Creditors of Distressed Companies Seek Disclosures

Creditors of Distressed Companies Seek Disclosures

EMILY GLAZER

Jan. 5, 2014 6:42 p.m. ET

Creditors of distressed companies have taken on a new role: transparency advocates. Bondholders and other creditors of companies close to bankruptcy are pushing the firms to disclose heaps of information after confidential talks with the distressed outfits stall or end. Their goal: to be able to trade free from accusations that they are using inside information not accessible to others. Read more of this post

Concerns grow for future of Tel Aviv exchange

Last updated: January 6, 2014 5:12 pm

Concerns grow for future of Tel Aviv exchange

By John Reed in Jerusalem

Plans by Israel’s Delek Group to list shares abroad have added to longstanding concerns for the future of the Tel Aviv stock exchange, following similar moves by other companies. Read more of this post

Companies on Guard for New Legal Pitfalls; Cybercrime, Labor Rules, Financial Penalties Add to General Counsels’ Concerns

Companies on Guard for New Legal Pitfalls

Cybercrime, Labor Rules, Financial Penalties Add to General Counsels’ Concerns

JENNIFER SMITH

Jan. 5, 2014 8:17 p.m. ET

Top legal officers at many large companies are preparing for stepped-up scrutiny of their operations by both regulators and private litigants as they head into 2014. Among their concerns: staying up to speed on wage-and-hour rules and anticorruption laws, while guarding against possible data-security breaches. Read more of this post

Central Banks Split on Stimulus in 2014 as Fed Tapers

Central Banks Split on Stimulus in 2014 as Fed Tapers

The united stimulus front of central banks is starting to splinter as 2014 dawns. The Federal Reserve — soon to be led by Janet Yellen, who is poised for confirmation by the Senate today — begins pulling back on its quantitative easing amid stronger U.S. growth, and the Bank of England is trying to cool its housing market. The European Central Bank and Bank of Japan lean toward more monetary action to fight weak inflation. The ECB and BOE both hold policy meetings this week. Read more of this post

The world’s biggest economies will need to refinance $7.43 trillion of sovereign debt in 2014 as bond yields begin to climb from record lows, threatening to raise borrowing costs while nations struggle to bring down elevated budget deficits.

Bond Tab for Biggest Economies Seen at $7.43 Trillion for 2014

The world’s biggest economies will need to refinance $7.43 trillion of sovereign debt in 2014 as bond yields begin to climb from record lows, threatening to raise borrowing costs while nations struggle to bring down elevated budget deficits. Read more of this post

Berkshire Stakes Name on Realty Business Buffett Barely Noticed

Berkshire Stakes Name on Realty Business Buffett Barely Noticed

Berkshire Hathaway Inc. (BRK/A)’s foray into the home-brokerage arena 14 years ago was almost an afterthought. Today, Warren Buffett’s company is staking its name on the business. Read more of this post

Bankers Pitching Avoidance Advice as Activists Amass Record Cash

Bankers Pitching Avoidance Advice as Activists Amass Record Cash

Activist investors determined to shake up the way companies do business are amassing record cash for their campaigns. Now investment banks are advising clients how to anticipate and thwart such vocal investors before they even show up. Read more of this post

Activist Investors Gain in M&A Push; Shareholders Make Their Power Felt; Firms Review Operations, Make Pre-Emptive Moves

Activist Investors Gain in M&A Push

Shareholders Make Their Power Felt; Firms Review Operations, Make Pre-Emptive Moves

DANA MATTIOLI and DANA CIMILLUCA 

Updated Jan. 5, 2014 8:57 p.m. ET

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In a lackluster spell for mergers and acquisitions, activist investors have been a rare bright spot.Aggressive investors including Elliott Management and Barington Capital Group LP were a driving force behind a number of deals at big companies in 2013. According to FactSet SharkWatch, there were 10 instances in 2013 in which a U.S. company agreed to break itself up or sell or exit businesses after an investor pushed it to make such changes, even if the moves didn’t always satisfy the activist. Read more of this post

50 Years Later, War on Poverty Is a Mixed Bag

January 4, 2014

50 Years Later, War on Poverty Is a Mixed Bag

By ANNIE LOWREY

WASHINGTON — To many Americans, the war on poverty declared 50 years ago by President Lyndon B. Johnson has largely failed. The poverty rate has fallen only to 15 percent from 19 percent in two generations, and 46 million Americans live in households where the government considers their income scarcely adequate. Read more of this post

Bitcoin Tops $1,000 Again on Adoption by Zynga

Bitcoin Tops $1,000 Again on Adoption by Zynga

The price of Bitcoin surpassed $1,000 again on the Mt.Gox exchange, after Zynga Inc. (ZNGA) said it would start accepting the virtual currency for some of its online social games as the digital money becomes more widely used. Read more of this post

