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MYANMAR and the Myth of Cheap Land

by Aung Kyaw Myo, MBA ’13 Since 2011, the world has been closely watching a small nation in southeast Asia emerge from decades of economic sanctions and military rule. Formerly an outcast state, Myanmar appears to be on a steady path toward rehabilitation and economic development. The opportunities for foreign investment are plentiful in a country with a 2010 per-capita gross domestic product of $876.1 But the unique conditions on the ground may challenge basic assumptions about investing in emerging markets. Myanmar has only recently earned the label “emerging” after significant reforms, starting with the installation of a democratically elected…

Are Short-Sellers Really the Bad Guys?

by Joseph Engelberg, Faculty With crises come blame, and following the 2008 financial crisis, there has been plenty of blame laid at the feet of short-sellers. It did not take long for regulators to pass judgment on these traders. In the midst of the crisis, short-selling bans were implemented in the U.S., the U.K., Japan, Canada, Spain, Australia, France, Germany, Italy, Belgium, Greece, Ireland, the Netherlands, and South Korea. And around the world, the heavy scrutiny continues to this day. What is it about short-selling that attracts that level of condemnation? For starters, a short-seller in the stock market sells…

Unpacking the Golden Parachute

by Carlos Uribe, MBA ’12 At the Rady School of Management, certain professors tend to answer crucial questions with the response, “It depends.” This is an interesting approach, as it basically says, “Well, there’s no one cookie-cutter solution to any issue; no one answer solves all problems; and many factors have to be considered, weighed and accounted for.” It also implies that we should draw our optimal strategy from the goals and resources we have at hand. Different approaches to those two factors — goals and resources, that is — will render varying conclusions. As an example, dissatisfaction with the…

Executive Compensation in an Era of Fiscal Irresponsibility

The origins of the Dodd-Frank Reform Act by Berna Kamyar, J.D As the financial crisis of the late 2000s proceeded through its worst stages, numerous accounts emerged detailing the reluctance of executives to moderate their lavish pay packages. Despite hard times, boards of directors continued to approve highly lucrative payments for executives while paying little regard to the plights of rank-and-file workers. Professor Shivaram Rajgopal, a professor at the Goizueta Business School of Emory University whose research activities center on executive compensation, put the situation this way: “Look at Larry Ellison (CEO of Oracle). He earns so much money, does…