Media Coverage: May 2006

Pittsburgh Post-Gazette, 05/31/2006—J. Edward Ketz, associate professor of accounting, writes about Enron and Sarbanes-Oxley in an op-ed. "If our rules and our institutions could force people to see that, as Adam Smith wrote, in order for capitalism to flourish, people must act morally, then all of us could celebrate the end of accounting scandals — right alongside Rep. Oxley," Ketz writes. "As it is now, though, we should put away the champagne and remain vigilant for a long time to come." (Enron Is Not The End Of The 'Dark Era').

Los Angeles Business Journal, 05/28/2006—Tim Pollock, associate professor of management, comments on executive compensation. "The link between CEO compensation and subsequent performance is really hard to make, because it's difficult to determine what is the CEO's contribution and pull it apart from everything else," said Pollock. "For the most part, pay is the consequence of performance, not an antecedent." (Balancing Act).

The Philadelphia Inquirer, 05/28/2006—Article cites research by John Wald, visiting professor of finance. "They found that companies paying CEOs excessive amounts also pay directors excessive amounts. Most important: Companies that pay too much also tend to perform worse than their peers." (When Pay Keeps Going Up Even If Performance Does Not).

Harrisburg Patriot-News, 05/28/2006—Profile of a high-achieving high school student who plans on attending Smeal College. "Colin Matichak, a Lower Dauphin High School senior, will work as a summer recreation program counselor and a clerk at an ice cream stand before heading to Penn State University Smeal College of Business where he will major in business. (Best & Brightest)."

Pottsville Republican & Herald, 05/27/2006—Charles Enis, associate professor of accounting, comments on the tax reporting of the unvouchered expenses collected by Pennsylvania legislators. "There is no law being broken here. What they've done is create a public relations nightmare," Enis said. (Unvouchered Expenses Challenged).

Los Angeles Times, 05/26/2006—Linda Trevino, Franklin H. Cook Fellow in Business Ethics, comments on the effect of Sarbanes-Oxley on executive accountability. "Whereas directors in the past earned a year's pay for a few days' work, now 'people are taking their functions very seriously, especially on the audit and compliance committees,'" Trevino said. (Firm's Fall Led To Change In Conduct). This article also appeared in Taiwan's China Post.

Pittsburgh Business Times, 05/26/2006—Smeal College commencement remarks by James Stengel are published in abridged form. "When I was out jogging on the Penn State campus before commencement, I had a flash of the way I felt when I first arrived here 25 years ago—that sense of energy and optimism you feel when everything in life is right in front of you, just waiting to happen. So much began for me at the Smeal College of Business." (Mind The Unexpected).

The Baltimore Sun, 05/25/2006—Kenneth Lusht, interim dean, comments on his encounter with Smeal alumna Patricia Woertz. "After she gave the talk, there was another little reception, and, as near as I could tell, she remembered everyone's name. And most, like me, had never met her before," he said. "She's just incredible that way." (Former Chevron Exec To Lead ADM). This article, which originally appeared in April in the Chicago Tribune, also appeared in May in the Bradenton Herald, Lincoln Journal Star, St. Paul Pioneer Press and Wichita Eagle.

BusinessWeek Online, 05/24/2006—Smeal College and Smeal students are featured in an article about business and social fraternities. "In the Delta Sigma Pi chapter at the Pennsylvania State University's Smeal College of Business, pledges organize and execute social, community-service, fund-raising, and professional events." (Should You Join A Fraternity?).

O'Dwyer's Public Relations News, 05/16/2006—J. Edward Ketz, associate professor of accounting, comments on the financial reporting of the Public Relations Society of America. (CPA Profs Rap PRSA Financial Report).

Financial Times, 05/15/2006—Article profiles Judy Olian, former dean of Smeal. "Judy Olian, who recently took up the reins at the Anderson school at the University of California at Los Angeles, had led the Smeal school at Pennsylvania State University for five and a half years. Prof Olian joins Laura Tyson, who has been dean at both the Haas school at UC Berkeley and London Business School, in a club of just two women who have headed more than one top school." (Member Of A Club Of Two).

The Associated Press, 05/13/2006—Fariborz Ghadar, director of the Center for Global Business Studies, comments on the Pennsylvania economy. "We in Pennsylvania should be happier than the rest of the nation based on last year's performance," said Ghadar. (Voter Discontent A Determining Factor For Pennsylvania Incumbents). This article appeared on about 50 news Web sites, including Forbes.com, LATimes.com, and MSNBC.com.

TheStreet.com, 05/13/2006—J. Edward Ketz, associate professor of accounting, comments on 10-Q forms, an unaudited document that the Securities and Exchange Commission requires public companies to file. (Cutting Through Form 10-Qs).

