Smith School In the News
June 2022
USA Today Network (via The Columbus Dispatch) – June 19 – Associate Director of Executive MBA Career Coaching, Programming and Outreach Rachel Loock gives career advice in “No Summer Vacation for Job Searches.”
Grid – June 19 – Clinical Professor of Marketing Henry C. Boyd III explains how Juneteenth has gained new prominence and how it can evolve into a national recognition of the past, in “How Companies Can Avoid a ‘Juneteenth Ice Cream’ Mess.”
Seeking Alpha – June 18 – Berkshire Hathaway: “Berkshire Hathaway: Hit to Book Value Could be Drastic But a Buying Opportunity Comes With it” references prior related analysis by Clinical Professor of Finance David Kass. Related: Kass gives the “2022 Percentage Returns of Largest U.S. Companies by Market Capitalization for June 18,” via TalkMarkets.
GARP (Global Association of Risk Professionals) – June 17 – For his latest CRO Outlook column, Professor of the Practice Clifford Rossi writes “Can Your ERM Framework Accommodate Risk Entanglement?”
Wired – June 16 – “After Layoffs, Crypto Startups Face a ‘Crucible Moment’” quotes Associate Professor of Management and Entrepreneurship David Kirsch, including: “It could be that crypto is the canary in the coal mine,” [says Kirsch]. He describes the contractions in crypto startups as one potential signal of “a great unraveling,” where more startups are evaluated for how well they can deliver on their promises. If history is any indication, those that can’t are fated for “the death spiral.”
Baltimore Sun – June 16 – Dean’s Chair in Marketing Science P.K. Kannan comments in “How Baltimore-Area Consumers are Handling ‘Sticker Shock’ at the Grocery Store,” including: Consumers have come to expect to pay certain amounts for food products, giving them price reference points in the grocery store and elsewhere, and during inflationary times, sticker shock inevitably sets in, [said Kannan]. “That gets ‘encoded’ as a loss, and sometimes these losses that you feel can really play a big role in how you will react,” Kannan said. Consumers are likely to feel the “loss” of a price hike more acutely than the “gain” of a discount, behavioral economists say. And, Kannan said, they tend to respond by changing habits, limiting impulse buying, comparing prices among multiple stores, buying vegetables at one place and packaged goods at another, or buying in bulk. “They are trying to reduce the total amount of spending on food and other things,” he said. But “given that prices are rising all over, they may not be able to do that very well.” … Manufacturers that explain price increases as a result of factors such as higher shipping and raw materials costs might be better at retaining customers and market share, Kannan said… “Being transparent about the reasons for the price increase may get them some Brownie points from consumers,” he said. “They don’t want to be seen as a manufacturer who is price gouging.”
DIG (Digital Innovation for Growth) – June 16 – In “Reflections from Maryland,” Norwegian School of Economics PhD student Oskar Bolin describes his six-month study under Roland Rust, Distinguished University Professor and David Bruce Smith Chair in Marketing, including: As part of my PhD at NHH, a six-month research stay at the University of Maryland has been included. Consequently, I had the opportunity to audit a PhD-level course on Strategic Marketing by Professor Roland Rust at Smith school of Business. Rust is the co-author of the book “Feeling Economy: How artificial intelligence is creating the new era of empathy” (2021). In the book, Rust and Ming-Hui Huang of National Taiwan University argue that manufacturing technology (e.g., industrial robots) is the pillar of the physical economy, information technology (e.g., mechanical AI) is the driving force of the thinking economy, and AI (cognitive technology) is the backbone of the feeling economy… Related: Rust’s and Huang’s research is the focus of “Don’t Want AI To Steal Your Job? Prepare Yourself With ‘Feeling Tasks’” (June 15) at EdTimes.
USA Today – June 15 – Professor of the Practice in Systems Thinking and Design Gerald Suarez gives career advice in “Career Burnout? Here's How to Fix it.”
DATAQUEST Magazine – June 14 – In his guest column on cybersecurity, “The Invisible Thread in Our Digital World,” EY Alumni Professor of Managerial Accounting and Information Assurance Lawrence A. Gordon explains why “having a well-mapped approach, clear frameworks and investment models can equip organizations for surviving confidently in a world punctuated with attacks, breaches, and bad actors.”
Observer – June 13 – Dean’s Professor of Finance Michael Faulkender explains CEO compensation in “CEO Pay Jumped 16 Percent Last Year, the Biggest Increase in Seven Years”: Much of CEO compensation is received in stocks or stock-option awards. And that explains the big jump in their pay, said Faulkender]. “When the market performs as well as it did in 2021—the S&P 500 rose 26.9 percent—and considering that CEO pay is incentive based, it’s not surprising,” Faulkender said. “This year, if the S&P 500 continues to fall, you would expect to see CEO compensation come down.” Perhaps we shouldn’t be so scandalized by the high CEO salaries, Faulkender said. Many of the big companies have grown and are no longer regional but are now global, he added. CEO pay has grown with the size of the business. “As a percentage of the value of the company, CEO compensation hasn’t risen all that much although the absolute dollar amount has,” Faulkender said. “If you look at people at the tip top of their professions—athletes and lawyers for example—you see massive increases in compensation.”
Poets & Quants – June 12 – Maryland Smith’s Anthony Duellman and Lynze Hagan are profiled among the “Best & Brightest Online MBAs: Class Of 2022.”
Observer – June 9 – Professor of Marketing Jie Zhang comments in “Target’s Inventory Problem Won’t be Easy to Fix,” including: Retail companies like Target make decisions way ahead of time, [said Zhang], “For some it’s about a year ahead of time when they decide what to order and how much to buy from vendors,” Zhang said. “They made their predictions around this time last year when there was surging demand. They thought that demand would stick. Unfortunately for them, it didn’t.” Back in the spring of 2021 people had quite a bit of cash on hand, Zhang said. “They spent it on home improvements,” she added. “Demand was high for home office furnishings and for items needed for kids attending school virtually.” … So Target and others have opted to sell unpopular items at deep discounts and to cancel orders from suppliers, Zhang said. “They’d rather pay a penalty fee to suppliers for cancellation than have more products shipped and add to the already excessive inventory.”
WalletHub Ask the Experts – June 9 – Accounting Lecturer Samuel Handwerger answers “What should drivers consider when determining their liability coverage levels?,” including: “Conclusion: While state laws might limit the dollar amount of a compensatory liability award, these are always significantly above the minimum coverage amount. As a result, minimum state liability coverage for auto insurance is not feasible for most of us. Generally, the $250,000/$500,000 choice will be the most prudent.”
Truck Transport News – June 8 – “Coercion Claims by Drivers At Record Breaking Levels” quotes Michelle L. Smith Professor of Logistics Thomas Corsi: But coercion and its effect on exacerbating fatigue “is definitely still a problem,” [said Corsi] “I serve as an expert witness on accident cases that overwhelmingly occur when drivers are working on not enough sleep and end up plowing into a car because they’re working way too many hours,’’ Corsi said. “They’re on very strict time commitments that a broker or a carrier made to a client, but there are huge safety implications. These guys clearly are really stretched.”
Observer – June 8 – "Biden’s Easing of Tariffs on Solar Panels Won’t Erase All the Obstacles to Solar Expansion in the U.S.” quotes Clinical Professor of Finance David Kass: Biden’s plan “should lead to a greater supply of solar panels being imported and a greater output of electricity produced by solar,” said Kass]. “But the other side of the coin is that we also are trying to increase our own capacity to manufacture solar panels and this will actually slow down our path to self-sufficiency.”
Maryland Today – June 8 – Clinical Professor of Marketing Henry C Boyd III discusses companies’ mistakes in commercializing Juneteenth in “Why Companies Can’t Treat Every Holiday as a ‘Holiday.’”
