Media Coverage: January 2007

Investor's Business Daily, 01/31/2007—Linda Treviño, Franklin H. Cook fellow in business ethics, comments on the perception of executive ethics. "People can't help but feel cynical when they follow the news, says Linda Treviño, author of Managing Business Ethics. Treviño advises people to quit wallowing in the negative." (IBD's 10 Secrets To Success Take Action: Work To Identify Fraud).

Financial Times, 01/29/2007—The Smeal MBA Program is included in the newspaper's annual ranking of MBA programs around the world.

Pittsburgh Post-Gazette, 01/28/2007—Fariborz Ghadar, director of the Center for Global Business Studies, comments a proposal to make pennies worth five cents. "Turning it into a nickel is good for kids," he said. "Immediately, their piggy banks will be worth a lot more." (What To Do When A Penny Is Worth More Than A Penny).

The Boston Globe, 01/23/2007—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." (For Most Buyers, It's A Bad Deal). This article also appeared in January in the Arizona Republic, Buffalo News, Charlotte Observer, Fort Worth Star-Telegram, Kansas City Star, Milwaukee Journal Sentinel, St. Louis Post-Dispatch, San Diego Union-Tribune, Seattle Times and Virginian-Pilot.

WPSU-FM/TV, 01/23/2007—Austin Jaffe, chair of the Insurance and Real Estate Department, discusses the real estate market with Penn State President Graham Spanier on "To The Best Of My Knowledge."

Business Day (South Africa), 01/19/2007—Article mentions the Economist Intelligence Unit's No. 1 ranking of Penn State Executive Programs. "With a rating of 4.6, Pennsylvania State University's Smeal College of Business U.S. was top in this category." (UCT Business School Makes World Top 10). A version of this article also appeared on the Web site of South Africa's Cape Business News  and All Africa.

USA Today, 01/16/2007—Article mentions research by Donald Hambrick, Smeal chaired professor of management. "Hambrick says there are many more narcissistic CEOs than there were three decades ago, when the typical CEO was a steady Eddie. Contemporary CEOs are much more likely to be flamboyant and view themselves as something akin to celebrities, Hambrick says." (It's Lonely—And Thin-Skinned—At The Top). This article also appeared in New Jersey's Daily Record and other Gannett newspapers.

Centre Daily Times, 01/14/2007—Brief article on the Economist Intelligence Unit's No. 1 ranking of Penn State Executive Programs. "The Economist Intelligence Unit, the research division of The Economist magazine publisher, has named Penn State Executive Programs at the Smeal College of Business as the top provider in the world of customized executive education programs." (Business College Wins Award).

Credit Union Times, 01/10/2007—Article on research by Abdullah Yavas, Elliott professor of business administration."The average home buyer usually purchases an excessive amount of points when selecting a mortgage, which leads to a higher payment than if they would have opted for zero points and a higher interest rate, according to research by Abdullah Yavas, Elliott professor of business administration at Penn State's Smeal College of Business, and Yan Chang, senior economist at Freddie Mac." (Study Shows Home Buyers 'Point' In The Wrong Direction).

The Wall Street Journal, 01/09/2007—James Thomas, dean, comments on the process of filling faculty vacancies. "If we fill all of them, we will have to do some budget juggling given the salary and supplement increases dictated by the present faculty marketplace," Thomas said. "Professors are becoming more nomadic as they go where the money is; moving to another school may mean a 50 percent increase in compensation." (Ph.D. Shortage: Business Schools Seek Professors). This article also appeared in The Wall Street Journal Asia and The Wall Street Journal Europe.

BusinessWeek, 01/08/2007—Abdullah Yavas, Elliott professor of business administration, comments on his research on mortgage points. "We're not saying that you shouldn't pay points, but too many borrowers were paying too many points," Yavas said. (Home Loan Homework).

Originator Times, 01/08/2007—Article on research by Abdullah Yavas, Elliott professor of business administration. "Yavas and Chang looked at 3,785 mortgages granted from 1996 through 2003. What they found was the average homeowner paid off his or her mortgage about three years before reaching the break-even point. In fact, only a mere 1.5 percent of them would have saved money by paying points." (Should You Advise Your Client To Pay Points?).

The Columbus Dispatch, 01/07/2007—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." A version of this article originally appeared in December on Dow Jones News Service.

The (Allentown) Morning Call, 01/06/2007—Donald Hambrick, Smeal chaired professor of management, comments on executive pay. "When it is a turnaround, you've got to sort of come up with what we might call 'hostile duty pay' because it is a very tough job, and the chances of failure are very high, and that becomes a blemish on the person's record, and the person wants to be compensated for taking that risk," said Hambrick. (Agere Paid CEO $5.6 Million).

Pennsylvania Business Central, 01/05/2007—Article on the Economist Intelligence Unit's No. 1 ranking of Penn State Executive Programs. "Penn State Executive Programs was named the top provider in the world for customized programs—education opportunities designed specifically for an individual company or institution." (Penn State Executive Programs Named Best In World).

The Associated Press, 01/02/2007—Fariborz Ghadar, director of the Center for Global Business Studies, comments on the regulations keeping Mexican cargo trucks off U.S. roads. "If we really have NAFTA and NAFTA's serious, why shouldn't the trucks be able to come?" Ghadar asked. "We first said they were dirty, then we said it's not safe. They've gone through all the hoops and loops and jumped this way and that way, and as soon as you have an election in the state or the county or this or that, they just put new barriers. When you put enough of these small barriers together, you prevent free trade." (Mexican Truckers Still Stuck In Limbo). This article also appeared in the Austin American-Statesman.

Carlisle Sentinel, 01/02/2007—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." (Housing Market Declines In 2006). This article was originally published in December by The Associated Press.

BizEd, January/February 2007—Article on executive education research by Jeffrey Spearly, senior instructor and managing director of Penn State Executive Programs. "New research from Pennsylvania State University's Smeal College of Business in University Park indicates that this trend is intensifying—so much so that corporations are seeking not only customization, but also long-term educational partners who will analyze their individual needs, develop customized solutions, and offer ongoing counsel." (B-Schools And Businesses: Partners In Exec Ed).