Booth in the News; Winter 2013, Vol. 3
Covering January 24 to February 18, 2013
Here are highlights of the latest Booth news coverage. The summary below represents only a portion of recent coverage. Questions about the summary should be directed to Allan Friedman, executive director of communications, by e-mail or by calling 773.702.9232.
This summary contains three sections.
Section 1: News coverage of Booth.
- FINANCIAL TIMES. Booth ranked third in the placement success of its graduates and 10th overall in the newspaper’s annual ranking of full-time global MBA programs published January 28. The ranking was based on a survey of graduates from 2009. The typical Booth graduate from the Class of 2009 is now earning $164,678 annually, according to the ranking. The top 10 schools in this year’s rankings were 1) Harvard, 2) Stanford, 3) Wharton, 4) London Business School, 5) Columbia, 6) Insead, 7) IESE, 8) Hong Kong UST Business School, 9) MIT, 10) Booth. Last year Booth ranked 12th. View ranking »
- CHICAGO TRIBUNE. “Former U.S. Treasury Secretary and former Goldman Sachs CEO Henry Paulson worked as a career coach Friday for University of Chicago MBA students,” an article published February 3 began. The half-page article summarized Paulson’s remarks to a group of Booth students before he spent the rest of the day as an executive-in-residence, meeting with small groups of students. “Titan of finance tells students to focus on now,” the newspaper said. Read article »
- CHICAGO TRIBUNE. An article was published January 31 about the $5 million gift to Booth from John Edwardson, MBA’72, retired chief executive of CDW. The donation is the founding gift to the Social Enterprise Initiative. “I went to the Social New Venture Challenge and it really excited me,” he said. “This is where I want my gift to go, to help do more of this.” Earlier in his career Edwardson was president of United Airlines. Read article »
The Financial Times also published an article about the gift. Read article »
- FINANCIAL TIMES. Booth was featured in an article headlined “Financing your MBA,” published January 28. As schools increasingly compete at a global level for top students, many continue to extend prospective students’ access to financial aid, the article said. “We have made a significant effort to increase our scholarship funds,” said Deputy Dean Stacey Kole. Around 40 percent of the most recent graduating class received support from Booth, she said. Read article »
- THE WALL STREET JOURNAL. The Chicago Booth/Kellogg School Financial Trust Index made news January 27 in an article headlined “How a Trust Deficit Is Hurting the Economy.” The latest Trust Index “shows that only a third of Americas trust banks, and about one in six trust the stock market or large corporations,” the article said. “For banks, this gauge of trust continued to fall even after the financial crisis ended.” Read article »
- FINANCIAL TIMES. Booth was featured in an article about the importance of career services at business schools. At Booth, career services is divided into two areas, said Associate Dean Julie Morton. “We have 11 people in the employer-facing team” who develop and maintain relationships with firms, she said in the January 28 article. A second group of staff works closely with students, performing coaching and giving guidance, she said. Read article »
- FINANCIAL TIMES. Booth was one of the schools featured in an article headlined “Business school’s big data revolution,” published February 11. Big data analysis “is proving to be one of the trendiest subjects in business schools,” the article said. But it is about more than data mining and building statistical model, said Visiting Professor Robert Grossman. “(It’s about) how you embed the analytical models in your products to increase profits or reduce risk, for example.” Read article »
- BLOOMBERG BUSINESSWEEK. Booth was one of the schools featured in an article headlined “Prepping for an MBA Job Interview,” published February 6. Offer a very firm handshake for both a male or female interviewer, said Chair Bennington, director of career management at Booth. “Be ready with small talk and a smile” when you first meet. Read article »
- FORBES. Booth’s London conference titled “How Costly Would a Euro Exit Be?” made news February 11 when one of the speakers’ slides were posted on the magazine’s website. “I conclude that a euro break-up would likely have very negative short-to-medium-term consequences,” said Karl Whelan, one of the speakers. He is on the faculty of University College Dublin. Read article »
Section 2: News coverage of Booth faculty.
