October 2006

In this issue

Terror attacks against companies drop stock values significantly, study shows

Employee mood can impact productivity for better or worse

Bendapudi research helps prescribe 'Dr. Ideal'

Financial reporting may be used alter competitive landscape, scholars say

  Fisher College of Business
Terror attacks against companies drop stock values significantly, study shows
Terrorist attacks targeting specific companies cost those firms an average of $401 million in stock value per incident, according to a new study.

Researchers studied 75 terrorist incidents around the world between 1995 and 2002 and found that the target companies saw their stock prices drop an average of 0.83 percent on the day of the terrorist incident.

"There's a dramatic and reliable negative impact on stock prices as a result of terrorist incidents, and there's no immediate reversal of that impact," said Andrew Karolyi, co-author of the study and Charles R. Webb Designated Professor of Finance.

"While companies don't continue to lose stock value in the days and weeks following an attack, they don't regain value either," Karolyi said. Read More »

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Scholar Spotlight
Employee mood can impact productivity
for better or worse

Steffanie Wilk
Steffanie Wilk
Steffanie Wilk, associate professor of management and human resources, has studied call centers extensively through a grant from the Russell Sage Foundation/Rockefeller Foundation's Future of Work program as well as through support from the Society for Industrial and Organizational Psychology (SIOP) and the Human Resources Center at the Wharton School of the University of Pennsylvania. Call centers provide researchers with a closely monitored working environment where employee productivity can be tracked to examine the influence of various workplace dynamics.

In her latest research with Nancy Rothbard, a management professor at the University of Pennsylvania's Wharton School, they studied the impact of mood on workplace performance. Wilk spoke with Knowledge Link about her findings that are connected to mood. Read More »

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Bendapudi research prescribes Dr. Ideal

Neeli Bendapudi

Everyday doctors examine and try to remedy a cough, the sniffles or a boiling hot fever, but a Mayo Clinic study shows while they go about their duty, their bedside manner is under examination by the patient.

A study of Mayo Clinic patients identified seven behaviors necessary to prescribe the "ideal" physician to provide a patient-centered approach, Neeli Bendapudi, associate professor of marketing and co-author of the study, said. The researchers analyzed the transcripts and identified seven behaviors to describe the ideal doctor as confident, empathetic, humane, personal, forthright, respectful and thorough.

Published in the Mayo Clinic Proceedings, the article was based on interviews with patients who detailed their best and worst experiences with a physician at the clinic.

Patients have become detectives and look for little clues about the doctor’s behavior to conclude whether the physician is genuinely interested in them, Bendapudi said. Consider this simple act: doctors that sat and talked with the patient, instead of standing when conducting the patient interview, were perceived to have spent more time with the patient, she said. Read More »

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Financial reporting disclosure may be used to influence herd behavior, alter competitive landscape, scholars say
Anil Arya
Anil Arya
When Hollywood celebrities distribute photographs of their newborn to the media, the intended effect may have been to divert hordes of paparazzi jockeying to snap images of private moments to sell to the tabloids.

A Fisher professor who studies the accounting practices of companies said some firms may employ this Hollywood tactic when disclosing sensitive information to third-parties such as analysts and the media.

Anil Arya, the John J. Gerlach Chair of Accounting at Fisher, along with Fisher alumnus Brian Mittendorf, now on the faculty at Yale’s School of Management, concluded in their study that public companies’ controlled release of “proprietary information” to key financial and securities analysts may be a similar effort to influence perceptions about their firms to competitors by creating herd behavior among third-parties.

“The firm directs the herd in a more subtle fashion: by disclosing some pertinent information publicly, the firm convinces each information provider that any further digging is not worthwhile,” the authors reported in their article, “Using Disclosure to Influence Herd Behavior and Alter Competition,” published in the Journal of Accounting and Economics last fall. Read More »

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News Briefs

Fisher rises to No. 2 spot in The Wall Street Journal/Harris rankings Fisher College of Business at The Ohio State University moved up to the No. 2 position in The Wall Street Journal/Harris Interactive regional ranking category. Last year, Fisher was ranked third in the annual survey. In its ranking of academic disciplines, the survey placed Fisher sixth overall for its operations management program.

The Wall Street Journal/Harris Interactive ranking of business schools in the categories of national, international and regional are based on a survey of 4,125 corporate recruiters who hire MBA graduates. In the regional category, 51 schools from across the country were ranked.

Recruiters rated the business schools and their MBA students on 21 attributes, including graduates’ analytical and problem-solving skills, work ethic and teamwork abilities. Schools’ core curriculum, career services office and the company’s success with past hires were also rated. The rankings include a "mass appeal" factor, which is the number of recruiters that the schools attract.

Real estate journal ranks OSU 3rd for research
The Ohio State University was named the third most influential institution in real estate research, according to an article in the Fall 2006 edition of Real Estate Economics. In a previous review of intellectual output in 2002, OSU was ranked 21st.

The placement was based on the number of articles published in three influential real estate journals as well as how heavily those articles were cited from 2000-04. Of the 443 articles published in the Real Estate Economics, The Journal of Real Estate Finance and Economics and Journal of Real Estate Research during the five-year span, 51 were from Ohio State researchers, which was the second highest in the study.

News Briefs

Andrew Karolyi, Charles R. Webb Designated Professor of Finance, was quoted in the The Economist on the listing of foreign companies on American stock exchanges.

Despite the intense governance standards, Karolyi told the magazine, these companies are covered by more analysts and their share prices are boosted by extra transparency and legislation.

Oded Shenkar, Ford Motor Company Chair in Global Business Management, was quoted in TIME Magazine on the China news agency, Xinhua, move to force news agencies, such as Reuters, AP and Bloomberg, to distribute content through them as well as share revenues with them.

Shenkar told the magazine with one move China managed to domesticate the highly-profitable news business and tighten state control over it as well.

Curt Haugtvedt, associate professor of marketing, was quoted and paraphrased in The New York Times on after-market devices that claim miraculous fuel savings, but tend not to work.

Haugtvedt told the paper consumers are attracted to the products because they provide hope that something can improve the painful situation of rising gas prices.

Knowledge Link is published monthly to showcase the research produced by Fisher College of Business faculty members.

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