articles 1 to 15 of 662
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
Edible Economics: Making Food Choices Through an Economic Lens
Like other necessities of life, food is subject to the subtle and sometimes inscrutable workings of market forces. Yet food is also much more: Our experience of it is both sensual and symbolic, a rich crossroads of history, culture, family and memory. Tyler Cowen's new book, An Economist Gets Lunch: New Rules for Everyday Foodies, brings a set of simple economic principles to the everyday choices made by people who care about food. It presents a clear-eyed picture of how to go about finding good food value, often approaching the topic in a way that is highly personal and frequently anecdotal.
From: March 06, 2013
Michael Mauboussin on the 'Success Equation'
How do we know which of our successes and failures can be attributed to either skill or luck? That is the question that investment strategist Michael J. Mauboussin explores in his book The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing. Wharton management professor Adam M. Grant recently sat down with Mauboussin to talk about the paradox of skill, the conditions for luck and how to avoid overconfidence. (Video with transcript)
From: March 06, 2013
Kilkenomics: A Festival Where the 'Dismal Science' Meets Comedy
Economics is often called the "dismal science." For the past three years, though, an unusual event in Ireland has been trying in its own way to change that impression. Held in the scenic town of Kilkenny, Kilkenomics is an economic festival that brings economists, businesspeople and finance executives together with stand-up comics. The result is a highly irreverent but insightful dialog, according to the festival's co-founders, Richard Cook and David McWilliams. Knowledge@Wharton spoke with the people behind Kilkenomics to see what makes the festival tick.
From: February 27, 2013
Why Long-term Debt Solutions Require a Break from Sequestered Thinking
With the spotlight on U.S. budget cuts, a timely book looks at the unique nature of the country's debt and the options available to avoid hitting the debt ceiling. Is U.S. Government Debt Different? -- a collection of 15 articles published by the Wharton Financial Institutions Center -- is co-edited by Wharton finance professor Franklin Allen, who shares insights from the book with Knowledge@Wharton. (Video with transcript)
From: February 27, 2013
Jeremy Siegel on Why Stocks Are -- and Will Remain -- the Best Bet
Though stock market volatility continues to rattle investors' nerves, the future looks bright for equities in the U.S. and many emerging markets, according to Wharton finance professor Jeremy Siegel. In an interview with Knowledge@Wharton, Siegel says that investors should think about reducing their bond holdings, buying more stocks and keeping just enough cash for a rainy day and other liquidity needs. He also discusses the housing market and offers his take on where the stock market is headed for the rest of 2013. (Video with transcript)
From: February 27, 2013
Pressure Points: Where Tax Reform Can Be Most Effective
The deficit deal that averted the fiscal cliff crisis at the start of the year raised taxes on the wealthiest and postponed -- for two months -- government spending cuts that threatened to derail the economic recovery. But the problem remains: Spending far exceeds revenue. So what's to be done? Five Wharton faculty members offer their views.
From: February 13, 2013
A Bold New Direction for Japan's Economy
Newly elected Prime Minister Shinzo Abe wants to take Japan's economy in a daring new direction to end 20 years of stagnation and deflation. His policies resemble past efforts -- but with far more firepower behind them. That means even looser monetary policies and a sharp rise in government spending to boost demand. Some analysts say it's just the medicine Japan needs and, on the spending side at least, the opposite of what Europe and the U.S. are doing. But Wharton finance professor Franklin Allen, in an interview with Knowledge@Wharton, says the plan carries serious risks and could lead to a big meltdown. (Video with transcript)
From: February 13, 2013
