FISHER NEWS May 2, 2008
  In this issue

Warren Buffett inspires, delights MBA students

Free Hand foundation establishes Fisher EMBA Social Enterprise Scholarship

Former Skybus COO among
speakers at OLMA Summit


President Gee visits
Honors Cohort class


Minton, Stulz find credit derivatives can potentially upset banks' earnings

Fisher sweeps Big Ten
case competitions


Fisher People: Randy Spears






Max M. Fisher College of Business > The Ohio State University Fisher College of Business
Warren Buffett inspires, delights MBA students

Warren Buffett reacts to receiving an Ohio State football helmet autographed by football coach Jim Tressel from Roger Pruger, a student in the MBA for Working Professionals Program. View video of the presentation by clicking here.

More than 90 Fisher College of Business MBA students had a unique opportunity to meet and lunch with businessman and philanthropist Warren Buffett, the chairman and CEO of Berkshire Hathaway Inc., in Omaha, Neb. on April 25.

During a two-hour question and answer session, Buffett engaged in conversation with the students and gave advice on how to handle complex business problems as well as encouraging them to pursue philanthropic endeavors. Second-year MBA student Matt Pry was amazed at Buffett’s ability to explain intricate business problems in plain English.

“His ability to reason through a complex problem and distill it into a simple and insightful perspective was amazing,” Pry said. “It is truly a remarkable ability.”

Pry and fellow second-year MBA student Lisa Scheiring were selected to travel with Buffett from his office to a nearby restaurant. During the 10 minute car ride, Buffett wanted to know where the students were from and what they wanted to do in life. Read More and Watch Video From The Trip »

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Free Hand foundation establishes Fisher
EMBA Social Enterprise Scholarship

A new scholarship for leaders and administrators of charitable non-profit organizations has been established through a gift from Free Hand, Inc. for full tuition in Fisher’s Executive MBA program.

Leslie Fine
Leslie Fine
Free Hand, Inc., based in Mentor, Ohio, is a foundation that provides assistance to social service organizations that support individuals in extreme need and management resources and financial assistance to those who supply social services. Candidates for the scholarship must be currently employed by a not-for-profit, non-governmental organization engaged primarily in charitable work that provides direct social services.

The $102,000 gift from Free Hand, Inc. will fund an EMBA scholarship and the non-credit Social Enterprise Training Program. Fisher currently offers a Social Enterprise Certificate developed under the leadership of Leslie Fine, academic director of Fisher’s EMBA program and associate professor of marketing.

“The same world-class academic program and advanced management skills that corporate executives receive through our EMBA program will be provided to a leader of a non-profit organization at no cost,” said Carol Newcomb, executive director of Fisher’s Executive Education program. “This very generous gift from Free Hand, Inc. will not only benefit the recipient but the entire cohort in the EMBA class who work closely together exchanging professional experiences in a close-knit collegial community.” Read More »

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Former Skybus COO among
speakers at OLMA Summit


Rich Valen (from left), corporate vice president of finance for Motorola’s integrated supply chain, answers a question during the panel discussion at the annual Operations and Logistics Management Association Summit, which also included former Skybus Airlines COO Ken Gile and Chris Keylon, vice president of operations for Federal Express Freight.

Three executives, including the former president and chief operating officer of recently shuttered Skybus Airlines, provided members of the Operations and Logistics Management Association inside track information on their companies at the OLMA Summit.

Held at the Blackwell Inn on April 18, the OLMA Summit, featured Rich Valen, corporate vice president of finance for Motorola’s integrated supply chain; Chris Keylon, vice president of operations for Federal Express Freight and Ken Gile of Skybus.

Gile, a veteran airline executive who spent 25 years at Southwest Airlines, gave students a glimpse of the Skybus start-up business plan, its execution and some of the factors that led the Columbus-based carrier into the throes of bankruptcy.

“Setting up an airline is very complex,” said Gile, who led the start-up process for flight operations including securing the airline’s Federal Aviation Administration certification. Read More »

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President Gee visits Honors Cohort class
Ohio State President E. Gordon Gee speaks to the Honors Cohort class.

