Media Coverage: June 2008

The Motley Fool, 06/29/2008—Article on research by J. Randall Woolridge, professor of finance. "Cusatis and Woolridge found that Wall Street analysts—supposedly among the smartest, most well-informed prognosticators—consistently overestimated the future earnings growth rates of the companies they cover. By a lot. I mean by a whole lot." (The Wall Street Myth That Could Destroy Your Portfolio). This article also appeared on The Money Times Web site.

Centre Daily Times, 06/29/2008—News brief on the radio show hosted by Ken Pasch, instructor in accounting and management. "At 9 a.m. Ken Pasch, will host 'Speaking Confidentially,' a show about life, leadership, and motivation in the workplace that offers the opportunity to share and resolve issues or bounce new ideas off of someone." (Advice Shows Come To Radio).

The Associated Press, 06/26/2008—Gary Gray, visiting professor of finance, comments on the proposed lease of the Pennsylvania Turnpike. "Our recommendation is reject the bid. It's too low," says Gray. "Why sell your prized asset in a buyer's market?" (Pa. Lawmakers Scrutinize Long-Term Turnpike Lease). This article appeared in several Pennsylvania newspapers, including The Philadelphia Inquirer.

Centre Daily Times, 06/25/2008—Editorial quotes an op-ed by Terrence Guay, clinical associate professor of international business. "Guay wrote: 'While U.S. airlines made a combined profit of $5 billion in 2007, the industry lost $32 billion over the previous six years, during which time Delta, Northwest, United and US Airways all filed for bankruptcy.'" (Getting There Is Getting Harder).

Crain's Manchester (U.K.) Business, 06/23/2008—Article quotes research by Gary Lilien, Distinguished Research Professor of Management Science, and Arvind Rangaswamy, Anchel Professor of Marketing. "According to several studies, including a piece of research from Penn State's Smeal College of Business, there are genuine opportunities to be found during times of economic hardship." (How Creativity Can Help Firms Through Tough Conditions).

Pittsburgh Tribune-Review, 06/21/2008—Austin Jaffe, chair of the Department of Insurance and Real Estate, comments on the Pennsylvania real estate market. "Pennsylvania housing markets appear to be holding their own in terms of price declines, even if they have slowed or have fallen in price a bit compared with many other parts of the country," Jaffe says. (Housing Prices Relatively Stable In Pa.).

TheStreet.com, 06/20/2008—Fariborz Ghadar, director of the Center for Global Business Research, comments on the use of petroleum. Ghadar "estimates that 10 to 15 percent of the petroleum drilled around the world goes to uses other than fuel for transport and heating. In the U.S., an additional 20 percent of the petroleum we use goes to agriculture in the form of pesticides and other chemicals and fuel for farm equipment, he says." (How To Get The Oil Out Of Your Life).

Investor's Business Daily, 06/19/2008—Fariborz Ghadar, director of the Center for Global Business Research, comments on the Chinese plan to cut national oil subsidies. "Ghadar said the price change policy in China might produce a temporary easing of global demand growth, but wasn't likely to stall pressure to produce more oil. 'This is a nice short-term blip, but our fundamentals in constraints in energy will continue,' he said." (Oil Retreats $4.75 As China Says It'll Hike Energy Prices).

BusinessWeek.com, 06/19/2008—Carrie Marcinkevage, MBA director of admissions, comments on MBA admissions essays. "She said she sometimes reads essays where people put in too many details about a former relationship or family trauma. ... She recommends applicants only share those details of their personal lives that resonate with the message they are trying to convey in their application about their potential as a business leader." (Five Ways To Ruin An Application Essay).

Centre Daily Times, 06/19/2008—Andrew Bergstein, associate director of the Center for Sports Business & Research, comments on the economy's effect on minor league baseball. "Near-end destinations get more of their local market," Bergstein says. "With previous recessions, people's geographic set has shrunk. They stay closer to home and do things that are less expensive." (Economy Pitching Spikes A New Challenge).

CFO.com, 06/18/2008—J. Randall Woolridge, professor of finance, comments on spin-offs. Woolridge "says that when companies are producing little good news, they often use spin-offs to shake things up. 'Look at Kraft and Intel—these stocks haven't been moving,' he says. (The Urge To Un-Merge).

National Post (Canada), 06/14/2008—Article mentions research by David Harrison, Smeal Professor of Organizational Behavior and Human Resource Management. "According to a recent study by Pennsylvania State University researchers Ravi Gajendran and David Harrison, telecommuting can make it easier for working parents to be more engaged with their kids. Workers eliminate a tiresome commute and have the freedom to incorporate family activities into a more flexible work routine." (A Dad's Homework).

