Media Mentions

Sacramento Business Journal

The Sacramento Business Journal carried a story announcing that the Drexel Part-Time MBA program has been ranked No. 1 in academic quality among its peer programs by BusinessWeek magazine. The Drexel Part-Time MBA program is offered at Drexel’s Sacramento Center for Graduate Studies as well as on the main campus and in Malvern, PA.

4Hoteliers

A research article co-authored by Pravin Nath, Ph.D., assistant professor of marketing, was quoted in a 4Hoteliers article about the position of chief marketing officers being at the verge of extinction."[A] study by Pravin Nath... found that the presence of a CMO had no impact on a firm's performance and that firms with CMOs do not perform better, and may perform worse, than those without them," the article reports.

The Philadelphia Inquirer

Roger McCain, PhD, professor of economics, was quoted in a Philadelphia Inquirer article about the SEPTA strike’s cost to the region. The biggest direct cost we all experience is time lost. McCain, who said it took him 25 minutes to drive down Market Street from 30th Street to 34th Street Wednesday morning, said time is the ultimate scarce resource. Scarcity is what economics is all about, McCain said.

Reuters

Denis O’Brien, president and CEO of PECO and executive vice president of Exelon, will receive Drexel University’s LeBow College of Business 2009 Business Leader of the Year Award at a luncheon on December 3 at The Park Hyatt Philadelphia at The Bellevue. A Drexel alumnus, O’Brien received his MBA in 1987 from the University’s LeBow College of Business and is a University trustee. In his current position, O’Brien is responsible for strategic leadership and oversight of all of PECO’s operations. O’Brien has more than 25 years of utility experience in engineering, operations, strategic planning and executive management.

Rapaport Diamond Report

Maria Olivero, assistant professor of economics at the LeBow College of Business, was quoted on an article in Rapaport titled “The Consumer Psyche.” “It is the American consumer that drives the world economy,” says Olivero.  While business leaders point to an increase in consumption in emerging markets like China and Brazil, Olivero says those consumers are not ready to take the spending baton from American shoppers. “Getting consumers to spend in other parts of the world can’t happen if Americans aren’t spending — their economies still depend on the United States,” she says.

Fox News

Jie Cai, Ph.D., assistant professor of finance at LeBow College of Business and a fellow at our Center for Corporate Governance, was quoted in a Fox News article titled "Who Represents Taxpayers' Stakes in TARP Banks? Good Question."“If the U.S. government still holds those shares when Citigroup holds its next shareholder meeting, then the U.S. government is just like any other shareholder,” Cai said. “And just like any other shareholder, they can vote any way they like.”Cai noted that the bank hopes to do that, but that efforts to raise money by issuing additional shares will depend on market conditions. “It will be interesting to see how it plays out,” he said.  

The San Francisco Chronicle

A column in the San Francisco Chronicle refers to a research paper authored by LeBow College professors Eliezer Fich, Ph.D., associate professor of finance, and Jie Cai, Ph.D., assistant professor of finance, as well as Anh L. Tran, in listing questions that the reporter prepared for a potential interview with President Barack Obama. The proposed question: “Might the promised financial reforms address issues like ‘springloading?’ That is, the granting of new stock options to CEOs and other corporate honchos ‘systematically timed’ with takeover talk concerning their companies, according to a research paper from Drexel University’s LeBow College of Business.”

Entrepreneur.com

Mark Loschiavo, executive director of LeBow College’s Baiada Center for Entrepreneurship, commented on a story about the television program “Shark Tank,” in which entrepreneurs vie for start-up capital from investors. Be realistic, Loschiavo, says. “Venture capitalists or private-equity folks are always going to view the value of a business significantly lower than an entrepreneur believes it is worth. There’s always a chasm between what the entrepreneur wants and what the venture capitalists are willing to offer in terms of equity and investment.” “Venture capitalists can be excellent sources of feedback, whether they invest in your product or not,” Loschiavo says. “You can really learn a great deal about how to improve your plan or product, because these folks are going to pick up on any possible pitfalls.”

The Wall Street Journal

Eliezer Fich, Ph.D., associate professor of finance at LeBow College of Business, was quoted in a Wall Street Journal article about the practice of awarding stock options to top executives while engaging in negotiations to be acquired. “It’s very selfish behavior by these CEOs,” argues Fich, co-author of a research paper on the topic with Jie Cai, an assistant professor of finance at LeBow College, and Anh L. Tran. “They want to get the last nickel from the company, regardless of what’s in the best interests of shareholders.” Their paper, which has been presented at academic conferences but not yet published, examined 110 deals between 1999 and 2006 in which target company CEOs were given unscheduled stock-option grants while takeover discussions had started but hadn’t yet been made public.