Ohio State President E. Gordon Gee spoke to the undergraduate Honors Cohort about the importance of leadership during a visit to their class on April 22. Gee addressed the numerous challenges that come with being a leader. He also told the students that the key to being a successful leader is that they must be themselves and not try to be the person that people think they should be.

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Scholar Spotlight
Minton, Stulz find credit derivatives
can potentially upset banks' earnings


Research by finance professors Bernadette Minton (left) and René Stulz find that credit derivatives can potentially upset the bottom line for American banks.

Since 2001, a small number of American banks have fueled a significant increase in credit default swaps as a way to provide credit protection to hedge risks. However, new research from two Fisher finance professors find that many big name banks steer away from hedging credit risks because they potentially increase the volatility of their earnings.

Fisher finance professors and co-authors of the study Bernadette Minton and René Stulz found that in 2005 the use of credit derivatives was limited to just 23 out of 395 banks because of adverse selection, moral hazards and the inability of banks to use hedge accounting when hedging with credit derivatives. Minton recently presented the paper at a conference on risk management at the Federal Reserve Bank of Chicago.

The researchers, who co-authored the paper along with Fisher alumnus and Georgetown University faculty member Rohan Williamson, examined 2005 fiscal year-end disclosures from 395 domestically-owned bank holding companies with more than $1 billion in assets. Growth in credit default swaps jumped from $698 billion in June 2001 to more than $42.5 trillion by June 2007. They find that usage of credit derivatives is not widespread among banks. Typically, about 20 bank holding companies use credit derivatives in their sample.

Larger banks such as JPMorganChase and Bank of America bought and sold a combined $4.2 trillion in 2005, which exceeded the total notional amount of $1.2 trillion in derivatives bought and sold by all other banks examined as a part of the study. Read More »


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Fisher sweeps Big Ten case competitions

Fisher's winning team at the inaugural 2008 Big Ten Leadership Case Competition Dan Oglevee (clockwise from top), coach and senior lecturer in finance, Michael Bookmyer, Luba Osadchy, Matt Ricciardi and Robert Nicholson.

Fisher completed a clean sweep of the Big Ten with a win in the inaugural 2008 Big Ten Leadership Case Competition for undergraduate students on April 12.

Michael Bookmyer, Robert Nicholson, Luba Osadchy and Matt Ricciardi won the event that was held at the University of Wisconsin and sponsored by Accenture. The team was coached by Dan Oglevee, a faculty member in the Department of Finance.

Teams were presented with a Harvard Business Case based on management and strategic issues that retailer Best Buy has struggled with for several years. The competitors had two-and-a half hours to analyze the case and prepare a presentation that featured key strategic and leadership challenges along with an appropriate action plan.

“The judges commented that our student’s succinct action plan and question and answer session set them apart from the competition that included strong teams from both Michigan and Northwestern,” Oglevee said.

The University of Michigan finished in second place and third place went to the University of Iowa.

Fisher’s win came less than a week after a team of first-year MBA students won the 16th annual Big Ten Case Competition.


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Fisher People: Randy Spears
 
Title: Associate Director, Educational Technologies

Hobbies: "Writing, blogging, making little movies, watching big movies, geocaching (GPS treasure-hunting game), biking, hiking, tennis and reading mysteries."

FisherLure: "The parking. Seriously, I returned to The Ohio State University in 2006 after 15 years away to work at a world class university and college. Who could ask for anything more?
"

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Calendar of Events

May 5
Jim Allen, CEO of Hilliard Lyons, will be the featured speaker at the Cullman Executive Lunch Series from 12:30 to 1:15 pm in 161 Gerlach Hall. More information is available online at the Leadership and Professional Development HUB.

May 6
Ralph Betters, chief information officer at Third Federal Savings and Loan, will be the featured speaker at the Cullman Executive Lunch Series from 12:30 to 1:15 p.m. in 101 Gerlach Hall. More information is available online at the Leadership and Professional Development HUB.

The Business Builders Club will host an Elevator Pitch Competition at 7:30 pm in 330 Schoenbaum Hall. More information is available online at the Business Builders Club Web site.

