Opinion: How you can use earnings release dates to predict stock movements — Eric So

MIT Sloan Asst. Prof. Eric So

From MarketWatch

If you have good news, you want to rush to tell people about it. If you have bad news, you tend to stall, hoping it will go away or that some good news will come along to dilute it. Companies, it turns out, behave similarly — and therein lies an extraordinary opportunity that most investors have been missing.

I recently studied whether the announcements companies make when they reschedule earnings reports contain important information about the firms. This earnings season, for instance, investors may notice that Apple Inc.AAPL, -0.53%   moved forward its expected earnings announcement date to Oct. 20 from Oct. 28. Meanwhile, Coca-Cola Co. KO, -0.64%   has delayed its expected reporting date to Oct. 21 from Oct. 14.

What can investors predict from such behavior? Often, quite a lot.

When companies shift a scheduled reporting date, the announcement typically appears routine. Some financial reporting dates are set by regulation, but firms have discretion in scheduling earnings reports.

In this study, I analyzed the corporate reporting calendars of some 19,000 companies from 2006 through 2013. Wall Street Horizon, Inc., a firm that collects events information of publicly traded companies, provided the data.

I discovered that firms which moved up their reporting dates were considerably more likely to report higher earnings, while those that delayed their reporting dates tended to announce earnings declines. The stock values of the companies tracked closely with the earnings trends.

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MIT fuses design and management with new master track — Matthew Kressy

Matt Kressy, Director, Integrated Design and Management master’s degree track

From Business Because

When you launch a new master’s degree track at a place like MIT, you get asked a lot of questions. The most common ones I get are: what do you want students to get out of the Integrated Design & Management (IDM) program? How did it get started? How does it work? And what kinds of students are you looking for?

I want to give designers a voice. Traditionally, designers are not well versed in the languages of engineering and business. They’re great at inventing and creating, but they’re generally not good at explaining how those creations could be profitable or feasible. As a result, business and engineering decisions get made without the benefit of design sensibilities and insights.

I want to empower designers to speak up and provide them with the management tools to more effectively communicate their vision. My hope is that this program helps designers demonstrate that great design can be a competitive advantage.

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Too much, too little, just right: Stress at work, and the Goldilocks Principle — Andrew Yap

Asst. Prof. at INSEAD and former MIT Sloan Lecturer Andy Yap

From WBUR Cognoscenti

Stress used to be a dirty word. Study after study has shown that stress makes workers less productiveless satisfiedless healthy — and, therefore, more likely to call in sick. For many years, the message to managers was simple: Stress causes burnout; avoid it for yourself and for those who work under you at all costs.

Nowadays, however, the message is more complex. A growing body of research indicates that some stress is good for workers. Perhaps more important, studies have found that too little stress can be bad. Stress related to boredom leads employees to engage in counterproductive work behavior, such as spending aimless time on the Internet for non-work reasons, gossiping about colleagues, and taking way too much time completing work assignments.

So: Excessive stress leads to mental exhaustion and poor health, but not enough stress results in boredom and demotivation. What’s a manager to do? The answer lies in the Goldilocks Principle. The optimal level of stress is not too much, not too little, but an amount that’s just right.

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Why are executives logging in for leadership education? — Peter Hirst

MIT Sloan Executive Director of Executive Education Peter Hirst

MIT Sloan Executive Director of Executive Education Peter Hirst

From Innovation Insights

Back in 2012, a storm poised to wreak havoc on the east coast posed a challenge of another kind to both me and my colleagues at MIT Sloan Executive Education. Though there were of course the more grave concerns of human health and safety related to Hurricane Sandy, directly in the path of the oncoming storm was our brand new and hotly-anticipated course on big data, one of the first of its kind for executives.

Over 100 top executives had enrolled in the course, conducted by leading faculty members Erik Brynjolfsson and Sandy Pentland, and we were faced with a seemingly insurmountable obstacle. The challenge was clear – find a way for attendees to experience the course in spite of the storm, or postpone and potentially cancel it altogether. Innovation is woven into our DNA at MIT, and we developed a solution that not only suited the needs of the situation, but led Executive Education at MIT Sloan down a new and exciting path to learning.

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Putting the TPP on the right track — Simon Johnson and Rep. Sander Levin

MIT Sloan Prof. Simon Johnson

From Politico Magazine

The Trans-Pacific Partnership is a major potential trade agreement between the United States and 11 countries at very different levels of economic development, including Japan, Mexico and Vietnam. Will the agreement boost U.S. growth, address wage stagnation, help our strategic partners and create legitimate rules for international trade in the 21st century? The answer hangs in the balance.

With negotiations reported to be entering the final stages, it is critical that Congress focus at this point not on how to “fast track” approval of an agreement — through passing Trade Promotion Authority — but on making sure the TPP itself is on the right track.

There is a real choice to be made between two different approaches to international trade.

The first approach is based on the unbridled free-market view that more trade is necessarily better. The focus here is on eliminating regulatory barriers to exports and foreign investment. It is claimed that market forces will not just increase economic efficiency, but also improve governance in developing countries. Similarly, trade imbalances between nations will work themselves out.