Protocol – June 6 – “Musk Can't Blame Bots to Get Out of the Twitter Deal” quotes Clinical Professor of Finance David Kass: “Musk does not have any ground to stand on to void the agreement that he signed,” [Kass] told Protocol. Kass said Musk has two ways out of the acquisition: One would be a regulatory holdup, which doesn’t look likely now that the FTC’s window to intervene has closed. The other would be if Musk doesn’t gather enough debt funding for the deal to happen, in which case he’d pay Twitter $1 billion and break up with the company once and for all. … Also from Kass: He gives the “2022 Percentage Returns Of Largest U.S. Companies By Market Capitalization,” (for June 4) via TalkMarkets.
New York Times – June 3 – “‘Greedflation’ Rewriting Economics, or Do Old Rules Still Apply?” quotes Dean’s Professor of Finance Michael Faulkender: “With a price adjustment, people who have substitutes or maybe can do with less of it will choose to consume less of it, and you have the allocation of goods for which there is a shortage go to the highest-value usage,” Dr. Faulkender said. “Every good in our society is based on pricing. People who make more money are able to consume more.”
Observer – June 3 – Clinical Professor of Marketing Henry C Boyd III comments in “All Shook Up: Elvis-Themed Weddings in Las Vegas Are Canceled in a Trademark Crackdown,” including: In general, “once you file with the U.S. Patent and Trademark Office it’s your job to look over the landscape and if someone is using your trademark without your permission, it’s trademark infringement,” says [Boyd]. “You have to be your own watchdog.” Trademarked names can be worth a lot and company trademarks can be worth billions. Companies that don’t keep an eye out for infringers could lose control of their trademarks, Boyd says. “You don’t want your mark to become generic, or to engage in full or partial abandonment of the mark.” Just ask Kimberly-Clark, owner of Kleenex. Boyd was surprised that ABG just now decided to go after trademark infringers. “ABG acquired Elvis around 2013,” he says. “So we’re talking almost a 10-year window. There have always been Elvis wedding chapels and themed parties in Vegas. Why exercise that right now?” The trademark laws don’t apply to Elvis live shows or tributes, Boyd says. That’s because there is a right of publicity statute, he says. Still, the publicity exception doesn’t cover everything. “If I use Elvis to draw people into a store, by having everyone dressed as Elvis, so customers can say they bought their iPhone from Elvis—that’s not going to fly,” Boyd says. This might be a case where the trademark owners are shooting themselves in the foot…
TAdvisor – June 2 – “How Robotics and Automation will Inform Supply Chains” quotes Professor of the Practice Suresh Acharya: Most companies spend less than $10 million on cloud technology The cloud is at an important transition point, [said Acharya]. He compared it to how drivers moved from using paper maps to apps like Google Maps and Waze. “They all take drivers from point A to point B, but apps constantly use new information about things like accidents, construction and weather to tell drivers where to go to save time and nerves. We're really comfortable getting real-time information that they can use to make real-time decisions. Supply chains are undergoing such transformation,” Acharya said.
Observer – June 2 – Dean’s Professor of Entrepreneurship Brent Goldfarb comments in “Seattle’s New Law Makes Gig Work Pay More Like Regular Employment”: Right now it’s not possible to know exactly how things will shake out after such laws go into effect, [said Goldfarb]. “Two things could happen if you increase wages for the gig worker in Uber or Lyft: The company eats the difference or they raise the cost of rides,” Goldfarb said. “If the company raises the cost of rides, then fewer people may take rides at the higher prices and then there would be less work to go around,” Goldfarb said. … When a single company raises the price, then consumers may turn to a competitor, Goldfarb said. But if a new law forces all companies to raise their prices then the outcome will depend on the elasticity of demand. “I’m guessing the companies themselves may not know the answer to this,” he added.
Destination CRM – June 1 – Associate Professor of Marketing Bobby Zhou contributes to “Putting Your Business to the Text”: [According to Zhou], the cost of acquiring new customers is also lower with messaging, given that these platforms already have a vast user base. “Also, the ease of use and convenience has made these platforms a great channel to interact with customers,” Zhou says. “Customers do not need to visit a brand’s main webpage to engage with it. And from the brand’s perspective, the costs of developing and maintaining the presence on third-party messaging platforms can be lower than operating their own online stores, giving brands extra incentives to rely on these messaging platforms.” …Zhou further cautions that reliance on third-party messaging can also lead to loss of full control over the interaction environment with consumers (compared to, for example, interaction on your company’s own website), a potential loss of rich behavioral data depending on the agreement with the platform, and increased consumer expectation regarding the speed of response.
Observer – June 1 – Professor of the Practice Clifford Rossi comments in “Biden’s Housing Plan Sounds Good in Theory But Needs Lots of Help If It’s Going to Work,” including: Standing in the way are the folks who think there should be more affordable housing, just not in their backyards, [said Rossi]. On the financial side of things, the administration is pushing for Fannie Mae and its sister company, Freddie Mac, to make changes in what they’re willing to buy from banks. Fannie Mae could change its rules so that it could purchase loans made to builders before a multifamily dwelling is constructed, for example. And Freddie Mac could write new rules for “chattel loans,” which are made for mobile homes, but not the land they will sit on, Rossi said. The problem with these chattel loans is that they tend to be shorter term and more costly than typical mortgages, Rossi said. If Freddie Mac could come up with a way to solve that problem, “that would be a game changer for the market that needs it to be on board,” he added. The administration also would like to promote modular housing like mobile homes, which are cheaper than the standard on-site construction. The cost savings are “the reason why the administration wants to promote scaling up of those homes,” Rossi said. But there’s been some pushback from builders who don’t like the competition.
May 2022
The Hill – May 30 – “SEC Looms Over Musk-Twitter Deal” quotes Clinical Professor of Finance David Kass: By filing that disclosure after the 10-day deadline, Musk may have netted $156 million according to University of Maryland business school professor David Kass. “Either he’s underpaid by $156 million by withholding this information, or he had $156 million profit as a result of holding this information,” he explained. “And of course shareholders who sold their shares during this time period… were in effect shortchanged.” … More from David Kass: He gives the “2022 Percentage Returns Of Largest U.S. Companies By Market Capitalization” (for May 21), via TalkMarkets.
Observer – May 28 – Associate Professor of Management and Organization Evan Starr comments in “As Apple Store Workers Organize, the Company Pushes an Anti-Union Message”: Research shows that unions tend to be good on average for workers, [said Starr]. Studies show that “there is roughly between 10 and 20 percent wage bump,” Starr said. “Union workers are also more likely to have health insurance, pensions and retirement savings vehicles.” While it’s clear the average worker benefits from being part of a union, some individual workers might be hurt by unionization, Starr said. “If you’re somebody with a potential for high income, someone who would shoot up the ranks and gets lots of outside offers, it can be negative,” he added. “This type of person might not want to be encumbered by having a union negotiate for them.” Also, because many unionized companies value seniority, someone who is new to the company might not fare as well as they would in a non-union company, Starr said. Similarly, if the company needs to lay off workers, the rule is often last-hired, first-fired, regardless of how productive the worker is.
SHRM – May 27 – “AI Adoption Will Cause Workforce Reorganization” summarizes Assistant Professor of Finance Alex Xi He’s research and includes his comments, including: A junior-level worker entering the workforce will know more about how to use AI data to make predictions, [said He]. "We found that AI is making the firm less top-heavy and flatter. It's not surprising, because AI has the ability to make predictions and that makes the entry-level workers more capable to make decisions. They can do more, and there is less need for middle managers.”
Observer – May 26 – Clinical Professor of Finance David Kass comments in “Long Covid Will Have a Massive Impact on the U.S. Economy”: Based on the new numbers, long Covid is likely to have a major impact both on the healthcare system because many of these patients will need years of care, and to the general economy because of the loss to the workforce of people with severe symptoms having to quit work. “The 18 to 64 year old group is the working age population,” [said Kass]. With people withdrawing from the workforce, that increases wage pressure during a time when there is already a shortage of workers.” One good thing for these workers is the greater acceptance of work from home, Kass said. “Those with long Covid may still be able to work from home to some extent, but probably not as effectively as they would have if not for long Covid,” he added.
