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March 2008

Toni Whited Again Earns Distinguished Prize for Research on Corporate Finance

Toni M. Whited, Kuechenmeister-Bascom Professor in Business at the University of Wisconsin-Madison School of Business, co-authored one of two papers on corporate finance to be honored with a prestigious Brattle Prize in Corporate Finance.

Whited and Christopher A. Hennessy of the University of California-Berkeley took second place and were awarded $5,000 for their paper, "How Costly Is External Financing? Evidence from a Structural Estimation."

The prize was based on the best articles published in 2007 in the Journal of Finance, which is published by the American Finance Association. This is the second time Whited and Hennessy were honored. The pair took first place in the Brattle Prize in 2005 for another paper, "Debt Dynamics."

In their most recent paper, they infer the cost of financing corporations, which constitutes not only fees companies pay to take out loans or to issue equity but also indirect costs that come from the effect of these fees on company decisions. Whited said the results of the latest paper show that "these indirect costs are substantial, especially for small firms.?

This year's award was presented in February at the annual meeting of the American Finance Association.

"Outstanding research is published in the Journal of Finance," said Wisconsin School of Business Dean Michael M. Knetter. "To be recognized twice for having the best paper in a leading journal is a great reflection in the quality of work Toni is doing and also a great reflection on the school and our priorities."

Whited, who joined the business school in 2003, is known for her research in corporate diversification, liquidity constraints and measurement error. 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.

Aric Rindfleisch Named Associate Dean for Research and Ph.D. Programs

Aric Rindfleisch, associate professor in marketing, was named the associate dean for research and Ph.D. programs. Rindfleisch succeeds Jed Frees in this role.

Rindfleisch has spent many years in various aspects of the marketing field. His research on consumption values, interfirm cooperation and new product development has appeared in top marketing journals, including the Journal of Marketing, Journal of Marketing Research and Journal of Consumer Research. He has also served on the editorial boards of the Journal of Consumer Research, the Journal of Marketing, and the Journal of the Academy of Marketing Science. Prior to earning his Ph.D., Rindfleisch worked in marketing research, advertising and served as an officer in the U.S. Army Reserve for 14 years.

Undergraduate Business Program Ranked 37th By BusinessWeek

The Wisconsin School of Business undergraduate program was ranked 37th overall, 11th among all public universities, and 4th for the second consecutive year in the Big Ten, according to BusinessWeek's third annual ranking of the nation's undergraduate business schools. Last year, the business school ranked 28th overall and 10th among public universities.

The value of Wisconsin's undergraduate business program was again ranked among the best in the nation. Last year, Wisconsin's undergraduate business program was ranked 7th among all schools for return on investment. This year, the program was ranked 9th among all schools for return on investment.

The Wisconsin School of Business is the only business school to have both its undergraduate and MBA programs ranked in BusinessWeek's top 10 for return on investment.

BusinessWeek rankings of undergraduate business programs are based on five separate sets of data: a survey of graduating seniors on perceptions of internship opportunities, teaching quality, time spent studying, and more (30%); a survey of corporate recruiters about graduates (20%); starting salaries (10%); the number of graduates who end up at top-ranked MBA programs (10%); and, academic quality as measured by ACT/SAT test scores, student-teacher ratios, and class size, among other things (30%).

The main factors accounting for the change in Wisconsin's ranking were a drop in scores for overall academic quality and students' perceptions of teaching quality, and a rise in the number of private schools eligible to compete on the undergraduate level. This year, 15 additional schools were included in the BusinessWeek rankings - nine private schools and six public.

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

• Student quality as measured by average ACT and SAT scores for juniors admitted to the undergraduate program continues to increase. The average ACT score of students enrolled in the 2007-2008 academic year was 28, up from 27.6 in the 2006-2007 academic year. The average SAT score of students enrolled in 2007-2008 academic year was 1275, up from 1257 in the 2006-2007.
• The popularity of the school's undergraduate program is seen in rising applicant numbers. A total of 1,376 college juniors applied to Wisconsin's undergraduate business program for the 2007-2008 academic year, up from 1,024 applicants for the 2006-2007academic year.
• Career placement was at 80 percent for the class of 2007, up from 77 percent for 2006 graduates. The average salary increased to $48,000 from $45,000 over the same period.

