School of Business Gazette, February 1, 2006

Wisconsin Professor Wins Top Prize for
Research on Corporate Finance

Toni M. Whited, an associate professor of finance at the University of Wisconsin-Madison School of Business, has won the top award for co-authoring the best paper published on corporate finance in the Journal of Finance.

Whited and Christopher A. Hennessy of the University of California-Berkeley won the prestigious Brattle Prize in Corporate Finance and $10,000 for their paper,  "Debt Dynamics."  In the paper, they explore in a realistic, dynamic setting the effects of taxes and growth on corporate capital structure. The award was presented at the annual meeting of The American Finance Association, publisher of the Journal of Finance.

"This is a tremendous accomplishment for Professor Whited and a great reflection on the quality of research at the School of Business," said School of Business Dean Michael M. Knetter. "Only the best research is published in the Journal of Finance. Being cited for the best paper on corporate finance to appear in the journal all of last year is an outstanding accomplishment."

Whited, who joined the School of Business in 2003, is the Kuechenmeister-Bascom Professor in Business in the department of finance, investment and banking. She earned her doctoral and master's degrees, both in economics, from Princeton University. Prior to earning her Ph.D., she was an economist for the Board of Governors of the Federal Reserve System. Her areas of expertise include corporate diversification, liquidity constraints and measurement error.

Whited said the aim of the paper was to explain "seemingly anomalous corporate capital structure decisions in a unified, rational framework. Our theory breaks from previous work because it explicitly takes account of managers' simultaneous desires to minimize taxes and to plan for future financial flexibility and growth. It also does a good job of explaining the data."

Finance Professor to Become Associate Dean For Wisconsin MBA and MS Programs in July

Assistant Professor Ken Kavajecz, Finance, Investment and Banking, will serve as associate dean for the full-time Wisconsin MBA and specialized master's programs of the University of Wisconsin-Madison School of Business beginning July 1, 2006.

Kavajecz joined the School of Business from the Wharton School of the University of Pennsylvania almost three years ago. He has published in the top journals in his field, been a major contributor to the first-year core curriculum of the new Wisconsin MBA and led development and implementation of an MBA honor code.

“Our redesigned MBA program remains a top priority project, and we are fortunate to have someone with Ken's ability and initiative accepting this assignment,” said Dean Michael Knetter in announcing the appointment.

Kavajecz will succeed Professor Don Hausch, who led the program for X years. “Don has done a superb job leading the early implementation of the program,” Knetter said. “His dedication, inclusive nature and attention to detail have helped us achieve very strong early results.”

Roger G. Maclean Joins School of Business As Associate Dean for Executive Education

Roger G. Maclean, an experienced higher education administrator on the UW-Madison campus, is now directing public executive education programs at UW-Madison. He began his new position on Jan. 23.

Maclean has been associate dean for academic affairs with the UW-Madison Division of Continuing Studies for seven years. In that role, he led credit and noncredit programs for returning adult students. He worked with schools and colleges across campus, the Wisconsin Alumni Association and other key units, and was involved in several distance education initiatives. He is on the board of directors of the National Association for Continuing Higher Education. He has a doctorate in education and a master of education, both from Pennsylvania State University. He earned his bachelor of science from Purdue University and pursued post-doctoral studies at the Institute for the Management of Lifelong Education at Harvard University. Before pursuing a career in higher education, he spent 13 years in corporate sales and marketing positions.

Maclean will work closely with Tammy Thayer-Ali, who was named president of the Center for Advanced Studies in Business, (CASB), Inc. in November and directs Executive Education’s custom programming.

UW-Madison Business Professor Given
Major Grant to Research Corporate Reporting  

Lori Holder-Webb, an assistant professor of Accounting and Information Systems at the University of Wisconsin-Madison School of Business, is part of a four-person research team recently awarded a major grant to research corporate reporting.

The NASD Investor Education Foundation recently awarded more than $295,000 to Holder-Webb, David Wood and Jeffrey Cohen, both of the School of Management of Boston College, and Leda Nath of the Sociology department at the University of Wisconsin-Whitewater.  The research team will explore corporate reporting of social, industry cohort and governance information, in other words, how non-financial performance measures are reported, in an effort to determine the extent to which investors value this information.