FIND MBA – May 25 – Assistant Dean and Executive Director of Career Services Neta Moye comments in “Online MBA Degrees Come of Age”: “This stigma is lessening, and a strong factor is the reputation of the institution which grants the degree and its accreditation,” says Neta Moye, assistant dean and executive director of career services for the Robert H. Smith School of Business at the University of Maryland in the US. The Smith School is accredited by AACSB International, a leading accrediting agency for master’s degree programs in business administration. And like Loades, Moye says that students receive the same MBA degree and diploma from the institution regardless of the format. Moreover, in the current red-hot job market, employers are reaching out to career centers at business schools not just for traditional full-time MBA hiring intakes, but for all openings where MBA skills are sought. “If an employer is posting a ‘just in time’ job with us, they want access to students in all our programs and do not differentiate,” says Moye. “We consider this a great thing. Our talent bench is deep, and employers appreciate that right now.”
Washington Center for Equitable Growth – May 25 – Assistant Professor of Finance Bruno Pellegrino co-authors “Common Ownership in the U.S. Economy,” summarizing his ‘Tale of Two Networks’ research. … Related: Pellegrino co-authors “A Tale of Two Networks: Common Ownership and Product Market Rivalry” (May 20) via Harvard Law School Forum on Corporate Governance.
New York Times – May 24 – Professor of the Practice Suresh Acharya comments in “Help! The Airline Changed My Flight Itinerary (for the Worse),” including: The six airlines (American, Delta, United, Southwest, Alaska, JetBlue) I asked would not provide specific data. To be fair, such figures would be very complicated, since many airlines schedule flights 330 days in advance that are “essentially placeholders,” [said Acharya], who has worked on airline optimization systems for two decades. The schedules solidify 90 to 180 days in advance, he said, and many changes — like a switch to a larger aircraft — are barely noticeable to customers. That matters because, according to Professor Acharya, airline algorithms rank passengers in order of importance, based on variables that might include fare class, loyalty status, whether you paid in miles or dollars, how big your group is and whether you’re an airline employee.
MoneyWeek – May 23 – “JD Sports Will Get Back on Track – Here's How to Play it” (Sportswear retailer JD Sports was a profitable trade in 2019 and is worth watching again) cites research by Dean’s Professor of Finance Jeffrey Tate: Similarly, a 2009 study by Ulrike Malmendier of the Haas School of Business and Geoffrey Tate of the University of Maryland found that the US firms whose CEOs won a major award lagged the market by as much as 26% over the next three years.
CNN Business – May 20 – Associate Professor of Management and Organization Rellie Derfler-Rozin comments in “Prices Are Rising. How Much Should Your Salary Increase?”: If you have an offer and the salary falls short of what you were hoping to make, don't be shy about negotiating -- just be sure to do your homework first. "There is more leverage, there is a shortage of labor, companies need good employees, and, with inflation, it is justified to ask for more," [said Derfler-Rozin]. "There is room to negotiate. The key part is the preparation." …"I encourage people to go beyond what you find on the web," said Derfler-Rozin. "If you know people that have worked there or worked in a similar place, try to have a conversation with them informally and get their advice. People are usually more willing to help and mentor... than we actually anticipate." … While inflation can be part of your reason for negotiating a higher salary, Derfler-Rozin said it shouldn't be the central argument. Instead, she said to put most of the focus on your unique skills and values. After showing excitement for the offer, she recommended saying something like: "I would hope we can discuss something that appropriately reflects the value I am bringing to the company based on my past performance, skills and education. Also, naturally taking into account factors such as the location cost of living and the rising inflation."
American Banker – May 20 – “Banks’ Hidden Role in the Carbon Footprints of Large Corporations” quotes Professor of the Practice Clifford Rossi: Banks have pushed back on the “tricky business” of reporting the financed emissions of corporate cash holdings because they are cautious about passing information to their clients that’s dependent on measurements collected at the portfolio company level, [said Rossi]. “I can’t imagine having to wrap my arms around the types of information for all the levers we need at a company level to do that on a reliable basis.”
Forbes – May 20 – Clinical Professor of Finance David Kass comments extensively in “The Great Retail Reset Hits the Bullseye: Getting Back On Target,” including: [Kass also noted the tightrope that the Federal Reserve Chairman Powell is walking regarding a “soft landing” as they tighten monetary policy in tandem with consumers already beginning to change their spending patterns… Like a doctor making a prognosis, Dr. Kass noted that we have learned to expect a recession about every 10-years, and it is particularly true when we experience the parallel effects of both monetary and fiscal policy tightening, combined with high inflation. On a positive note, he stated that the economy is still strong with only a 3.6% unemployment rate, closing on the lowest unemployment in 15 years. He believes that there is less than a 50% chance of a full-blown recession. He further postulated that inflation should be down to between 4-5% by year’s end.
Observer – May 19 – Research Professor and Center for Global Business Academic Director Kislaya Prasad comments in “New Sanctions on Russia Could Trigger a Default That Will Be Felt Across the Global Economy”: A default’s “direct effect would be on Russia itself and to some extent also on those holding the debt—a good amount of which is held by western banks,” [said Prasad]. Bond holders most likely wouldn’t lose everything, Prasad said. “It’s likely there would be some attempt to renegotiate and pay at a later date,” he added. “In other cases (of default), such as Argentina, there have always been people to buy up debt at a discount who have the ability to wait longer or the ability to press their case to get repaid at a higher rate.” ... The other side of the coin is that Russians are not able to buy technology and luxury goods, Prasad said. “That’s a big problem for the Russians,” he added. Still, Prasad thinks the future for Russia and Russians might not be so dire – as long as the economy continues to receive support from China. “Russian foreign debt is small,” he said. “They are getting enough money from oil sales, and they don’t need to borrow much in international markets right now.”
Medical News Today – May 19 – “How has the Pandemic Changed Our Behavior?” cites recent comments on consumer behavior by Professor of Marketing Jie Zhang: Moving forward, these and other pandemic-fueled spending habits may have changed consumer behavior long-term. For instance, according to Prof. Jie Zhang, professor of marketing, and Harvey Sanders Fellow of Retail Management at the Robert H. Smith School of Business at the University of Maryland, people are now shopping online more. They are also buying more staple items in bulk, and investing in at-home entertainment options, she notes in an interview.
Observer – May 19 – Dean’s Professor of Finance Michael Faulkender contributes to “In Tech, the Rich Get Richer as Big Companies Raise Pay While Struggling Startups Lay Off Workers”: Another important data point: Quit rates are the highest on record, [said Faulkender]. If you want to retain talent in an inflationary period, you need to raise salaries, he added. Some tech companies may be cutting back staff hired to facilitate work from home during the pandemic, Faulkender said. “Some tech firms that supported larger scale activity don’t need that many workers anymore,” he added. Moreover, even though overall there is strong demand for tech workers, that doesn’t apply to all companies, Faulkender said. “Startups are inherently more risky especially if they have models that are not proven,” he added. “There’s less capital out there funding new ventures now and that will hit startups more acutely. When the economy is tightening you look for them to fail more quickly than established entities.”
CNBC – May 17 – “The 2022 Disruptor 50: How We Chose the List of Companies” cites Michael D. Dingman Chair in Strategy and Entrepreneurship Anil K. Gupta as among the 2022 CNBC Disruptor 50 Advisory Council members “who again offered us their time and insights.”
Observer – May 17 – Orkand Corporation Professor of Management Science Zhi-Long Chen comments in “The US Food and Drug Administration Shares the Blame in the Baby Formula Shortage”: Back in early 2020, during the beginning of the Covid-19 pandemic, “a lot of people were going to the grocery store and buying a lot of basic items, including baby formula,” said [Chen]. “So, at that time there was a lot of demand,” Chen said. “As the virus situation improved, that led to lower demand. The baby formula manufacturers saw there was much lower demand and they cut production.” … Normally the demand for baby formula is very stable, Chen said. And because manufacturers were responding to a short term “demand distortion,” rather than looking at what might happen long term, there’s a shortfall now. Fixing the problem will take time because companies ordered smaller amounts of the ingredients necessary to the formula and now, they can’t easily scale up, Chen said.