- THE WALL STREET JOURNAL. An op-ed by Professor Luigi Zingales was selected as “recommended reading” by the newspaper’s Washington Wire blog February 1. Professor Zingales “joins the chorus protesting that so few people were prosecuted for contributing to the financial crisis. Big-money settlements won’t suffice,” the newspaper said. Here is an excerpt from the op-ed: “A few prominent criminal convictions have sent a powerful signal in the fight against insider trading. If the target is an industry-wide culture of deception, shouldn’t the criminal justice system be mobilized against banks’ mortgage fraud as well?” Research was Associate Professor Amit Seru was cited in the op-ed. Read article »
Read Project Syndicate op-ed “Financial Stars Behind Bars?” »
- BLOOMBERG NEWS. Professor Steven Kaplan published an op-ed titled “Hedge Fund Investors Are Sure Losers in Herbalife Fight,” February 12. “Last month, George Soros, the most successful hedge-fund investor of his generation … argued that hedge funds, as a group, are unlikely to beat the market because they make up such a large fraction of the market,” Professor Kaplan wrote. “The Herbalife imbroglio provides a vivid illustration of the economics behind Soros’s view.” Read article »
- THE ORANGE COUNTY (Calif.) REGISTER. Professor Luigi Zingales published an op-ed titled “Big spending stunts future growth,” February 4. “For economist Paul Krugman and those on the Left, there is no economic problem that can’t be fixed with government spending financed with deficits,” he wrote. “For those on the Right, government expenditure (unless it is in military) is the problem, not the solution. Fiscal austerity is the fix to every aliment. Not surprisingly, the truth is in the middle.” Read article »
- SLATE. Associate Professor Emily Oster published an op-ed titled “Time is Money; So How Much is Yours Worth?” February 6. “As you fume about a delayed plane, a late doctor, a long line, is it possible to quantify – to put a concrete number on – the time being wasted?” she wrote. “It turns out the answer is yes. And to do so you only need to use one of the most basic principles of economics: opportunity cost.” The Chicago Tribune reprinted this op-ed February 13. Read article »
- REUTERS. Research on unemployment by Professor Amir Sufi was featured in an article published February 1. Tax and regulatory uncertainty, blamed in some quarters for keeping companies from hiring, has little to do with high U.S. unemployment, Professor Sufi’s research found. The main reason that U.S. unemployment has remained high is likely because households hurt by the housing crash simply are not spending, the report showed. “Employment collapsed precisely when businesses began worrying about poor sales,” the research said. By contrast, “there was almost no correction between job growth in a state from 2008 to 2011 and the increase in the percentage of businesses citing regulation and taxes as their primary concern.” The research was co-authored by a Princeton professor. Read article »
- CNBC. Professor Randall Kroszner said he doesn’t expect the Federal Reserve to raise its target interest rate during 2013. He made his comments during an interview January 30, the same day that the Fed downgraded its assessment of the economy. Professor Kroszner was a Fed governor from 2006 to 2009. Watch video »
- CNBC. Professor Austan Goolsbee discussed the proposals made by President Obama in his State of the Union address during an interview on the Kudlow Report February 13. Watch video »
- CNBC. Professor Randall Kroszner said the debt limit extension makes sense because it allows time for proper reforms to be developed. He was interviewed while attending the World Economic Forum in Davos, Switzerland, January 24. Watch video »
- REUTERS. Research by Professor Steven Kaplan on executive pay was featured in an article headlined “Putting the magnifying glass on the 1 percent,” published February 1. He and a co-author studied Forbes annual list of the 400 richest Americans. They found that in 1982 just 40 percent of the people on the list had built their own businesses. By 2011, the super-rich had gotten much richer and many more of them had built it themselves: 69 percent, the research found. Read article »
- ECONOMIC TIMES OF INDIA. Professor Raghuram Rajan was featured in an article headlined “You can’t postpone social development forever,” published February 10. Professor Rajan is India’s chief economic advisor. Read article »
