When considering giving money to humanitarian crises people often donate in response to events that grab their immediate emotions, according to a recent study by researchers at the University of Colorado Boulder and Dresden University of Technology in Germany. (more…)
Economists have long suspected that one reason developing countries struggle to emerge from poverty is that they lack robust financial sectors, especially when compared to wealthier nations. (more…)
In its third quarterly report of 2011, the UCLA Anderson Forecast says the outlook for the nation’s economy is “far worse” than it was just three months ago.
Considering the weak, revised data for the first half of the year, the forecast calls for average gross domestic product growth of just 0.9 percent on average for the five quarters — this year’s four and the first quarter of 2012.
However, Forecast economists remain steadfast in their assertion that the U.S. is not currently in a recession, nor is there a recession in the forecast through 2013. (more…)
*Two studies by a UA business professor examine the hiring of CEOs, finding that new CEOs make better decisions when their self image is tied to the firm and that “strategic noise” can soften market response to a new hire.*
Two new papers co-authored by assistant professor of management Steven Boivie at the University of Arizona uncover novel facets of CEO and firm performance.
The first of the papers, out now in the Academy of Management Journal, finds a new remedy to the CEO agency problem. Instead of trying to design incentives and controls to keep corporate leaders acting in the best interest of the company, Boivie and his co-authors demonstrate that boards should try to hire leaders who strongly identify with the company itself. (more…)
ANN ARBOR, Mich.—Banks that received federal bailout money ended up approving riskier loans and shifting capital toward risky investments after getting government help, say University of Michigan researchers.
In a new study on risk-taking by banks that received funds from the Troubled Asset Relief Program, finance professors Ran Duchin and Denis Sosyura of Michigan’s Ross School of Business found that the overall risk level of TARP banks increased 10 percent. Further, these banks were no more likely to issue loans, overall, than non-TARP banks, in contrast to the declared objective of the federal program to increase lending. (more…)
The U.S. Geological Survey (USGS) estimates at least 1 million metric tonnes of rare earth element resources within the Khanneshin carbonatite in Helmand Province, Afghanistan. This estimate comes from a 2009-2011 USGS study funded by the Department of Defense’s Task Force for Business and Stability Operations (TFBSO). (more…)
MU study finds executives with shared responsibilities succeed and provide value to shareholders
COLUMBIA, Mo. – Many believe that two corporate heads are not better than one. However, a University of Missouri researcher has found that more companies have co-CEOs than previously though and that having two people in the senior leadership position is actually very successful for businesses. (more…)
*Saving motives a major factor in increased household savings*
COLUMBIA, Mo. – With the global economy in a state of unrest, saving money seems to be an obvious strategy for households to protect themselves. But are global households saving enough? Researchers at the University of Missouri have compared savings habits of households from two of the world’s most powerful economies: China and the United States. Rui Yao, an assistant professor in the personal financial planning department in the College of Human Environmental Sciences at the University of Missouri, found that urban Chinese households, on average, save much more than American households. She says the difference stems from saving motives.
“Saving is one of the critical tools that households utilize to achieve financial goals and to improve financial well-being,” Yao said. “By looking at saving motives for households in each country, we hope to explain the difference in saving rates across these two countries.” (more…)