Dilbert creator Scott Adams: Read this if you want to be happy in 2014

Read this if you want to be happy in 2014

By Scott Adams, Published: January 3 | Updated: Saturday, January 4, 2:39 AM

I have no expertise whatsoever on the topic of happiness. But I do have a knack for observation and simplification. That’s what I do for my day job as the creator of Dilbert. Today — as some of you are already backtracking on those New Year’s resolutions — I’m going to strip out all of the mumbo-jumbo around the topic of happiness and tell you the simplest way to get some. You’re reading this in the business section because every bit of what follows on the topic of happiness is relevant to your career, especially if you have entrepreneurial ambitions. You’ll need all the good health, good looks and mental energy you can muster to influence people and survive the long hours. As luck would have it, the good habits that make you healthy and energetic help to make you happy at the same time, so it’s a double win.

As far as I can tell, people usually experience the sensation of happiness whenever they have both health and freedom. It’s a simple formula:

Happiness = Health + Freedom Read more of this post

The Path to Altruism: The desire to help others without consideration for ourselves is not just a noble ideal. Selflessness raises the quality and elevates the meaning of our lives, and that of our descendants; in fact, our very survival may even d

MATTHIEU RICARD

Matthieu Ricard, a French Buddhist monk who resides at Shechen Monastery in Nepal, holds a doctorate in molecular genetics and runs 130 humanitarian projects through his organization Karuna-Shechen.

JAN 3, 2014

The Path to Altruism

SHECHEN, NEPAL – “Cooperation,” the Harvard University biologist Martin Nowak has written, is “the architect of creativity throughout evolution, from cells to multicellular creatures to anthills to villages to cities.” As mankind now tries to solve new, global challenges, we must also find new ways to cooperate. The basis for this cooperation must be altruism. Read more of this post

An Investor’s Recipe for Success in Japan: Investing in “owner-operator” stocks can pay off nicely

SATURDAY, JANUARY 4, 2014

An Investor’s Recipe for Success in Japan

By LESLIE P. NORTON | MORE ARTICLES BY AUTHOR

Investing in “owner-operator” stocks can pay off nicely.

Google “Japanese housewife” and you get a page of X-rated links. That flagrant disrespect contrasts with the attitude toward women evident at Cookpad, Japan’s largest recipe-sharing outfit. Cookpad came public in 2009, 12 years after it was founded by Akimitsu Sano. Members submit recipes and vote on which are the best. It has become a huge hit; more than 80% of Japanese women in their 20s and 30s visit the site. “You get positive reinforcement. If you’re a housewife in Japan, you don’t get a lot of feedback,” says Ayako Weissman, who manages Asia funds for Horizon Kinetics in New York and owns Cookpad shares (ticker: 2193.Japan). In the year ended in March, the company’s earnings jumped 45% and its sales, 27%, driven by subscriptions and ads. No wonder the stock climbed about 145% in 2013. Read more of this post

Why Following the Winners Is for Losers; Last year’s top performers will likely lag behind the market in 2014.

Why Following the Winners Is for Losers

Last year’s top performers will likely lag behind the market in 2014.

MARK HULBERT

Updated Jan. 3, 2014 4:26 p.m. ET

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“Past performance is no guarantee of future results.”

This phrase, ubiquitous in the small print of financial products, often falls on deaf ears, according to Adam Reed, a finance professor at the University of North Carolina at Chapel Hill. “Investors have a tendency to rush into those funds that are at the top of the previous year’s performance rankings,” he says, citing numerous studies. Read more of this post

You Can’t Take It With You, but You Still Want More: A new study illustrates humans’ deeply rooted desire to earn more than they possibly can consume

January 4, 2014

You Can’t Take It With You, but You Still Want More

By MATT RICHTEL

All work and no play may just be a result of “mindless accumulation.”

So say scholars behind research, published in the journal Psychological Science in June, that shows a deeply rooted instinct to earn more than can possibly be consumed, even when this imbalance makes us unhappy. Read more of this post

Two Sides of the Coins; How has biotech finally boomed.

How biotech finally boomed

January 4, 2014

Test results: Sirtex, which is carrying out trials of a cancer treatment, has been a strong sharemarket performer and the focus of much investor interest.

