The first series of lectures by one of the world’s leading experts in the filed of financial policy took place at both Lauder Business School and Webster University this spring.

 

Lauder Business School had the privilege of welcoming Professor Joel Stern to teach his course ‘The Theory and Policy of Modern Finance’ in the Spring of 2014. The course has received universal acclaim and LBS is looking forward to continuing this successful co-operation in the future.

Professor Stern’s principal contribution to the field of financial economics has been in performance measurement and corporate governance, for example formalizing the Free Cash Flow (FCF) methodology. The course focused on problem solving and applications for the theories of modern finance, with an emphasis being placed on showing the methods and effectiveness of how these theories can be applied in practice. The skill of doing so is a key component for the future success of students in the real world of business and government institutions. The applied-science learning concept at LBS, which is also essential to the new Banking and Finance curriculum, reflects these issues at the heart of Professor Stern’s teaching, ensuring a fruitful and lasting partnership with the Lauder Business School. Merton Miller once said, “There is no better theory than one that can be applied in the real world.”

The course focused on problem solving and improving modern financial theories. Due to the need for a period-by-period contemporaneous measure of performance, Professor Stern had developed the Economic Value Added (EVA®) theory. EVA was developed to not only replicate the benefits of the Free Cash Flow theory, but also to provide a measure of performance that could be incentivized and at all levels of the firm, so that incentives could be provided right down to the shop floor.

More than 860 companies such as Siemens in Germany have implemented this EVA Management System to measure performance, prioritize on capital expenditures including acquisitions, as well as to provide an incentive compensation system.

Professor Stern is also an active member of the Jewish Community, having trained as a cantor and conducting services on all of the major holidays in the Jewish calendar since his 16th birthday. At Lauder there was also an opportunity to experience a Shabbat service conducted by the Professor.

Currently, four LBS students are under consideration to join Stern Value Management in New York. According to Professor Stern, these positive results in a short period of time illustrate the quality of both the Lauder Business School and the students who are attracted by the curriculum. Professor Stern commented that there are few cities in the world as beautiful and tastefully designed as Vienna, as an additional positive aspect of teaching here.

Background Professor Stern:

Joel M. Stern founded Stern Stewart & Co., in 1982 and serves as its Chief Executive Officer. Mr. Stern served as Managing Partner of Stern Stewart & Co. Prior to that, Mr. Stern served as President of Chase Financial Policy, the financial advisory arm of Chase Manhattan Bank. He has been a pioneer and leading advocate of the concept of managing for shareholder value.

Mr. Stern is a recognized authority on financial economics, corporate performance measurement, corporate valuation, and incentive compensation. Apart from teaching at LBS, he is an adjunct professor at six other Graduate Schools of Business including Columbia University, where he has been teaching since 1976.



Address: Hofzeile 18-20, 1190 Vienna
Email: office@lbs.ac.at
Admissions: admission@lbs.ac.at
Phone:+43 1 369 1818
TERMTIME OFFICE HOURS
Academic Coordination
Monday through Thursday:
9.00 - 15.00

Resident Permit Services:
Monday, Tuesday, Thursday:
9.30 - 17.00
Friday:
9.30 – 13.30
About Admission
LATEST NEWS

How Firms Innovate

Christian Reiner, senior researcher at LBS, published a book chapter on firm innovation together with Katerina Vrtikapa. The paper is a chapter in the book “Umkämpfte Technologien. Arbeit im digitalen Wanel”, edited by the „Beirat für gesellschafts-, wirtschafts- und umweltpolitische Alternativen“ (BEIGEWUM).

Insticore & FH Technikum Announce Partnership for Blockchain Education

On October 23, FH Technikum and Insticore announced integration between the two academic environments to streamline a complete blockchain education program in Vienna. The experience and status of FH Technikum as a top-provider of technical education in Austria, and the business and economic background of Insticore, incubated by the Lauder Business School, allows the two to carry out a complete blockchain program for those interested in becoming experts in this new technology.

Companies Going Global

Dr. Christian Reiner, Senior Researcher at LBS, gave a presentation on the internationalization of firms at a seminar for Austrian teachers at secondary schools on 12.October 2018. The seminar was organized by the Institut für Österreichkunde and the Österreichische Geographische Gesellschaft.
Firms with international activities, i.e. exports and/or foreign direct investment, are quite distinct from firms with no international orientation. In addition, exports are heavily concentrated; a small share of exporters account for a large share of exports.

Celebrating 15 years of LBS with Ambassador Lauder

On October 9, 2018 we were honored to welcome our Founder and President Ambassador Ronald S. Lauder and celebrate the 15th Anniversary of Lauder Business School! In the presence of our Founder and President Ambassador Ronald. S. Lauder, our Vice President Prof. Jacob I. Biderman, the Executive VP and CEO of The Ronald S. Lauder Foundation Rabbi Joshua Spinner, the LBS Executive Director Alexander Zirkler, as well as many distinguished guests, faculty members and students, we were delighted to celebrate 15 years of Lauder Business School!