June 2007
  In this issue

James combines financial, strategy expertise to examine corporate R&D disclosures

Finance professors and alum cross-listing study receiving worldwide media attention

Finance professor’s corporate culture study featured in 'MIT Sloan Management Review'

Tax journal article offers warning on risky clients

OSU researcher’s technology helps students win two major entrepreneurial competitions

Max M. Fisher College of Business > The Ohio State University Fisher College of Business
James combines financial, strategy expertise to examine corporate R&D disclosures
Sharon D. James
As a strategy scholar and former equity investment manager, Sharon D. James has an interesting perspective on a company’s incentives to disclose the details of research and development (R&D) projects.

James, an assistant professor of management and human resources, connects her corporate and academic backgrounds to investigate the risk and rewards associated with publicizing projects that companies have on their drawing board.

The research topic is the focus of her dissertation, which shared second place honors at the 2005 INFORMS/Organization Science dissertation proposal competition. James researched hundreds of pharmaceutical and communication equipment companies for the study.

She talked with Knowledge Link about this interesting balance companies must strike in order to raise capital for project development as they attempt to hold onto valuable trade secrets. Read More»

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Finance professors and alum cross-listing study receiving worldwide media attention

The Wall Street Journal has proclaimed finance professors René Stulz (left) and Andrew Karolyi as “pioneers” and “authorities on foreign-company listing decisions”

A new study by Fisher finance professors and an alumnus that indicates American stock markets are still attracting foreign corporations, since the introduction of the Sarbanes-Oxley Act has created a media stir in an already heated debate.

The research, co-authored by professors Andrew Karolyi and René Stulz along with Fisher alum and University of Toronto faculty member Craig Doidge, was first reported by The Wall Street Journal on April 27. The study determined American markets were not hampered by the regulatory restrictions as they battled London markets for foreign listings. They attributed the decline to a reduction in the number of foreign companies that fit the traditional profile for American exchange listings.

In the early 1990s, Karolyi, Stulz and Doidge were among the first researchers to study the added value foreign corporations’ gain by listing in the U.S. As leading experts on the topic, Stulz and Karolyi have received on-going media attention for their research. In the April 27 article, the Wall Street Journal credited the researchers as “pioneers” and “authorities on foreign-company listing decisions.”

The response from the initial Wall Street Journal article led to a flurry of other inquiries, including interviews on CNBC and with British press. Another factor in the frenzied interest was the timing of the new study’s publication, which came at a critical point during policy discussions. The Securities and Exchange Commission is moving to revise Sarbanes-Oxley’s internal-audit guidelines to make it easier for foreign corporations to meet the U.S. accounting standards. Read More »

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Finance professor’s corporate culture study featured in MIT Sloan Management Review

Henrik Cronqvist's latest research finds the success or failure of a corporate spinoffs is rooted in the corporate culture of the parent company.

The impact of corporate culture, anecdotally, has long been credited for the success and failure of many companies. However, quantitative measurement of that impact has been non-existent.

Henrik Cronqvist, assistant professor of finance and winner of Fisher's 2007 Pace Setter Faculty Research Award, co-authored a January 2007 working paper, “Does Corporate Culture Matter for Firm Policies?” The study was featured in the April issue of MIT Sloan Management Review.

Cronqvist and his co-authors explored measurable and meaningful characteristics through which corporate culture manifests itself. His co-authors were Mattias Nilsson, assistant professor of finance at University of Colorado at Boulder, and Angie Low, a Ph.D. student at Ohio State University.

Their study suggests that when companies spin off business units, those new corporations assume their parent companies' culture. Those similarities, the authors propose, are evident in the comparison of the parents’ corporate policies with their spinoffs. Read More »

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Tax journal article offers warning on risky clients

Fisher taxation expert William Raabe examines the risks and dangers that a professional services firm can take on by working with questionable clients.

Sometimes a client can get its consultant in trouble. Tax professionals who rely on financial data provided by a problem client, might run the risk of damaging their reputation and that of their firms, according to an article co-authored by William Raabe, who teaches tax courses at Fisher.

The article, “The Problem Tax Client: Opinions from the Field,” was published in the April/May 2007 Journal of Tax Practice and Procedures. The article addresses the risks and dangers that a professional services firm can take on by working with questionable clients.