NTD Business – May 17 – Clinical Professor of Finance David Kass comments in a ‘Warren Buffett Spends Big on Stocks’ segment, starting at 8:21. … Related: Kass, via TalkMarkets, gives the “2022 Percentage Returns Of Largest U.S. Companies By Market Capitalization” (for May 21).
WMAR ABC-2 – May 17 – Clinical Professor Oliver Schlake is noted as part of the June 13 “B’More BOLD Conference for Entrepreneurs & Innovators”: [T]he conference will feature a special scenario planning workshop with world-expert Oliver Schlake, Ph.D., of the University of Maryland Robert H. Smith School of Business, as we seek to create a strategic roadmap for Ukrainian entrepreneurs.
Wall Street Journal – May 16 – “Warren Buffett Spends Big as Stock Market Sells Off” quotes Clinical Professor of Finance David Kass: This year has changed that. With tightening monetary policy, slowing economic growth and sustained supply-chain disruptions putting markets on edge, Mr. Buffett is in his element, [said Kass]. “This is what I’d consider to be Warren Buffett’s sweet spot,” Mr. Kass said. “The almost wholesale selling in the market has provided Berkshire an opportunity to buy securities at bargain prices.” … Related: Kass gives the “2022 Percentage Returns of Largest Companies by Market Capitalization,” via TalkMarkets (May 14).
MoneyControl – May 13 – Associate Professor of Management David Kirsch and co-researcher Mohsen Chowdhury discuss their findings in a Q&A, “Are Bots Propping up Tesla’s Stock? Two Researchers Share Why There is Reason to Investigate.” Related coverage of the study, via The Edge Markets: “Tech: Will Twitter make Elon Musk a better pied piper?” (May 11).
Global Association of Risk Professionals – May 13 – Professor of the Practice Clifford Rossi writes a Risk Intelligence column, “Building a Unified Theory of Risk Management: How and Why.” Summary: To improve enterprise risk management, move further away from risk silos, and gain a better understanding of both obvious and hidden risks, the financial services industry needs to create a new risk paradigm. This can only be achieved by developing a framework that unites the four forces of risk management: culture, psychology, governance, and environmental risk.
TheWrap (via Yahoo News) – May 12 – “Did Zack Snyder Stans Rig the Oscar ‘Fan Favorite’ Vote With Online Bots?” quotes Associate Professor of Management and Entrepreneurship David Kirsch: David Kirsch, a University of Maryland professor who has studied fanbots, agreed that the pro-Snyder accounts “certainly do not look like they were generated by a human user” — though they were on the border of his research team’s cutoff point to definitively declare them bots. Extended coverage quotes Kirsch, by Vanity Fair (“Zack Snyder’s Fan-Voted Oscar Wins May Have Been Rigged by Bots”), others.
The Business Monthly – May 10 – ‘Maryland Business Adapts Set for June 3’ previews the forthcoming event organized by Smith’s Center for Global Business to showcase companies that have demonstrated resilience through global economic shocks and connect companies to resources to compete globally.
WalletHub Ask the Experts – May 10 – Clinical Professor of Marketing Hank Boyd explains metal credit cards’ pros and cons and increasing popularity in “Best Metal Credit Cards.”
Washington Post – May 8 – “Musk Says He Will Ban Twitter Spam Bots, But He Has Been a Beneficiary” quotes and references research by Associate Professor of Management and Entrepreneurship David Kirsch, including: But it is reasonable to wonder whether a Tesla contractor or subcontractor is responsible for some of the pro-Musk tweets, [says Kirsch], who this month will present the first of three papers examining bot influence on Tesla’s fans and share prices. The main other class of suspects would be “individual shareholders or pro-Tesla individuals who have the tech skills to do this,” Kirsch said. … The presence of some bots became obvious not long after the carmaker’s stock was being hurt by reports of Model S cars catching on fire. In one span of 75 minutes in November 2013, eight new accounts appeared on Twitter and began posting about the stock. … In the ensuing years, just those eight accounts went on to post 30,000 times using the stock symbol TSLA — at such regular intervals and at such volume that the odds of them representing eight real people are infinitesimally small, Kirsch said. One account, @danrocks4, issued bursts of posts on average every third hour around-the-clock for more than six years, according to Kirsch and co-author Mohsen Chowdhury.
TalkMarkets – May 7 – Clinical Professor of Finance David Kass gives the “2022 Percentage Returns of Largest U.S. Companies By Market Capitalization.”
Kiplinger – May 4 – Clinical Professor of Finance David Kass comments extensively in “Warren Buffett's Inflation Plan: Buy, Buy, Buy” When prices are rising at the fastest pace in four decades, cash is trash. That helps explain Buffett’s biggest Q1 binge, [says Kass] …In addition to a number of other attractive attributes, Warren Buffett also sees an inflation hedge in Chevron, Kass says. And even if oil prices level off or reverse trend, a stake in CVX is better than sitting in cash and equivalents. “Chevron has a large stock buyback program and pays a cash dividend of 3.5%,” Kass says. “That makes it a relatively safe cash alternative. Instead of earning essentially zero on Treasury bills, why not earn a dividend yield and a buyback yield that combined probably come in somewhere in the high single digits?”… “Oil, I believe, is a good hedge against inflation.” This stocks-down-inflation-up dynamic helps explain the sudden and stark reversal in Berkshire’s balance sheet. Related: Kass’ commentary on Buffett’s spending activity is referenced in the following day in Kiplinger’s ‘ Stocks Suffer Worst Losses of 2022 .’
Charles Koch Foundation – May 4 – Rajshree Agarwal, Rudolph Lamone Chair of Strategy and Entrepreneurship and Director of the Ed Snider Center for Enterprise and Markets, describes the Snider Center’s Intentional Life Lab in “How to Empower Students to Live Intentional Lives.”
Futurism – May 3 – Associate Professor of Management and Entrepreneurship David Kirsch discusses his research in “Twitter Bots Love Tesla. Elon Musk Is Pledging to Destroy Them.”
The Observer – May 3 – Nicole Coomber contributes to “As U.S. Workers Head Back to the Office, One Million Women Are Left at Home,” including: Offering flex time, an option to work from home, could help many women return to work, experts say. “There’s been a lot of buzz about the recently announced Airbnb policy of ‘work from anywhere,’” [said Coomber]. “That’s definitely a trend we see.” Coomber and colleagues have been interviewing women to find out what the most important barriers are to staying on the job. Along with flexibility, the moms also say they need to have some structure to their jobs. In other words, they want to know in advance when they will be working and when they will be off, Coomber said.
Washington Post – May 2 – “The Flawed Math Behind Elon Musk’s Twitter Deal” references a working paper by Associate Professor of Management and Entrepreneurship David Kirsch and Mohsen Chowdhury exploring whether tweets from fanbots are related to changes in the price of Tesla’s stock.
Harvard Business Review – May 2 – Research Professor Emeritus Sandor Boyson co-authors “How Exposed Is Your Supply Chain to Climate Risks?”
Maryland Daily Record – May 1 – Clinical Professor of Management Oliver Schlake describes how entrepreneurs can benefit from a farmers market setting in “Farmers market alumni are making it big in Baltimore,” including: The model guarantees a steady stream of potential customers for each vendor and has a low barrier to entry — just the fee for setting up a booth, plus the cost of any materials. It’s not unlike selling a product on Amazon or Etsy, [according to Schlake].
Poets & Quants – May 1 – “100 Best & Brightest MBAs: Class of 2022 includes and features Maryland Smith’s Daylin Russo.