According to Holder-Webb, “Congress, the SEC, the professional oversight boards – these regulatory bodies are struggling with preserving the integrity of the capital markets in the wake of numerous scandals stemming from reporting failures. In particular, they are responding to a dramatic rise in demand for information about public companies.  Our research is in direct response to the increasingly urgent requests of these bodies for relevant research that can inform their deliberations over changes in reporting requirements; thanks to the NASD Foundation, we will be able to provide useful information to inform the processes rather than simply reflecting on the adequacy of rules that have already been passed.”

Holder-Webb joined the School of Business in 2002. Her research interests include disclosure, financial distress, restructurings and corporate governance. She provides background and technical consulting for the Wall Street Journal. 

The NASD Investor Education Foundation, established in 2003, supports innovative research and educational projects that give investors the tools they need to better understand the markets and the basic principles of financial planning.

Wisconsin MBA Ranks 51st among U.S. Schools in Financial Times Ranking

The University of Wisconsin-Madison School of Business is ranked 51st among all business schools in the United States in the newly released Financial Times rankings for full-time MBA programs. The school was not ranked in 2005.

The London-based Financial Times’ ranking methods include data provided by the school and a survey of students enrolled in the program from 2000-2002. The ranking is based on three major categories:

• Alumni career development and salary purchasing power
• Diversity
• Research capabilities

To view the entire Financial Times report, visit: http://news.ft.com/businesslife/mba.

The Wisconsin MBA program has been changed considerably in the three plus years since the class surveyed for this ranking graduated.  The new specialized MBA program prepares students to launch careers in highly focused areas. 

Based on internal measurements, the school has made progress on key fundamentals:

• Student quality as measured by average GMAT score was 659 for students who enrolled in 2005, up from an average of 635 for students surveyed who enrolled in 2000.
• Student satisfaction with academic program quality was at 91 percent for first-year students in the program in 2004-05. 
• Career placement is at 92 percent for the class of 2005, up from 74 percent for 2002 graduates. The average salary for 2005 graduates was $76,500, compared to $69,013 for 2002 graduates.

 

Wisconsin MBA Viewbook Wins Bronze Medal

The current viewbook for the Wisconsin MBA has won a bronze medal in a national competition. The viewbook for prospective MBAs was entered in the graduate school category of  the Admissions Advertising Awards competition of Admissions Marketing Report.

The Wisconsin MBA viewbook was produced by the business school’s Office of Marketing and Communication. Viewbook editor was Lari Fanlund; its designer was Lori Strelow. Suzy Pursell of the MBA Program Office was project coordinator. Most of the other winning entries were produced for schools by outside agencies.  

The gold medal in the competition went to the Tepper School of Business  at Carnegie Mellon  and the silver medal went to the University of Pittsburg School of Medicine.  This is the first year the UW-Madison School of Business entered the competition.

For a complete list of winners is available on the HRM Publications Group web site.

 

Big Ten MBAs Defeat Pac-10 in Case Competition; Wisconsin Wins Second Place

A team of students from the University of Wisconsin-Madison School of Business took second place at the third annual Pac-10/Big Ten Case Competition. The competition, held Jan. 14 in Tempe, Ariz., matched the top three Big Ten teams and top three Pac-10 teams from an earlier round of competition. Students analyzed a business case study and made presentations to judges.

This is the third consecutive year that Wisconsin has represented the Big Ten in this prestigious “Rose Bowl” of business case competitions. Wisconsin is the only MBA program in the Big Ten to have been selected for the finals of the competition three years running.

The four-member team was made up of second-year MBA students (left to right) Nathan Meredith, Richard Collumb, German Cruz and Sara VanderLind. Team advisor was Mark Matosian. The Wisconsin team also won the award for “Best Q&A” in the first round, and Nathan Meredith won “Best Q&A for an Individual.” The team won $800 in prize money for taking second place.

Penn State University took first-place honors in the competition. Other schools competing were Ohio State University, USC, University of Washington and Arizona State University.

