Tag Archives: balance sheet

Sam Bankman-Fried: The fall of a Crypto Robinhood

In May 2019 the MIT graduate Sam Bankman-Fried together with Gary Wang founded FTX cryptocurrency exchange headquartered in The Bahamas. Within years, sometime early this year, his net worth passed $26 billion. By the way he is just 30 years old, born March 6, 1992. (more…)

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Size Matters — Large CEO Signature Equals Small Performance

COLLEGE PARK, Md – The size of a CEO’s signature can reveal a lot about that leader and company success. A large, embellished signature signals a heavy narcissist and diminished firm performance, concludes a study of 400 CEO signatures by researchers in the University of Maryland’s Robert H. Smith School of Business.

“Despite prior findings showing risk-taking sometimes is good, our results show that risky behavior from these narcissistic CEOs generates negative, declining performance over the long term  especially in firms that are younger, small, and-or R&D-intensive,” says Smith School accounting professor and study leader Nick Seybert, who studies behavioral aspects of accounting. (more…)

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How the Big Three forgot Accounting 101

EAST LANSING, Mich. — The Big Three were so driven by short-term profits that they forgot – or ignored – basic accounting practices that could have guarded against production decisions with long-term damage, according to an award-winning study by Michigan State University and Maastricht University in the Netherlands.

Essentially, the domestic automakers built far more vehicles than they needed while failing to appropriately account for the costs of excess capacity or the damage the overproduction would have on their reputations. (more…)

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