"We are in the process of implementing a host of important changes to our program, many of which are being funded with the recently enacted undergraduate tuition differential," said Dean Michael Knetter. "The impetus for these changes was the desire to strengthen certain areas of our undergraduate business program. Our goals are to increase the size and quality of the faculty, expand access to business courses, increase the career readiness and global understanding of our students, and increase the diversity of our student body. We remain steadfastly committed to improving the educational experience, career opportunities, and related aspects of our program that matter most to our students."

Wisconsin Student One of 10 in Nation Selected for Deloitte Foundation Doctoral Fellowship

Marsha K. Keune, a doctoral candidate at the University of Wisconsin-Madison School of Business, was one of 10 doctoral candidates in the nation to receive a Deloitte Foundation Doctoral Fellowship in Accounting. She will receive $5,000 during her final year of course work and $20,000 in the following year as she completes her dissertation.

The other universities to have doctoral students win 2008 fellowships are: Columbia University, Massachusetts Institute of Technology, Stanford University, University of Arizona, University of Illinois - Urbana/Champaign, University of Michigan, University of Texas-Austin, University of Southern California and University of Washington. The Deloitte Foundation, a not-for-profit arm of major accounting firm Deloitte LLP, announced grants totaling $250,000.

This year's winners join more than 900 scholars who have received financial support since the program was founded more than 50 years ago. The nationally conducted program invites applications from nearly 100 universities. Doctoral students are nominated by their university's accounting faculty.

Professor Jon Davis, who chairs the Department of Accounting and Information Systems at the Wisconsin School of Business and serves as Kuene's advisor, said being selected for the fellowship is important recognition of her ability to add to new knowledge in the field of accounting. Keune's dissertation focuses on various social psychological issues that arise in audit engagements.

"(This fellowship is a tremendous tribute to Marsha's scholarship and we are proud of her contribution to Wisconsin's long tradition of leading-edge accounting research,)" Davis said.

For more information, visit the Deloitte Foundation web page at www.deloitte.com/us/df.

François Ortalo-Magné Presents Survey Results on Global Real Estate

Real Estate Professor François Ortalo-Magné recently presented the annual Association of Foreign Investors in Real Estate (AFIRE) survey results at the group's winter conference in New York City.

This is the 16th year AFIRE members have been surveyed, and the second year the survey was conducted by the Graaskamp Center for Real Estate at the Wisconsin School of Business, with Ortalo-Magné compiling and analyzing the results.

According to Ortalo-Magné, this year's survey results revealed that the United States remains the top global property market among foreign investors, with New York City and Washington, D.C. cited as the top two global cities for foreign investors' real estate dollars.

The survey also found that while the percentage of real estate planned acquisitions allocated to the U.S. remains roughly the same as 2007, slightly over 50 percent, the actual dollar amount is expected to increase by 16 percent. The number of those surveyed who find it "very difficult" to find attractive real estate in the United States is the lowest percentage since 2003, at roughly 23 percent. The survey reflects the buying preferences of members of the association. Ortalo-Magné estimates AFIRE members own or manage at least US$ 1.5 trillion of real estate around the world based on web searches he conducted with his students.

The AFIRE survey demonstrated the resilience of the U.S. market, which remains the preferred global country for foreign investors' real estate despite a growing interest in Asia. China took over as the country with the second-highest potential for real estate capital appreciation, with India falling to third place. The United States has always held the top spot, with 26.2 percent of respondents saying it has the best potential for capital appreciation, up from 23 percent of respondents in 2006.

Over the past two years, Ortalo-Magné has fostered a strong relationship with AFIRE which has been advantageous from several perspectives. Wisconsin MBA Real Estate students have been allowed to attend AFIRE events. This connection with AFIRE has provided opportunities for our students to interact with high level decision makers active in international real estate markets. Ortalo-Magné's contacts with AFIRE members have also provided leads for student internship and jobs with foreign firms.