April 2022
Bloomberg – April 30 – “Buffett Speaks at Berkshire Hathaway Annual Meeting” includes: CNBC reporter Becky Quick identifies [Clinical Professor of Finance] David Kass as the source for (he’s an avid Buffett watcher and a finance professor). He’s asking about Biden’s tax plans… Buffett says that he has no point of view that he’d want attributed to him. Munger says he pays whatever taxes they pass, and he doesn’t want to engage in any lobbying about policies. Related: Kass gives “10 Highlights of Berkshire Hathaway’s 2022 Annual Meeting,” via TalkMarkets (May 1).
Kellogg Insight – April 30 – Dean’s Professor of Finance Michael Faulkender’s research ("Understanding the Rise in Corporate Cash: Precautionary Savings or Foreign Taxes”) is the basis for “Why Are U.S. Companies Hoarding So Much Cash?.”
CNN Business – April 29 – Associate Professor of Management and Entrepreneurship David Kirsch comments in “Electric Car Startups Want to Avoid Same Fate as Britain's 1890s Bike Bubble”: [Kirsch said] he expects some electric vehicles startups to survive but many to fail. "The stories are unraveling," Kirsch told CNN Business. … US electric vehicle companies aren't the only ones to see their valuations reduced. Chinese electric vehicles startups have taken a hit, too. Nio's stock has fallen 49% this year, while X-Peng is down 52% and BYD's has dropped 17%. Even the world's most valuable automaker, Tesla, hasn't been immune; its stock is down 27% this year. Kirsch views the falling stock prices of companies that wish to rival Tesla as evident of how difficult it is to turn startups that inspire investors with a story into businesses that prove themselves on paper with revenue and profits. "Some of these companies are being exposed in a way," Kirsch said. "There's a saying, when the tide goes out, you see who isn't wearing a bathing suit."
CNBC – April 29 – "Berkshire Hathaway’s Annual Meeting is Here: What to Expect from Warren Buffett and Charlie Munger": “One might expect buybacks to slow down simply because the price of Berkshire has gone up,” [said Kass]. “Buffett will only buy back shares if he considers them to be at a sufficient discount from intrinsic value.” Berkshire’s investments lately only made a small dent in his $140 billion-plus war chest, leaving Buffett watchers wondering if a major investment is on the horizon. “The recent declines in the stock market resulting from the anticipated tightening of monetary policy by the Federal Reserve may provide additional attractive opportunities for Buffett in the near future,” Kass said. The story expands on Kass’ comments from an April 23 CNBC Pro column “Warren Buffett is on a Roll. Here is What’s Behind his Big Moves and What Could Come Next.” …Related: Kass gives a Q&A with National Business Daily (China) in “Buffett's Shareholders Meeting is About to be Held, Business School Professors Explain the Investment Logic of ‘Stock Gods’” (April 28).
Observer – April 29 – Professor of Marketing Jie Zhang comments extensively in “As the Pandemic Ebbs, Americans are Shifting Their Spending from Goods to Services and Travel," including: “People have just been locked up at home too long and now there’s a pent up demand for restaurants, outdoor entertainment, leisure activities and travel,” Zhang said. “And they’ve learned over the past two years that the pandemic isn’t just going to be suddenly over. Covid cases will come in waves. But right now, a wave has ended, and case numbers are low in the U.S. and many parts of the world.” So, people see the current situation with the virus as a window of opportunity, she said.
San Francisco Examiner – April 29 – Associate Professor of Management and Organization David Kirsch comments extensively in ‘We Know Bad Things are Going to Happen,’ with Musk and Twitter, including: “Musk’s Twitter activity constitutes a novel tool for corporate engagement mobilization and polarization,” Kirsch writes in a working copy of the research being presented at a conference in June. “While Musk’s deft use of Twitter delighted and engaged the fanboys, the techniques employed also mobilized a subset of Twitter users to challenge and oppose Musk, leading to polarization.” … “A policy unit inside of Twitter over the last couple of years was sort of focused on trying to tamp down some of the extremism, reduce some of the really harmful trolling and create more healthy conversations,” Kirsch says, referring to Twitter’s Healthy Conversations program.
Investor’s Podcast Network – April 28 – Clinical Professor of Finance David Kass gives an in-depth “Buffett’s Biggest Blunders” interview for the network's “We Study Billionaires” series.
European Pharmaceutical Review – April 28 – Professor of the Practice Clifford Rossi writes “Can Continuous Manufacturing add Shareholder Value for Pharmaceutical Companies?.”
Delicious Food – April 28 – “McDonald’s Ice Cream Woes Have Inspired Memes, Mockery and Now, a Federal Lawsuit” quotes Clinical Professor of Finance David Kass: [Kass says] the agency gets involved when there are both numerous complaints about a product and “sufficient substance” to the complaints. Kass said he was perplexed that McDonald’s had gone so long without finding a permanent fix for its ice cream machines. “Customers, if they’re disappointed frequently enough, will go elsewhere,” he said.
The Diamondback – April 28 – Associate Clinical Professor of Finance Elinda Kiss comments in “UMD Students, Faculty Discuss Importance of Student Debt Cancellation”: “Much of the inflation is due to supply chain issues as the country is coping with reallocation of resources after the pandemic,” Kiss said in an email. “Pausing student loan debt repayments puts dollars in the pockets of the graduates that they can use to spend to buy the higher priced goods and services.” …The average student takes out $8,474 a year to attend this university, according to the college ranking site Niche. The issue goes beyond just this university, according to Kiss. “One of the major problems with student loan debt is not the impact on University of Maryland graduates, most of whom are able to get good jobs after graduation, but with students who attend for-profit predatory schools … whose students were misled and defrauded,” Kiss said.
New York Times – April 27 – “Will Elon Musk Save Twitter or Destroy It?” quotes Associate Professor of Management and Entrepreneurship David Kirsch: Whatever Musk’s public statements, it bears noting that “no one has profited more from the existence of Twitter than Elon Musk,” as [Kirsch] told The Los Angeles Times. “Donald Trump used Twitter to win the presidency, but Elon Musk used it to sustain the Tesla narrative and support the stock when the company was in danger of collapse.”
USA Today – April 27 – Dean’s Professor of Finance Michael Faulkender comments in “Critics Say Corporate Greed is Making Inflation Worse, Citing Record Profits Despite Rising Costs”: [Faulkender] disagreed that executives' comments to analysts amount to evidence of price gouging. "The fact that CEOs get on earnings calls (and talk about) making money isn't a shock," he says. …Faulkender says criticism of corporate profit margins fails to account for the laws of supply and demand. Consumer demand was turbocharged by federal stimulus payments at the same time that global supply kinks created product shortages, he says. “Prices are not set” to cover costs plus a profit margin, says Faulkender. “They are set to bring quantity demanded into equilibrium with quantity supplied. When there is excess demand, prices rise and those selling the product receive higher revenue as a result. Faulkender also notes that wholesale costs have risen more rapidly than retail prices, underscoring that businesses haven’t passed all their increased expenses to consumers.
Reuters – April 27 – “Musk’s Criticism of Twitter Staff Triggers Backlash” quotes Associate Professor of Management and Entrepreneurship David Kirsch: "If he proves incapable of tamping down the polarization, Twitter will slowly start to become less relevant because certain types of conversations will no longer be able to take place on it," [said Kirsch].
Business Insider – April 27 – Clinical Professor of Finance David Kass contributes to “Warren Buffett is on a Buying Spree. 7 Experts Analyze the Investor's Recent Trio of Purchases, and Break Down Why he Spent $23 Billion on Them”: "The confluence of these three large investments in a short period of time might be coincidental. Buffett waits patiently for opportunities to develop and pounces on them when they occur… Occidental may have become more attractive to Buffett because he expects high oil prices to continue. In the current inflationary environment, oil prices would be expected to remain high and oil companies would appear to be attractive investments… The HP investment might have resulted from a very attractive price, which Buffett considered to undervalue the company. It also possesses a highly regarded and respected brand name with a 'moat' protecting its market share in its laptop computer and printer businesses.”
