|Finance professor's research paper
honored by leading journal
A study on the shorting market and stock prices, co-authored by a Fisher professor received a 2007 Smith Breeden Prize as a “Distinguished Paper” in “The Journal of Finance,” on January 5.
Karl B. Diether, an assistant professor of finance, co-authored the study, “Supply and Demand Shifts in the Shorting Market,” with Lauren Cohen and Christopher J. Molloy, both on the faculty at Harvard Business School. The article was published in the October 2007 edition of “The Journal of Finance."
The researchers’ paper examined the link between the shorting market and stock prices. The paper found that shorting demand is an important predictor of future stock returns. Diether and his colleagues were able to analyze signals in the short selling market through studying stock loan fees and the number of shares in the transactions.
“One of the things the paper had going for it is that we had a fairly unique data set. No one else had this data,” said Diether, who teaches Security Markets and Investments. “No one has ever looked at the joint role of stock loan fees and quantities.”
Since short selling happens behind the scenes among brokers, hedge funds and large institutional investment firms, access to data is relatively limited, Diether said. The researchers were able to get access to data for the study from a large institutional investor. The firm provided the scholars with access to individual contracts, which detailed the quantity of shares and the prices paid, including the stock loan fees.
“We found that when short sellers were willing to pay very high loan fees, but at the same time take really big positions, it was a very strong predictor of future performance for a stock,” Diether said. “It means they must know something or must have access to private information or they are better at assessing the importance of public information and news than other market participants.”
The researchers wrote in the abstract: “we show that our results are stronger in environments with less public information flow, suggesting that the shorting market is an important mechanism for private information revelation into prices.”
The entire study is available on Diether’s Web site.
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Executive Education’s Lean Manager Certificate program cited by Black Enterprise magazine as top innovative program
Fisher’s Executive Education’s Lean Training Manager Certification program was ranked by Black Enterprise magazine as a top Executive Education program. According to the February 2008 edition of the magazine, the Lean Manager Certification offering is, “ideal for mid-to top-level executives.”
Fisher’s course was listed in the Top Ten Executive Education programs along with offerings at University of Chicago Graduate School of Business, Columbia University Graduate School of Business, Harvard University, Northwestern’s Kellogg School of Management and Stanford University Graduate School of Business.
Fisher’s Lean Manager Certification for Administration and Service Industries is a highly interactive and fully accredited program that teaches a carefully sequenced curriculum of lean concepts and techniques. It is specifically designed for use in an administrative and service industry environment. The four-week program emphasizes innovation pointing to the streamlining of operations processes and the improvement of administration effectiveness.
Carol Newcomb, executive director of Executive Education, told the magazine: “In the last few years, the emphasis has been on teaching company managers how to deal with their specific issues and problems. We focus on understanding the companies’ markets, challenges and opportunities based on this knowledge, design a program that will address the competencies (that) managers need to be successful.”
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Haugtvedt helps launch first-ever
consumer psychology handbook
Editor's note: Fisher News is introducing a new section called Biblio File. The section features recent publications by faculty.
A new consumer psychology handbook, co-edited by a Fisher professor, is the first to provide a comprehensive overview of the discipline.
Curtis P. Haugtvedt
“The Handbook of Consumer Psychology” contains theoretical reviews and research studies in consumer psychology, marketing, advertising and consumer behavior by some of the field’s top scholars. Curtis P. Haugtvedt, associate professor of marketing and co-editor of the handbook, said it provides a history of the field, contains integrative literature reviews and sets the path for future research.
The handbook was created to provide researchers and students in various disciplines including advertising, communications, marketing, psychology and human ecology a reference point on consumer psychology, Haugtvedt said. A former president of the Society for Consumer Psychology, Haugtvedt edited the handbook along with Paul M. Herr, University of Colorado professor of marketing, and Frank R. Kardes, a University of Cincinnati professor of marketing.
The work examines the scientific understanding of cognitive, affective and behavioral responses to products and services as well as the marketing of products and services. A section on consumer well-being explores various ethical and social issues including compulsive shopping and tobacco advertising aimed toward children. Read More»
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KeyBank gift to establish
leadership and creativity camp
A new gift from the Key Foundation will create a leadership and creativity camp for underrepresented undergraduate business students from around the country.
The KeyBank Leadership and Creativity Camp will bring together students for an intense multi-day workshop on leadership, creativity, product innovation, entrepreneurial thinking and persuasive communication. The gift from Key Bank, $85,000 annually over three years, will support the camp.
“For the past three years, KeyBank has partnered with Fisher to present programs that have turned the subject of diversity into a learning experience,” said Stephen L. Mangum, interim dean of Fisher College of Business. “This latest partnership will create additional initiatives and programming for underrepresented students.”
KeyBank is also the title sponsor of the annual KeyBank Fisher MBA Minority Student Case Competition. Held each February in Cleveland, it provides competitors with a real-life case surrounding a current business challenge that also presents diversity issues with national and international implications.
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Creation and Discovery: Alvarez challenges scholars to study, debate alternative theory
There are different types of entrepreneurs in the business world: the mountain climbers and the mountain builders, according to two professors in the Department of Management and Human Resources. However, Sharon Alvarez, an associate professor, and Jay Barney, the Chase Chair for Excellence in Corporate Strategy, said business scholarship has largely ignored the mountain builders.
