Radhakrishnan Gopalan

Radhakrishnan Gopalan, professor of finance at the Olin Business School at Washington University in St. Louis, says President Joe Biden’s plan to raise the federal minimum wage to $15 per hour is too aggressive. His research shows raising the minimum wage now could slow job growth.

Faculty experts from across Washington University in St. Louis draw upon their research, their instruction, their experience and their thought leadership to proffer insight and ideas for the new administration, the new beginning.

After months of failed negotiations that have left many Americans, businesses and the economy in the lurch, lawmakers are scrambling to reach a deal on an economic stimulus plan that could top $900 billion. If Congress passes the deal, will it do enough to help struggling Americans and businesses stay afloat? To answer that question, three business and economics experts at Washington University in St. Louis shared their thoughts on the proposed plan, what lawmakers got right, what is missing and what ticking time bombs remain.

Olin Business School researchers were part of a team that learned firms take more risks after a member of their board of directors undergoes a bankruptcy at another firm where they serve as a director. The co-authors discovered such risk-taking usually occurs when this particular director both experienced a quick, less-costly bankruptcy elsewhere and serves in a position of greater influence.

At a time when evictions and mortgage defaults have been likened to an oncoming tsunami across America, a big-data study of loan-to-value ratios in the wake of the 2007-08 recession carries a cautionary forecast for vexing economic weather ahead: The higher a worker’s outstanding mortgage relative to their home value, the worse their future income growth and job mobility.

A federal moratorium on evictions is just one piece of the puzzle. Without comprehensive solutions, we could be facing a repeat of the 2007-08 financial crisis, said Radhakrishnan Gopalan, a finance expert at Washington University in St. Louis who has studied the effect of health insurance on home payment delinquency.

A U.S. Supreme Court ruling June 29 won’t alter the fledgling Consumer Financial Protection Bureau because it already morphed during the first decade of its existence to where it falls under the philosophical whim of each presidential administration, says an Olin Business School scientist at Washington University in St. Louis.

If the post-pandemic economic return includes minimum-wage increases across a few or many states, research led by Washington University in St. Louis scientists in the Olin Business School suggests that some positive and negative effects for U.S. workers follow in the two years after implementation.

The $2 trillion plan to prop up a pandemic-reeling United States, amid the news that there were 3.3 million unemployment claims lodged in the previous week, is expected to pass the House on March 27. An array of Washington University in St. Louis experts offer perspectives on the plan.

The U.S. Senate, with significant prodding from the Trump administration, is working on a plan to directly provide cash assistance to millions of Americans amid the economic fallout from the COVID-19 pandemic. Experts in economics and finance from Washington University in St. Louis’ Olin Business School weigh in on how it could help housing and households and maybe pay some bills — but still not answer the problems at hand.

Olin Business School faculty at Washington University in St. Louis offer perspectives on the economic, financial and everyday business reactions to the novel coronavirus outbreak.

Given the ever-increasing reliance on the few players in the proxy advisory industry, we believe we are past due for some increased oversight, accountability and transparency in this space.

Overall, aspects of the tax-reform package will reduce the attractiveness of home ownership and mortgages, and it may even adversely affect home prices going forward.

If you are on Obamacare, you are likely a better tenant or homeowner. Families who get health insurance through the Affordable Care Act (ACA) are significantly more likely to make their rent and mortgage payments than are those who remain uninsured, suggests a new study from the Brown School and Olin Business School.

Pharma giant Bayer has acquired St. Louis-based Monsanto. After months of negotiation, the German company went back to the bargaining table this week, and on Sept. 14 the seed firm’s board approved the $66 billion cash offer. Radhakrishnan Gopalan, associate professor of finance at Olin Business School, said Monsanto needed to accept the deal.

When a publicly traded company meets a pay-for-performance target, it may be lauded by Wall Street investors, however, new research from Washington University in St. Louis shows it can also be cause for concern.

Monsanto’s proposed move to the U.K. could indicate a corporate inversion strategy. Radhakrishnan (Radha) Gopalan, PhD, associate professor of finance in the Olin Business School, takes a closer look at the numbers.