Archive for April 21st, 2010

Dark side of independent directors

April 21, 2010

I came across this interesting paper by Rüdiger Fahlenbrach (Swiss Finance Institute), Angie Low (Nanyang Technological University) and Rene M. Stulz (Ohio State University).  The authors look at whether there is a dark side to independent directors. The authors find strong evidence that most of them quit when company is about to badly, restate earnings downwards etc. In other words, they leave when they are needed the most.

They explain the thought process in the paper:

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Germany’s role in Euro – an alternative proposal

April 21, 2010

Reading the various news items and blogposts on European problems, one gets a feeling how Germany did all things right and other EMU economies did things wrong. Alex Weber, Bundesbank President showed how Germany reformed its economy after joining EMU. Then there was a paper which compared fiscal frameworks in France and Germany and said Germany stuck to the fiscal rules whereas France followed more discretion.

Joerg Bibow an econ professor at Skidmore College provides a counterpoint. And a strong one at that. He blames Germany for the current crisis in EMU and says Germany is unfit for the Euro. He first begins saying how Germans are reacting to this crisis:

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History of global beauty products industry

April 21, 2010

It is amazing to see the kind of work people do. I came across this interview of HBS Business Shitory Professor Geoffrey Jones. He has written a book on the topic – Beauty Imagined: A History of the Global Beauty Industry.

In this book he traces the history of the $330 billion global beauty industry. It had some fascinating entrepreneurs throughout world – France, United States, Japan, India and Brazil etc and has quite a history. But little was known and this is where Jones’ study helps

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Bank of Canada removes conditional commitment

April 21, 2010

In its monetary policy meeting held y’day (20 April 2010), Bank of Canada maintained its policy rate (called as overnight rate) at 0.25%. Bank’s statement made an interesting point upfront:

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