In a new study released in the November 2007, “Strategic Entrepreneurship Journal,” a new research publication that accompanies the "Strategic Management Journal," the Fisher professors offer a strong case for studying the mountain builders in the business world. The mountain climbing approach to entrepreneurship is based on discovery theory. The mountain building approach is based on creation theory.
The article, “Discovery and Creation: Alternative Theories of Entrepreneurial Action,” explores the distinction between the two theories and their implications for business development. The co-authors contend that discovery theory has been the approach to research on entrepreneurial action.
“It is the easier of the two to study and teach in business schools,” Alvarez said. Read More»
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Fisher People: John Rensink
Title: Program Assistant for the Center for Real Estate Education and Research
Hobbies/interests: "I am currently learning to speak Mandarin Chinese and I am looking forward to getting married in June."
"I enjoy working at Fisher because of all the opportunities it affords to make it a better place for students."
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The Asian Business Student Association will host a representative from Accenture at its weekly meeting at 7:30 p.m. in 205 Schoenbaum Hall. More information is available online at the Asian Business Student Association Web site.
Amber DeBarr of Northlich will speak at the American Marketing Association meeting. Pizza will be served at 7 p.m. in 319 Schoenbaum Hall and the meeting will start at 7:30 p.m. in 320 Schoenbaum Hall. More information is available on the American Marketing Association Web site.
Margaret Fong, Hong Kong Commissioner for Economic and Trade Affairs, will discuss the trade advantages enjoyed by companies working in Hong Kong from 6 to 7 p.m. in 305 Gerlach Hall. The event is a part of the Distinguished International Speaker Series sponsored by the International Programs Office. More information is available online at the Leadership & Professional Development HUB.
The Accounting Association will host a representative from Ernst & Young at its weekly meeting at 7:30 p.m. in 305 Schoenbaum Hall. More information is available online at the Accounting Association Web site.
The Asian Business Student Association will host a Chinese New Year celebration with Cargill at its weekly meeting at 7:30 p.m. in 205 Schoenbaum Hall. More information is available online at the Asian Business Student Association Web site.
Peter Scantland, president of Orange Barrel Media, will be the featured speaker at the Cullman Executive Luncheon Series from 12:30 to 1:15 p.m. More information is available online at Leadership & Professional Development HUB.
Dawn Lyons of Procter and Gamble will speak at the American Marketing Association meeting. Pizza will be served at 7 p.m. in 319 Schoenbaum Hall and the meeting will start at 7:30 p.m. in 320 Schoenbaum Hall. More information is available on the American Marketing Association Web site.
Cathy Ellwood, officer of Nationwide Insurance's Financial Leadership Rotation Program, will be the featured speaker at the Cullman Executive Luncheon Series from 12:30 to 1:15 p.m. in 101 Gerlach Hall. More information is available online at Leadership & Professional Development HUB.
The Accounting Association will present a Night With Corporate America from 7 to 9:45 p.m. at the Faculty Club. The event provides an opportunity for accounting, management information systems and finance students to meet with corporate recruiters. For more information or to RSVP visit the Accounting Association Web site.
Tim Harman of Ashland will speak at the Purchasing and Supply Management Association meeting at 7:30 p.m. in 300 Schoenbaum Hall. More information is available online at the PSMA Web site.
Harrison honored by Columbus NBMBAA
The Columbus Chapter of the National Black MBA Association recently recognized David Harrison, director of the Office of Minority Student Services, for his contributions to the chapter.
Harrison was presented with the Heritage Award in December for his long-term commitment, dedication, support, community involvement and passion for the organization's success.
At the same awards program, Fisher was selected as the chapter’s Educational Partner of the Year.
MBA Enterprise Corps information session to be held Feb. 7
The MBA Enterprise Corps will be holding an information session from 12:30 to 1:20 p.m. in 355 Gerlach Hall.
The 13 to 15 month assignment for recently graduated MBA students consists of a week-long orientation in Washington, D.C., one or two months of in-country intensive language and acculturation training followed by a year of work as a business advisor/consultant with a host organization.
More information is available online at the Leadership & Professional Development HUB.
Alison Merzel, admissions director for the MBA program, was quoted in a BusinessWeek.com article on the emergence of webcams in the application process.
Merzel said Fisher has implemented webcams to curb cheating by applicants. Read the entire article online at BusinessWeek.com.
Sharon Alvarez, associate professor of management and human resources, was quoted in a Dec. 3 Columbus Dispatch article on a class project that provided business analysis for a non-profit coffeehouse.
Alvarez told the paper the business needed to do a better job of promoting their fair trade items. Jeff Herbst, a student in Alvarez’s class, was also quoted in the article.
Oded Shenkar, professor of management and human resources, was quoted in a Jan. 7 Christian Science Monitor article on Americans’ perceptions of the 2008 Summer Olympics held in China following tainted shipments of pet food and toys from the country last year.
Shenkar told the paper because of the problems Americans have realized that the Olympic games will not create a "shiny new China."