Booth in the News, Winter 2010, Vol. 2
(Covering January 5 to January 25, 2010)
Here are highlights of the latest Chicago Booth news coverage. The digest below represents only a portion of recent coverage.
Section 1: News coverage of Chicago Booth.
- FINANCIAL TIMES. Chicago Booth ranked #1 in placement success in the annual ranking of the world’s best full-time MBA programs, released January 25. The #1 ranking is based on a survey of graduates who used career services at their business school and were asked to rank its effectiveness in their job search. Booth also ranked #1 in finance, #1 in economics and #2 in accounting. Professor Douglas Skinner was named the top accounting professor at a business school. In the overall b-school ranking Booth was sixth among U.S. schools and tied for ninth globally. A year ago, Booth was seventh among U.S. schools and 11th globally. The top schools in the 2010 ranking are 1) London Business School, 2) Wharton, 3) Harvard, 4) Stanford, 5) Insead, 6) Columbia and IE Business School, tied, 8) MIT, 9) Chicago Booth and Hong Kong University of Science and Technology, tied. Read more
Full coverage including related articles can be found here Read more
- FORBES. Chicago Booth ranked third in a new ranking of “the most satisfied MBAs,” published January 11. Forbes asked full-time MBA graduates from 2004 how satisfied they are with their current jobs, their MBA education and how well their school prepared them relative to other business school graduates. The top 10 U.S. schools were: 1) Stanford, 2) Wharton, 3) Chicago Booth, 4) Stern, 5) Brigham Young, 6) Hass, 7) Tuck, 8) UCLA and Simon, tied, and 10) Darden. Read more
- THE WALL STREET JOURNAL. Chicago Booth was the first school cited in an article about executive education titled “The Campus Consultant: More Firms Turn to Business Schools for Timely Solutions.” When Philips Global wanted to transform its brand from technology-focused to a more customer-centered identity, the company didn’t go to a strategy firm or a consulting company, instead, it went to Chicago Booth for a custom corporate education program, the January 21 article said. Booth takes on clients only if faculty members are interested in the project or if it is relevant to their research and if they are willing to work with the company on follow-up, the article said. Read more
- BLOOMBERG BUSINESSWEEK. In January, Chicago Booth became the first school to sign onto the Affiliated Loan Program for Students (ALPS), a pilot program financed by Deutsche Bank which makes it easier for international students to come study in the U.S., according to a January 4 article headlined “A Financial Lifeline for Foreign MBA Students.” Read more
- EL MUNDO (Madrid). An article headlined “Nobel Prize Factory: The University of Chicago’s Business School is the birthplace of global business and academic leaders,” was published December 27. The article mentioned the $300 million gift from David Booth, MBA ’71 and the renaming of the school. An accompanying article about Chicago Booth’s presence in Europe quoted Glenn Sykes, managing director of the London campus.
- CHICAGO SUN-TIMES. The Polsky Center’s January 29 conference “Exploring Entrepreneurship: Innovations in the Midwest Education Industry” was featured in the Tech Column published January 25.
- THE NEW YORK TIMES. While some second-tier business schools may offer specialized MBA degrees which zero in on commercial applications, “Institutions like the University of Chicago … whose graduates are much sought-after, have mostly kept the general MBA, with broad areas of concentration like finance and marketing,” according to the article published January 3.
Section 2: News coverage quoting Chicago Booth faculty.
