Chicago Booth Talks Suspect Stock Trading, and More – Chicago News

Stock Trading

Let’s explore some of the most interesting stories that have emerged from Chicago business schools this week.

Why Do Investors Seek out Stock Swindles? – Chicago Booth Blog

The University of Chicago Booth School of Business (the new number one business school in the country according to U.S. News) recently published new research that uncovers an unfortunate gambling problem among some German investors who “buy suspect stocks for the thrill of it, even when they know better.”

Booth Professor Christian Leuz collaborated with Leibniz University of Hanover’s Steffen Meyer, Humboldt University of Berlin’s Maximilian Muhn, Harvard’s Eugene Soltes, and Goethe University of Frankfurt’s Andreas Hackehtal on a new working paper entitled, “Who Falls Prey to the Wolf of Wall Street? Investor Participation in Market Manipulation,” which examines “the German stock market, asking who invests in these schemes and how often.”

“Of these investors, 6,569 individuals—nearly 6 percent of the sample—took part in pump-and-dump schemes, investing an average 11.4 percent of their portfolio’s overall value and sustaining an average loss of nearly 30 percent.”

Read more about the quintet’s stock trading research here.

2018 MBA Chile Immersion – Mendoza College of Business Blog

Students from the University of Notre Dame Mendoza College of Business recently embarked on a five-day study abroad trip to Santiago, Chile, where they “toured some of the most innovative and philanthropic local businesses.” In early March, the group paid a visit to fruit producer Vista Hermosa, based in the Central Zone of Chile (Melipilla). Vista Hermosa’s mission is to “produce good quality fruit and have control of it from its harvest until it is shipped to different markets.” The company gives “special emphasis to the care of the environment, protecting the native flora and fauna, as well as the efficient use of fertilizers and agrochemicals.” According to one student testimonial:

“Our visit consisted of a tour of both the farm and the packing plant to better understand the production and fruit export process. There is a small church on the farm grounds available for the employees who live on the farm. We were treated to fresh pears and cherries, the latter of which is one of the farms biggest exports.”

You can read more about the Mendoza’s Chilean itinerary here and watch the student’s day one diary of the trip below.

Trying to Be Persuasive? Here’s What You Are Likely DoingKellogg Insight

Northwestern University Kellogg School of Management professor of marketing Derek Rucker and associate professor of management and organizations Loran Nordgren recently published new research that attempts to offer a glimpse into how “people use language in persuasion.” The duo found that “participants’ language tends to become more emotional when they are motivated to persuade others to buy a product.” Rucker elaborates:

“The gravity of emotional language is hard to escape, even when you know the audience wants to hear a more cognitive appeal. We observe that people express more emotion even in categories where that might be odd and potentially less effective. When it comes to influence, emotion is arguably the earliest form of communication we have.”

Check out more of the duo’s research here.


About the Author

Jonathan Pfeffer

Jonathan Pfeffer joined the Clear Admit and MetroMBA teams in 2015 after spending several years as an arts/culture writer, editor, and radio producer. In addition to his role as contributing writer at MetroMBA and contributing editor at Clear Admit, he is co-founder and lead producer of the Clear Admit MBA Admissions Podcast. He holds a BA in Film/Video, Ethnomusicology, and Media Studies from Oberlin College.

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