Media Coverage: November 2007

Dow Jones News Service, 11/29/2007—J. Edward Ketz, associate professor of accounting, comments on loans held for investment. "It is earnings management but it is a mild everyday form," said Ketz. "You see it practiced by everybody." (Hide And Seek Is Latest Subprime Strategy).

The Associated Press, 11/26/2007—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." (HSBC Fund Bailout Raises Citi Questions). This article appeared on more than 150 news Web sites and in dozens of newspapers including the St. Louis Post-Dispatch, Oakland Tribune, and China Post.

Seeking Alpha, 11/26/2007—Article on research by Donald Hambrick, Smeal Chaired Professor of Management. "A recent study of almost a thousand companies by the management professors W. Gerard Sanders and Donald Hambrick found that CEOs whose compensation was made up mostly of stock options tended to 'swing for the fences,' making investments and acquisitions that were riskier than those made by other executives." (Asymmetric Executive Incentives: Investors and Boards Take Heed).

Pittsburgh Post-Gazette, 11/25/2007—Fariborz Ghadar, director of the Center for Global Business Studies, comments on the effect of gas prices on consumer behavior. "I don't believe that in the short run we're not going to not drive where we want to go," Ghadar said. "We'll complain about it, but we're certainly not going to not drive. Are we going to stop shopping? No. Are we going to stop going to work? That's silly." (Gas Prices Aren't Slowing U.S. Motorists). This article appeared in several Scripps newspapers.

Middle East Times (Egypt), 11/22/2007—Fariborz Ghadar, director of the Center for Global Business Studies, writes in an op-ed about the United States' presence in the Middle East. "Our current policy is a formula for disaster not success," Ghadar writes. "Success here hinges on jobs created, not bombs dropped. Fueling economic growth requires the investment of foreign capital, peace and stability, and countries putting aside long-standing conflicts based on either pride or prejudice." (Pride & Prejudice's Escalating Cost).

Pittsburgh Post-Gazette, 11/21/2007—Letter to the editor from the office of U.S. Sen. Arlen Specter in response to an op-ed by J. Edward Ketz, associate professor of accounting. "Like Professor Ketz, Sen. Arlen Specter is concerned that sweeping legislation may create incentives for irresponsible behavior and harm future home buyers." (This Measure Would Help Some Homeowners).

Mint (India), 11/19/2007—Article on research by David Harrison, Smeal Professor of Organizational Behavior and Human Resource Management, and Ph.D. student Ravi Gajendran. "Our results show that telecommuting has an overall beneficial effect because the arrangement provides employees with more control over how they do their work," said Gajendran. (Telecommuting A Win-All Option). This article was also distributed in Asia by Asian News International and the Indo-Asian News Service.

Reuters, 11/19/2007—Article on research by David Harrison, Smeal Professor of Organizational Behavior and Human Resource Management, and Ph.D. student Ravi Gajendran. "Tired of traffic jams, late trains, packed buses? Telecommuting can be a big plus for workers and employers because it boosts morale and job satisfaction and cuts stress, researchers said on Monday." (Telecommuting Found To Boost Morale, Cut Stress). This article appeared on news Web sites such as CNET News.com and ZDNet.

The Observer (U.K.), 11/18/2007—Article on research by Donald Hambrick, Smeal Chaired Professor of Management. "The Hambrick and Sanders findings are important because unlike other criticisms of stock options they strike at a feature that is at their heart: it is not that they fail to foster managerial aggressiveness, they do it only too well." (Buccaneering Bosses Are The Worst Of All Options). This article also appeared in the New Zealand Herald.

Centre Daily Times, 11/18/2007—Brief article on Penn State Executive Programs' partnership with the U.S. Marine Corps. "For the ninth year in a row, the U.S. Marine Corps is turning to Penn State's Smeal College of Business to lead the Marine Corps Logistics Education Program for military and Department of Defense logisticians." (U.S. Marine Corps Partnering With Smeal).

The Record, 11/14/2007—Article mentions testimony delivered by Marvin Goldberg, Bard Professor of Business Administration, before the U.S. Senate commerce committee. "A marketing professor at Pennsylvania State University, Marvin Goldberg, said in testimony submitted to the committee that 80 percent of smokers of light cigarettes in 2001 thought they had to smoke two, three or more cigarettes to get the same amount of tar as a regular cigarette." (Deception Can Be Deadly).