- THE WALL STREET JOURNAL Professors Gary Becker, Steven Davis and Kevin Murphy wrote an op-ed titled “Uncertainty and the Slow Recovery,” published January 4. The facts “suggest that it was a serious economic mistake to press for a hasty, major transformation of the U.S. economy on the heels of the worst financial crisis in decades,” they wrote. “A more effective approach would have been to concentrate first on fighting the recession and laying sold foundations for growth … By failing to adopt a measured approach to economic policy, Congress and the president may be slowing the economic recovery, and thereby prolonging the distress from the recession.” Read more
- THE NEW YORK TIMES. Professor Douglas Diamond and Anil Kashyap wrote an op-ed on how to design an effective penalty on bailed-out banks, titled “Return Our Investment,” published January 20. “We … suggest taxing banks based on the difference between their assets at the end of August 2008 and their current level of capital,” they wrote. “After all, the support these firms received was based on the size of assets before the financial panic began, not the size of those assets today.” The consequences of getting this right are huge, Professors Diamond and Kashyap wrote. “With a new tax, the administration aims to raise $90 billion over the next 10 years, which would do much to offset TARP’s estimated $117 billion losses.” Read more
- THE NEW YORK TIMES. Professor Richard Thaler wrote the Economic View column January 24. “Much has been said about the high rate of home foreclosures,” he wrote, “but the most interesting question may be this: Why is the mortgage default rate so low?” The column also included a proposal by Professor Luigi Zingales on loan modification. Read more
- THE WALL STREET JOURNAL. Professors Raghuram Rajan was quoted in an article headlined “Bernanke’s Puzzling Bubble Logic,” about the U.S. Federal Reserve chairman’s recent speech to the American Economic Association. The ultra-low interest rates of the 2000s didn’t cause the housing bubble that led to the financial crisis, he said. “Clearly, no one is saying that monetary policy was the only culprit,” Professor Rajan said. “But in an environment where there was a ‘savings glut’ elsewhere, low returns on safe assets pushed foreign investors into riskier assets. Was this search for yield not part of the problem?” The article was published January 14. Read more
- BBC RADIO (London). Professor Robert Fogel was featured during a 6-minute interview on the outlook for China’s economy. In 2040, China’s per capita income will reach $85,000, he said. That is much higher than his forecast for Europe and Japan. “China will go from being a poor country in 2000 to being a super-rich country in 2040,” he said. But it’s not only going to be a prosperous time for China, “it’s also going to be an Indian century,” Professor Fogel said during the January 13 broadcast aired globally on BBC World Service. The interview was based on an article written by Professor Fogel and published in the January/February issue of Foreign Policy. Read more
- THE ECONOMIST. Professor Raghuram Rajan was the first expert cited in an article headlined “The Trap: The curse of long-term unemployment will bedevil the economy.” The stage was set for the most recent financial crisis and recession soon after the 2001 recession, Professor Rajan said. It took four years for employment to regain its peak – and with jobs so scarce, wages stagnated even as the cost of living rose, forcing households to borrow to maintain their standard of living. The crisis, ultimately, was caused by household indebtedness, according to the January 14 article. If the current recovery is indeed jobless, wages will continue to lag, the Economist said. Read more
- THE WALL STREET JOURNAL. Professor Steven Davis was quoted in an article reporting that wages are likely to remain stagnant as the pool of unemployed workers stays large. “There may be pockets of the labor market … where we do see some upward pressure (on wages), such as for highly skilled workers,” Professor Davis said. “But I don’t see any reason in the recent reports to expect strong growth in real (inflation-adjusted) wages.” The article was published January 9. Read more
- TIME MAGAZINE. Professor Steven Davis was quoted in an article headlined “A Limit to Compassion,” about the downside to extending unemployment benefits to workers. “Surveys show people are very pessimistic about this labor market and their job prospects, and they think it’s not worth the effort to look,” said Professor Davis. “The generosity of benefits makes it easier to take that view.” The article was published in the issue dated January 25. Read more
- THE NEW YORK TIMES. Professor Steven Kaplan was quoted in an article headlined “Obama’s Plan May Spark Sale of P.E. Assets.” The article looked at how the President’s plan to limit financial banks’ risk-taking will impact the private equity industry. It will have a “moderate impact,” Professor Kaplan said in the January 22 article. “Most of the money going in comes from clients rather than from the capital of the bank, or the employees.” Read more
- TIME MAGAZINE. Professor Anil Kashyap was quoted in an article headlined “Did Foreigners Cause America’s Financial Crisis?” Professor Kashyap said “Most of the blame for the financial crisis lies in the choices that were made inside the U.S.” The article was published January 14. Read more
- THE WALL STREET JOURNAL. Predictions for the 2010 economy by Professors Anil Kashyap and Raghuram Rajan were included in an article published January 5. “There’s going to be a lot more noise made about China and its exchange rate,” Professor Rajan forecast. “The Democratic Party of Japan will be in a shambles,” said Professor Kashyap, adding “The economic program in Japan will be a complete mess by December.” Read more
- FINANCIAL TIMES. New research by Professor Eugene Fama was featured in an article headlined “Why it’s so hard to consistently beat the market.” Professor Fama studied mutual funds over a 22 year period and found almost no evidence of active fund managers beating the market consistently. The numbers are so small as to be almost entirely due to luck, he found. The article was published January 18. Read more
- ABC NEWS NIGHTLINE. Research by Assistant Professor Eugene Caruso was featured in a televised segment about race and politics. Professor Caruso’s paper, “Political Partisanship Influences Perception of Biracial Candidates’ Skin Tone,” was highlighted during a segment pegged to remarks made by Senate Majority Leader Harry Reid about President Obama. The program was broadcast January 12.