Ortalo-Magné also credits his AFIRE colleagues around the globe for helping him identify interesting and unique destinations for the MBA international study trips. For example, while in Tokyo in January, the group toured the Nihonbashi Mitsui Tower, thanks to Kosei Murakami, president and CEO of Mitsui Fudosan America, whom Ortalo-Magné met at AFIRE events.

AFIRE is the only non-profit association for the foreign real estate investment community. With over 180 members from 21 countries, its members are committed to preserving and promoting cross-border investment in real estate.

Student Giving Campaigns to Benefit Wisconsin School of Business

This spring, student leaders from both the undergraduate and full-time Wisconsin MBA programs are leading commencement campaigns to encourage their classmates to make a gift to the business school at graduation.

Last year, the Wisconsin MBA Class of 2007 had 99 percent participation. This year's MBA class campaign, led MBA student co-chairs Robert Trainer and Jen Schultz, will strive to engage the entire class and encourage more students to make leadership gifts in the form of multi-year pledges.

While the MBA commencement campaign is in its fourth year, the undergraduate campaign is just starting. A group of 15 undergraduate students, led by co-chairs Travis Jones and Jon Kuether, have set an ambitious goal of 20 percent participation in a class composed of more than 600 students.

Student leaders of both campaigns are focusing on taking a unified message to the student body about why giving back to the school is important. "We want our classmates to understand their experience here was made possible by others who were once students," said Jones. "In order to continue to build the school's reputation of creating leaders, we have to be willing to step up to the plate and help out as well. We hope that the professors and staff at the school will help us by talking with students about giving back and create excitement around this campaign."

For information on the commencement campaigns, visit the campaign websites:
www.bus.wisc.edu/pledgeMBA08
www.bus.wisc.edu/pledgeug08

Wisconsin MBA Students "(Freezin' for a Reason)" Benefit Special Olympics

A team representing the Wisconsin MBA plunged into a bitter Lake Monona on February 16 to support the Special Olympics of Wisconsin. The Wisconsin MBA team consisting of 24 students, Associate Dean for MBA Programs Ken K Kavajecz and Grainger Center Director Verda Blythe participated in the annual Polar Plunge. The team raised more than $5,000 to benefit Special Olympics. As of February 16, the team was the second-highest online fundraising team in the state. To see pictures and video of the plunge, visit captimes.com.

NATIONAL NEWS

People and programs of the Wisconsin School of Business have been in the national news recently.

Fox Business News

Dean Michael Knetter is becoming a familiar face on the Fox Business News cable TV channel. Knetter appeared on the channel twice during February. He first was interviewed on the economic impact of extending the Bush tax cuts. Later, he appeared on the network to debate the quality of government economic reports with John Williams, the publisher of Shadowstats.com.

Williams argued that government price indices are intentionally underestimating the true rate of inflation in order to hold Social Security payments down. Knetter argued that the Bureau of Labor Statistics has done an excellent job of trying to measure the true increase in the cost of living in a dynamic world. The BLS tries to account for three major complications to the measurement of cost of living: consumers change what they buy, the quality of goods is changing over time and new products or services are introduced that must be delivering better value than the old ones or they would not be purchased. Knetter is a former member of the President's Council of Economic Advisors.

BusinessWeek.com

• Dean Michael Knetter was among a handful of business school deans quoted in the BusinessWeek.com article "(The post-bubble curriculum.)" The article focused on how business school curriculum can address real-world issues such as the subprime meltdown.
• The undergraduate program was mentioned in the BusinessWeek.com article "(A transcript for soft skills.)" The University of Wisconsin-Madison is considering offering a dual transcript featuring student's extracurricular activities, jobs and internships.
• The Wisconsin MBA program was among MBA programs covered in a BusinessWeek.com article that ran on Valentine's Day, "(Looking for love at B-school.)" The article profiled the challenges of dating while attending a rigorous business school. The story began by relating how MBA Student Services Director Mark Matosian was asked to officiate at a wedding of two Wisconsin MBA graduates who fell in love while in the program.