KYW News Radio

Ed Nelling, Ph.D., a LeBow College of Business professor of finance, commented on a story about why American Express has just repealed monthly service fees on gift cards. “Especially in the current economic climate with everyone watching every dollar so closely, people were averse to using these gift cards or giving these gift cards to someone when they know that the gift card may waste away after some time.

iStockAnalyst

AN iStockAnalyst article entitled “It’s Not Easy Getting Green” references the CNBC article “Stock Option Grants to Target CEOs During Private Merger Negotiations,” authored by Eliezer Fich, associate professor of finance at LeBow College of Business.

CNBC

Eliezer Fich, associate professor of finance at LeBow College of Business, wrote an article for CNBC on findings outlined by his research paper co-authored with Jie Cai, an assistant professor of finance at LeBow College, and Anh Tran, entitled “Stock Option Grants to Target CEOs During Private Merger Negotiations.”  “My co-authors and I were baffled to discover that target CEOs, such as Marvel’s Perlmutter, are not technically in violation of Sections 10(b) and/or 16(b) of the 1934 Securities Act which penalize insider trading,” Fich writes. “Specifically, these laws state that ‘any person purchasing or selling a security while in possession of material, nonpublic information shall be liable in an action in any court of competent jurisdiction…’.”

MSN

David Becher, an assistant professor of finance at Drexel University’s LeBow College of Business, commented in an article entitled "Why a Meltdown Could Happen Again."“We haven’t changed the rules. The banks are still allowed to do what they did before, so there’s always the threat these products they are issuing can go ‘underwater’ again,” says Becher.

WMGK-FM

David Becher, PhD, associate professor of finance at LeBow College of Business, did a business update about the current mortgage crisis that aired on WMGK-FM.  “The housing market may be bottoming, but concerns remain. Waiting sellers may flood the markets and overwhelm a weak rebound. As mortgage rates reset higher, more Americans may be unable to afford their homes,” Becher said. “Millions owe more than their house is worth; this won’t change unless prices rise dramatically. While encouraging signs exist in the housing market, we are not out of the water yet.”

Agenda

In an article about the abrupt resignation this month of two directors on Hershey’s board over the creation of a risk committee, Ralph Walkling, executive director of the Center for Corporate Governance at LeBow College of Business, said he questions why the formation of a separate committee would have inhibited the full board from entertaining the acquisition or sale of the company anyway.“In general, on a typical board, just because you appoint a subcommittee to look at a particular issue does not mean you have relieved the full board of its responsibilities. The board still has oversight, and the subcommittee would still report to the full board,” he says.

Forbes

A recent Forbes article entitled “How to Start a Business From Your Dorm Room” features Baiada Center for Entrepreneurship executive director Mark Loschiavo and LeBow College sophomore and CEO of 3SecondReceipts LLC Bradley Ericson. Ericson is currently a contender for Entrepreneur magazine’s “College Entrepreneur of the Year” contest. “One of the first things that I do is ask students why they want to be an entrepreneur. Over the last five years, fewer and fewer of them say that they want to get rich, and more say ‘I want to make a difference,’” Loschiavo says.

The Toilet Paper Entrepreneur

Donna De Carolis, Ph.D., associate dean for strategic initiatives, commented in an article on The Toilet Paper Entrepreneur blog entitled "Women Entrepreneurs, Why They Are Taking the Lead." De Carolis says, "In a networked economy, which is what we are evolving into, women entrepreneurs possess the innate collaborative and communication skills that lead to success in building a business. Women get the balance between collaboration and competition; and entrepreneurs in today’s environment need both. In addition, the essence of effective communication is being open and authentic; women are more prone to allow vulnerabilities to show through, engendering trust."

The New York Times

A New York Times Dealbook article references a research paper co-authored by associate professor of finance and Center for Corporate Governance Fellow David Becher, Ph.D.

The Associated Press

LeBow College of Business Dean George Tsetsekos, Ph.D., commented in an AP story about Kenneth Feinberg, the Obama administration’s so-called ‘pay czar.’ “He needs to find a way to review those executive compensation packages from the perspective of the long-term and this is very, very difficult for an outsider,” said Dean Tsetsekos. This article was picked up by more than 600 media outlets.

KYW News Radio

Management Professor and Associate Dean for Strategic Initiatives Donna De Carolis, Ph.D., discussed how to handle negative press during her business commentary that ran on Saturday, July 11. De Carolis said “the worst thing you can do is give into a knee-jerk reaction. Rather, take time to process what has happened and carefully plan a response that incorporates your company’s core values.”