- MARKETPLACE RADIO. Professor Douglas Diamond was featured in a segment titled “Obama seeks to limit banks’ size, risk,” broadcast January 21. “It became so clear that the government will step in to bail out a systemically important institution that the genie is out of the bottle,” Professor Diamond said, “and the ability to use this implicit government guarantee as a way to lever up things like proprietary trading is something that needs to be reigned in.” Read more
- MARKETPLACE RADIO. Professor Douglas Diamond was one of the experts featured in a segment titled “How the Fed made a record profit,” broadcast January 12. The Federal Reserve returned about $46 billion to the Treasury Department in 2009, the story noted. Read more
- THE NEW YORKER. A lengthy interview with Professor John Cochrane discussing the Chicago School of Economics and the financial crisis was posted January 13 on the magazine’s website. Separate New Yorker interviews were also posted featuring Professors Richard Thaler, Raghuram Rajan, Kevin Murphy, Gary Becker and Eugene Fama.
- EL CRONISTA (Buenos Aires). Professor John Cochrane was quoted in an article about the financial crisis in the U.S. “A careful, legal separation of ‘too systemic to fail’ activities and activities which can, will and must be allowed to fail next time is the only hope I can see for avoiding a huge mess in the financial system,” he said in the January 25 article. “Big banks accessing government-insured deposits, with a too big to fail guarantee, yet operating internal hedge funds is a recipe for disaster.”
- NIKKEI (Japan). A feature interview with Professor Randall Kroszner headlined “One year since virtual zero interest rate policy in U.S.: Hurried ‘exit” can lead to a double-dip recession” was published December 12. He said Federal Reserve Board Chairman Ben Bernanke is placing “serious importance” on preventing a double-dip recession.
- THE FINANCIAL EXPRESS (India). Research by Professor Merle Erickson on accounting fraud was featured January 7. He found that reporting fictitious sales is the most common source of income inflated by firms who were prosecuted by the SEC for accounting fraud. Read more
- NPR’s PLANET MONEY. Professor Matthew Gentzkow discussed media bias during a podcast posted December 28. The interview examined the role basic economics played in creating today’s independent press from the highly biased newspapers of the 1800’s. Read more
- FORBES. Professors Marianne Bertrand and Luigi Zingales were featured in a commentary titled “Invasion of the European Economists.” The article talked about the growing number of European economists on the faculty of leading Americans universities. “When one wants to become a real economist, to accumulate knowledge and recognition, one has no choice but the United States,” Professor Zingales said in the January 18 commentary. Read more
- FORBES INDIA. Research by Assistant Professor Steven Kahl on how customers influence the evolution of new products was featured January 7. Paying attention to how customers use a new product can help companies become more successful in the marketplace, he said. Read more
- FORBES. The new book written by Professor Gary Becker and Richard Posner, senior lecturer at the Law School, was featured in an article headlined “Books for Obama.” Professor Becker’s book is titled “Uncommon Sense: Economic Insights, from Marriage to Terrorism.” The article was published January 18.