New Director Joins Hawk Center

G. Kevin Spellman, faculty associate, is the new director of the Hawk Center for Applied Security Analysis, replacing Debora Treu. Spellman is a graduate of the Applied Security Analysis Program (ASAP), having earned his M.S. from the UW-Madison School in 1994. He joined the Hawk Center in January.

Since 2004, Spellman had been with Members Capital Advisors, a division of CUNA Mutual, working as both a portfolio manager/analyst and performing quantitative/strategic analysis. Spellman has been a doctoral candidate at Durham University in Durham England, where he has completed his coursework and is working on his dissertation in behavioral corporate finance. He also has a B.S. in finance from UW-La Crosse.

Prior to joining Members Capital Advisors, he spent 10 years with the State Teachers Retirement System of Ohio, the last five years as its director of research. For four years prior to that, he was an adjunct professor at The Ohio State University’s Fisher College of Business, teaching the student investment program. He also was instrumental in building UW-La Crosse’s student investment program.

Spellman is a Chartered Financial Analyst Charterholder and is a member of the CFA Institute and the CFA Society of Madison and of Beta Gamma Sigma.

FACULTY/STAFF NEWS

Rebecca Smith, outreach specialist, has assumed some new responsibilities with the Office of Marketing and Communications and will serve as the public relations director for the School of Business on an interim basis. She is replacing Helen Capellaro, who retired in January after 15 years of service. Over the past four years, Smith has served as assistant director and associate director of alumni relations. In her new role, she will manage media relations and develop and implement communications and marketing strategies for the School of Business. She has a master’s degree in strategic communication from UW-Madison.

Steve Schroeder, formerly the acting director of the Business Career Center (BCC), has accepted the position of director of career planning and placement of the BCC. He holds a BA and MS from UW-Madison. Prior to his employment with the BCC, he served as director for the Wisconsin Union Outdoor Program Office.

Suzy Pursell of the MBA Program Office has been named assistant director of MBA marketing and recruiting and expanded her role in marketing and recruiting for the Wisconsin MBA.

Julie Gray, payroll and benefits specialist 3, joined the Financial Management Office in January.  A UW-Platteville graduate with a Bachelor of Science, she has held various administrative positions at UW-Madison since 1999, before which she worked for Pleasant Company in Middleton. She owns her own business, Remember Me, which supplies retail needlework shops across the country with painted frames. She replaces Shantara Glenn.

Gerry George, associate professor, Management and Human Resources department, will be on leave from January 2006 through December 2006.

Min Shi, assistant professor, Finance department, had her last day of employment at the School of Business Dec. 15.

Bill Kelly, senior scientist, Center for Credit Union Research, ended his employment with the School of Business Dec. 30.

Brian Mayhew has been named to the editorial board of Accounting Horizons.

Ann Kinkade, director of the Family Business Center director, has been appointed to In Business magazine’s advisory board for the first half of 2006.

Binnu Palta Hill, student services coordinator, began employment in the A. C. Nielsen Center for Marketing Research Jan. 16 as its assistant director. A UW-Madison alumna, she holds a BA in French with a business certificate and has completed graduate coursework in French literature. She completed a certificate of Excellence in Marketing Skills from UW-Madison’s Executive Education program and attended University of Georgia’s Advanced School of Marketing Research. Prior to joining the Nielsen Center, she managed the UW-PEOPLE program and worked as a market research manager for UW Learning Innovations. She replaces Janet Christopher, who continues to work for the Weinert Center.

Carol Aspinwall, assistant director of the Erdman Center for Operations and Technology Management, has joined Wingra Speakers Toastmaster's group and won two awards for best spontaneous impromptu speeches and best speech for the first requirement towards her Certified Toastmasters designation. She was interviewed for the article “Tapping into the Value of Professional Association Membership” that appeared in the January 20, 2006 National Association of Colleges and Employers Spotlight online newsletter.

Sandra Stark, senior lecturer, Business Communications, will retire May 21 after 26 years of service with the School of Business. An  avid birder and published poet, she reports she has two primary retirement plans  to: “follow the great Texas birding trail” and to publish more poetry.

Robert Wargolet accepted an associate information processing consultant position in Executive Education, based in the Fluno Center, in December. He previously worked in Grainger Hall’s Technology Support Center. He holds a BS in computer science and mathematics from UW-Madison.

