July 2005
Media Coverage: July 2005
Rochester Democrat & Chronicle , 07/28/2005— J. Edward Ketz , associate professor of accounting, discusses Eastman Kodak's case against former employees who cheated the company out of $14 million. "I don't know Kodak that well. But at least from the consequences, it looks like they don't have a very good system or it wasn't working," Ketz said. "Given that these sorts of things have happened often for the last 100 years, if not before, it behooves corporations to have some sort of internal control system to at least stop the large amounts" ( Kodak's Fiscal Radar Misfired ).
Pittsburgh Post-Gazette , 07/22/2005— Fariborz Ghadar , director of the Center for Global Business Studies, discusses China's decision to stop linking the price of its currency to the U.S. dollar. "I don't think 2 percent is going to make any kind of major dent in the value of the exports or reduce the trade deficit significantly,'' Ghadar said. "I think it's a political gesture to say, 'OK we're doing something. Here's a step toward liberalizing our economy'" ( China Bows To Pressure, Cuts Yuan's Ties To Dollar ).
Compliance Week , 07/19/2005— J. Edward Ketz , associate professor of accounting, discusses a recent report criticizing the U.S. system of accounting and capital market regulation when compared with the British version. According to Ketz, a key difference in the two systems is the enforcement process under the Securities and Exchange Commission. "Europe has no counterpart to the SEC with respect to the ability to take civil actions and even pursue criminal investigations against managers for accounting scandals," Ketz said. "Even if Britain and the U.S. approached accounting standards setting the same way, I would expect to find more accounting scandals in the U.S. because of the SEC" ( U.K. Accounting Report Takes A Swipe at U.S. System ).
Patriot News , 07/13/2005— J. Edward Ketz , associate professor of accounting, writes about the nomination of Christopher Cox for the chairmanship of the SEC in an op-ed. "After confirmation by the Senate, Christopher Cox will become the next chairman of the SEC. His world will not mirror Pooh Corner because it will encompass unhappiness, rancor, contention and disenchantment. When he notices lenders and investors in trouble, Cox will instead soothe the pangs and hurts of managers and directors and their professional advisers" (Christopher Cox Lives Nowhere Near Pooh Corner).
Compliance Week , 07/07/2005— J. Edward Ketz , associate professor of accounting, discusses proposals by the Financial Accounting Standards Board and the International Accounting Standards Board that seek to treat all combinations as acquisitions. According to Ketz, the proposed revisions will bring more value from acquired entities onto balance sheets because the new rules "gross up the values currently recognized by minority or noncontrolling interests" (FASB, IASB Finalize New Business Combinations Proposals).
Money , July 2005— Abdullah Yavas , Elliott Professor of Business Administration, discusses his research investigating whether agents charging higher commissions are able to gain more money for home sellers in the end. Yavas and his co-authored analyzed 55,000 Texas home sales in 2002 and found that homes sold by discounters fetched 1.7% less than comparable properties sold by full-commission agents. But since the typical discounters charged 4%, their clients still came out 0.3% ahead. On a $ 350,000 sale, that equals $ 1,050 saved ( Less Is More ).
