic recovery, some experts say.
From: March 13, 2013
Tightening the Noose: Can the SEC and Its New Chairman Be Tougher on Wall Street?
Although the SEC has always been the federal government's chief guardian of integrity in the financial markets, critics have a long list of grievances, including claims that the agency is too unsophisticated and too soft on wrongdoers. Assuming she is confirmed as the new SEC chairman, Mary Jo White will need almost superhuman skills to make the SEC more effective, some observers suggest.
From: March 13, 2013
