Media Coverage: August 2007

The Guardian (U.K.), 08/31/2007—Tim Pollock, associate professor of management, comments on his executive compensation research. "It has to do with perceptions of fairness," Pollock said. "If they're greatly underpaid compared with the CEO, people tend to care less about their jobs. That's particularly so if times are tough and people read in the papers that their CEO has made millions." (Corporate Chiefs Ride High Without Shareholders' Reins). This article also appeared on Buzzle.com.

CNBC, 08/29/2007—Tim Pollock, associate professor of management, comments on his executive compensation research as part of a story on CEO pay that ran on "Squawk Box" and other programs throughout the day. (Executive Excess). A text version of this story also appeared on MSNBC.com.

BusinessWeek, 08/20/2007—Article on auto loan research by Brent Ambrose, professor of real estate. "Ambrose, a professor at Penn State's Smeal College of Business, argues that loans for American cars 'should have significantly higher interest rates to compensate for higher default risk.' And to balance the higher risk, carmakers, he says, should raise prices." (Another Headache For Detroit).

The Republican & Herald (Pottsville, Pa.), 08/17/2007—Austin Jaffe, chair of the Department of Insurance and Real Estate, comments on the high rate of home loan foreclosures. "The reason why foreclosures are so high is that people are finding they have nowhere to go to solve the problem," Jaffe  said. "For a while, there wasn't much concern because people thought even if interest rates adjusted, property value was going up faster than interest rate payments and therefore they would sell if they had to." (County Caught In Crisis).

WindingRoad.com, 08/15/2007—Article on auto loan research by Brent Ambrose, professor of real estate. "Are you financing a domestic car? Then you're more likely to default on your loan than consumers who shop Japanese or European makes. That's according to a new study co-authored by a professor Brent Ambrose of Penn State's Smeal College of Business." (Report: Domestic Car Buyers Default On Loans More Often Than Japanese, European Counterparts).

Autoblog.com, 08/15/2007—Blog entry on auto loan research by Brent Ambrose, professor of real estate. "Findings from a recent study could potentially change the way banks pick interest rates for new car loans. The study, run by Penn State's Smeal College of Business professor Brent Ambrose, found the probability of car owners defaulting on their loans was actually affected by the make of the model." (Report: Owners Of American Cars More Likely To Default On Loans).

Agence France Presse, 08/14/2007—Andrew Bergstein, instructor in marketing, comments on the marketing of Elvis Presley 30 years after his death. "We have so many different ways to distribute popular culture and it lasts a lot longer," Bergstein said. "Elvis, by the very nature of who he was, he's taken on a life of his own." (The Marketing Of An Icon: Elvis As A Brand). This article appeared on several Web sites and in international newspapers.

NetworkWorld.com, 08/14/2007—Blog entry on auto loan research by Brent Ambrose, professor of real estate. "This one will make more than a few people scratch their heads: Researchers today said customers that take auto loans on "American cars should have significantly higher interest rates to compensate for higher default risk," than customers who buy Japanese or European cars. (Study: Customers With Auto Loans On American-Made Cars More Likely To Default).

BusinessWeek.com, 08/13/2007—Fariborz Ghadar, director of the Center for Global Business Studies, comments on natural gas availability. "The reality of the thing is that if you look at where the gas is, the gas is in Russia and it is in Iran. Those are where the largest reserves are. Right now, the Russians basically have a stranglehold on the whole thing," Ghadar said. (Energy: Europe's Escape Routes From Moscow).

Wired.com, 08/13/2007—Blog entry on auto loan research by Brent Ambrose, professor of real estate. "Brent Ambrose, a professor at Penn State's Smeal College of Business and lead author of the study, argues that loans for American cars should have significantly higher interest rates to compensate for the higher default risk." (Study Claims That Car Loans Should Be Adjusted For Make).

The Daily Collegian, 08/06/2007—Article on Smeal MBA student Jason Munson's appearance on CNBC. "It was 5:30 Friday evening and Jason Munson, dressed in a suit jacket and tie, sat in the quiet Business Building, scrambling to prepare the answer to his question before going on air. Munson, a Smeal College of Business finance graduate student, was preparing to make his appearance on CNBC's Fast Money segment titled 'Grade the Trade,' in which college students are tested on their knowledge and skill in economics and business." (Student Thinks 'Fast' On CNBC Segment).

