Should More Women Get MBAs?

People come to recognise gender imbalance and inequality at different times for different reasons. For many people  trying to find childcare, can be the first tangible, and illustrative, obstacle that the world isn’t quite as equal as they might have hoped.

For one professor seeing the data on MBA enrolments, proved a turning point. While women comprise about half of all enrollments in business courses and degrees at university, they make up only 35% of MBA students. And that figure is quite constant the world over.

Why is this? It simply reflects the cumulative effect of the dynamics that still impede women at work.

On average, women earn about 17.6% less than men and over the course of a career this adds up.   It is still mostly women who take the longest breaks from work to have babies. Their return to work is then, often, impeded by the cost and availability of childcare. In that regard, their lower income can disadvantage them again; if the cost of childcare exceeds the income of either parent the family might choose for the person earning less to stop working, or to work part-time. By and large it is still women who are in that position. Aside from the short-term income lost, this arrangement has longer-term ramifications in terms of that parent’s career advancement and future earning potential.

Another relevant factor is that women still do the lion’s share of unpaid work, from caring for children and elderly relatives to domestic duties. The less ‘unpaid’ work you do, the more ‘paid’ work you are available to do, which is another reason why far more women work part-time than men.

Because the negative stigma around part-time and flexible work still abounds, this can be limiting again in terms of potential career advancement and future earning. Once again, the consequence is that individual women earn less both in the short term and the long term.

These factors all conspire to limit, rather than facilitate, women’s workforce participation. The retirement income gap is indicative of that and I would argue the gender composition of MBA students is too.

An MBA requires an investment of time and money, resources which, crudely, thanks to many of the above factors, women are less rich in than men.

Women comprise only 35% of MBA enrolments. An MBA is undoubtedly a valuable tool for anyone aspiring to an executive career.  In corporate Australia, looking at the ASX500 for example, you might conclude investing in an MBA might not procure a return. If women held 35% of top roles in companies we’d all be laughing, and an MBA might make sense to more women.

MBAs

George Soros on the Future of the EU Economy

Soros: I acknowledge that Germany has stopped pushing the debtor countries underwater. They are getting a little bit of oxygen now and are beginning to breathe. Some, particularly Italy, are still declining, but at a greatly diminished pace. This has given a lift to the financial markets because the economies are hitting bottom and that almost automatically brings about a rebound.

But the prospect of a long period of stagnation has not been removed. It’s generally agreed that the eurozone is threatened by deflation but opposition from the German Constitutional Court and its own legal departments will prevent the European Central Bank (ECB) from successfully overcoming the deflationary pressures the way other central banks, notably the Federal Reserve, have done.

The prospect of stagnation has set in motion a negative political dynamic. Anybody who finds the prevailing arrangements intolerable is pushed into an anti-European posture. This leads me to expect the process of disintegration to gather momentum. During the acute phase of the euro crisis we had one financial crisis after another. Now there should be a series of political rather than financial crises, although the latter cannot be excluded.  Soros on the EU and Other Matters

Soros the Thinker

Campaign Finance Reform Benefits Women

New York state is on the cusp of making history — and that’s a good thing for women.

Earlier this year, Gov. Andrew Cuomo included a proposal for the public financing of state elections in his budget. The plan creates a system where public funds match citizens’ small campaign contributions to reduce the influence of big money in politics.

The alarming lack of women lawmakers and leaders has resulted in Legislatures that too often stand in the way of real reform. We have it within our power to remedy this by electing more women, but to do so we must first change the way elections are financed. As the Center for Women in Politics reminds us, “Beyond achieving fundamental fairness and democratic ideals, having women in office makes a difference.”…
Campaign finance reform benefits women

Campaign Finance Reform Benefits Women

What Do Women Want?