Style and Polity – April 27 – “Social Capital is a Key Driver of Small Business” summarizes research by William A. Longbrake Chair in Finance Vojislav Maksimovic, Associate Professor of Finance Liu Yang and PhD finance student Sophia Xue: A community’s social capital – the level of trust and cooperation among residents – is conventionally associated with the likes of higher SAT scores and less youth violence. But a new study drawn from Payment Protection Program (PPP) and U.S. Census data shows that the same metric also correlates positively with business development…
Morning Brew – April 25 – “One-Way Video Interviews are Impersonal, Candidates Say, and Raise Privacy Concerns” cites research by Assistant Professor of Information Systems Lauren Rhue: Studies have indicated that algorithmic bias is most prevalent in the facial scans of non-white people: For example, a 2018 study [by Rhue] found that two different facial-analysis programs determined that images of Black NBA players were respectively interpreted to be more angry or contemptuous than those of white players.
Rolling Stone (via Rolling Stone India) – April 25 – “The World’s Richest Man Just Bought the World’s Most Influential Social Media Platform — What Could Go Wrong?” quotes Clinical Professor of Finance David Kass: The potential sale comes amid speculation that Musk has been gaming the Securities and Exchange Commission. He was 11 days later in declaring that he’d bought more than five percent of the company earlier this month, a move that allowed him to net over $150 million as he continued to buy stock before disclosing his stake, which prompted the price to rise. “I really don’t know what’s going through his mind. Was he ignorant or knowledgeable that he was violating securities law?” University of Maryland finance professor David Kass told The Washington Post.
The Economist – April 23 – “Elon Musk’s Twitter Saga is Capitalism Gone Rogue” cites research by Associate Professor of Management and Entrepreneurship David Kirsch: Tesla, which on April 20 reported record sales in the first quarter, goes from strength to strength. Twitter helped fuel its rise. It may not be just his Twitter “fanboys” who have bolstered the Tesla narrative. According to David Kirsch of the Robert H. Smith School of Business at the University of Maryland, tweets generated by “fanbots,” or what he claims are pro-Tesla algorithms, accounted for 23% of all messages on Twitter containing the hashtag #tsla between 2010 and 2020, or 36,000 tweets.
Washington Business Journal – April 22 – Professor of the Practice Clifford Rossi writes op-ed, “Greater Washington Must Incentivize Domestic Drug Manufacturing” (via investing in advanced manufacturing technologies, such as continuous manufacturing, or CM), including: This transformation is overdue. This dynamic — along with corporate tax rates, differential labor and manufacturing expenses, supply chain management and environmental costs — feeds into a U.S. pharmaceutical sector dependent on both foreign manufacturing and decades-old batch processing practice, which is a sequence of steps that can be inefficient and prone to more manual errors with its labor-intensive approach.
Observer – April 22 – Distinguished University Professor and David Bruce Smith Chair in Marketing Roland Rust comments in “Verizon Raised its Minimum Wage to $20 an Hour As the U.S.’s Lowest Paid Workers Make Unprecedented Gains,” including: As wages rise, companies will most likely reach a limit on what they are willing to spend on labor costs, Rust said. “Companies will seek a way to not use labor,” Rust said. “Artificial intelligence is becoming big and you’re going to see it more and more. Rising wages are going to bring more pressure to apply AI to various tasks.”
The Street – April 22 – “Elon Musk Wants to Get Rid Of One of the Worst Parts of Twitter” quotes Associate Professor of Management and Entrepreneurship David Kirsch: “Kirsch said "looking at tweets from Tesla IPO to 2020, we found a set of accounts that did not exhibit human-like behavior ... Using Botometer ... we identified these accounts as programmed users generating pro-Tesla content." … "The #fanbots were active in the pro-Tesla movement using #TSLA and $TSLA, whereas accounts active in the counter-movement around #TSLAQ and $TSLAQ were human users," Kirsch said. "This imbalance suggests that the fanbots were a strategic resource supporting the Tesla narrative."
Inside Mortgage Finance – April 22 – Professor of the Practice Clifford Rossi elaborates on Fannie Mae and Freddie Mac discussing ways to proactively deal with risks of climate change, via “Risk Expert Says GSEs are Assessing Their Exposure to Climate Risk,” including: “[GSEs are] gearing up, along with FHFA, for building the infrastructure to assess the risk and be able to manage it. They’re coming up with what we call a ‘climate risk taxonomy’ so they can define all the various risks they’re exposed to.” Perhaps most important, they’re trying to understand the nature of the exposure in their portfolios to these risks. “The companies will be engaged with climate model vendors. Just like a reinsurance company that has a climate model, they’ll say, ‘Run all our properties through the model and tell us what our exposure is from the dollar standpoint.’”
Al Araby TV (via Twitter) – April 19 – Professor of the Practice in Systems Thinking and Design Gerald Suarez helps explain the trend toward a four-day workweek.
Baltimore Sun Education – April 19 – In separate, continued articles on Page 7, Associate Dean of Undergraduate Programs Victor Mullins describes Smith’s Business Leadership Fellows Program and Professor of the Practice Clifford Rossi previews plans for climate finance and risk management education programs for professionals.
WalletHub (Ask the Experts) – April 19 – Distinguished University Professor and David Bruce Smith Chair in Marketing Roland Rust shares insights via a “2022’s Best Airlines” Q&A.
Global Association of Risk Professionals (GARP) – April 15 – ‘Risk Executives on the Move’ highlights Professor of the Practice Clifford Rossi: [Rossi] is on the 16-member FDA Pharmaceutical Science and Clinical Pharmacology Advisory Committee… His previous research effort “underscores the importance of more focus on drug safety, efficacy and making sure that we have adequate manufacturing quality and technology to do that. Looking especially at how we finance and invest in that area is something that I’m thrilled to have a voice in now,” said Rossi.
The (New York) Observer – April 13 – Clinical Professor of Finance David Kass comments for "Americans Want to Fly Again, and Delta Airlines is Benefiting," including: It’s very likely the other airlines will show similar trends when they release their first quarter reports, [said Kass], a clinical professor of finance at the University of Maryland. Kass attributes the recovery to Americans’ urge to hit the road… Things may be a little more up in the air come 2023, Kass said. “Many economists are predicting that with the Federal Reserve likely to raise interest rates sharply over the next year, year-and-a-half, to bring down inflation, that could lead to a recession in 2023,” Kass said. “And that would probably have a negative impact on the airlines next year.” Ideally, the reserve will manage to achieve the delicate balance that would lead to a “soft landing,” Kass said. “But that is extremely difficult to achieve and hard to predict.”
Los Angeles Times – April `12 – “Elon Musk’s not-so-secret weapon: An army of Twitter bots touting Tesla” references new research by Associate Professor of Management and Entrepreneurship David Kirsch that “concludes that 500-plus million Tweets/day has played a significant part in the “stock of the future” narrative that has propelled Tesla’s market value… Reporting on reaction to the LA Times piece and Kirsch’s study, the Wall Street Journal’s “Meet the Twitter Army of Elon Musk Superfans” includes: David Kirsch, the University of Maryland professor who conducted the research, said he has never had a position in or against Tesla stock… Further related coverage: Kirsch discusses (at 44:00) his research connecting fanbots and Tesla stock movement, via BBC Business Matters.
FIND MBA – April 12 – Interim Associate Dean of Master’s Programs Paulo Prochno comments in “Why Global Study Trips are a Must for Online MBAs,” including: “During some periods of the pandemic we had to change the residencies to virtual,” says [Prochno]. “For the global programs, we offered a virtual alternative, too — students worked on a project with a foreign company and attended multiple virtual company visits, virtually meeting senior executives of companies in the chosen countries.” Still, he says the trips were “very valuable”, in the sense that they let students learn more about the opportunities and challenges of doing business overseas. “There was also the opportunity to apply knowledge from multiple courses in a real project that will help a company abroad,” says Prochno. “That experiential learning is essential to understand in more depth how the multiple business areas relate to each other.”