Austin Startup, 06/11/2008—Smeal alumnus Greg Stock '87, '91 M.B.A. talks about his connection to his alma mater. "My family and I continue to stay close to Penn State. We have created two scholarships there—one for the Drum Major and one in the Smeal College of Business.  A few weeks ago, I was honored to receive the Distinguished Achievement Award from Penn State's Smeal College of Business." (Q&A Wednesday: Mirage Networks).

Centre Daily Times, 6/08/2008—Article on State College Area High School graduates quotes a future Smeal student. "Vernon Davis, 18, will start college July 2 at Penn State's Smeal College of Business. He'll major in finance and said he is looking forward to starting his future and career. 'I want to go to New York and work on Wall Street,' Davis said." (Leaving A Legacy).

The Atlanta Journal-Constitution, 06/06/2008—Terrence Guay, clinical associate professor of international business, writes in an op-ed about the economic troubles facing American airlines. "At a time when our own trade representatives are demanding that other countries open their financial, retail and other service industries to competition from U.S. companies, we refuse to open our airline market to others. Yet this is the best strategy to improve the financial health of U.S. airlines." (Let Foreign Airlines Buy Ours). This article also appeared in the Tampa Tribune, the Patriot-News, and the Centre Daily Times.

Arkansas News Bureau, 06/05/2008—Fariborz Ghadar, director of the Center for Global Business Research, comments on the prospective loss of jobs in the Alltel-Verizon merger. "If you're going to save $1 billion, you're going to have to do some cost-cutting, which means unfortunately a number of people in Arkansas are going to have to be moved out of Arkansas or basically let go," Ghadar says. (Alltel Employees Get Memo About Merger).

TheStreet.com, 06/02/2008—Fariborz Ghadar, director of the Center for Global Business Research, comments on small businesses going global. "Smaller technology companies have to take advantage of the global market very quickly," Ghadar says. "If you don't go globally quickly, you're leaving money on the table." (If GE Thinks Globally, Shouldn't You?).

Employee Benefit Adviser, 06/02/2008—Keith Crocker, Elliott Chaired Professor of Insurance and Risk Management, discusses in a podcast his research on how employer-sponsored group health insurance helps preserve manageable risk pools. (The EBA Raw Bar).

Centre Daily Times, 6/01/2008—Patrick Cataldo, associate dean for executive education, writes in his column about equality in the workplace. "Isn't it a shame that in 2008, with nearly a decade gone in the 21st century, we are still coming to terms with issues of equity in the workplace? There needs to come a day—and soon—when stories about women and underrepresented groups in business become unnecessary." (Workplace Equality Has A Way To Go In The U.S.).

CentreDaily.com, 6/01/2008—Patrick Cataldo, associate dean for executive education, writes in his blog about Penn State Executive Programs' Executive Program for Women Leaders. "The Executive Program for Women Leaders at Penn State is offered in collaboration with Rebecca Shambaugh, the author of the book It’s Not a Glass Ceiling, It’s a Sticky Floor. The program is designed for participants to expand their perspectives on their skills and capabilities, to discuss self-limiting beliefs and behaviors, and to gain greater confidence as business leaders. (Workplace Equality).

Leader's Edge, June 2008—Keith Crocker, Elliott Chaired Professor of Insurance and Risk Management, writes in an article about his research on employer-sponsored group health insurance. "Why is it so easy to purchase an individual life insurance policy but extremely painful to purchase an individual health insurance policy? If you answer that question, you begin to understand the reasons behind the economics of group health insurance—especially employee groups sponsored by a business." (Stable Relationships).

SmartPros.com, June 2008—J. Edward Ketz, associate professor of accounting, writes in his column about Social Security. "I recently received my 'Social Security Statement' from the Social Security Administration. As usual, it is filled with half truths and silly assertions to disguise the true state of affairs. Social security, as we know it today, will not exist in another decade or so." (My Social Security Statement).

SmartPros.com, June 2008—J. Edward Ketz, associate professor of accounting, writes in his column about congressional responses to CEO pay. "I doubt that Congress should say much about the magnitude of the pay at this time. For the present, it should empower the shareholders to do this. If the shareholders are thwarted in their efforts, then Congress can intervene in a more forceful manner." (Say For CEO Pay).

SmartPros.com, June 2008—J. Edward Ketz, associate professor of accounting, writes in his column about "corporate managers who attempt to intimidate those who issue research reports critical of them and their operations." (Issuer Retaliation: An Open Letter to Sen. Wyden and Chairman Cox).

SmartPros.com, June 2008—J. Edward Ketz, associate professor of accounting, writes in his column about statements of comprehensive income. "Let's renounce the reliability argument and show some political muscle. Scrap the notion of comprehensive income and strengthen the income statement." (Let's Scrap The Comprehensive Income Statement).