Christian Science Monitor

Associate Professor Morris Davis was quoted in a Christian Science Monitor article "(How falling home prices imperil the U.S. economy.)" Davis comments on possible unintended consequences of government intervention in the housing market.

Portfolio.com

Portfolio.com featured an article on the Wisconsin Naming Gift. The article also quotes alumnus Ted Kellner.

Wall Street Journal Online

The Wall Street Journal Online quoted Wisconsin MBA student Benjamin R. Burney in an article on steps companies are making to improve their recruiting Web sites. The article quoted students from a handful of MBA programs across the nation.

New York Times

Associate Professor Morris Davis was quoted in the New York Times article, "(From the housing market to the maternity ward.)" The article examined the relationship between fertility and the real estate market.

Barron's Online

Barron's Online featured an article on Applied Security Analysis Program alumnus Tom Ognar. The article, "(Like father, like son,)" discussed the influence of Ognar's father Ronald.

The Leslie Roberts Show (Canada)

Associate Dean for Research and Ph.D. Programs Aric Rindfleisch was interviewed on the Leslie Roberts Show, one of the largest radio shows in Canada. Rindfleisch, who is an associate professor of Marketing, spoke on the topic of "(Is materialism damaging our children?)" He discussed teaching appreciation to children in order to diminish the impact of materialism.

Slate

Alumnus John Morgridge was recognized by Slate for his $175 million gift to establish a scholarship fund. The article listed the top-60 largest American charitable contributions of 2007.

REGIONAL NEWS

People and programs of the Wisconsin School of Business have been in the regional news recently.

Dean Michael Knetter spoke at the annual Economic Trends forum in Milwaukee. Knetter predicted the economic outlook for Wisconsin was not as bad as the rest of the country for the upcoming year. The event was covered in Wisbusiness.com and the Small Business Times (here and here).

Professor Mark Browne, Actuarial Science, Risk Management and Insurance, was quoted in the Milwaukee Journal Sentinel. The article, "Insurance, wishes and facts," discussed Gov. Doyle?s plan for small business health insurance.

Finance Professor Mark Fedenia was quoted in the Milwaukee Journal Sentinel article "Fund seeks consistency by playing stocks up and down." Fedenia, former director of the Applied Security Analysis Program, co-manages the Nakoma Absolute Return Fund.

Alumnus Steve Burrill visited the UW-Madison campus as part of several events designed to bridge university technology and business. Burrill also participated in an Entrepreneurial Boot camp this past summer. The event was covered in the Milwaukee Journal Sentinel, the Wisconsin Technology Network and the Capital Times.

LOCAL NEWS

People and programs of the Wisconsin School of Business have been in the local news recently.

OnWisconsin profiled the Entrepreneurial Boot camp in its winter edition. The article quotes Professor Anne Miner and Dan Olszewski, director of the Weinert Center for Entrepreneurship.

The offerings of the Small Business Development Center were featured in an Isthmus article, "Business School in a night." The article examined an SBDC program called "The First Step," which the article described as a "beginning class for fledgling entrepreneurs." SBDC Director Neil Lerner was quoted in the article.

Alumnus John Morgridge"s Fund for Wisconsin Scholars was covered in both the Daily Cardinal and the Badger Herald.

The Daily Cardinal featured a piece on the Wisconsin Naming Gift. The article, "What's in a name?" reviewed the $85 million gift and its impact on the school.

Real Estate Professor Tim Riddiough was quoted in the Isthmus article "Mayor Dave's housing plan fizzles." Riddiough commented on the problems associated with inclusionary zoning.

The Capital Region Business Journal featured an article on how business schools are meeting the practical demands of future careers. Dean Michael Knetter is quoted in the article.

Associate Professor Morris Davis, Real Estate, was quoted in a Capital Times article, "Analyst sees 'a few bad years' for housing returns." Davis also was quoted in a Capital Times article "Expert: Home crisis initiatives won't help."

