IN THE NEWS

December 1, 2008

The people and programs of the Wisconsin School of Business have been in the news recently.

NATIONAL

In an article entitled, “HEC and Wisconsin join hands over property” the Financial Times described a new partnership between the Wisconsin School of Business and HEC Paris to develop and teach a real estate program at HEC. In the article, Wisconsin was cited as one of the leaders in the U.S. in teaching real estate programs.   François Ortale-Magné and Tim Riddiough will teach HEC’s new Real Estate Finance course.

The Wisconsin-HEC partnership is also mentioned in BNET’s popular B-School Buzz blog. In the blog post, BNET writes that our #2 ranked real estate program will contribute its experience and bring an international dimension to HEC’s program.

The $85 million Wisconsin Naming Gift and the 13 Wisconsin Naming Partners were mentioned in a series of articles and international wire reports on the recent University of Chicago Booth  School of Business announcement. On giving, Dean Michael Knetter told the Chicago Tribune, “The more flexibility you have, the better for the school. You can align it with your school’s objectives rather than the donor’s objectives.” (Article 1, Article 2, Wire) -a few places where the wire report appeared: (Investor’s Business Daily, The Guardian (UK), CBS Marketwatch, StreetInsider, etc)

The Entrepreneurship MBA specialization was referenced in a Wall Street Journal article on Swiss Cellars, a Madison-based wine import company founded by Laurent Crolla. On the hunt for good Swiss wine in America, the authors stumbled upon Crolla’s company.  In the article, Crolla is one of few Swiss wine importers. In addition to Wisconsin, the wines he handles are available in seven states, with three more in the works.

Erin Nickelsburg, director of admissions for the full-time Wisconsin MBA program, provided comments for a BusinessWeek article along with fellow admissions directors from Wharton, Haas and the then Chicago GSB on four truths about today’s MBA. Nickelsburg cautioned prospective students that “not making an investment in yourself can turn around and haunt you when the economy goes back up.” The article was also picked up by a variety of other online outlets including, Yahoo! News.

Charlie Trevor and Anthony Nyberg’s research on “Keeping Your Headcount When All About You Are Losing Theirs: Downsizing, Voluntary Turnover Rates, and the Moderating Role of HR Practices” was featured in HR Magazine’s cover story “Layoff Aftermath.”  Trevor and Nyberg found that while bigger layoffs generally produce bigger spikes in turnover, even a small layoff sets off considerable staff flight. The results of their research also appeared in the April/May 2008 issue of the Academy of Management Journal and were summarized in the May 2008 issue of the Harvard Business Review.

Dean Michael Knetter has been traveling throughout Wisconsin giving talks to interested parties on the state of the economy. Snippets from a recent talk appeared in the investing blog SeekingAlpha.com.

ScienceWatch, published by ThomsonReuters, named Hollis Skaife’s research on “The discovery and reporting of internal control deficiencies prior to SOX-mandated audits” November’s New Hot Paper in the field of Economics and Business. In a Q&A published on the ScienceWatch website, Skaife explains that the study was one of the first to investigate a contentious section of the Sarbanes-Oxley Act of 2002 that requires publicly traded firms to assess and disclose the effectiveness of their internal control over financial reporting.

Morris Davis commented in a recent American Medical Association article on an Atlanta real estate developer who is offering buyers of its multimillion-dollar condominiums two years of medical services in the comfort of home. Davis called the pitch a gimmick and said he didn’t expect widespread adoption of it.

REGIONAL AND LOCAL

Coverage of the Applied Security Analysis Program (ASAP) reunion was included in an issue of the Milwaukee Journal Sentinel. Prominent guests and ASAP alumni were featured in the article, “Financial strategists see gloom, but then a rally.”

Associate Dean of Enterprise MBA programs Deborah Mitchell was featured in a series of WISC-TV segments looking at the holiday shopping season. Mitchell projected a decline in sales for many retailers this shopping season, but suggested shoppers could see some of the best deals on record as retailers look to pull forward sales.

Tom O’Guinn debunked the claims of a fictitious chain email, which warns recipients against purchasing gift cards this holiday season. As part of a WISC-TV report, O’Guinn said that the email is made up of outdated and incorrect information about various retailers such as Ann Taylor, Talbots and Eddie Bauer. He said the email plays on consumers’ economic fears and that retailers should be worried as perceptions oftentimes mask as reality.

Prominent real estate alumnus Blair Williams was featured in several articles in November. Williams was noted for venturing out on his own and forming the widely successful Winder Real Estate Development Inc. – operator of WiRED Properties, WiRED Ventures LLC, and WiRED Construction LLC.

Barry Gerhart and Mark Ready were featured in a recent Wisconsin State Journal coverage of ailing Spectrum Brands. Gerhart contributed expertise on CEO compensation in “No end in sight for Spectrum’s woes.”  Ready assessed the company’s stock performance and its chances to file Chapter 11 in “Spectrum stock falls to 8 cents a share.”

Charlie Trevor and Barry Gerhart were featured in a Business Journal of Greater Milwaukee article entitled, “Many More Pinkslips.” In the article, Trevor and Gerhart argued that companies would look to reduce their work forces in order to reduce overall costs during a down economy.

Neil Lerner, director of the Small Business Development Center, was quoted in the Wisconsin State Journal on the need for businesses to have a succession plan.

The effects of a possible GM bankruptcy on local retirees, employees were explored in an article in the Janesville Gazette that quoted Barry Gerhart.

Dean Michael Knetter was featured along with other economists and investment pros in the Milwaukee Journal-Sentinel article, “What goes down must come up.” When asked to assess the current economic environment Dean Knetter said confidence was key. “The more we lack confidence in each other, the more painful the de-leveraging process will be. And the more we lack confidence in the future, the more painful the recession will be because households will be afraid to spend.” He predicted market bottom in January 2009.

Rodney Stevenson provided comments in a recent article on falling home heating costs, which appeared in the Appleton Post-Crescent, Wausau Daily Herald and Marshfield News-Herald. In the article, Stevenson argued that the falling energy prices are because of less speculation in the crude oil market because of the world’s shaky financial situation and less consumption by consumers.

Chancellor Martin was a featured speaker at the recent economic luncheon hosted by WisBusiness.com and Madison Magazine. In her remarks, Martin hailed the entrepreneurial spirit of UW-Madison and referred to her work with Wisconsin School of Business Dean Mike Knetter and University Research Park Director Mark Bugher to enhance entrepreneurship as one of her most enjoyable experiences since taking the helm at Madison. (Badger Herald article)

In a recent Milwaukee Journal-Sentinel article current ASAP student John Hirt argued that nuclear power should be generating a major boost in business in America. Each week, the Journal-Sentinel focuses on one Wisconsin money manager or analyst looking at a trend that helps investment pros make their decisions. Fellow ASAP students Dean Mendes and Jason Mirr were two recent participants for this weekly feature.

On November 11, Tim Riddiough and Jim Johannes participated in a campus panel on the current state of the world economy and how it will affect the future of students’ loans. For his part, Riddiough said, “The way the world operates is going to change. There’s a lot of pain right now and more coming down the pipe. But at the same time, there is tremendous opportunity to remake the world we live in.”

Morris Davis contributed to a Badger Herald article on how the mortgage crisis is affecting college enrollment. Davis commented on the research of University of Michigan Professor Frank Stafford, which found a strong association between home equity and the 18- to 20-year-olds enrolled in college. According to Davis, the connection between homeowners and the chance of their children attending college seems to be an obvious correlation, but a question remains on how to deal with the issue.

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