Financial advisors who get it

When it comes to women and money, there is good news and there is bad.
In the plus column, women are heading more households and making small inroads in the C-suite. Women have also increased their presence on the Forbes list of billionaires.
In addition, research by Boston College’s Center on Wealth and Philanthropy found that because women tend to outlive their spouses, overall they will be managing the majority of the $41 trillion in wealth that will pass to the next generation by 2052.
But when it comes to financial advice, women are not getting the service they want or need. A study by Fidelity Investments found that when couples interact with a financial advisor, men are 58 percent more likely than women to be the primary contact. And while most women say they do not intend to leave their financial advisor if their husband dies, within a year of being widowed as many as 70 percent actually do, according to one study.
Financial advisors who get it

Rick Tomalty www.ricktomalty.com/herman-needs-a-new-financial-advisor @RickTomalty

Protecting the Rights of Saudi Men

An Article in the Saudi Gazette Newspaper suggests that we ignore men who are abused by women.  by Saleh Bin Sabaan Makkah daily

A female television broadcaster who is also a women’s rights activist recently spoke about the phenomenon of violence against women in Arab societies. While demanding an end to this phenomenon, she said that female victims of violence suffer from various psychological disorders.

However, no discussions took place on the violence perpetrated by women against men. Is there any organization to count the number of men who have been subjected to violence and harassment from women? Every one of us – both men and women – know that a large number of men have been put behind bars simply because of women. They include murderers, thieves and corrupt officials. There are large numbers of men who have lost their dignity at the hands of women, have become mentally unstable, have committed suicide and have even become addicted to drugs.

Why do we not count these as examples of men who have been victimized by women? I recently read a warning from a women’s rights activist that there has been an increase in the number of men in Arab society who have become victims of assault and harassment at the hands of women. I think that the harassment caused by women is more harmful because it falls into the category of mental harassment.  Women resort to lies, manipulation, conspiracy and tricks that they employ in all occasions and situations. A woman will use words, tears, laughter, fake illness, and whispering to deceive her man. All of these are the sources of her strength. A woman outshines man in this respect because she has more control over her emotions and sentiments than a man does.  If you look at any food channel, you can see that most professional chefs who show their expertise and talent in the art of cuisine are men, even though cooking is supposed to be the duty of women. In general, women suffer from an acute shortage of creativity because they stick to the ground reality. Women are not typically inclined toward adventurism and experimentation. On the other hand, a woman is more dedicated to consumption and materialism. She is content with possessing things and simply keeping them without taking advantage of them. If you have a look at her “treasures” in the cupboards and trays of a kitchen, you will understand my point. For instance, it is futile to assume that she might spend half of the value of kitchenware on buying books.

Saudi Arabian Men

China’s US Internet IPOs a Challenge to Locals?

Even as American technology bosses are exploring China, some of those esoteric local firms are bursting to get out. A moratorium, only recently lifted, on initial public offerings on mainland exchanges has led to a big backlog of IPOs. So China’s best online firms are now hoping to list on American exchanges. In January JD, an e-commerce firm akin to Amazon, launched a share offering in America that may value the firm at $20 billion. On March 14th Sina Weibo, the nearest Chinese equivalent to Twitter, announced an IPO that would raise up to $500m, reportedly valuing it at around $7 billion.  The Economist reports.

China's Internet

Australia Too Soft On Corporate Crimes

Our correspondent Andreas Frank reports; The Australian Securities & Investments Commission released a 79-page report on “penalties for corporate wrongdoing” that examined penalties in Australia and compared them with those in the US, Britain, Hong Kong and Canada.

ASIC said the white paper would form a significant part of a submission to the government regarding financial wrongdoing penalties, which chairman Greg Medcraft has raised with the government repeatedly in recent months.

A key concern of Mr Medcraft, echoed by the report, is that penalties are often not as large as the proceeds of financial wrongdoing, meaning crooks have an incentive to do the wrong thing.

“The maximum fine that may be imposed may be substantially lower than the financial benefit obtained as a result of the wrongdoing,” the report said.
The maximum civil penalty for individuals involved in financial wrongdoing — including all of insider trading, market manipulation, disclosure and inappropriate advice — was just $200,000.

By contrast, the maximum in Canada was $1.05 million, unlimited in Britain, three times the benefit gained in the US, and the greater of $1.4m or three times the benefit gained in Hong Kong.

