Media Coverage: December 2006

Bankrate.com, 12/28/2006—Article mentions research by Abdullah Yavas, Elliott professor of business administration. (Woodheads Of The World, Untie!). This article also appeared on CNNMoney.com.

The Philadelphia Inquirer, 12/28/2006—Column on research by Abdullah Yavas, Elliott professor of business administration. "Abdullah Yavas, a business professor at Pennsylvania State University's Smeal College of Business, and Yan Chang of Freddie Mac, the mortgage-funding company, looked at 3,785 mortgages granted from 1996 through 2003." (Paying Those Points Usually A Bad Idea). This article appeared in several other newspapers, including the Centre Daily Times.

The Associated Press, 12/25/2006—Austin Jaffe, chair of the department of insurance and real estate, comments on the real estate market. "There's no more flipping," said Jaffe "It's not the same psychology that you build a house and by the time you're done with it, it's time to flip it and do your next deal." (After Years Of Gains, Pa. Housing Market Slows Down). This article appeared in several newspapers and on about a dozen Web sites, including the Harrisburg Patriot-News and York Dispatch.

The Morning Call (Allentown, Pa.), 12/24/2006—Article on research by Abdullah Yavas, Elliott professor of business administration. "Home buyers who purchased points on their mortgage tend to pay off their loans on average more than three years before they reach the 'break-even point' from buying the points, according to research by Penn State business administration professor Abdullah Yavas and Freddie Mac analyst Yan Chang." (Paying Points Doesn't Always Pay Off).

Centre Daily Times, 12/24/2006—Brief article on research by Abdullah Yavas, Elliott professor of business administration. "A new research report co-authored by a professor at Penn State's Smeal College of Business showed that homebuyers tend to purchase too many points when selecting a mortgage and end up paying more than they would have with no points and a higher interest rate." (Smeal Prof Co-Authors Mortgage Study).

The Wall Street Journal, 12/23/2006—Article on research by Abdullah Yavas, Elliott professor of business administration. "To see how points have worked out for borrowers, Penn State professor Abdullah Yavas and one of his graduate students, Yan Chang, who is now a senior economist at mortgage giant Freddie Mac, tracked 3,785 fixed-rate mortgages between 1996 and 2003." (Deciphering Mortgage Points).

The Motley Fool, 12/22/2006—Article on research by Abdullah Yavas, Elliott professor of business administration. "A recent paper says many borrowers don't hold their mortgages long enough to benefit from the strategy of prepaying mortgage points. By paying too many points up front, they end up paying more than if they had paid no points on a loan with a higher interest rate." (Points For Mortgage Savvy).

Inman News, 12/22/2006—Article on research by Abdullah Yavas, Elliott professor of business administration. "Most borrowers who paid points to lower their mortgage rates at a time when interest rates were falling and property values were rising came out behind, and were less likely to take advantage of opportunities to refinance their loans, a new study concludes." (Study: Borrowers Lost Out By Paying Points On Mortgages).

Dow Jones Newswire, 12/21/2006—Article on research by Abdullah Yavas, Elliott professor of business administration. "A new report claims that borrowers tend to purchase too many points when selecting a mortgage—and in the process end up paying more than they would have with no points and a higher interest rate." (Paying Mortgage Points Rarely Pays Off For Borrowers: Study). This article appeared in dozens of newspapers, including the Chicago Tribune, Arizona Republic, and Rocky Mountain News. It also appeared on dozens of Web sites, including BusinessWeek Online, KiplingerForecasts.com, MarketWatch, and MSN Money.

BusinessWeek Online, 12/21/2006—Article mentions the third place finish by a team of Smeal College undergrads in the Biz Quiz. "The trio from Michigan State University's Broad College won the overall competition, followed by Wake Forest's Calloway School and Penn State's Smeal College." (Biz Programs Compete).

The Associated Press, 12/19/2006—Article on research by Abdullah Yavas, Elliott professor of business administration. "Mortgage points may not pay off for home buyers, researchers from Penn State say. Home buyers who purchased points on their mortgage tend to pay off their loans on average more than three years before they reach the 'break-even point' from buying the points." (PSU Study: Mortgage Points May Not Pay Off). This article also appeared on several dozen newspaper Web sites, including the Philadelphia Inquirer and the Centre Daily Times.

FinFacts.com, 12/12/2006—Article from the Economist Intelligence Unit ranks Penn State Executive Programs as the top provider in the world of customized executive education programs. "Four schools, IE and IESE in Spain, Penn State in the United States, and York in Canada, were rated in the top tier for both their open-enrollment and customized programs." (Economist Intelligence Unit Presents 13 Awards For Excellence In Executive Education).

Courier-Post (Cherry Hill, N.J.), 12/07/2006—News brief on the nonprofit scholarships offered by the Smeal Executive MBA Program. "The Penn State Smeal College of Business EMBA Program, which holds classes in Philadelphia, is announcing a call for essays from nonprofit employees." (Essays Sought From Employees).

Eastern Pennsylvania Business Journal, 12/04/2006—Patrick Cataldo, associate dean for executive education, writes in an op-ed on the trend of corporate managers leading academic executive education programs. "This brings an interesting set of business skills with academic knowledge together to help shape the way in which upper-level managers and organizational leaders are being developed." (Academic World Welcomes Former Business Leaders).

Marketing (Canada), 12/04/2006—Article on marketing research by Smeal professors Ujwal Kayande, Gary Lilien, and Duncan Fong. "In 'Mapping the Bounds of Incoherence: How Far Can You Go and How Does It Affect Your Brand?' researchers concluded that some attribute combinations are just too counterintuitive for consumers to believe. And when this credibility is lost, the product can fail, regardless of its inherent merit." (Incoherent Messages).

BusinessInnovation, 12/04/2006—Anthony Warren, director of the Farrell Center for Corporate Innovation and Entrepreneurship, comments on innovation in the workplace. "If you've got a well-managed company and the senior people realize that it’s difficult to do new things within the structure of the organization, then it’s a good idea to do it in the skunkworks," Warren said. (Hothouse Or Heavyweight).

The Seattle Times, 12/03/2006—Aritcle mentions research by Abdullah Yavas, Elliott Professor of Business Administration. "The Yavas-Rutherford study showed that while houses sold by discount brokers got the same prices as those listed by traditional brokers, it took five days longer and the listings were 12 percent less likely to sell." (Agent Commission Coming Under Fire From Consumers).

Household & Personal Products Industry, 12/01/2006—Article mentions an op-ed by Fariborz Ghadar, director of the Center for Global Business Studies. "Ghadar ... predicted that oil prices will rise to $100 a barrel during the next five years and he warned that such a surge would put a major crimp in the global competitiveness for many industries." (Which Way Feedstocks?)

Philadelphia Business Journal, 12/01/2006—News brief on the nonprofit scholarships offered by the Smeal Executive MBA Program. "Employees of a nonprofit who can convincingly explain how their getting an MBA will help their organization may be able to defray part of the cost of their education." (The Insider: Prove It).