Forbes – April 11 – Professor of the Practice Clifford Rossi comments in “Apple And Crypto—Here’s What You Should Know”: In addition, [Rossi] said that having a digital or crypto wallet and its own stable coin or a crypto pegged to the price of a fiat currency, could give Apple a competitive advantage over other retailers and will increase the competitive landscape of the personal banking and payment processing industry.
FreightWaves – April 11 – “Truckers are Filing Coercion Complaints with the Feds at a Record Pace” quotes Academic Director of the MS Supply Chain Program Thomas Corsi: But coercion and its effect on exacerbating fatigue “is definitely still a problem,” Thomas Corsi, academic director for supply chain management at the University of Maryland’s Robert H. Smith School of Business, told FreightWaves. “I serve as an expert witness on accident cases which overwhelmingly occur when drivers are working on not enough sleep and end up plowing into a car because they’re working way too many hours. They’re on very strict time commitments that a broker or a carrier made to a client, but there are huge safety implications. These guys clearly are really stretched.”
USA Today Network (via The Arizona Republic) – April 8 – In separate career-advice columns, Professor of the Practice in Systems Thinking and Design Gerald Suarez writes “Learn How to Connect with New Colleagues in a Remote Work Setting” and Senior Director of Employer Relations Cynthia O’Brien writes “Got Job Offers? Here's How to Decide on the Right One.”
Global Health NewsWire – April 8 – Ritu Agarwal, Distinguished University Professor and Robert H. Smith Dean’s Chair of Information Systems, explains “3 Keys to Addressing Bias in Health Data and Algorithms and Why it Matters.”
Global Association of Risk Professionals (GARP) – April 8 – Professor of the Practice Clifford Rossi writes “Credit Access and Risk: A Balancing Act.” Summary: GSEs have in the past have relied on a singular credit score to evaluate borrower credit risk, but the FHFA is now considering whether Fannie Mae and Freddie Mac should be allowed to use a multi-score approach. The question is whether this would expand access to credit or simply create greater risk for GSEs and for capital markets.
Internal Auditor – April 8 – James Lager, adjunct professor and chief ethics adviser for the U.S Government Accountability Office, co-authors “Toward a More Perfect Objectivity.” Summary: Rather than treating objectivity as a best intention or ignoring the objectivity problem as unsolvable, internal auditors can best honor their professional obligations by using behavioral science insights to reach for objectivity.
Denver Business Journal – April 7 – “Colorado Legislators Look to Limit Noncompete Agreements” quotes Associate Professor of Management and Organization Evan Starr: [Starr] said that between one-third and two-thirds of all employees under such agreements are required to sign them after they have accepted a job, when they have little to no negotiating leverage to push back. And 30% of firms that use noncompete agreements do so indiscriminately for all workers, regardless of salary or managerial level.
Business Insider – April 7 – “Warren Buffett Just Revealed a Huge Stake in HP — After Ruling Out Ever Owning the Computing Stock in 1998” quotes a Tweet by Clinical Professor of Finance David Kass: It's also possible that one of Buffett's two investment managers, Todd Combs and Ted Weschler, oversaw the HP purchases. However, the sheer size of Berkshire's position suggests their boss was the mastermind, [Kass] tweeted on Thursday. … Kass, via Talkmarkets, gives the “2022 Percentage Returns of Largest US Companies by Market Capitalization” (April 9).
WRAL TechWire – April 7 – “Survival of the Fittest Entrepreneurs: It’s Becoming Harder to be Successful, Study Finds” includes a summary of a working paper (‘Are Entrepreneurs Penalized during Job Searches?’) by Associate Professor of Management and Organization Waverly Ding, Clarice Smith Professor of Management and Organization Debra Shapiro and postdoctoral researcher Hyeun Lee, including: The study revealed that former entrepreneurs were 23% to 29% less likely to be selected [when applying for jobs] than those with no entrepreneurial experience… Based on their findings, the researchers recommend that large firms develop anti-bias training programs to mitigate the penalty on former entrepreneurs during the recruiting process. They also point out that picking the right person for recruiting can help. For example, the entrepreneurial penalty can be reduced by using recruiters who have entrepreneurial aspirations themselves.
Maryland Today – April 7 – Accounting Lecturer Samuel Handwerger gives “Tips for Last-Minute Tax Filers.”
Washington Post – April 6 – “Elon Musk Delayed Filing a Form and Made $156 Million” (and quoted from here in a separate report by The Daily Beast among others): The late filing netted Musk $156 million, [said Kass]. “I really don’t know what’s going through his mind. Was he ignorant or knowledgeable that he was violating securities law?” he said. Whoever was handling the trades for Musk should have known, Kass said… Separate coverage quoting Kass: Mercury News/Bay Area News Group’s “Elon Musk’s Missed Twitter Deadline Made Him Millions, Experts Say”: “The rest of the world was ignorant that he was purchasing the shares,” [said Kass]. “Once it became known that he was purchasing those shares, you got that spike.” Kass estimated that the delayed disclosure delivered an extra $156 million in stock value to Musk. … Sinclair Broadcast Group’s “Elon Musk's Long-Standing Battle Against SEC Takes Center Stage after Twitter Buy”: “Certainly the people around him who filled out the forms for him, whether it be his attorneys or financial consultants, should have informed him of that deadline once it was crossed," [Kass told] The National Desk.”
Law360 – April 5 – ‘Windfall Tax On Profits Would Help Consumers’ quotes Dean’s Professor of Finance Michael Faulkender from his testimony before the Senate Budget Committee: Michael Faulkender, an assistant Treasury secretary for economic policy under former President Donald Trump, said imposing a 95% windfall profits tax on corporations would lead to disaster. "Any company that created new products, successfully entered new markets, or shifted their offerings in response to changes in consumer preferences following the pandemic would be punished," said Faulkender, now a finance professor at University of Maryland. Additional coverage of the hearing and Faulkender’s testimony includes “The Big Plan to Shied Biden from Inflation Attacks” at Liberty Nation “Corporate Media Ignore Hearing on Corporate Greed," via the Albany Herald.
Agence France-Presse (via Yahoo News) – April 5 – Associate Professor of Management and Entrepreneurship David Kirsch comments in “Twitter Names Elon Musk to Board, Further Lifting Shares”: But others said Musk's motivation behind the Twitter investment probably has little to do with national politics. "Twitter is a key resource for him," [said Kirsch], who has written extensively on electric vehicles and modern technology. Musk currently has more than 80 million followers on the platform, which Kirsch said has likely saved him hundreds of millions of dollars in advertising. "He is the master of the platform, at a certain point he couldn't afford not to have a say in how it's managed," said Kirsch. "All the politics are secondary."
Forbes – April 4 – “Two Years Later, Was The PPP Worth It?” references Dean’s Professor of Finance Michael Faulkender related to his 2019-2021 role of Chief Economist and Assistant Secretary for Economic Policy at the US Treasury through which he led the implementation of the Paycheck Protection Program (PPP).
Los Angeles Times – April 4 – Associate Professor of Management and Entrepreneurship David Kirsch comments in “What Would Free Speech Look Like on Elon Musk’s Twitter?”: “No one has profited more from the existence of Twitter than Elon Musk,” said David Kirsch, a professor at the University of Maryland’s Robert H. Smith School of Business and coauthor of the recent book “Bubbles and Crashes.” “Donald Trump used Twitter to win the presidency, but Elon Musk used it to sustain the Tesla narrative and support the stock when the company was in danger of collapse.” … “No one has been more adept at using Twitter to control public narrative” than Musk, said Kirsch, who’s currently researching the effect of Twitter bots on Tesla’s stock price and reputation. (Bots are automated Twitter accounts created to resemble real people and are often used to flood the app with programmed messages.) Musk may be investing “if he believes that Twitter is adopting policies that limit his ability to use the platform,” Kirsch added.
