News

When to Send an Investing Model into Retirement

Highlights the three-factor model of investment returns that was introduced by Kenneth French, the Roth Family Distinguished Professor of Finance, and his colleague Eugene Fama, Nobel Prize–winning University of Chicago economist, in an article that discusses when it’s time to retire a theory.

Dec 14, 2016

Algorithms Are Making Us Small-Minded

In his latest piece for "Syd Weighs In," Sydney Finkelstein examines the consequences of living in a world that is curated by the use of algorithms. "As the new year approaches, think of it this way: As algorithms and artificial intelligence become better at predicting our needs and narrowing our focus, our ability to adapt and keep learning new things may become crucial to our value as people—in business and in life," writes Finkelstein.

Dec 13, 2016

Fed Watch: What’s Ahead for Rates in 2017?

As a guest on Bloomberg’s “What’d You Miss?,” Peter Fisher, senior lecturer and senior fellow at the Center for Business, Government & Society, discusses the outlook for the Fed and the timing of the Fed rate hikes in 2017, the importance of monetary policy to investors, the impact of political risk on the markets, and the outlook for Japan's economy. "The fed is going to have to reflect that the economy is a littler firmer than it was in September, the labor market is a little tighter, and the inflation measures have moved a little further,” says Fisher.

Dec 12, 2016

Bending the Arc of History

Matthew Rees, senior fellow at the Center for Business, Government & Society, opines on the future of progress and innovation. Rees concludes that improving the state of human societies— such as a rise in well-being and living standards—isn’t easy to do. “It requires a mix of enlightened public policy and enterprising human capital, as well as social and political stability and an ability to adapt to new ideas,” writes Rees. “Throughout history, societies have struggled to get this recipe right, and even today all sorts of obstacles—from opioids to Aleppo—are potent reminders that progress is not preordained.”

Dec 12, 2016

Why Electric Cars Are Only as Clean as Their Power Supply

Cites the paper “Spatial and Temporal Heterogeneity of Marginal Emissions: Implications for Electric Cars and Other Electricity-Shifting Policies,” co-authored by Erin Mansur in an article about how electric car emission impact is highly dependent on how the electricity is sourced.

Dec 06, 2016

The Surprisingly Unequal Benefits of Electric Vehicles, Mapped

The Atlantic's "City Lab," cites the paper “Distributional Effects of Air Pollution from Electric Vehicle Adoption,” co-authored by Erin Mansur, the Revers Professor of Business Administration, in an article about whether electric-vehicles (EV) are truly better for the environment. “The co-authors mapped out the costs and benefits of EV adoption in terms of the emissions they put into the air—not only carbon dioxide, but also pollutants that affect local air quality, such as sulfur dioxide, nitrogen, particulate matter, and volatile organic compounds,” writes City Lab. “Unsurprisingly, the places with the greatest EV adoption rates got cleaner air as a result.”

Dec 05, 2016

Not All Immigrant Labor Is Cheap Labor

Cites the paper, “High-Skilled Immigration and the Rise of STEM Occupations in U.S. Employment,” co-authored by Dean Matthew Slaughter in an article challenging the narrative that visas let foreigners take Americans’ jobs at lower wages. “The study shows that the average foreign worker in science and technology jobs starts out making only slightly less than American-born workers—about 94 cents on the dollar,” writes The Atlantic. “But after working in the United States for five years, the average foreign STEM worker earns $1.04 for every dollar their American colleagues make.”

Nov 30, 2016

P Namperumalsamy: The Visionary Who Steers Aravind Eye Care

Quotes Vijay Govindarajan in a feature article about Aravind Eye Care’s assembly-line approach to surgery. “Aravind Eye Care operates with a social heart and a business brain,” says Govindarajan. “They have the heart of a non-profit and the brain of a for-profit, apply modern management methods to dramatically lower costs while delivering world-class healthcare.”

Nov 21, 2016

Here’s Why Military Veterans Are Flocking to Elite U.S. Business Schools

Quotes Punam Anand Keller about Tuck's Next Step: Transition to Business program, which is designed for veterans and elite athletes looking to make a move into the business world. “The goal is to help our participants focus strengths, translate experiences, and identify opportunities so they can land the excellent jobs they absolutely deserve,” says Keller.