“The best course of action in response to such questions may be a disengagement from the client, to protect the integrity of the tax system and the reputation of the tax professional,” the authors concluded.

The article’s other co-authors were Damon M. Fleming, Martha Doran and G.E. Whittenburg, all professors at San Diego State University. Read More »

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OSU researcher’s technology helps students win two major entrepreneurial competitions
A team of Fisher and Ohio State graduate students offering a new approach to medical imaging for detecting breast cancer that would replace painful biopsies and the stress-inducing mammography won two major entrepreneurial competitions.

Terahertz Diagnostic Systems (TDS) team won the $3,000 first-prize in the nation’s most prestigious technology business start-up competition, the 2007 Materials Research Society (MRS) Entrepreneurship Challenge in April. Last month, the team won the 2007 Deloitte Business Plan Competition hosted by Fisher’s Center for Entrepreneurship.

Michael Camp
“These were extraordinary wins because this team’s effort was an example of students leveraging research expertise and resources across Ohio State to develop a project that impressed international and national scientists and business executives,” said Michael Camp, academic director of the Center for Entrepreneurship. Camp was the team’s advisor for the MRS challenge.

TDS consisted of physics doctoral students H. Lee Mosbacker and Michael Hetzer, mechanical engineering graduate student Arindam Ghatak and MBA students Jeff D. Martin and Erwin Grabisna and Lawrence Burr Zimmerman, a chemical engineering doctoral candidate. Columbus entrepreneur Brad Beasecker advised the team for the Deloitte competition. Read More»

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News Briefs

Alutto named interim provost; Mangum named acting dean
Ohio State President Karen A. Holbrook announced Monday that Fisher Dean Joseph A. Alutto, the John W. Berry Sr. Chair in Business, was selected to serve as interim executive vice president and provost.

His appointment was approved by the Board of Trustees at its May 4 meeting. He will move to the position on July 1, when current Provost Barbara R. Snyder becomes president of Case Western Reserve University.

“I will certainly continue to keep track of college developments as I assume my new responsibilities,” said Alutto.

He appointed Steve Mangum, senior associate dean for Academic Programs, acting dean effective July 1.

“We will be working together closely during the transition to ensure that we do not lose any momentum on college initiatives,” Alutto said in announcement to the Fisher community.

Mangum’s leadership will ensure continuity of the college’s key projects and overall mission. Mangum, who has been at Fisher since 1983, played a leading role in Fisher’s academic programs.

Former Brown University administrator, OSU alumna new director of CIBER
Melissa Torres was named administrative director of the International Programs Office and Center for International Business Education and Research (CIBER) at Fisher. She joined Ohio State on April 16.

Torres comes to Fisher from Brown University. At Brown, she managed U.S. Department of Education programs that provided technical support to education leaders, teachers and schools across New England and New York that serve culturally and linguistically diverse students.

She holds a master’s degree in global education from Ohio State and an undergraduate degree in international studies from Stonehill College in North Easton, Mass.

Fisher In the News

David Cahill, visiting assistant professor of logistics, was recently quoted by the Associated Press and Columbus Dispatch on the launch of locally-based discount airline Skybus.

Cahill was quoted on several topics including the impact of the airline on fares at Port Columbus and Skybus’ decision to fly into remote airports.

Henrik Cronqvist, assistant professor of finance, was quoted in an April 3 USA Today article on mutual fund advertising.

The piece focused on Cronqvist’s research which found Swedish mutual funds that advertised more didn’t produce better results.

Jeffrey Rice, executive director of Career Services, was featured in the one-on-one question and answer column, “Talking B-School” in The Wall Street Journal on March 20. Rice discussed the provocative tactics used by corporate recruiters to lure MBA graduates to companies.

Rice told Ron Alsop, the Journal’s MBA Track columnist, that companies are providing limousine rides, free iPods and dispatching corporate jets to woo prospective employees. The column was accompanied by an artist rendering of Rice in front of Fisher Hall.

William Raabe, a tax expert and a member of Fisher’s accounting faculty, was interviewed on the National Public Radio show "Marketplace" on March 21.
Raabe discussed the flaws in the Alternative Minimum Tax and the issues lawmakers face as they try to fix it. Listen to the segment online.

Fisher Working Paper Series

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