- FOX BUSINESS NETWORK. Professor Austan Goolsbee discussed immigration reform during an appearance on Cavuto on February 5. “If you look at what the President said over the last two or three years, he had a number of councils advise him that visas for business people and for tourists coming to the U.S. were important for economic growth and that high-skill immigration was important for a lot of high-tech industries,” Professor Goolsbee said. Watch video »
- CNBC. Professor Austan Goolsbee discussed the departure of Tim Geithner as U.S. Treasury Secretary and the challenges facing his replacement, Jack Lew, during an appearance on Squawkbox January 25. Watch video »
- CNN. Professor Austan Goolsbee discussed the U.S. economy during an interview broadcast February 1. Watch video »
- FINANCIAL TIMES. A Q&A with Associate Professor Emily Oster was published February 18 in the “Women at Business School” section. “My best day is one when I’m just far enough along on a (research) project that I think I know what the answer is and I have the data to figure it out for sure,” she said. “The greatest moments are those when you see the result pop up in a graph or in your statistics analysis – that moment you realize you know something no one else does and you get the pleasure of thinking about how to tell them.” Read article »
- MONEY MATTERS RADIO NETWORK. Professor Anil Kashyap discussed recent actions by the Bank of Japan during an interview broadcast January 24.
- SALON.COM. Professor Jean-Pierre Dube was quoted in an article about Muslin activists who are trying to reclaim a holy word that’s become synonymous with terror: jihad. The challenge is no doubt immense, Professor Dube said. “The problem we have here is that this is a case where we literally want do to an about-face on the interpretation of the word. And there’s so much passion behind how people have used this term that it’s hard to imagine this is something you can change overnight.” Read article »
- NATIONAL PUBLIC RADIO. Professor Randall Kroszner said the January jobs report from the government shows the economy is still treading water. “The employment rate a year ago was slightly over 8 percent,” he said. “The unemployment rate today is slightly under 8 percent. That’s a sideways slide.” He made his comments on All Things Considered, broadcast February 1. Listen to broadcast »
- THE NEW YORK TIMES. Professor Richard Thaler was quoted in an article headlined “Restored Payroll Tax Pinches Those Who Earn the Least,” published February 7. Commenting on the increase in payroll taxes that took effect January 1, Professor Thaler said “I wouldn’t expect it to have much of an effect on BMW consumption … The people who will notice it the most are the ones making the least.” Read article »
- REUTERS. Professor Steven Kaplan was quoted in an article about the leveraged buyout of Dell Inc. by founder and chief executive Michael Dell and Silver Lake Partners. The buyout firm is putting up about $1 billion but will get a minority stake in the company, according to the article. “This is not common for a deal of its size,” Professor Kaplan said in the February 6 article. “I’m assuming Silver Lake will have some protective provisions in the agreement.” Read article »
Professor Kaplan was also quoted in a Bloomberg News article about the Dell buyout, February 5. Read article »
- BLOOMBERG BUSINESSWEEK. Research by Associate Professor Adair Morse and Assistant Professor Margarita Tsoutsoura was featured in an article headlined “Academic Research With Mass Appeal,” published January 28. “A small pool of research achieved blockbuster status in 2012 by becoming the most read, most downloaded, or most written-about pieces authored by professors at top business schools,” Businessweek wrote. “At the University of Chicago Booth School of Business, professors observed that banks recognize when customers are evading their taxes – and they lend to them anyway, not based on reported income, but based on what the bank’s estimate of their actual income is. The hot spot for this body of research? Greece.” Read article »
- LONDON TELEGRAPH. Professor Richard Thaler’s book “Nudge: Improving Decisions About Health, Wealth and Happiness,” is “required reading” for many members of the British government, according to an article headlined “Inside the Coalition’s controversial ‘Nudge Unit,’” published February 11. Read article »
