Media Coverage: December 2007

BusinessWeek.com, 12/28/2007—Smeal alumnus Peter Burchett '07 MBA writes about his typical day as a finance manager for Disney Character Voices International. "Prior to my MBA, I received my law degree from Penn State and decided to attend business school in order to get some functional expertise. I feel the combination of these two schools of thoughts (no pun intended) will always serve me well in the marketplace—and that proved true for my current position." (MBA Hears Disney Voices).

HoweStreet.com, 12/27/2007—J. Edward Ketz, associate professor of accounting, comments on the banking industry. "I like what HSBC has done. It's a very simple solution. It's one that's transparent. We can see the promise of liquidity. That's something that, to me, would create a feeling of trust," Ketz said. "Citi could go a long way in following this example." (Best of 2007, Part IV: Exit U.S.).

The Christian Science Monitor, 12/24/2007—John Spychalski, professor emeritus of supply chain management, comments on Amtrak. "We live in an environment where some people think the maximum public benefit is always to have minimum taxation," said Spychalski. "Among elected officials, there's enormous ignorance about the benefits of railroad transport and of the situations where it's less costly in the longer run to develop a rail system than not to do so." (Amtrak Downeaster: Successful Train Faces Uncertain Future).

Expatica.com (Netherlands), 12/18/2007—Fariborz Ghadar, director of the Center for Global Business Studies, comments on Royal Dutch/Shell. "As it prepares to unify next summer, Shell faces a long road. Nonetheless, Ghadar said the company is doing 'exactly what needs to be done. One thing that they need to do is come clean with all the facts. And they've done that,' he said. 'Or at least we believe that they've done that.'" (Will Shell Sink Or Swim?).

The Daily Oklahoman, 12/16/2007—Linda Treviño, Cook Fellow in Business Ethics, is mentioned in an article on workplace ethics. "Linda K. Trevino, an authority on ethics and leadership at Penn State University, advises conducting an ethical culture audit before joining any firm, and offers several questions to ask." (Office Romance Can Bring About The Death Of A Career). This article was distributed by McClatchy-Tribune News and also appeared in California's Record Searchlight and New Jersey's The Record.

The Globe and Mail (Canada), 12/14/2007—Article mentions Glen Kreiner, assistant professor of management, and Linda Treviño, Cook Fellow in Business Ethics. "The structure of your company's reward system inadvertently might encourage workplace corruption. Professors Linda Trevino of Penn State University and Stuart Youngblood of Texas Christian University have suggested that, sometimes, remuneration systems can generate incentives to behave unethically." (Corruption-Proofing Your Career).

USA Today, 12/11/2007—Donald Hambrick, Smeal Chaired Professor of Management, comments on his narcissistic CEO research in light of a survey by USA Today asking CEOs if they mind when a subordinate drives a nicer car than they do. "I think we could reasonably expect that narcissistic CEOs can't stand to be outshined," Hambrick said. "Drive the Ferrari on weekends, and don't brag to the boss about getting your kid into the Ivy League." (Employees' Car Choices Don't Go Unnoticed By Their Bosses).

Innovations Report (Germany), 12/11/2007—Anthony Warren, director of the Farrell Center for Corporate Innovation and Entrepreneurship, comments on the need for innovation. "Increasing global competition and the rise of potential economic powerhouses like China and India are making Western nations sit up and realize that they have to be continuously innovative in order to keep their economies healthy," Warren said. (From Archaeology To Zoology, Enterprise Education Should Be Available To All Students).

BusinessWeek.com, 12/09/2007—Carrie Marcinkevage, MBA director of admissions, discusses the Smeal MBA Program. "We focus on creating principled leaders," Marcinkevage said. "So we want to find individuals with a strong work ethic and standards for personal performance, who value teamwork and collaboration as key means to organizational success." (Penn State Seeks 'Leadership' And 'Focus').

The Star-Ledger, 12/08/2007—J. Edward Ketz, associate professor of accounting, comments on the Bush administration's mortgage rate freeze plan. "It punishes those who have acted prudently and rewards bad decisions by homeowners who bought what they could not afford," said Ketz. "It gives incentives for future homebuyers to act rashly because they may believe that Washington will rescue them from error and greed." (Bush Plan Gets Cool Response).

Forbes.com, 12/07/2007—J. Edward Ketz, associate professor of accounting, comments on the Bush administration's mortgage rate freeze plan. "President Bush's plan may make good politics, but it is terrible economics," said Ketz. "It punishes those who have acted prudently and rewards bad decisions by homeowners who bought what they could not afford. It gives incentives for future homebuyers to act rashly, because they may believe Washington will rescue them from error and greed." (Bush's Bad Mortgage Medicine).

The Republican & Herald (Pottsville, Pa.), 12/06/2007—Terrence Guay, clinical associate professor of international business, comments on the effect of the weakening U.S. dollar on trade. "I think there's reason to believe that countries seeking to export things from the United States at a lower price will be able to do so for some years to come," Guay said. (European Firm Orders $5M In Coal From Schuylkill, Luzerne Companies).

Bloomberg News, 12/05/2007—J. Edward Ketz, associate professor of accounting, comments on Freddie Mac's use of forecasts of future cash flows to avoid recognizing losses. "It's preposterous to think anyone can predict cash flows out that far,'' Ketz said. "When you start thinking 26 years out, it becomes doubtful that the cash flows would occur as predicted.'' (Freddie Mac's Accounting Evokes Shades Of Enron). This article also appeared in India's Business Standard.

Atlantic Free Press, 12/03/2007—Article mentions research by Brent Ambrose, professor of real estate. "New research co-authored by a professor at Penn State's Smeal College of Business could change the way banks assign interest rates to auto loans based on the make of the car being financed." (Boo Hoo—Deja Vu).

Traffic World, 12/02/2007—Fariborz Ghadar, director of the Center for Global Business Studies, comments on why some manufacturers are leaving China. "The shift is coming because labor is declining as a portion of the total cost of products. ... When everyone competed on the basis of lower labor costs, business went to the lower-cost competitor, Ghadar said. 'That's not the way it's done now,' he said." (China's Advantage Slipping).

Centre Daily Times, 12/02/2007—Patrick Cataldo, associate dean for executive education, writes in his column on the importance of saying "thanks" in business. "These days, in local, national, and international relationships, there are far too few 'thanks' being expressed. Increase your statements of appreciation and you are likely to encounter many positive reactions." (Saying 'Thank You' Can Open More Doors Than You Think).

CentreDaily.com, 12/02/2007—Patrick Cataldo, associate dean for executive education, writes in his blog on the importance of saying "thanks" in business. "The simple act of using two words or extending a gesture in business that shows gratitude lets others see their actions and behaviors mattered to you. Learning how to say 'thank you' is not difficult and if practiced continually, can make a major difference." (The Power Of 'Thanks').

SmartPros.com, December 2007—J. Edward Ketz, associate professor of accounting, writes in his column about the FASB's relationship with preparers, focusing on two recent statements on leases and fair value measurements. "One of the difficulties of being a standard setter is to be perceived as fair, particularly with respect to constituents' being heard. The FASB has faced this problem since its formation and has done much over the years to accommodate constituents, especially those from the preparer community." (Leasing And Fair Value Measurements).

SmartPros.com, December 2007—J. Edward Ketz, associate professor of accounting, writes in his column on the conflict of interest that exists when credit rating agencies are paid by the banks they're rating. "Moody's and the other agencies make money by charging the business entities who are issuing debt. It doesn't take a genius to see the conflict of interest. The credit agencies lean on the issuer for more money or risk receiving a poor rating." (Poor Performance Of Credit Rating Agencies).