The Daily Collegian, 11/14/2007—Article on testimony delivered by Marvin Goldberg, Bard Professor of Business Administration, before the U.S. Senate commerce committee. "Goldberg states that light cigarette advertising creates a false image that those smokers are 'attractive, healthy and vigorous people,' while at the same time not discussing the diseases associated with smoking." (Prof. Speaks To Congress).

The Wall Street Journal, 11/13/2007—Anthony Warren, Farrell Clinical Professor of Entrepreneurship, comments on his class tardiness policy. "Anthony Warren, a professor of entrepreneurship at Penn State's Smeal College of Business, deducts points from students who show up late. 'It's an outrageous expression of arrogance,' he says." (I'm Not Really Late, I'm Just Indulging In Magical Thinking). This article also appeared in several newspapers, including The Wall Street Journal Europe, The Wall Street Journal Asia and the Pittsburgh Post-Gazette.

The Daily Collegian, 11/13/2007—Robert Macy, clinical assistant professor of entrepreneurship, comments on Lion Launch Pad, a student business accelerator for which he serves as chair. "It's truly amazing to me how dedicated Penn Staters are to each other and how willing they are to pitch in, offer advice and lend a hand when a fellow alum has a need," Macy said. "Immediate access to that kind of a network is something very few startups are able to attain on their own." (Company Aids Student Entrepreneurs).

The Daily Collegian, 11/13/2007—Article on an international service trip taken last spring by a Smeal student organization. "A trip to Chile opened the minds of four Penn State business students and two Smeal College of Business faculty members to another culture's business practices last spring. Penn State's chapter of Students in Free Enterprise provides community outreach opportunities to business students and helps them develop as professionals." (Business Lessons Go Overseas).

Slate, 11/12/2007—Article mentions research by Donald Hambrick, Smeal Chaired Professor of Management. "The Sanders and Hambrick study, which you repeatedly mention, suggests quite the opposite. It says stock options haven't been good for shareholders. Yet, as you know, stock options continue to multiply." (How Often Do You Vote Your Shares? [Part Five]).

The New Yorker, 11/12/2007—Article mentions research by Donald Hambrick, Smeal Chaired Professor of Management. "Not surprisingly, a recent study of almost a thousand companies by the management professors W. Gerard Sanders and Donald Hambrick found that CEOs whose compensation was made up mostly of stock options tended to 'swing for the fences,' making investments and acquisitions that were riskier than those made by other executives." (Performance-Pay Perplexes).

Slate, 11/12/2007—Article mentions research by Donald Hambrick, Smeal Chaired Professor of Management. "I can't seem to interest you in a recent study (by W. Gerard Sanders of Brigham Young University and Donald C. Hambrick of Penn State University) that appeared in the Academy of Management Journal. It suggested that CEO pay packages heavily dependent on stock options—probably the most significant factor driving CEO compensation into the stratosphere—were likelier to lower stock prices than to raise them, because they push CEOs into taking too many risks." (How Often Do You Vote Your Shares? [Part Four]).

The Associated Press, 11/12/2007—Fariborz Ghadar, director of the Center for Global Business Studies, comments on foreign governments seizing oil company profits. "When oil prices go up, there's a lot of money there and everybody wants a bigger piece of the pie," said Ghadar. (International Oil Companies Must Strike Delicate Balance As Foreign Governments Seek Bigger Share). This article appeared on several Web sites, including CNNMoney.com and Forbes.com.

BusinessWeek, 11/12/2007—J. Edward Ketz, associate professor of accounting, comments on the banking industry's vulnerability from collateralized debt obligations. "My guess is there's going to be some train wreck here," Ketz said. (Citi May Have A New Mess On Its Hands).

Bloomberg News, 11/11/2007—J. Edward Ketz, associate professor of accounting, comments on the Level 3 assets held by banks. "The market does not exist for a lot of these things,'' said Ketz. "Third-level measures are fraught with lots of measurement error, in part because you are using assumptions.'' (Goldman Held Bigger Level 3 Share Than Citi, Merrill).

Centre Daily Times, 11/11/2007—Brief article on appointment of Patrick Cataldo, associate dean for executive education, to the board of directors of the International University Consortium for Executive Education.

The Charlotte Observer, 11/09/2007—J. Edward Ketz, associate professor of accounting, comments on off-balance-sheet accounting. "Ketz said investors need more information about off-balance-sheet arrangements. 'It's very hard to read an annual report and come away with what the risks are,' he said." (Hidden Bank Activities Get Fresh Scrutiny).

Supply Chain Digest, 11/09/2007—Article mentions presentation by Evelyn Thomchick, associate professor of supply chain management.