The $200,000 maximum had not changed since 1992 when they were enacted under the Corporations Act as they were not adjusted for inflation.

In Australia there are no non-criminal laws relating to “disgorgement” – or the removal of gains made by a person involved in financial wrongdoing – while each of comparison jurisdictions had such laws.

ASIC said disgorgement orders could offer “significant deterrent value” by reducing the likelihood wrongdoers “can consider penalties to be merely a business cost”.
The corporate regulator also highlighted the discrepancies between the maximum civil penalties that could be delivered by different Australian regulatory and enforcement bodies.

The highest civil penalty ASIC could impose under the ASIC Act on an individual was just $340,000, one-tenth of the $3.4m that could be handed down under the Anti-Money Laundering and Counter-Terrorism Financing Act.

The maximum penalty for a company, group or “body corporate” was $1.7m under the ASIC Act and $17m under anti-terrorism and money-laundering provisions.

Under the Competition and Consumer Act an individual could be fined a civil penalty as high as $500,000 and corporations could be fined the greater of the three: $10m, three times the value of the benefits obtained by the wrongdoing or 10 per cent of the company’s annual turnover.

ASIC also noted there were different penalties for the same wrongdoing under different acts.

“If we pursue an individual for providing unlicensed financial services under the Corporations Act, we could obtain at most a criminal fine of $34,000,” the corporate regulator said.

By contrast, a person pursued under the National Credit Act for engaging in “unlicensed credit activity” could be forced to pay up to $340,000 in fines.
ASIC Report

Corruption

 

Crowdfunding and Entrepreneurs

The “wisdom of the crowd” argument

Entrepreneurs may require external support on how to run their company or to assess the economic potential of their product. Unlike business angels or venture capital funds, crowdfunders might not have any special knowledge about the industry. However, the “wisdom of the crowd” argument states that a crowd can at times be more efficient than individuals or teams in solving corporate problems. Hence, crowdfunders as a crowd would be more efficient than a few equity investors alone.

From another point of view, the risk taken by crowdfunders might be smaller, and not only because of the small amounts that they provide individually. The crowd may further become consumers once the product has been brought to the market and have an incentive to disseminate the information about the product it if they participate in the profits of the venture. In contrast, similar information dissemination would require significant advertisement campaign if the venture were financed by a few, larger investors.  Schweinbacher-Larralde on Financing Entrepreneurs

Financing Entrepreneurs

Russians Targeted by US Department of Justice

This may be part of what ‘sanctions’ against Russia means.

Victor Lipukhin, formerly a resident of St. Charles, Ill., was indicted yesterday by a federal grand jury in Kansas City, Mo., for attempting to interfere with the administration of the internal revenue laws and filing false tax returns, the Justice Department and Internal Revenue Service (IRS) announced today.  The charges relate to Lipukhin hiding millions of dollars in several Swiss bank accounts held at UBS AG.   Russian’s Target of IRS Related Probes

Head of US Subsidiary of Russian Steel Company

 

Dodd Frank and the Commodity Market

Commissioner Scott D. O’Malia talked about t is crucially important for the Commission to improve and effectively utilize its data so that the Commission develops a complete picture of both the swaps and the futures markets. In many respects, many of the questions regarding the impact of financialization on the commodity markets would be answerable if the Commission had a complete picture of market participants and their trading strategies. the Commission must be mindful of the impact that its regulations have on the cost of hedging in the markets. This is especially true in the commodity markets where a wide range of participants hedge because of the volatility in commodity prices and specialized business needs. If the cost of hedging becomes too expensive, these participants may choose not to hedge or enter into less perfect hedges, which impairs efficient business operations. 

Therefore, looking forward, the Commission must strive to issue clear, consistent, and cost effective rules that are informed by data and that do not interfere with hedging in the markets. Finally, the Commission must re-visit rules that have proved unworkable or overly burdensome. I am encouraged that the Commission has taken the first step by re-visiting its data rules. I encourage the Commission to not stop there and continue to re-visit rules that have impacted legitimate hedging activities. Scott O’Malia’s Address

Commodities Markets