We should heed the lessons of the collapse of the ‘golden age’: a personal view
When I teach my macroeconomics class for the MBAs at INSEAD, I always discuss the Great Depression and the lecture ends on an optimistic tone with a simple statement: “The Great Depression will never happen again”. I firmly believed this because there is a widespread consensus that the Great Depression was a result of a sequence of policy mistakes. Economists have learned what policies should be applied to avoid the Great Depression.
Unfortunately, I have to revise my optimism now.
Personal view: Welcome, ‘Stateholder’
The amount of government capital injected into the so-called “private economy” since mid-2008 is unprecedented. The United States and United Kingdom led the way, but many other countries drifted into the same uncharted waters. So now what?
Why are we constantly surprised by the emergence of crises such as the current financial meltdown, and what are the lessons that we can apply when tackling these?
The illusion of control: dancing with chance
Looking back, it may seem obvious that there was insufficient risk management in the financial industry. In a new book called ‘Dance with chance, making luck work for you’ authors Spyros Makridakis, Robin Hogarth and Anil Gaba suggest that while there are events that you can’t anticipate, there are better ways of dealing with risk.
SME financing: small businesses struggle to survive the downturn
When it comes to securing financial support, entrepreneur Jack Ma, chairman and CEO of China’s Alibaba Group, has this advice for small and medium-sized enterprises: don’t rely on the government and the banks; rely instead on your family and friends.
Social entrepreneurship emerging in India but needs are massive
Social entrepreneurship in India has progressed significantly over the last decade. More and more people are using entrepreneurial skills in building sustainable enterprises for profit and non-profit to effect change in India, says Deval Sanghavi, a former investment banker and now president of Dasra. Based in Mumbai, Dasra is a non-profit organisation which bridges the gap between those investing in social change and those spearheading the changes.
Entrepreneurship: Riding rapid growth in India and China
INSEAD Affiliate Professor of Entrepreneurship and Family Enterprise Patrick Turner examines the development of entrepreneurship in the two Asian giants.
Buybacks are back: strategy pays off with returns of 103.5 per cent in first year
In April 2009 we published a list of 24 stocks on the INSEAD Knowledge website (see Table 1). The stocks were chosen on the basis of the strategy outlined in our paper ( The Nature and Persistence of Buyback Anomalies, Review of Financial Studies, 2009), which is a more refined implementation of buyback investing, first proposed by Ikenberry, Lakonishok and Vermaelen (Market underreaction to open market repurchases, Journal of Financial Economics, 1995). The basic strategy is to invest in US com
The pursuit of value
It’s all too easy, if you have the upper hand in negotiations – whether it be through information asymmetry or generally a more favourable position -- to make full use of a power play in negotiations to get what you want, with the winner taking all and the loser walking away empty-handed, says INSEAD Professor Horacio Falcao. But instead, negotiators should be looking to develop ‘win-win’ strategies that allow all parties to capture some of the value, or at least feel that they were bein
Measuring the effectiveness of corporate governance
Trust is the foundation of sustainable development. As the world continues to get smaller, our mutual interdependence increases and we all need to be able to mobilise the resources and goodwill of others to achieve success. That can only be achieved through gaining their trust. Therefore, the ability to gain the trust of global financial markets and of all the stakeholders in the value chain is becoming the key to success.
Credit ratings: buyer beware
“Investors tend to take credit ratings at face value and rely on them too heavily.” So says ESSEC Economics Professor Patricia Langohr, who with her father, INSEAD Finance and Banking Professor Herwig Langohr, has written a book called 'The rating agencies and their credit ratings'.
Microsoft's Courtois: Using technology to tackle climate change
Tackling climate change for Europe is 'an incredible opportunity to innovate and compete with the rest of the world.' That's the view of Microsoft International President Jean-Philippe Courtois. Technology can help by linking entrepreneurs to academics, venture capitalists and big business, Courtois says.
The Esperion Story: Biotech Success and Rebirth
The Lundquist Center for Entrepreneurship kicks off its new Distinguished Lecture Series with Dr. Roger Newton, President and CEO of Esperion Therapeutics and co-discoverer of Lipitor, the most prescribed cholesterol-lowering medication in the world. Dr. Newton discusses his ongoing efforts to commercialize cardiovascular treatments and his approach to securing capital and talent under difficult environmental conditions. [...]
The Merck Orchestra: using Mendelssohn to teach leadership
Ranging in size anywhere from 80 to 100 musicians, a symphony orchestra not only provides a magnificent sound, but an engaging illustration of how leadership works. As pharmaceutical company Merck has discovered, watching an orchestra rehearse is an invaluable lesson in corporate management.
The price of perception
How much is Tiger Woods worth to an advertiser? What about George Clooney? What is the value of Facebook or Bebo? The answers are all different, but they all come down to perception.
The brand is the business
Today more than half of the total stock market value of corporations lies in intangible assets such as brands The brand is the business. This statement by Shelly Lazarus, chairman and CEO of Ogilvy & Mather Worldwide at the World Effie Festival 2008, sums up why brand building is important for companies. In this climate of the brand imperative, advertising gurus converged on Singapore for the conference which celebrates advertising effectiveness.
Wired in: who leads the networking world?
Scandinavian countries are in the top ten of The Networked Readiness Index 2009-2010, part of the Global Information Technology Report published by INSEAD and the World Economic Forum, now in its ninth edition.
Secrets of virtual success
How do you manage a team across borders and time zones? Start by tearing up your old management rule book.
Communicating your way to the top
Good communication skills outrank other core business competencies as the number one skill for corporate recruiters looking to hire MBA graduates. That rather surprising conclusion comes not from communications specialists, but from an organisation that has all the relevant data at its fingertips, The Graduate Management Admission Council (GMAC), which runs GMAT testing for MBA applicants.
Terrorism in Asia: still a threat
When Noordin Mohammad Top, the chief suspect in July’s suicide bomb attacks on luxury hotels in Jakarta was killed during a police raid in Central Java in September, the feeling of relief in Indonesia and Southeast Asia was almost palpable.