Colleen Barrett, senior marketing specialist with Executive Education, has accepted a new position outside the School of Business.  Her last day at the School of Business was  Jan. 31.

Donell Schetter joined the Management and Human Resources Department as a program assistant in December. She previously worked at the UW Survey Center and has a B.S. in Agriculture from the UW-River Falls campus, and a programmer/analyst associate degree from MATC, along with an Internet Development Certificate from that program.

Professor Emeritus James Bower Dies

Professor Emeritus James B. (Jim) Bower passed away on Jan. 21 at his home in Madison. He had been associated with the UW-Madison School of Business since 1946, starting as a graduate student, then as an instructor and a professor, retiring in 1988.

Professor Bower was chairman of the Department of Accounting and Information Systems and created the Center for Health Care Fiscal Management. He served as secretary of the state's Accounting Examining Board and chairman of the board of the UW Credit Union. He served on many university committees, including the Athletic Board, where he helped to lead an increase in facilities and participation in intramural athletics. He was also author, editor or coauthor of a half-dozen books. His contributions were formally recognized by the School of Business with the Robert A. Jerred Excellence Award for distinguished faculty service.

At his memorial service, one of his grandchildren read a letter from a business school faculty member about the positive ways in which Jim Bower had touched people and “made a difference in the world.”  

His three children James S. Bower, Douglas J. Bower and Marilyn B. Lawrence, have created an endowed fund with the University of Wisconsin Foundation, in memory of their parents, the James and Eleanor Bower Memorial Scholarship Fund, to support full-time graduate and undergraduate students in the Accounting and Information Systems Department.

Guidelines for Making the Most of Search Engine Marketing

Mark Anderson, webmaster for the School of Business, has written a “Webmaster Whitepaper” on how to optimizing web pages so they are most likely appeal to search engines. The paper gives some simple tips on ways to get web pages to rank more highly on the most popular search engines, an important aspect of marketing on the web. School of Business faculty and staff can download the whitepaper from the intranet using their GRAINGER domain username and password.

Dean’s Open Office Hours for Spring Semester

Dean Michael Knetter has open office hours planned for the spring semester. No appointments are needed. Faculty and staff are encouraged to stop by if they have items to discuss. The dates are Feb. 1, March 1, April 12 and May 3. All days are Wednesdays and all times are 3 to 4:30 p.m.

New Type of Alumni Event Proves Popular with Chicago Alumni

In January, Wisconsin Business Alumni held a different type of alumni event for School of Business alumni from the Windy City. Instead of the usual luncheon and formal talk, Chicago-area alumni were invited to socialize and watch together on TV as the UW men's basketball team played against Ohio State at an evening event at a Chicago-area pub, Will's Northwoods.

The more than 130 Chicago-area alumni who attended had the chance to socialize with each other and with School of Business representatives including Dean Michael Knetter, who gave an informal update on the School of Business. Alumni Director Alisa Robertson said the more casual event was part of recent efforts by the School of Business to get more young alumni involved. “We’re going to be trying several new approaches, to see what works best to reach this important group,” Robertson said.

A Major Decision and School of Business Majors Career Fair

The School of Business Undergraduate Programs Office and the Business Career Center are cosponsoring two events on Feb. 7, designed to introduce students to the 10 undergraduate majors in the School of Business, as well as many other useful resources to help them make informed decisions about majors and careers.

An information session will be offered at two times on Tuesday, Feb. 7, at 4 p.m. and 6 p.m. in room 4151. Both sessions will last approximately 30 minutes and cover the same information, focusing on School of Business majors, useful skills to be successful in specific majors, suggestions for additional learning and pathways to related careers.

A Majors Fair will be offered on the second floor atrium on Tuesday, Feb. 7, from 4:30 to 6:30 p.m. Students representing each major will discuss their experiences as well as their major's related student organization.

Faculty, staff and students are encouraged to attend any part of the program. There will also be complimentary snacks and beverages.

IN THE NEWS

Mason Carpenter, professor, Management and Human Resources department is quoted in “America’s Most Hated Companies: the Bottom Line” in the Dec. 20 issue of The Economist. Public opinion about several companies is discussed. See this article with graphics and related items.