Linda Davis, counselor in the Small Business Development Center, was quoted in the Wisconsin State Journal. The article "(Boom in businesses going to the dogs,)" discussed the increase in the number of businesses catering to dog owners. Davis predicts the market is not yet saturated.

The Badger Herald quoted members of the business fraternity Alpha Kappa Psi in the article "Madisonians 'freezin' for a reason, baby!" A group of students from the school of business participated in the annual Polar Plunge for the Special Olympics of Wisconsin.

Joann Peck Wins Campus Teaching Award

Every year the UW?Madison Teaching Awards Committee honors an ensemble of faculty for teaching excellence. Only a handful of Distinguished Teaching Awards are awarded annually. Joann Peck, assistant professor in Marketing, is one of the faculty members to be honored for 2008. Peck has won the Emil H. Steiger Distinguished Teaching Award.

Peck came to the Wisconsin School of Business from the University of Chicago, where she was a visiting assistant professor. She is an alumna of the Wisconsin School of Business, having earned her MBA in marketing and an Outstanding MBA Student Award here in 1993. Peck has won several teaching awards while with the business school. Students named her the Marketing Professor of the year in 2006 and 2007 and the business school awarded her the Lawrence J. Larson Excellence in Teaching Award in 2005.

Peck earned her Ph.D. in business administration from the University of Minnesota. She also has a B.S. in secondary education from the University of Michigan. Her research focuses on consumers? sense of touch and reveals insights into shopping via non-touch media.

Faculty and Staff news

Michael Mihelbergel has accepted a faculty associate position in the Puelicher Center for Banking Education. He previously worked in the Graaskamp Center for Real Estate. In his new role, he will mentor students interested in a career in banking, interface with banks that support the center's activities and assist students in identifying career opportunities in the banking industry. He also will work on annual-giving initiatives to benefit the business school.

Melissa Anderson is the new PR director for the Wisconsin School of Business. Anderson joins the school as a senior university relations specialist in the Marketing Services unit. For the past four years, Anderson has been communications director of the American International Automobile Dealers Association, an 11,000 member national automobile trade association headquartered in the Washington, D.C. area. In addition to developing and carrying out the organization's communications strategy, she served as its primary media contact and prepped senior executives to interact with local and national media and trade press. Anderson has a B.A. in English and psychology from Ripon College. She is near completion of an M.A. in Social Sciences from the University of Chicago.

Ilsa Valdez has accepted the position of program assistant advanced confidential in the Dean's Office. Valdez joined the business school from the UW-Madison Research and Sponsored Programs office. She earned her MBA at St. Mary's University in San Antonio, Texas, and her B.A. at Our Lady of the Lake University in San Antonio, Texas.

Jolene Krahn has joined the business school as an academic department associate B with the Marketing Department. Krahn previously worked as a program assistant for the University of Wisconsin-Whitewater. Susan Kosharek has accepted an LTE position as university services associate 1 with the MBA Program.

Jennifer Laack has a university services associate 2 project appointment with the Family Business Center. Laack joins the business school from Ruff Wear Inc., in Bend, Ore.

Danielle Saunders has accepted the position of academic department associate A with the Finance Department. Saunders previously worked as an accounting assistant for TomoTherapy, Inc. She is working toward her B.S. in Business Management from Upper Iowa University.

Martin Halek has joined the Actuarial Science Risk Management and Insurance department as a senior lecturer. He has a Ph.D. from the Wharton School and most recently has been on the faculty at the University of Georgia.

Lorraine Overson has accepted the position of accountant - journey with Executive Education at the Fluno Center. Overson joins the business school from the UW-Madison Department of Transportation as an accountant- journey. She has a B.S. in accounting from Upper Iowa University.

Constance Miles has accepted the position of university services associate A with Undergraduate Academic Services. Miles joins the business school from the UW-Madison Multicultural Student Center. She has a B.A. from Michigan State and an M.A. in special education from UW-Madison.

Julia Piernot has accepted the LTE position of university services associate 2 with Conference Services.

Maureen Armstrong, university services associate 2 with Executive Education, has retired.