- LOS ANGELES TIMES. Professor Steven Kaplan’s research by CEO pay was featured in an opinion column headlined “Bringing overpaid executives to heel.” Market forces govern CEO compensation, Professor Kaplan said, adding that most CEOs are paid what they are worth. The article was published January 4.
- MILLER-MCCUNE MAGAZINE. Research by Associate Professor Aparna Labroo was featured in an article headlined “Name That Finding; Devalue Those Results.” Her study suggests that giving a name to a difficult concept or nuanced research may make it easier to recall, but it may also devalue the results, according to the article published January 11. Read more
- FORBES. Research by Assistant Professor Robert Novy-Marx was featured in a January 20 article headlined “The United States of Debt.” He studied states’ unfunded pension obligations and determined that while the Government Accountability Office found that states’ cumulative unfunded liabilities were $405 billion, a more accurate number is $3.2 trillion. Read more
- COMPLIANCE WEEK. Research by Assistant Professor Aiyesha Dey on corporate governance was featured during a podcast on the magazine’s website. Professor Dey discussed her recent paper “CEOs and Board Chair: To Split or Not to Split?” She found that splitting the two roles is not likely to be beneficial for all firms. “There is no one size fits all when it comes to board leadership,” she said during the podcast, posted December 25.
Section 3: Chicago Booth students and alumni in the news.
- FINANCIAL TIMES. Rahul Bajaj, MBA ’10 wrote a full-page article about his experiences at Chicago Booth. “My time at Chicago Booth has been a wonderfully transformative experience,” he wrote in the January 25 column. “There is no price that can be placed on the intellectual joyride that can be experienced in an academic setting.” Read more
- DETROIT FREE PRESS. J. Patrick Doyle, MBA ’88 is expected to become CEO of Domino’s Pizza effective March 7, according to the article published January 6. Doyle, a graduate of the Evening MBA Program, has been president of Domino’s USA since 2007. Read more
- THE WALL STREET JOURNAL. William McComb, MBA ’87 was among a group of CEOs called to the White House by President Obama for a brainstorming session, according to article published January 19. McComb is CEO of Liz Claiborne.
- BLOOMBERG BUSINESSWEEK. Sydney Reiner, MBA ’03 was featured in the cover story “The Permanent Temporary Workforce,” January 18. She prefers working in adrenaline-packed chunks for different employers, the article said. “I got a call from Godiva on a Wednesday asking if I could be on a plane to Japan on Saturday,” she said. “I was.” She served as interim chief marketing officer for the chocolate company. A full-page photo of her accompanied the article.
- CHICAGO TRIBUNE. Steven Barnhart, MBA ’88 was named senior vice president and CFO of Bally Total Fitness, according to an article published January 11. He will oversee the company’s financial functions as well as its IT department, the Chicago-based fitness club operated said.
- ABC NEWS.COM. Michael Klingensmith, MBA ’76 was named publisher and CEO of the Minneapolis Star Tribune. Earlier in his career he was president of Sports Illustrated, founding publisher of Entertainment Weekly and general manager of Time magazine, according to the January 7 article.
- PENSIONS & INVESTMENTS. A Q&A interview with Andrew Ward, MBA ’97 was published January 11. He is chief investment officer of Boeing’s pension fund, one of the largest pension funds in the world. After he graduated from Chicago Booth, Ward joined A.T. Kearney as an associate, the article said. Read more
- CHICAGO SUN-TIMES. Sean Harper, MBA ’09 was featured in an article about Transparent Financial Services (TransFS.com), the company he co-founded two years ago while a student at Booth. Most small-business owners don’t realize how badly they are getting ripped off by their credit card processing companies, Harper said. TransFS.com is an online credit card processing directory of 835 providers nationwide. The company connects small businesses with pre-screened processors, according to the January 11 article.
- THE WALL STREET JOURNAL. Elizabeth Pitt, MBA ’02 was featured in an entrepreneurship column headlined “Make Your Ideas Stick.” After a successful career at McKinsey she started her own company, CaregiverNeeded.com, according to the January 10 article. “I wanted to pursue something that matters personally to me and that I could see myself being dedicated to,” she said. Read more