Professor of Real Estate François Ortalo-Magné is quoted in the Jan. 3 New York Times article, “Owners’ Web Site Gives Realtors Run for Money.” The article describes a Madison website which helps owners to sell their own homes. See the article (registration required) .

Accounting Professor Larry Rittenberg   was named one of “60 leaders who will shape finance and accounting” in 2006 by Business Finance magazine in its January issue. Rittenberg was cited for his work as chairman of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) which the magazine described as “a major force in the realm of corporate finance and accounting today.”

School of Business Dean Michael Knetter is quoted extensively in “Thriving in a ‘Schizophrenic’ Economy” in the Jan. 20 issue of Small Business Times. The article discusses business executives’ positive outlooks for their companies and negative outlooks for the overall economy. Knetter talks about the causes of the differing outlooks and states some economic predictions. See the article.

Roger Formisano, director, Center for Leadership and Applied Business, is quoted discussing key capabilities of successful CEOs in “Secrets of Highly Successful CEOs” in December 2005 in the Capital Region Business Journal. See this article.

Formisano is also quoted in “UW-Madison Ties Harvard in Race to Produce More CEOs” from the Dec. 8 issues of The Daily Cardinal. The article evaluates UW-Madison’s ability to produce quality leaders.
See this article.

UW-Madison School of Business is featured in “Schools Teach ‘Good’ Business” from the Wisconsin State Journal of Dec. 5. The article discusses UW-Madison’s emphasis on social responsibility in business. Associate Dean of the Master’s Program Don Hausch, Lecturer Tom Eggert, and several students are quoted. See this article.

The Bolz Center is mentioned in the Arts Section of the Dec. 30 issue of the Isthmus. Bolz Center alumni were recognized for contributions to the local arts scene.

Ann Kinkade, director, Family Business Center, is featured in “Succession Planning: A Must for Long-Term Success ” in the January 2006 Business Beat.

The Executive Education program of the School of Business was voted the best Executive Management Educational Institution by In Business magazine.

School of Business Dean Michael Knetter is quoted discussing the new specialized MBA program and the business challenges facing Wisconsin in 2006, in “What to Expect in 2006” in the Capital Region Business Journal, January 2006. See this article.

The future addition to Grainger Hall is discussed briefly in “Bucky Clocks Will Welcome Campus Visitors” in the Jan. 13 issue of The Capital Times. The article discusses the future of the two Bucky clocks formerly displayed on the building at 905 University Ave. See the article.

New Study Abroad Program in Bangkok to Begin Next Fall

Opportunities for University of Wisconsin-Madison undergraduate business students to study abroad in Asia will expand next fall.  An exchange partnership with Chulalongkorn University  in Bangkok, Thailand  is being developed. The International Programs  office at the UW-Madison School of Business will begin accepting applications this spring for students to study at Chulalongkorn University Faculty of Commerce and Accountancy beginning next fall.

Chulalongkorn University by general consensus is Thailand’s leading university. Its business curriculum, which is delivered in English, is ranked among the top five programs in East Southeast Asia. The central location in Bangkok offers students the opportunity to experience Thai culture and to observe economic activities in the modern center of business for mainland Southeast Asia.

UW-Madison and Thailand have many close ties. The Wisconsin Alumni Association in Thailand is large and active.  The dean of the Faculty of Commerce and Accountancy at Chulalongkorn University is a UW-Madison Business alumna.  Both institutions are members of the Pacific Asian Consortium for International Business Education and Research (PACIBER).

A Study Abroad Information Session  on Chulalongkorn University and other upcoming study abroad programs  by the International Programs Office of the School of Business will be held Wednesday, Feb. 1 from 5:30 to 7 p.m. in Grainger Hall. For more information, call 608/265-5017.

Family Business Center Presents “Compensation and the Family Business”

The Family Business Center (FBC) will present Bob Wilkening, president of Wilkening & Companyas the keynote speaker at its March 28 program, “Compensation and the Family Business.” The event will be held at the Fluno Center‘s Howard Auditorium with breakfast from 7-8 a.m. and program from 8-11:30 a.m. Participants will have an opportunity to review modern compensation theory and practice, from salary to other pay vehicles, some of which are unique to private companies.

