Apple has just warned investors of a pre-Christmas profits fall. Competition in the tablet market is putting pressure on Apple's gross margins. Notably, Noah Smith has an interesting post which compares Sony and Apple. I like this comparison as I can remember Sony as the Apple of its day. Like Apple, Sony's rise to prominence was with a portable music device - the Sony Walkman (for my younger readers, the Sony Walkman played these things known as cassettes). Like Apple, Sony had an iconic and visionary founder in Akio Morita. Noah Smith suggests that Sony's decline was partially due to the death of Morita in 1999. Will post-Jobs Apple go the same way?
Daron Acemoglu, Simon Johnson, Amir Kermani, James Kwak and Todd Mitton have written a paper on whether firms connected to Timothy Geithner benefited from these connections. They do so by looking at how stocks of these firms reacted to the announcement that he was a nominee for Treasury Secretary in November 2008. They find that there were large abnormal returns for connected firms. Below is the paper's abstract and the full paper is available here . The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner's confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small ne...