Investing in biotech stocks is not for the faint-hearted – so much so that a lack of analyst depth and knowledge of the sector means that many professional fund managers try to avoid the sector altogether. But the collapse of the gold price and the ongoing implosion of the mining sector during the past year have prompted a steady flow of funds into the sector for the first time. Read more of this post

Even as a child, Jeff Bezos was a data-obsessed, workaholic genius

Even as a child, Jeff Bezos was a data-obsessed, workaholic genius

By Jonathan Wai January 3, 2014

Jonathan Wai is a researcher at the Duke University Talent Identification Program and Case Western Reserve University and writes “Finding the Next Einstein: Why Smart is Relative” for Psychology Today. Read more of this post

How to give your kids everything but a sense of entitlement

How to give your kids everything but a sense of entitlement

By Jenn Choi 4 hours ago

Jenn Choi is the mother of two children. On her site Toys Are Tools, she attempts to decipher what is really beneficial about high-quality educational toys. Kids who understand gratitude have better grades and are less likely to get depressed. This was the conclusion of a recent story in the Wall Street Journal that struck a chord with both my husband and me. Read more of this post

Today one in four people can expect to be struck with debilitating anxiety—why are we so stressed out?

Book Review: ‘My Age of Anxiety’ by Scott Stossel

Today one in four people can expect to be struck with debilitating anxiety—why are we so stressed out?

DANIEL AKST

Jan. 3, 2014 4:52 p.m. ET

Confronted with the problem of spirituality, William James argued that we should study “the acute religion of the few”—mystics, ascetics, spiritual revolutionaries—in order to shed light on “the chronic religion of the many.” Read more of this post

In the era of Facebook and “the friend zone,” are we forgetting the value of a true boon companion?

Book Review: ‘Friendship’ by A.C. Grayling

In the era of Facebook and “the friend zone,” are we forgetting the value of a true boon companion?

MICAH MATTIX

Jan. 3, 2014 4:50 p.m. ET

‘Friend’ is a much devalued word today. President Barack Obama recently referred to his “friends on the right”—with little apparent friendliness. The rest of us, thanks to Facebook, are “friends” with people we have never met. We speak of “friends with benefits” when we mean casual lovers, and of living in the “friend zone” when we mean being romantically frustrated. We refer to things and events as being “eco-friendly,” “user-friendly” or “business-friendly.” Read more of this post

Ascent of the Fallen Stars: Barron’s looks at the comeback of funds run by star managers who had stellar runs and then imploded. They discuss their strategies

SATURDAY, JANUARY 4, 2014

Ascent of the Fallen Stars

By LESLIE P. NORTON | MORE ARTICLES BY AUTHOR

Barron’s looks at the comeback of funds run by star managers who had stellar runs and then imploded. They discuss their strategies.

A surprising byproduct of this year’s rally was the comeback of the star manager: investors with long spells of brilliant performance, whose funds then spectacularly imploded. Consider Bill Miller, whose Legg Mason Opportunity Trus t (ticker: LMOPX) is staging a revival. Finally approaching the levels of 2007, Miller’s fund is up 67%, more than double the S&P 500’s gain. Miller is by no means alone: The same could be said of Ken Heebner’s CGM Focus fund (CGMFX) fund and Bruce Berkowitz’sFairholme fund (FAIRX), both of which are outpacing the index. Read more of this post

Sports Direct: the rise of Britain’s craziest retailer

Sports Direct: the rise of Britain’s craziest retailer

It may not be the prettiest retailer to look at, by Mike Ashley’s Sports Direct is in the FTSE 100 and worth more than £4bn

THUMB (2)

Mike Ashley still controls more than 60pc of Sports Direct and serves as executive deputy chairman Photo: Action Images

By Graham Ruddick

7:11PM GMT 02 Jan 2014

Sports Direct may well be the craziest business on the high street. Not only is it run by Mike Ashley, a pantomime villain in Newcastle, but it has publicly fallen out with one of its two biggest suppliers, employs the vast majority of its workers on zero-hour contracts and has stores that resemble a jumble sale. Read more of this post

Back to School: Fama, French Discuss Their Work; The top proponents of the efficient-market theory on stocks, behavioralists, and bubbles

SATURDAY, JANUARY 4, 2014

Back to School: Fama, French Discuss Their Work

By BEVERLY GOODMAN | MORE ARTICLES BY AUTHOR

The top proponents of the efficient-market theory on stocks, behavioralists, and bubbles.