Nov 21, 2016

Cyrus Mistry Fiasco: Acid Test for Brand Tata’s Business Basics

Quotes Vijay Govindarajan about the problems facing Tata Group after the controversial dismissal of Cyrus Mistry as chairman of Tata Sons Limited. "First, the Tata group is always known for management excellence despite being family-owned. That is why the current leadership crisis stands out as an anomaly," says Govindarajan. "Second, this incident raises fundamental issues of corporate governance that all Indian companies must address going forward. Third and perhaps the most important is the distraction this crisis is causing at a time when the Tata group has to contend with many challenges like Brexit or the most recent US elections that have cast globalization in a different light. The last thing they need is a crisis at the top."

Nov 18, 2016

Trump Allies Urge Fed to Cut Balance Sheet and Revive Credit

Quotes Peter Fisher about how the Fed should allow its balance sheet to shrink by not reinvesting the proceeds of debts it holds when they mature—encouraging banks to lend more. “He said outright asset sales by the Fed would not be a good idea now, given the steepening of the yield curve that has already taken place in the wake of Trump’s election victory,” writes Bloomberg.

Nov 15, 2016

The Scary Truth About Corporate Survival

Quotes Vijay Govindarajan about the working paper, “Strategy When Creative Destruction Accelerates,” co-authored with Anup Srivastava. Govindarajan and Srivastava show that organizations are failing faster than they used to as company assets shift from tangible to abstract. “Creative destruction has always been a force to be reckoned with, but in the physical world, the cycles were longer,” Govindarajan says. “In the technology-based sectors, the cycles have accelerated.”

Nov 15, 2016

An Uncertain Political Future for U.S. Trade Policy

As a guest on Marketplace, Dean Matthew Slaughter discusses how trade policies in America may shift amidst the outcome of the presidential election. “It’s been true for decades in America that whether we’ve had Republican or Democratic presidents and Congresses, there’s been a sufficient set of people in Washington that voice the argument for why trade—and globalization more broadly—do benefit America overall, on average,” explains Slaughter. “Those arguments still hold true in terms of the data, and yet for a set of reasons, the primary of which is so many people worrying about their jobs and their own personal income, for good reason, those arguments are not carrying the day.”

Nov 09, 2016

Doctor Strange Is Marvel’s Latest Box Office Hit

As a guest on Marketplace, Vijay Govindarajan comments on Disney’s acquisition of Marvel in light of the latest film, “Doctor Strange,” which dominated the weekend box office. “No, I was not familiar with Doctor Strange. This is the beauty of it,” said Govindarajan admiring a giant deal that proved many skeptics wrong. “When Disney acquired Marvel for four billion dollars people thought that was a bad move. People thought there’s nothing left in Marvel—there’s no juice in Marvel.”

Nov 07, 2016

International Trade Slows Despite Globalization Fears

As a guest on WNYC’s “The Takeaway,” Dean Matthew Slaughter discusses the topic of international trade and its effect on voters in the upcoming presidential election. “Voters care more about how they’re doing—how’s their job, how’s their pocketbook looking, and a sense of opportunity,” says Slaughter. “And I think the environment that we find ourselves in now is one where, both on the left and right in America and in a lot of other countries, people are very focused on the reality which is that greater trade and other forms of globalization don’t directly benefit every single worker, company and community. I think it’s those distributional challenges—especially in the United States—that are really coming to the fore.”

Nov 01, 2016

Ikea Strategy Ditches the Dream Home for the Daily Grind

Quotes Kevin Lane Keller about Ikea's new "We Help You Make It" advertising campaign and inclusive message, “No matter who you are, what you do, or how much you make, you can still make the dream yours.” Keller opines, “This is the reality. They're not trying to romanticize any of this stuff. They're sort of taking this more democratic view, this more down-to-earth view, talking about where people are."