A representative from Nationwide will speak about enterprise accounting at the Accounting Association meeting at 7:30 p.m. in 220 Schoenbaum Hall. More information is available online at the Accounting Association Web site.

May 7
Gary Kelly, CEO of Southwest Airlines, will be the keynote speaker at Leadership and Professional Development Sander Flaum speaker series from 6 to 7 p.m. in 140 Pfahl Hall. More information is available online at the Leadership and Professional Development HUB.

Jeni Britton, founder of Jeni’s Splendid Ice Creams, will be the featured speaker at the Cullman Executive Lunch Series from 12:30 to 1:15 p.m. in 203 Gerlach Hall. More information is available online at the Leadership and Professional Development HUB.

Christine Hurtubise of COSI 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 330 Schoenbaum Hall. More information is available through the AMA Web site.

May 9
Jeffery W. Henderson, CFO of Cardinal Health, will be the keynote speaker at the Fisher Finance Summit presented by the MBA Finance Association. The theme of this year's event is "Corporate Governance and the Credit Crisis." The summit will be held from 8:30 a.m. to 1:30 p.m. in 375 Gerlach Hall.

John Augustine, chief investment strategist for Fifth Third Bancorp, Holly K. Koeppel, CFO of American Electric Power, Les Blake, enterprise portfolio management, Nationwide Mutual, Ryan J. Helon, managing director of Nationwide Investments, Nationwide Mutual, and Steve Baker, managing director of Fort Washington Capital Group, will also speak at the summit. More information is available online at the Leadership and Professional Development HUB.

The Fisher Follies will be held at the Fawcett Center from 8 to 11 p.m. Tickets will be on sale starting May 5 for $10, and will be $12 at the door. More information is available online at the Leadership and Professional Development HUB.

May 14
Steven Brechter, president and CEO of Waypoint Corporation, will be the featured speaker at the Cullman Executive Lunch Series from 12:30 to 1:15 p.m. in 161 Gerlach Hall. More information is available online at the Leadership and Professional Development HUB.


News Briefs

Pace Setter Award Ceremony to be held May 15
The 2008 Pace Setters Awards, the annual Fisher College of Business ceremony recognizing executives, students, faculty award winners and current scholarship recipients, will be held from 4 to 6 p.m. May 15 at the Blackwell Inn.

The 2008 Executive Pace Setter award recipient is Ohio State's Executive Vice President and Provost Joseph A. Alutto, former dean of Fisher. A reception celebrating all the winners will follow the awards program.

Established in 1961, the annual award ceremony honors students for achievement in academic performance, demonstrated leadership skills and athletic participation. Faculty, staff and peers nominate and vote for the undergraduate and graduate student award winners. The awards also recognizes faculty for research, teaching and service. In 2004, the ceremony was expanded to recognize current scholarship recipients.


News Briefs

Andrew Karolyi, professor of finance, and Matthew Falk, a second-year MBA student and graduate assistant for the Student Investment Management Program, were quoted in an April 20 Chicago Tribune article on student-managed investment funds.

Karolyi was quoted on the democratic format used to drive investment decisions, while Falk was quoted on the fund’s limited investment in energy stocks.

Rüdi Fahlenbrach, assistant professor of finance, had his research on founder CEOs mentioned in an April 23 USA Today article on the slow increase of Fortune 1000 companies founded by women.

Jay Anand, associate professor of management and human resources, was interviewed by WBNS-10TV regarding the sale of Wendy’s International.

Anand told the television station the buyout by Atlanta-based Triarc Corp. will likely result in some jobs being shifted from Wendy’s Dublin headquarters to Atlanta.

A group of MBA students’ trip to Omaha, Neb. to meet with investor and philanthropist Warren Buffett was featured in the Columbus Dispatch’s E-Team educational blog on April 25 and Columbus Business First on May 2.

Karen Hopper Wruck, associate dean for MBA programs, and Duane Limpert, a second-year MBA student, were both quoted in the Dispatch article.

Fisher News is published bi-weekly throughout the academic year. To submit story ideas, e-mail content and your contact information to fishernews@cob.osu.edu or use the online news submission form. The deadline for story submissions is 5 p.m. the Friday before the upcoming issue.


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