Michael Matheson Miller on Poverty, Inc | EconTalk | Library of Economics and Liberty

Well worth your time!


I just sent an email to SBU officials to have a screening on campus.

Here is the trailer:


POVERTY, INC. | Official Trailer from POVERTY, INC. | The Movie on Vimeo.

Michael Matheson Miller on Poverty, Inc | EconTalk | Library of Economics and Liberty: "Michael Matheson Miller of the Acton Institute and the Director of the documentary Poverty, Inc., talks with EconTalk

Finance and Economics podcasts


I have been using podcasts in class and I highly recommend that you do as well!  (or if you are no longer in class, enjoy and learn on your own!)

Here are some of my favorites that are all pre-approved for extra credit assignments:


Approved Podcasts (all also available on iTunes)




Planet Money.  So well done.  I have to remind myself they have a staff of people and a budget.  I do not have

Hedge Funds’ Results: Far From August - Barron's

Hedge Funds’ Results: Far From August - Barron's:

"Through mid-October, the HFR hedge fund index was about flat for the year, compared with a 1.7% price drop for the S&P 500. Once again, the same argument emerges for hedge funds, which usually charge a 2% management fee, plus 20% of any profits, as it did in August: We might not be doing great, but we’re doing better than long-only stockpickers.

Warren Buffett: Why hedge funds fail - MarketWatch

Warren Buffett: Why hedge funds fail - MarketWatch:

 "The fixed annual fees hedge funds charge are the real money-makers, not the contractual "bonuses" for performance. By extension, Buffett is making a statement about active managers of all kinds. They're not in the business of beating the market. They're in the business of attracting assets and that's all.


For example, a hedge fund managing

A Tax to Curb Excessive Trading Could Be a Boon to Returns - The New York Times

A Tax to Curb Excessive Trading Could Be a Boon to Returns - The New York Times:

Interesting piece--not sure a tax would solve the problems, but ???

"Why do people hurt themselves by trading in this manner? Is it like gambling, with its danger of addiction akin to cigarettes? Maybe a little. A different study Mr. Odean worked on showed that when Taiwan introduced a national lottery, trading on

Europe's airlines spruce up their jet fuel hedges | Reuters

Europe's airlines spruce up their jet fuel hedges | Reuters:

"With fuel accounting for 46 percent of Ryanair's (RYA.I) 2014 operating costs, 33 percent of British Airways' (ICAG.L) and 21.5 percent of Lufthansa's (LHAG.DE), price fluctuations can seriously impact company profits. To reduce price-fluctuation risk on projected operating costs, many airlines hedge a proportion of their future fuel

Unfriendly Tax-Friendly Funds - WSJ

Unfriendly Tax-Friendly Funds - WSJ:

"The major finding: In every year [that was studied], tax-managed funds on average failed to save their investors more money on taxes than their incremental expenses, or the difference between their operating costs and the lower fees of the other types of passively managed funds.

In other words, any tax savings were eaten up by fees.

"

'via Blog this'

Scientists Replicated 100 Psychology Studies, and Fewer Than Half Got the Same Results | Science | Smithsonian


This is troubling in many ways.  I would expect the numbers to be better in finance (especially the mathematical studies and modeling studies), but I have no doubt that the timing of studies matters and that the replication is often impossible (possibly in part since the original study influences the subjects/markets).



Scientists Replicated 100 Psychology Studies, and Fewer Than Half Got the

Bankrupt Family Firms by Massimo Massa, Alminas Zaldokas :: SSRN


For good or bad, family forms are often different.  In this article Massa and Zaldokas investigate these differences during a bankruptcy.



Bankrupt Family Firms by Massimo Massa, Alminas Zaldokas :: SSRN:



"Abstract:      We study the role of family ownership during the bankruptcy process. We argue that at times of distress family blockholders are better positioned to manage the firm and

More than Money: Venture Capitalists on Boards by Natee Amornsiripanitch, Paul A. Gompers, Yuhai Xuan :: SSRN

More than Money: Venture Capitalists on Boards by Natee Amornsiripanitch, Paul A. Gompers, Yuhai Xuan :: SSRN:

In the department of "this fits what I teach perfectly"/ (Confirmation bias?), a new paper shows again that venture capitalists bring more tot the table than just capital.  Their expertise and relationships also matter.

"... a prior relationship with the founder, lead investor status,

Rankings of Published Price-Earnings Ratios and Investor Attention by Jordan Moore :: SSRN


Rankings of Published Price-Earnings Ratios and Investor Attention by Jordan Moore :: SSRN:

Jordan Moore shows that PE Rankings (independent of the PE ratio itself) are associated with returns.  This is a cool finding. It is at least consistent a view that investors' screening practices impact their investment results.

A "look-in":

"Results of empirical tests provide preliminary support for

Politically Connections, Institutional Monitoring and Earnings Quality: Some Evidence from Malaysia by Tee Chwee Ming :: SSRN

Politically Connections, Institutional Monitoring and Earnings Quality: Some Evidence from Malaysia by Tee Chwee Ming :: SSRN:

Ming and Gal have an interesting study on the behavior and monitoring of politically connected firms in Malaysia.  There three main findings are that politically connected firms

have lower earnings quality
"are not subject to market discipline despite reporting poor

Corporate governance: the great debate – Director Magazine

Corporate governance: the great debate – Director Magazine:

"“Corporate governance is fast-changing and organic, and this is about stimulating a debate,” explains Oliver Parry, the IoD’s senior corporate governance adviser. “This report began with us working towards a good governance index of listed companies and evolved into a focus point for debate on the issue.” Companies of all sizes, says