Are Some Professions Less Honest Than Others? Bank On It, Researchers Find
New York Times - Nov 19, 2014 - As banking scandals have mounted over the past decade, some critics have suggested that the industry simply harbors a dishonest culture. Now, Alain Cohn and his colleagues have tested the idea.
Does Knowing You Are a Banker Make You More Dishonest?
The Wall Street Journal - Nov 21, 2014 - Does banking culture lead people to be more dishonest? A new study released today by Alain Cohn and his colleagues in Nature magazine attempted to answer that question and the results will likely be troubling to those who think the industry’s ethical troubles are overblown. Articles on this research also appeared in Discover Magazine, LA Times, PBS, NBC News, Reuters and the Associated Press.
What the Inequality Warriors Really Want
Wall Street Journal - Nov 21, 2014 - John Cochrane writes, "Confiscating wealth is ultimately about political power. Koch brothers, no. Public-employee unions, yes."
Study Suggests Banking Industry Breeds Dishonesty
TIME - Nov 21, 2014 - Bank employees are more likely to exhibit dishonesty when discussing their jobs, a new study by Alain Cohn and his colleagues found.
Is Dishonesty Endemic to Banking and Finance?
The New Yorker - Nov 21, 2014 - This finance industry culture interested Alain Cohn, Ernst Fehr, and Michel André Maréchal, who conducted an experiment to measure whether there is a link between the industry’s culture and its bad behavior.
Bankers Cheat In Experiment But Only After Being Reminded They Are Bankers
Forbes - Nov 19, 2014 - “Bankers have a very bad image,” said social scientist Alain Cohn of the University of Chicago. In surveys, “people think they are more dishonest than criminals.”
Bankers Are Cheating Cheaters Who Cheat
New York Magazine - Nov 21, 2014 - Alain Cohn (University of Chicago Booth School of Business postdoctoral scholar) and his colleagues found that bankers started cheating when prompted to remember that they were bankers.
What Do You Call a Banker Offered $200? A Liar
Bloomberg - Nov 19, 2014 - Bank employees, when primed to think about their finance-industry jobs, are more likely to cheat, Alain Cohn (a postdoctoral scholar at the University of Chicago) and his colleagues found in a study that tempted the employees with as much as $200.
Banking culture promotes cheating: Research
CNBC - Nov 21, 2014 - The business culture in the banking industry weakens the will to be honest, according to a new study by Alain Cohn and his colleagues, which states that a healthier attitude to the truth is crucial to restore the reputation of the sector.
Santelli Exchange: Deflation fears overblown?
CNBC (VIDEO) - Nov 24, 2014 - CNBC's Rick Santelli and John Cochrane, University of Chicago Business School professor, discuss the reason behind central bankers' making deflation fears the centerpiece of most of their arguments.
MEDIA OUTSIDE THE U.S.
Lying, cheating bankers
The Economist - Nov 21, 2014 - Banks say they are trying to stamp out dishonesty among their staff. Some now make employees attend ethics classes. Alain Cohen and his colleagues want bankers to take the financial equivalent of the Hippocratic Oath, doctors’ promise to “do no harm”. Articles on this research also appeared in The Daily Mail, The Guardian and the Independent.
Technology brings choice to MBA students
Financial Times - Nov 23, 2014 - Course Match, a possible alternative to the current MBA class auction system, was two years in development and based on theoretical research carried out by Chicago Booth professor Eric Budish.
Bankers have tendency to lie for financial gain, say scientists
Financial Times - Nov 19, 2014 - Alain Cohn and his colleagues used game playing experiments to show “that the prevailing culture in the banking industry weakens and undermines the honesty norm, implying that measures to re-establish an honest culture are very important."
An imperfect plan for fixing the next crisis
Financial Times - Nov 12, 2014 - A mass bail-in of bank capital could create distress in other parts of the financial system, among insurers and asset managers holding bonds that are swapped into equity. Randall Kroszner points out that moving losses around does not make them disappear.
Distance matters ... or not
Business Standard - Nov 24, 2014 - Pradeep Chintagunta writes, "In 'Indiana Jones and the Last Crusade,' Dr. Elsa Schneider cries out, 'I can reach it, I can reach it,' as she tries to grab the Holy Grail, before she falls to her death. Similarly, the success of companies such as Amazon had convinced pundits and other online retailers that they could indeed 'reach it,' and that it was distance that was dead in the age of the Internet."
Feedback must for goal pursuit
Business Standard - Nov 24, 2014 - Positive feedback is effective when it signals a boost in commitment whereas negative feedback is effective when it signals a lack of goal progress, finds a study, "How Positive and Negative Feedback Motivate Goal Pursuit" by Ayelet Fishbach.
Even Among Harvard Graduates, Women Fall Short of Their Work Expectations
New York Times - Nov 28, 2014 - Jobs for people with business degrees are some of the most inflexible, according to a study of University of Chicago Booth School of Business graduates by the economists Marianne Bertrand of the University of Chicago, and Claudia Goldin and Lawrence Katz, both of Harvard.
Measuring Car Sales by the Gallon
Wall Street Journal - Dec 01, 2014 - That doesn’t mean we fail to consider current circumstances; rather, we unrealistically extrapolate from them into the future. The most amusing example was documented by researchers (Devin Pope) at The University of Chicago’s Booth School of Business. They determined warm temperatures or sunny skies on a given day materially boosted sales of convertibles.
Walk This Way: Acting Happy Can Make It So
Wall Street Journal - Nov 17, 2014 - Research has found people can cheer themselves up in many little ways. Nicholas Epley's study, involving about 100 commuters, also found participants were surprised that talking to strangers made for a more positive commute experience.