KYW News Radio

Management Professor and Associate Dean for Strategic Initiatives Donna De Carolis, Ph.D., discussed patents, trademarks, and copyrights during her business commentary that ran on July 25. De Carolis said “Most innovations are eventually copied by competitors, but it’s still important to protect whatever rights you have to your innovation from the get-go,” she said.

Philadelphia Business Journal

David Becher, a fellow at Drexel University's LeBow College of Business Center for Corporate Governance and associate professor of finance, commented on an article about the sale of Harleysville National Corp. to Buffalo’s First Niagara Financial Corp. Becher said that depending on the issues involved and how a bank responds, a regulatory action could spell certain death.“If a bank is ordered to raise cash, that could be impossible for some,” Becher said. “But they can change board members or executives and improve the lending portfolio.”

Philadelphia Business Journal

Timothy Ericson bikes two miles to work each day. Soon you will be biking to work, too. At least that is the hope at CityRyde, a fledgling outfit that supports the growing “bike share” industry. Strong in Europe and expanding here at home, bike share offers urbanites a way to make short-term use of bicycles from a common pool, for a member fee that typically runs about $50 a year. A nice idea, but generally not profitable, according to Ericson, who founded CityRyde with Jason Meinzer, a classmate from Drexel University’s LeBow College of Business. With consulting services and an emerging software product, the partners and their two full-time employees are helping bike-share firms develop and implement pragmatic business models.

Healthcare Finance News

Kerry Anne McGeary, assistant professor of economics at Drexel University’s LeBow College of Business, says the current version of the health care reform bill in the House of Representatives will raise health care spending to 20 percent GDP more quickly than the proposed date of 2017. The health care reform bill, as currently proposed, offers major investments in one of our largest industries.“Roughly 17 percent of our annual GDP is spent on the healthcare industry. Without these proposed entrants, our healthcare spending was projected to increase to 20 percent of the nation’s GDP by 2017; however if the bill is passed, it is likely our healthcare spending will reach 20 percent of GDP much before 2017.”

The Bottom Line

David Campbell, Ph.D., head of LeBow College’s Accounting department, was quoted in an article about IFRS in The Bottom Line. “From my perspective, the FASB’s codification is a significant development for both U.S. practicing professionals and academics,” said Campbell. “Having the standards categorized by topical area will expedite efficient transaction analysis by both preparers and auditors. From an educational perspective, the codification will enhance the integration of transactional analysis into the financial reporting curriculum at colleges and universities.”

Reuters

LeBow College professor of finance David Becher was quoted in a Reuters article about problems at Huron Consulting Group Inc., a global consulting company that rose from the ashes of destroyed accounting firm Arthur Andersen. This story was picked up by many media outlets, including Forbes, The New York Times, MSN Money, and BusinessWeek. The scandal could turn out to be a misunderstanding or a “colossal mistake,” said Becher, who is also a fellow at LeBow’s Center for Corporate Governance. But the fact that senior Huron executives resigned may lead to concerns that executives were trying to manipulate earnings by making it seem like they paid less then they really did for the companies they acquired, he said. “They bill themselves as (experts who) help people get through these difficult regulatory environment post-Sarbanes Oxley,” said Becher, in reference to the corporate governance and accounting law passed after the Enron scandal. “You’d think they would know.”

Forbes.com and MSNBC.com

Dr. Ralph Walkling, executive director of the Center for Corporate Governance at Drexel University's LeBow College of Business, says that corporate boards should closely monitor shareholder votes, as director performance, firm performance and corporate governance are all reflected in these votes. "Boards need to be conscious of the fact that director elections do signal shareholder concerns about the firm and the way it is governed, even if on average, votes for directors are high," Walkling says.

KYW News Radio

Management Professor and Associate Dean for Strategic Initiatives Donna De Carolis, Ph.D., discussed how creativity is important to innovation, sales, and profits during a recent business commentary on KYW News Radio, which ran Saturday, July 18. De Carolis also said that some autonomy is important for creativity.

The Boston Herald

Dr. Ralph A. Walkling, executive director of Drexel University's LeBow College of Business Center for Corporate Governance, commented in a recent article about the call for Harvard University President Drew Faust, who earns nearly $700,000 in salary and benefits and lives in a Harvard-owned home, to share in the pain unleashed by a 30 percent drop in the school’s endowment. Walkling said that while a Faust pay cut would be an important symbolic gesture, it has to be weighed against other factors. “There is intense competition in academia for talent,” Walkling said. “Like businesses, we try to hire the best and the brightest, and that takes money. . . . Frankly, $700,000 is not an outrageous amount at all.”

Philadelphia Business Journal

Edward Nelling, Ph.D., a fellow at LeBow College's Center for Corporate Governance, commented in a recent article on inflation. “The probability of facing inflation is higher than it has been in the recent past, so it is something that investors should perhaps consider,” said Nelling.