Centre Daily Times, 05/10/2006—Letter responds to an op-ed by Andrew Bergstein, instructor in marketing. "The State College Community Land Trust would like to add emphasis to Andrew Bergstein's ... column ... on the collaborative ventures between the Smeal College of Business and the State College community. Our organization was recently the beneficiary of a well-thought-out marketing plan developed pro bono by the MBA student group Penn State Net Impact." (Partnering For Affordable Housing).

Newsday, 05/09/2006—Fariborz Ghadar, director of the Center for Global Business Studies, comments on rising gas prices. "When there's no oil, people get really paranoid and it has a real psychological impact," he said. "Yes, the price is up, and I don't like paying three dollars a gallon, but I still pay it." (The Fold: The '70's).

BusinessWeek, 05/08/2006—Cover story on undergraduate business school rankings mentions the Nittany Lion Fund and includes a photo of the Trading Room. "At No. 32 Pennsylvania State University's Smeal College of Business, students hoping to land jobs in the financial services industry get an early taste of that high-stakes world by managing a $4.7 million fund. It includes 69 outside investors who have each ponied up at least $25,000 apiece." (The Best Undergraduate B-Schools).

BusinessWeek, 05/08/2006—Story on the recruiting practices at Merrill Lynch quotes a Smeal College student who will be interning there. "Allison Pavlick, 21, a junior at Pennsylvania State University's Smeal College of Business who is interning at Merrill this summer, was sold by the company's family-friendly policies. Says Pavlick: 'That was a plus for me.'" (The Draft Picks Get Younger).

Centre Daily Times, 05/08/2006—Andrew Bergstein, instructor in marketing, writes an op-ed on the Smeal Community Initiative. "Over the past couple of years, more than a dozen projects have been completed involving about 200 students on behalf of groups including the Community Academy for Lifetime Learning, the CBICC, the State College Downtown Improvement District, Penns Valley Area High School and the Second Mile." (Connecting Campus With Community).

Pittsburgh Post-Gazette, 05/07/2006—Tim Pollock, associate professor of management, comments on executive compensation. "Unlike options, where there was no loss, the value of restricted shares can decline. Mr. Pollock believes executives will behave better knowing there's the potential for a loss." ('Fortunate' Executives Averaged $8.7 Million).

Fort Worth Star-Telegram, 05/06/2006—Kenneth Lusht, interim dean, comments on government-sponsored property insurance. "Government officials tend to be restrictive in what they will insure—and create more regulations," said Lusht. (Coastal Property Boom May Fall Victim To Storms, Insurance Costs). This article was also distributed by Knight Ridder and appeared on about 20 affiliated Web sites.

Women's Wear Daily, 05/06/2006—Fariborz Ghadar, director of the Center for Global Business Studies, comments on the retail economy in light of the latest jobs report from the Labor Department. "It may very well be that due to consolidation and new technology that the retail trade is becoming even more efficient," said Ghadar. (Labor Dep. Reports 138,000 Positions Added).

The Daily Record, 05/01/2006—Fariborz Ghadar, director of the Center for Global Business Studies, talks about energy supply and demand trends. Ghadar "said history has shown the economy starts responding to such price increases within three to six years." (Environmental Groups And Sustainable Energy Advocates See Silver Lining In Energy Price Spikes).

BizEd, May/June 2006—News brief on the appointment of James Thomas as the next dean of Smeal College . (Short Takes: New Appointments).

CFO, May 2006—J. Edward Ketz, associate professor of accounting, comments on the complexity of hedging. "The documentation is not excessive," said Ketz. "It's what I'd expect a company to do if I were investing." (Lost In The Maze).

SmartPros.com, May 2006—J. Edward Ketz, associate professor of accounting, writes in his column that the end of the Enron trial does not signal the end of accounting scandals. "Unfortunately, human folly will dash these hopes in another few years. Accounting scandals have afflicted us in the past and have every reason to come calling in the future." (Closing Another Door On Accounting Scandals?).

SmartPros.com, May 2006—J. Edward Ketz, associate professor of accounting, writes in his column on the close of the Enron trial. "I thought the best defense involved an attempt to transfer responsibility from Lay and Skilling to Vinson and Elkins and to Arthur Andersen. Lay and Skilling could easily contend that they were not the experts." (As The Enron Trial Turns).

SmartPros.com, May 2006—J. Edward Ketz, associate professor of accounting, writes in his column on the settlement between Tyco and the Securities and Exchange Commission. "In this case, Tyco must pay a $50 million penalty. But, just a minute! Who is really paying this $50 million fine? ... Given the firm itself is paying this ticket, it implies that the real payers are the investors of Tyco, who in effect must cough up $50,000,000. ... Why should the investors get ripped off twice?" (Tyco Investors Get Ripped Off Again ... This Time By The SEC).

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