Change the Holy Grail of the Mutual Fund Industry
U.S.News & World Report LP via Yahoo! News - Nov 25, 2014 - The Eugene Fama and Kenneth French study entitled, "Luck Versus Skill in the Cross-Section of Mutual Fund Returns," found that there was evidence of statistically significant skill in only 2 percent of fund managers.
The new threat: 'Racism without racists'
CNN.com - Nov 26, 2014 - As people talk about what the grand jury's decision in Ferguson means, researchers say it's time for Americans to update their language on racism to reflect what it has become and not what is used to be. A research study on racial profiling by Marianne Bertrand is mentioned.
China’s Challenge on Deposit Insurance: Create Risk but Not Panic
Wall Street Journal - Dec 01, 2014 - “The leaders understand that many property developers, natural-resource producers, as well as some exporters — due to weaker world demand — will be facing losses and these will affect banks and the financial system,” said Randall S. Kroszner, a professor at the University of Chicago’s Booth School of Business and a former Federal Reserve governor specializing in bank supervision.
The Good and the Bad of Small-Business Jobs
Wall Street Journal (blog) - Nov 19, 2014 - James Schrager writes, "The biggest advantage of working at a small business is being close to the front lines. The big disadvantage is that small businesses have no time to train you."
Credit Unions Top In Customer Satisfaction Among Financial Institutions
Bloomberg Businessweek - Nov 18, 2014 - The Chicago Booth/Kellogg School Financial Trust Index showed that consumers trust credit unions more than banks. The index showed trust in credit unions is 60% while trust in big banks is 30%.
Kroszner: PBOC Cutting Rates Makes Sense
Bloomberg TV - Nov 27, 2014 - Randall Kroszner, a professor at the University of Chicago's Booth School and a former Federal Reserve governor, comments on the PBOC's rate cut. He speaks with Bloomberg's Stephen Engle on "First Up."
The Swiss Gold Rush
U.S. News and World Report - Nov 28, 2014 - In 2012, when a panel of economists was asked by the Initiative on Global Markets whether a return to the gold standard would be good for prices or employment in the U.S., not a single one answered in the affirmative. “A gold standard regime would be a disaster for any large advanced economy. Love of the [gold standard] implies macroeconomic illiteracy,” replied Anil Kashyap of the University of Chicago. “Why tie to gold? Why not 1982 Bordeaux?” replied economist Richard Thaler, mocking the arbitrariness of the standard.
Do's and Don'ts of Convincing MBA Programs You're a Good Fit
U.S. News & World Report (blog) - Nov 21, 2014 - Focusing on fit is one of the most important elements of finding the right business school. This can seem like an abstract thing to determine at first glance. After all, many students assume they'd be just as happy at Harvard Business School as they would at University of Chicago's Booth School of Business or MIT Sloan School of Management.
40 under 40 Class of 2014
Crain's Chicago Business - Dec 01, 2014 - Everyone's got an opinion on whether the media industry is biased. University of Chicago economics professor Matthew Gentzkow actually studies the issue.
Brazil’s Central Bank Seen Raising Benchmark Rate Again
Wall Street Journal - Dec 02, 2014 - Expectations of tighter fiscal policies come from the naming of former treasury head Joaquim Levy as new finance minister. Mr. Levy was nominated last week and will take over from Guido Mantega, who has been in the job since 2006. Mr. Levy is a member of the University of Chicago Booth School of Business Global Advisory Board-Americas Cabinet.
President Dilma Rousseff imposes a market-friendly Levy on Brazil
The Financial Times - Dec 01, 2014 - The overarching challenge facing Joaquim Levy, a Chicago-trained PhD economist and former banker, is to provide Brazil with a durable credibility shock. Levy is a member of the University of Chicago Booth School of Business Global Advisory Board-Americas Cabinet.
New at the top: Chris Perrault is chief operating officer at Ethical Electric
The Washington Post - Nov 30, 2014 - Alumnus Chris Perrault has been appointed chief operating officer for Ethical Electric, a D.C.-based renewable energy company providing clean electricity to retail power customers in seven states and the District.
Genomic Vision@ Appoints David Del Bourgo as Head of Sales and Marketing
Bloomberg Businessweek - Nov 25, 2014 - Genomic Vision, a molecular diagnostics company that specializes in the development of diagnostic tests for genetic diseases and cancers using the DNA molecular combing process, today announces the appointment of alumnus David Del Bourgo as head of sales and marketing.
Dow to Add New Independent Directors to Its Board
Bloomberg Businessweek - Nov 21, 2014 - The Dow Chemical Company today announced it will add four new independent directors to its Board, including alumnus Mark Loughridge, former Chief Financial Officer of IBM.
The PrivateBank Adds New Specialty Focus on Technology Industry
Bloomberg Businessweek - Nov 19, 2014 - The PrivateBank today announced it has formed a new specialty group focused on technology companies and their venture capital investors, and has hired alumnus Josh Roberts to help drive this important industry vertical.
Masao Yoshikawa To Join Greenhill as Managing Director based in Tokyo
Bloomberg Businessweek - Nov 18, 2014 - Greenhill & Co., Inc., a leading independent investment bank, announced today that alumnus Masao Yoshikawa will join the firm in Tokyo as a managing director as of Dec. 1.
OCC Announces Kimberly McGarry as New Chief Financial Officer
Yahoo Finance - Nov 18, 2014 - Alumna Kimberly McGarry has joined OCC as senior vice president and chief financial officer.
Scott Swanson named chair at Adler Planetarium
Crain's Chicago Business - Nov 17, 2014 - Alumnus Scott Swanson, the president of PNC Bank in Illinois, has been named chair of the board of trustees of the Adler Planetarium.