Tyrone (Pa.) Daily Herald, 11/07/2007—Article on a retirement celebration held for John Spychalski, professor emeritus of supply chain management. "Dr. John C. Spychalski, who retired earlier this year as a faculty member in Penn State's Smeal College of Business at University Park, was honored by former students and colleagues at a special gathering at Tyrone's Historical Rail Park. A slight drizzle didn't dampen spirits as the group arrived here aboard the Nittany & Bald Eagle excursion train." (A Special Honor At Tyrone's Rail Park).

Bloomberg Radio, 11/07/2007—J. Edward Ketz, associate professor of accounting, commented on the subprime mortgage fallout.

Pittsburgh Post-Gazette, 11/07/2007—J. Edward Ketz, associate professor of accounting, writes in an op-ed about the subprime mortgage fallout. "What a mess subprime mortgages have created," Ketz writes. "As pundits announce dire predictions that weakening housing and mortgage markets threaten the economy, borrowers plead for relief and banks appeal for assistance. Congress is apparently ready to help, but do we really want taxpayers bailing them out?" (Subprime Mortgages Come Home To Roost).

Dow Jones News Service, 11/06/2007—J. Edward Ketz, associate professor of accounting, comments on the subprime mortgage fallout. "My guess is management had a fairly good idea of what the risks were and they saw profit opportunities in them," Ketz said. "And they may not have understood how quickly the profits would turn to losses." (Opacity Of Subprime Part Of The Problem).

San Francisco Chronicle, 11/05/2007—Fariborz Ghadar, director of the Center for Global Business Studies, comments on Alibaba.com, a Chinese e-commerce Web site. "You can be in the middle of nowhere in China, but (with Alibaba.com) you can start a Web site and start trading," said Ghadar. "You've got a market that's open to the world." (Alibaba.com And The Rise Of Entrepreneurial China).

Centre Daily Times, 11/04/2007—Patrick Cataldo, associate dean for executive education, writes in his column about business etiquette. "Behaving appropriately in business situations is very important to your ultimate success. You cannot build relationships—including international ones—unless you treat people well." (Business Etiquette More Than Right Fork).

CentreDaily.com, 11/04/2007—Patrick Cataldo, associate dean for executive education, writes in his blog about business etiquette. "Business etiquette is a lot like 'bus safety' … no matter how many times you hear the message, it's a good reminder of the rules you must follow. And depending on the material and who presents it, you may even learn something new in the process." (Thinking Ahead In Business - Etiquette).

The Associated Press, 11/02/2007—J. Edward Ketz, associate professor of accounting, comments on the role of auditors in accounting for debt. "The auditors have to do this as a matter of self-interest and survival," Ketz said. "They need to cover their own positions by getting the bad news on the books sooner rather than later." (Auditors Get Tough). This article appeared on dozens of news Web sites and in newspapers like The Hartford Courant and The Cincinnati Enquirer.

San Francisco Chronicle, 11/02/2007—Fariborz Ghadar, director of the Center for Global Business Studies, comments on Cisco Systems' investment in China. "I think China is perceived by Cisco to be one hell of an attractive market for all of these reasons," Ghadar said. " (Cisco Doubling Its Bet On China To $16 Billion).

Sales And Marketing Management, November/December 2007—Article profiles Ralph Oliva, executive director of the Institute for the Study of Business Markets. "There is a vibrant community of sales and marketing experts who understand the specific challenges B2B salespeople and marketers face. ... One such community can be found on the Penn State University campus, in the Smeal College of Business, nestled in the mountains of central Pennsylvania." (The Brains Behind The Brawn).

Business Media Matters, November 2007—Article profiles Ralph Oliva, executive director of the Institute for the Study of Business Markets. "Oliva believes we're actually very early into understanding the real impact of the digital transformation. ... That's why Oliva's role is so important. The ISBM has been, and continues to grow as, the leading collection point for academic researchers and for b-to-b marketing firms looking to grow their marketing competency and effectiveness." (Educating Tomorrow's Business Information Leaders).

SmartPros.com, November 2007—J. Edward Ketz, associate professor of accounting, writes in his column on the SEC's handling of accounting fraud. "If the SEC hopes to deter future accounting frauds, it must align its punishment with the thieves who carry out these misdeeds instead of punishing the shareholders. Next time the SEC ought to fine the executives $50 million each. That would send the right message to Wall Street. And it would alleviate the pain and suffering by the shareholders." (Freddie Mac's Scandal And The SEC's Judgment).