Oct 30, 2016

Seventh Generation Says Corporate Buyout is a Chance to Take its Mission Global

As a guest on "VPR News," Paul Argenti comments about Unilever’s recent acquisition of the natural homecare company Seventh Generation. Argenti states that incorporating social and environmental goals into the company’s values is attractive to both customers and employees—especially millennials. “Your reputation is the most important asset that you have," says Argenti. "If you're avoiding getting into problems in the future by solving problems today, you're going to be a company that is stronger in the future."

Oct 26, 2016

Tata’s Shock Coup Follows Simmering Rift at India’s Biggest Firm

Quotes Vijay Govindarajan in an article about the controversial dismissal of Cyrus Mistry as chairman of Tata Sons Limited, the holding company of India’s largest conglomerate Tata Group. “The biggest challenge for an organization is planning for succession, especially following the tenure of a very successful CEO,” says Govindarajan. “The current leadership crisis is an unwanted distraction.”

Oct 26, 2016

Donald Trump’s Brand Takes a Hit From Sexual Assault Allegations and Lewd Video

Quotes Kevin Lane Keller about how the ugliest presidential race in modern history has tarnished the Trump name to such degree that it may jeopardize the future of his business enterprises. Keller says that some would-be customers may avoid patronizing Trump's business because of concerns about what other people may think. “All this negative press, the negative reactions from people, it’s got to hurt his brand,” says Keller. “They don’t want to have to apologize for staying at a Trump hotel or buying a Trump brand. And when you get into luxury, image matters a lot.”

Oct 22, 2016

Meet Dartmouth Tuck’s MBA Class of 2018

Quotes Patricia Harrison, senior associate director of admissions, in a feature article highlighting a dozen T’18 students. “While the students in Tuck’s class of 2018 are smart, accomplished and diverse, they’re so much more than what the stats reveal,” says Harrison. “In the short time that they’ve been on campus, we have noticed their humility and empathy in particular. They are open to ideas and experiences different than their own and seem acutely aware of how their actions impact others.” The article profiles the following students: Richard Asala, Michael Blanc, H. Holland Davis, Ramon Fuentebella, Jodine Gordon, Vedrana Greatorex, Daniel Marquez, Muyambi Muyambi, Rachel Phillips, Chethan Rao, Erica Toews, and Stephiney Xie.

Oct 21, 2016

Right Tech, Wrong Time

An opinion piece co-authored by Ron Adner examines the shifts in technology that disrupt businesses and industries and the importance of timing these transitions. “Few modern firms are untouched by the urgency of innovation,” says Adner. “But when it comes to strategizing for a revolution, the question of ‘whether’ often drowns out the question of ‘when.’”

Oct 20, 2016

Making Billions With One Belief: The Markets Can’t Be Beat

Cites research conducted by Kenneth French and his colleague Eugene Fama that shows stocks with smaller market capitalizations—including those trading at low prices relative to their asset values and those with above-average profitability—outperform in the long run.

Oct 20, 2016

Bringing Light to the Grey Gconomy

Cites research conducted by Rafael La Porta in an article about the impact that an informal economy versus a formal economy can have on a country due to tax losses. “In poor countries the average formal firm employs 126 people, compared with just four for informal ones, according to La Porta,” writes The Economist.

Oct 15, 2016

Pro: Samsung Can Survive Phone Crisis

As a guest on CNBC's “Power Lunch,” Paul Argenti discusses Samsung's Galaxy Note 7 crisis and where the company stands in terms of damage control. “I’m not worried about the company surviving, but the product is another story,” says Argenti.

Oct 11, 2016

Two Ways to Break into India’s Consumer Market

An opinion piece co-authored by Vijay Govindarajan about how multinational companies can enter the market in India by leveraging the county’s supply chain and taking advantage of its growing e-commerce. “Nimble global consumer companies looking for growth can accelerate their entry into India while mitigating their risks if they use one or both strategies,” writes Govindarajan.

Oct 10, 2016

Surveillance: Gross Says Job Report Won’t Bar Fed Rate Increase

As a guest on "Bloomberg Surveillance," Peter Fisher talks about the U.S. economy. "We wish we had more of an acceleration in this recovery. We wish we were doing better in some terms, but we're doing pretty well especially compared with the rest of the world—just looking at the level of our unemployment, the level of our GDP. It's disappointing, but it’s also better than the neighborhood, absolutely,” says Fisher. He also comments on the Fed targeting low-level volatility.