The program is open to FBC members and sponsors at no charge. Potential FBC members may attend one program for $100 per company. Registration is required.

For more information on registering for this event, go to www.uwexeced.com/fbc/programs.

School of Business to Cosponsor Seminar on Building the UW-Madison Brand

The second in a series of programs examining branding principles and their application to the University of Wisconsin-Madison, its schools and colleges will be cosponsored by the School of Business on Feb. 2.

 “Building the UW-Madison Brand-The Next Step” will be held Thursday, Feb. 2 from 1 to 2:30 p.m. at the Fluno Center and Dean Michael Knetter is scheduled to welcome attendees to the program. The discussion is open to all faculty, staff and students with an interest in building the UW-Madison brand. The program is sponsored by the School of Business, University Communications and the Wisconsin Alumni Association. Individuals with responsibility for the marketing and communication of their units are particularly encouraged to attend. There is no cost and no reservations are needed.
Speakers are:

• UW-Madison alumnus David F. Florin, president and partner of Hiebing, an integrated marketing and brand development firm, who will speak on “Unlocking the Brand Potential Within."  His speech will include a look at ongoing challenges the university faces in realizing its brand potential.  He also will cover ways of applying marketing principles in higher education.
• Alisa Robertson, alumni director at the School of Business, will present an example of how the business school is working to leverage the Wisconsin brand to build awareness of its alumni organization, Wisconsin Business Alumni.

For more information, contact Lari Fanlund, lfanlund@bus.wisc.edu, 262-2401 in the Office of Marketing and Communications.

Wall Street Journal Columnist to Be Business Writer in Residence

Justin Lahart, author of “Ahead of the Tape,” a daily column in the Wall Street Journal and former CNN/Money columnist will be the spring semester’s Business Writer in Residence. He will speak to business and journalism classes the week of March 6-11. Lahart began his journalistic career as a reporter at TheStreet.com, after teaching English in Japan and doing marketing and technical writing for an engineering firm in Michigan. For more information on his visit, contact Lari Fanlund, lfanlund@bus.wisc.edu, 262-2401 in the Office of Marketing and Communication.

Staff Honored at Length of Service Luncheon

On Jan. 12, the School of Business Length of Service luncheon was held in Grainger Hall to honor School of Business staff. Dean Michael Knetter presented pins to individuals for their years of service. (See below)

3 Years	5 Years	10 Years
Melissa Amos-Landgraf	Carol Aspinwall	Judy Cary
Mark Anderson	Colleen Barrett	Nancie Luther
Michael Carr	Corey Campbell	15 Years
Julie Ethridge	Philana Friede	Kelley Cory
Joyce Fasanella	Andrew Jakubczak	Brenda Jansen
Wendy Grapentine	Camilla Klyve	Jeff Gehrke
Cynthia Horner	Scott Kohl	20 Years
Randi Huntsman	Mary-Ann Martin	Pamela Cremer
Annette McDaniel	Jo Meier	Paul Linden
Joseph Ordaz	Lori Strelow	Dianne Rothwell
Barbara Peterson	Terry Thompson	Cheryl Schroud
Rebecca Smith	Linda Uitvlugt	25 Years
Gina Srenaski	Kathryn Wittenwyler	Ruth Dahl
Sachin Tuli		Kathryn McCord
Charles West

ACFIN Runners Support Arthritis Foundation

Several ACFIN runners competed in the 10K Jingle Bell Run in the UW Arboretum on December 10 to raise money for the Arthritis Foundation. Team ACFIN included first-year students Sean Hart, J.J. Kern, Nick Rauer, Mark Stuart, Dave Biel, Professors Don Hausch, Kathryn Caggiano, and Professor Jim Seward, and ACFIN Center Director Cindie Horner.

While the snowy course made the run challenging and prevented the best possible times, everyone enjoyed the camaraderie, and the opportunity to support the Arthritis Foundation, whose mission is to prevent, control, and cure arthritis and related diseases. Afterward, the team got together to celebrate the end of the busy fall semester.

About the Gazette

The next issue of the Gazette will be published March 1. Please send articles for the next issue by Feb. 24 to Lari Fanlund, lfanlund@bus.wisc.edu.