Economists to Assess Markets, Business and Politics at Economic Outlook

Four leading economists will share insights and predictions for local, regional, national and international economies and financial markets for 2008 at the Economic Outlook conference (http://exed.wisc.edu/finance/eoc/) slated for Friday, April 4. This semiannual event, offered by the Executive Education unit of the Wisconsin School of Business for more than 40 years, helps business leaders and owners translate economic trends into competitive intelligence.

The event will be held at the Fluno Center for Executive Education in Madison and business leaders from throughout Wisconsin, northern Illinois and eastern Iowa are expected to attend.

Factors affecting the economy, such as oil prices, federal budget deficits, interest rates, employment outlook, the subprime housing market and international trade will be explored, along with business implications of the 2008 presidential campaign.

Accounting Students to Join FASB

Two students in the Accounting program have been selected to join the Financial Accounting Standards Board as Post-Graduate Technical Assistants. Both Kristen Mathys and Adam Van Eperen have accepted positions with FASB. Mathys will begin in July and Van Eperen will start the following January.

Undergraduate Business Student Honored

An undergraduate business student, Kyle S. Munoz, has been awarded the Alliant Energy/Erroll B. Davis Jr. Achievement Award, recognizing outstanding scholarship and community service. Munoz is a senior and expects to receive a Bachelor of Science degree in business administration in May. He has participated in both the Chancellor's Scholarship Program and the Multicultural Business Students Association on campus.

This award, funded by the Alliant Energy Foundation in honor of former Alliant Energy CEO Erroll B. Davis, is awarded to students at either UW-Madison or UW-Platteville, campuses in regions of the state where Alliant Energy provides services. The award is given to undergraduate students from traditionally underrepresented minority groups who are pursuing degrees in engineering or business, two degrees held by Davis. Students were honored at a February luncheon at the Pyle Center in Madison.

Fast Company Editor to Visit in April

Charles Fishman, award-winning investigative and magazine journalist and senior editor at Fast Company magazine, will be on campus the week of April 6-10 as the spring semester?s Business Writer in Residence. Fishman is the author of the book, "The Wal-Mart Effect" He won the Gerald Loeb Award for distinguished business journalism, the highest honor in business journalism, in both 2005 and 2007. Anyone interested in scheduled a meeting or an event with Fishman, should contact Communications Director Lari Fanlund, 262-2401 in Marketing Services.

Nominate Favorite Businesses for Dane County Small Business Award

The Small Business Development Center of the Wisconsin School of Business encourages faculty and staff to consider nominating an area business for a Dane County Small Business Award. The awards celebrate small companies and their owners for the risks they take and their contributions to the community. Up to 10 companies will be honored June 13 at the Sheraton Madison Hotel. To nominate a business, go to www.uwsbdc.org and in the right hand column under News & Notes click on: "Nominations Open 2008 Dane County Small Business Awards."

Enterprise MBA Speaker Series Launched

The newly launched Wisconsin Enterprise MBA Speaker Series began in February with Jon Foley, the founder and director of UW-Madison’s Center for Sustainability and the Global Environment (SAGE) as its first guest speaker. Foley’s work examines complex global environmental systems and their interactions with human societies. The talk was given at the Fluno Center and followed by a networking reception.

Foley spoke on sustainability and what individuals and business people can do in the face of increasing demands on land, water and atmosphere. Nearly 65 Evening MBA and Executive MBA students, faculty, staff and friends of the programs attended.

The next Enterprise MBA Speaker Series event will be held Friday, April 18 at the Fluno Center. Details will be provided in the April issue of the Gazette.

Campus Safety

In light of recent national events, campus safety must be a concern to all. Faculty and staff are reminded that in case of any emergency, they should immediately dial 911. The UW-Madison Police Department has extensive resources posted on its website. Among the information available are "Guidelines for Dealing with Troubled People".

About the Gazette

The Gazette is published by Marketing Services for faculty and staff of the Wisconsin School of Business. Submissions for the April 1  issue of the Gazette should be sent by March 27  to Editor Lari Fanlund, lfanlund@bus.wisc.edu. The Gazette is not published in January.