Oct 07, 2016

Vogel: Housing Bonds

In his latest VPR interview, John Vogel discusses how the solution to the housing problem in Vermont may be housing bonds—taking advantage of Vermont’s high credit rating and today’s incredibly low interest rates.

Oct 03, 2016

Why the Best Leaders Want Their Superstar Employees to Leave

Sydney Finkelstein explains how an organization can become more resilient, sustainable and successful over the long term by letting top performers leave. “To win big, we can no longer afford to keep our best talent to ourselves,” says Finkelstein. “We have to be willing to lose it. Our talent will be better off, and so will we.”

Oct 02, 2016

5 Ways Smart Leaders Ruin Companies

Cites research by Sydney Finkelstein, where him and his colleagues studied 51 of the business world’s most notorious failures—interviewing CEOs and people from all levels. “He and his team found that the poor decisions these smart leaders made were sometimes intentional and sometimes accidental, but they always followed a clear pattern of hubris that ensured even the most successful enterprise could be run into the ground,” writes Forbes.

Sep 27, 2016

Four Quotes from the First Clinton-Trump Debate, Explained

Emily Blanchard participates in an analysis of last night's presidential debate at Hofstra University. "Trade—together with technology—has undeniably reshaped the American labor market over the past decade, partly at the expense of middle class workers. But with the line about Chinese currency policy, Trump struck wide of the mark," says Blanchard.

Sep 27, 2016

What Happens When a Business Goes Before Congress

As a guest on CNBC's Power Lunch, Sydney Finkelstein discusses what it means to a company when it gets called to testify before Congress. “When you go to a Congressional testimony you know what’s happening, you know exactly what the playbook is going to look like,” says Finkelstein. “Therefore, show up and be ready with stuff you’ve thought about.”

Sep 22, 2016

How to Be a ‘Superboss’ (or Hire Like One)

As a guest on WNYC’s “Money Talking,” Sydney Finkelstein talks about what qualities make a boss a “superboss” and why their hiring practices can make for a better workplace. Finkelstein also addresses the question, “is a ‘superboss’ necessarily a ‘supermanager’?”

Sep 22, 2016

Make America Great Again—Invest in High-Skilled Immigrants

Cites the paper, “High-Skilled Immigration and the Rise of Stem Occupations in U.S. Employment,” co-authored by Dean Matthew Slaughter in an article about the importance of hiring high-skilled foreign workers for the growth of America. "In their analysis, economists Gordon H. Hanson and Matthew J. Slaughter found that foreign-born workers currently account for a 'disproportionate' share of specialists in the STEM fields, despite the relatively limited numbers of employee-sponsored (140,000) and H-1B (85,000) visas available to skilled workers within the current immigration system," writes Pacific Standard.

Sep 21, 2016

Peter Fisher: There Must Be Some Angst at Fed

As a guest on "Bloomberg Markets," Peter Fisher discusses how a divided Federal Reserve left its policy interest rate unchanged to await more evidence of progress toward its goals. “I think there is a bigger issue that they have to confront” says Fisher. “Are they getting ready for the next recession or are they going to try to normalize policy?”

Sep 21, 2016

It’s About Fed’s Path Not Policy: Peter Fisher

Peter Fisher discusses why Fed policy must be clarified. “They’re way too focused on tactics and not enough on strategy so we are always debating whether or not they are going to move 25 basis points, which isn’t that important,” says Fisher. “And we don’t seem to get a lot of focus or clarity around what the strategy is.”

Sep 19, 2016

RPT-Sensing Threat, UPS Plans to Expand Its 3D Printing Operations

Quotes Richard D'Aveni, Bakala Professor of Strategy, in an article about United Parcel Service's plans to expand its 3D printing service to Asia and Europe in an attempt to get ahead of a trend that could otherwise take away a portion of their business. "Why wait a day for a part to arrive (from UPS) when you'll be able to innovate six times a day on your own?" says D'Aveni. Via Reuters.

Sep 19, 2016