- HOUSING WIRE. Associate Professor Amit Seru published an op-ed titled “Lessons learned from the Home Mortgage Affordability Program” January 2. Two findings emerged from research by Professor Seru and his co-author, he wrote. “One is that the organizational capability of services could have played a very important role in determining the rate of modifications and foreclosures during a financial crisis – and such capability takes a long time to build.” Read article »
- MARKETPLACE RADIO. Professor Randall Kroszner was featured in a story reporting that the U.S. economy shrank during the fourth quarter of 2012 for the first time in more than three years. There were three reasons for the contraction, Professor Kroszner said. “One is federal government spending -- especially defense spending – fell. Inventories, that is those products on the shelves that firms have, went down significantly, and exports fell a bit,” he said during the January 30 broadcast. Listen to broadcast »
- MARKETPLACE RADIO. Professor Steven Kaplan was featured in a story titled “Apple to respond to lawsuit over dividends,” broadcast February 13. A lawsuit filed by a hedge fund claims Apple is hoarding cash – which it should be distributing to shareholders, the story said. “The shareholders, particularly (David) Einhorn, are saying, ‘We would like more of that back, because you don’t need it and your business is going to keep generating cash,’” Professor Kaplan said. “I think Apple’s response is – we’re starting to give you the cash back.” Listen to broadcast »
- HUFFINGTON POST. Adjunct Assistant Professor John Paul Rollert published a column titled “5 Principles for Moral Leadership,” January 25. In the column, he used principles submitted by students in his business ethics class for their final exam. Read article »
- BLOOMBERG RADIO. Professor Pradeep Chintagunta discussed BlackBerry’s rebranding during an interview broadcast January 30. Listen to broadcast »
An earlier edition of Booth in the News contained misinformation as a result of an editing error. The correct listing appears below.
- FORBES. Research by Professor Marianne Bertrand and Associate Professor Emir Kamenica was featured in an article headlined “Breadwinner Social Norms Could Affect Dating for Women,” published January 8. The research found that the social norm that a husband should be the primary breadwinner for a family might be impacting a woman’s earnings potential. The research also found that dynamic of a wife earning more than her husband can strain a marriage, increasing divorce rates. The research was co-authored by Jessica Pan, PhD’10. Read article »
Section 3: Booth students and alumni in the news.
- FOX BUSINESS. Deanie Elsner, MBA’92, was named to the newly created role of chief marketing officer at Kraft Foods, according to an article published January 31. “Deanie is uniquely qualified to pioneer this role given her success in building some of the world’s most iconic brands throughout her 20-year career at Kraft,” said Tony Vernon, CEO. Most recently, Elsner was president of Kraft’s beverages business. Read article »
- CHICAGO TRIBUNE. Bob Mariano, MBA’87, was featured in an Executive Profile February 11. He is founder of Mariano’s Fresh Markets in the Chicago area and CEO of Milwaukee-based Roundy’s, a 160-store grocery chain. His aspiration for Mariano’s Fresh Markets is to be “the Nordstrom of the grocery world,” the article said. He started his grocery career in Chicago behind the deli counter at a Dominick’s Finer Foods as a high school student in 1968, eventually becoming president of the chain. Read article »
- THE WALL STREET JOURNAL. Matt Maloney, MBA’10, was featured in a column offering advice from startup mentors on strategies and challenges of creating a new business, published February 12. He explained how his company, GrubHub, raised a five rounds of funding totaling $84.1 million. Maloney is co-founder and CEO. Read article »
- CRAIN’S CHICAGO BUSINESS. A company led by Dhiraj Rajaram, MBA’03, was featured in an article headlined “MasterCard teams up with, invests in Mu Sigma.” Mu Sigma, with Rajaram as CEO, earlier received more than $125 million in venture investment, the article said. Read article »
- CHICAGO TRIBUNE. Adela Cepeda, MBA’84, was profiled in an article headlined “Adela Cepeda carved her own path to success,” January 28. She has become one of Chicago’s most prominent Latina businesswomen, the article said. Cepeda is president of A.C. Advisory, Inc., a firm focusing on municipal finance. Read article »