Contra Costa Times, 08/05/2007—Brent Ambrose, professor of real estate, is cited regarding risk and fixed-rate and adjustable loans. "The higher interest charged on fixed-rate loans reflects the added risk such loans pose for lenders, said Brent Ambrose, a real estate professor at Pennsylvania State University. With fixed loans, lenders bear the risk of financing a mortgage that borrowers can then refinance without penalty if rates go down, he said." (Foreclosures Feed Fixed-Rate Loans). This Washington Post article, which was orginally published in July, also appeared in August in the Lakeland (Fla.) Ledger.

Centre Daily Times, 08/05/2007—Patrick Cataldo, associate dean for executive education, writes in his column about managing generational diversity in business. "Managing diversity has long meant dealing with issues of race, gender, nationality, and religion in the workplace. Today, however, it is important to include generational diversity. The fact is that the mix of workers has never been greater." (Diversity Includes Generation Differences).

CentreDaily.com, 08/05/2007—Patrick Cataldo, associate dean for executive education, writes in his blog about managing generational diversity in business. As a Chief Learning Officer with a large company in the mid- 90’s, there were usually major differences in discussing issues when various age groups came together. At that time, we believed it had to do with just differences of opinion." (Thinking Ahead In Business: Generational Differences).

Chambersburg Public Opinion, 08/05/2007—Fariborz Ghadar, director of the Center for Global Business Studies, comments on the economic effect of immigration. "The fact of the matter is, we need a lot of low- to middle-skilled employees to deliver goods, pick fruit, work in construction, keep gardens clean, keep hotels clean," Ghadar said. "We don't have as many people to do that kind of stuff, so immigrants fill a niche. ... We have to decide, are we seriously going to throw them out? Can our economy take that hit?" (Impact On Area Seems Large).

CNBC, 08/03/2007—Smeal MBA student Jason Munson offers stock picks during the "Grade the Trade" segment on CNBC's "Fast Money."

BusinessWeek.com, 08/03/2007—Article on corporate management research by Donald Hambrick, Smeal Chaired Professor of Management. "The study is a fascinating look—who's ever tried to quantify narcissism?—at how CEO arrogance and personality may at least be tied to, if not cause, effects on employees and shareholders." (The Ego Effect).

Central Penn Business Journal (Harrisburg, Pa.), 08/03/2007—Brief article on Penn State Executive Programs' Executive Program for Women Leaders. "Penn State University will host a program for professional women Oct. 8-12. The program is organized by the Penn State Executive Programs at the Smeal College of Business. It will focus on challenges and opportunities for women in the workplace, such as building strategic relationships, avoiding the loyalty trap and achieving a work-life balance." (Just For Women).

Cherry Hill Courier-Post, 08/03/2007—Article on corporate management research by Donald Hambrick, Smeal Chaired Professor of Management. "The bigger the ego, the wilder the ride. Companies led by more narcissistic CEOs tend to make more frequent strategy changes and larger acquisitions, according to a new study by Penn State University researchers." (Big Egos Mean Bold Moves For Many Company Execs). This Associated Press article was originally published in July.

The Wall Street Journal, 08/02/2007—J. Edward Ketz, associate professor of accounting, comments on a new accounting regulation. "The new accounting rule won't radically change the way companies price hard-to-value securities, but it will 'require a more realistic way of choosing value, and the auditors will have to enforce that,'" Ketz said. (Subprime Detectives Search In Dark For Next Victim). This article also appeared in The Wall Street Journal Asia and The Wall Street Journal Europe.

Arizona Daily Star, 08/01/2007—Article on corporate management research by Donald Hambrick, Smeal Chaired Professor of Management. "If your boss' ego barely fits through the door of his cushy corner office, prepare yourself for a roller coaster ride. Companies led by narcissistic chief executives tend to change strategy more frequently and have more extreme performance fluctuations, according to new research by Penn State's Smeal College of Business." (Watercooler: Summer Job Searching, Egotistical Execs, And A Calm Commute). This Associated Press article was orginally published in July.

Scientific American, August 2007—Article cites research by Gary Bolton, professor of business economics, and Elena Katok, associate professor of supply chain and information systems. "Trust is a critical issue on eBay, in which sellers are anonymous and have little pecuniary incentive to actually ship the items they have sold. To figure out why they ship anyway, Ockenfels, Bolton and Penn State business professor Elena Katok asked 144 university students to play a trust game that mimics the situation on eBay." (Is Greed Good?).

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