Eugene Fama and Kenneth French have the easy banter of two brilliant minds that have collaborated and challenged each other for three decades. Fama, 74, teaches at the University of Chicago’s Booth School of Business. He just won the Nobel Prize for his theory of market efficiency, which, in 1965, argued that all available information was immediately incorporated into stock prices. In 1985, he teamed up with Ken French, who at the time also taught at Chicago, but is now a professor at Dartmouth College’s Tuck School of Business. Since then, “Fama and French” has been a catchphrase, shorthand for efficient markets and the model for investing that grew out of that theory. Read more of this post

Paul Stoneham, boss of hair straightener manufacturer ghd, has improved his company’s supply chain and volumised sales and doubled profits over the past four years

How ghd is getting ahead

ghd boss Paul Stoneham has improved his company’s supply chain and volumised sales

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Over the past four years Paul Stoneham has doubled profits at ghd Photo: Paul Grover

By Anna White

8:00PM GMT 04 Jan 2014

The hair straightener manufacturer ghd is barely recognisable after a makeover from its chief executive, Paul Stoneham, who will launch 20 new products over the next five years. Read more of this post

Beauty is Wealth: CEO Appearance and Shareholder Value

Beauty is Wealth: CEO Appearance and Shareholder Value

Joseph Taylor Halford University of Wisconsin Milwaukee

Scott H. C. Hsu University of Wisconsin – Milwaukee

November 20, 2013

Abstract: 
This paper examines whether and how the appearance of chief executives officers (CEOs) affects shareholder value. We obtain a Facial Attractiveness Index of 677 CEOs from the S&P 500 companies based on their facial geometry. CEOs with a higher Facial Attractiveness Index are associated with better stock returns around their first days on the job and higher acquirer returns upon acquisition announcements. To mitigate endogeneity concerns, we compare stock returns surrounding CEO television news events with stock returns surrounding a matched sample of news article events. CEOs’ Facial Attractiveness Index positively affects the stock returns on the television news date, but not around the news article date. The findings suggest that CEO appearance matters for shareholder value and provide an explanation why more attractive CEOs receive “beauty premiums” in their compensation.

Study finds ‘beautiful’ CEOs boost stock prices

University research says attractive chief executives are paid better and their shares perform well when the boss goes on television

Yahoo!’s Marissa Mayer was cited as an example of an attractive chief executive who has boosted share prices Photo: Rex Features Read more of this post

Up Close and Personal with Datuk Michael Tio, CEO of PKT Logistics Group Sdn Bhd

Updated: Saturday January 4, 2014 MYT 8:06:57 AM

Up Close and Personal with Datuk Michael Tio, CEO of PKT Logistics Group Sdn Bhd

BY EUGENE MAHALINGAM

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IT’S Tuesday. Datuk Michael Tio is in his office hard at work, ensuring that operations at PKT Logistics Group Sdn Bhd, a total logistics service provider, is running smoothly. The irony is that it’s also his birthday, and birthday greetings are already pouring in – by the minute.

In Tio’s office to one corner of the room hangs a large screen high-definition TV that’s hooked up to the Internet. Tio, a big social media advocate, replies his thousands of “fans” periodically as the greetings come pouring in, all during the course of this interview. Yes, PKT Logistics has its own Facebook page, and to date, has over 20,000 unique fans and growing. Read more of this post

How to win, lose and use money in a novel way

January 3, 2014 4:40 pm

How to win, lose and use money in a novel way

By John Sutherland

Golden-age writers offer enduring insights on unfairness, writes John Sutherland

Money – and the unfairness of its distribution – is much on our minds at the moment. Particularly, it boils the minds of the “sod politics” generation of those aged 20 to 30– the pinched generation, as David Willetts, the universities minister, has called it. Read more of this post

Encouraging entrepreneurs keeps companies forever young

January 2, 2014 4:02 pm

Encouraging entrepreneurs keeps companies forever young

By Kate Burgess

Encouraging an entrepreneurial spirit among staff is vital to keeping companies forever youthful, according to experts in business psychology. Contrary to common perception, entrepreneurs fit well in big corporate cultures, say the professors from University College London and Goldsmiths. Read more of this post

James Grant: The pioneers of market prediction taught us just how unpredictable the economy can be.

Book Review: ‘Fortune Tellers’ by Walter Friedman

The pioneers of market prediction taught us just how unpredictable the economy can be.

JAMES GRANT

Jan. 3, 2014 4:43 p.m. ET

The pioneers of the impossible business of predicting the financial future are the subject of Walter Friedman’s carefully wrought “Fortune Tellers.” Luckily, the book arrives in time for the New Year’s forecasting season. Read more of this post

How the ‘Wolf of Wall Street’ Really Did It

How the ‘Wolf of Wall Street’ Really Did It

The stock scam wasn’t emblematic of greed in the Financial District. These guys were just shrewd crooks working out of Long Island.

RONALD L. RUBIN

Jan. 3, 2014 6:40 p.m. ET

The swindler known as the “Wolf of Wall Street” taught me how to pull off his boiler-room fraud, down to the smallest details. Movie director Martin Scorsese’s lurid version of the tale now showing in multiplexes doesn’t capture how the scams really worked. Read more of this post