TechTarget – April 1 – “New Study Reveals How AI will Change Future Workplaces” overviews Assistant Professor of Finance Alex Xi He’s working paper.
March 2022
Expansion Solutions Magazine – March 31 – Clinical Professor Oliver Schlake comments as the primary expert source for “Selecting a Headquarters: A Nuanced Affair,” including: Another need to consider is what kind of human resources are required to grow the business, as well as the level of education and/or a trade skill. “Then if the company has enough workers, you have to see what the competition is like to hire more,” [Schlake said]. “If the labor force is shallow, employees will cost more to hire.” So, such moves require taking a long view. “You have to take a few years to think about where to move to, then work within a five-year horizon and know how you want to grow your business,” said Schlake. “Will that be organically or by buying other companies?”
Forbes – March 30 – Rudolph Lamone Chair of Strategy and Entrepreneurship Rajshree Agarwal writes “Exercising Freedom In Your World To Uphold Freedom In The World.”
MIT Sloan Management Review – March 30 – “Is Blockchain a Disruptive or a Sustaining Innovation? What Experts Say” quotes Rudolph Lamone Chair of Strategy and Entrepreneurship Rajshree Agarwal: “The effect of blockchain on ‘supply’ and ‘demand’ of financial transactions is radical and disruptive. In line with industry evolution studies, this opens up the competitive realm for both new entrants and incumbents.”
The Diamondback – March 30 – Clinical Professor of Finance David Kass explains the causes and implications of high gas prices in “UMD Commuter Students Express Worry for Their Wallets as Gas Prices Stay High.” Also from David Kass, via TalkMarkets: “2022 Percentage Returns of the Largest Market Capitalization” (for April 1).
Fortune – March 29 – Assistant Professor of Finance Alex Xi He comments on his NBER working paper on the effects of managers’ business education on wages and labor share, including: “It used to be the case that when a firm grew, it shared part of its growing profits with its workers,” [said He]. “For [firms with] managers with a business education, we do not find a wage increase after firms grow in profits.” … “A smaller portion of the economic surplus is going to workers and a larger portion is going to either capital or profits.” Also reporting on the study: Axios, Bloomberg, Brookings, Forbes and Quartz.
Lexington Park Leader – March 29 – “CTSi Earns Honors for Innovative Work During Pandemic” previews the June 3 Maryland Business Adapts event and highlights CTSi as one of the companies to be featured in the Center for Global Business-organized program to take place in Baltimore.
Making the Rounds (American Medical Association podcast) – March 25 – “Ritu Agarwal on Shaping Health IT Research, Education and Outreach” features Agarwal, Distinguished University Professor, Robert H. Smith Dean's Chair of Information Systems and co-director of the Center for Health Information and Decision Systems (CHIDS) discussing her paper, “Socioeconomic Privilege and Political Ideology are Associated with Racial Disparity in COVID-19 Vaccination,” co-authored with CHIDS colleagues, as well as the center’s focus areas of EHRs, Health IT from the patient-side, and the current A.I. revolution and resurgence.
WUSA-9 – March 23 – Associate Professor of Management and Entrepreneurship David Kirsch explains “What NFTs Have in Common with Tulip Bulbs from the 1600s.”
Scripps National News – March 22 – Associate Professor of Management Evan Starr draws from his research stream to weigh in for a report on “More Evidence Worker Noncompete Contracts Hurt Wages.”
Bloomberg – March 21 – “Buffett’s Deal Drought Ends With $11.6 Billion Alleghany Buy” (republished minus paywall at Yahoo Finance) quotes Clinical Professor of Finance David Kass: “Buffett, in part, may be sending a signal to the world, to investors, to financial markets, that even in this current environment of great uncertainty, that he still thinks there are wonderful opportunities to invest in at least U.S. companies going forward,” [said Kass]. Related: Kass, via TalkMarkets, gives the “2022 Percentage Returns of the Largest Market Capitalization” for March 19 and March 26.
WDVM News – March 16 – Clinical Professor of Finance David Kass ‘Explains Inflation and the Possible Solutions.”
Retail TouchPoints – March 15 – “Retailers Can Cushion Price Increases’ Impact With Greater Transparency” extensively quotes Dean's Chair in Marketing Science P.K. Kannan, including: But what’s most effective is for retailers to be transparent with customers about why they’re raising prices. “A retailer may have loyal customers who love what you’re selling, and if you indicate to them what your cost structure is and how it’s gone up, it may help consumers understand that they’re not being taken advantage of,” said Kannan.
Financial Times – March 13 – “Do online MBAs broaden access to business education?” quotes Interim Assistant Dean Paulo Prochno: Although, in principle, online learning could be a global playing field, online MBAs appeal largely to local learners. This is partly because some countries — notably China and the US — either do not recognise online degrees from overseas institutions, or restrict access to post-graduation work visas for online, as opposed to on-campus, foreign students. Furthermore, coordinating live lectures across multiple time zones poses a challenge for course administrators, and relatively few business schools have a globally recognised name. “You would have to spend a lot of money to get the brand off the ground overseas,” says Paulo Prochno, assistant dean of online programmes at the University of Maryland’s Smith School of Business.
New York Times – March 11 – Clinical Professor of Finance David Kass comments in “McDonald’s Ice Cream Woes Have Inspired Memes, Mockery and Now, a Federal Lawsuit” (also in the Times' Sunday print edition): David Kass [a former economist with the commission], says the [FTC] gets involved when there are both numerous complaints about a product and “sufficient substance” to the complaints. Professor Kass said he was perplexed that McDonald’s had gone so long without finding a permanent fix for its ice cream machines. “Customers, if they’re disappointed frequently enough, will go elsewhere,” he said.
Scripps National News – March 11 – Associate Professor of Management and Organization comments in “More Evidence Worker Noncompete Contracts Hurt Wages” (following a US Treasury release of “The State of Labor Market Competition” extensively citing Starr’s research.
Maryland Today – March 11 – “Giving Day Smashes Fundraising Record With $3.75M Total” quotes Dean Prabhudev Konana, after Maryland Smith fundraised the second-highest total among UMD units: “This Giving Day was a testament to Smith's very strong community,” [said Konana]. “The funds raised to promote entrepreneurship, provide scholarships and enhance student experiences will have such a powerful impact on the school's mission, and I'm truly thankful to each of our donors for their confidence in us.”
GARP (Global Association of Risk Professionals) – March 11 – In his guest column – “Is Standard Scenario Analysis Outdated?” – with Russia-Ukraine as a backdrop, Professor of the Practice Clifford Rossi examines the viability of game theory and simulation-based approaches for projecting and assessing highly volatile risk events with uncertain outcomes.
The Hill – March 11 – Director of Federal and Veteran Affairs Frank Goertner writes “A No-Fly Zone in Ukraine Could Work.”
ASBMB Today (American Society for Biochemistry and Molecular Biology) – March 10 – “Underpaid: Women Scientists in the Academy” cites research by Rudolph Lamone Chair of Strategy and Entrepreneurship Rajshree Agarwal and Associate Professor of Management and Organization Waverly Ding, including: It may not be surprising to many of us women scientists who work at universities and colleges that we are underpaid compared with our colleagues who are men. Yet an analysis in the journal Nature Biotechnology n fall 2021 revealed that the gender pay gap is smaller for women who work in biotechnology and pharma. This remarkable finding has negative implications for retaining the next generation of women in academic science — and for reaching diversity, equity and inclusion goals at our universities and colleges.
Maryland Today – March 9 – In “A Fluid Situation,” Research Professor and Center for Global Business Academic Director Kislaya Prasad and Professor of Marketing Amna Kirmani explain why banking bans are more likely than oil and vodka boycotts to influence Russian policy.
Capital News Service TV – March 8 – In a “Russia Sanctions” segment (2:10) Associate Clinical Professor of Finance Elinda Kiss explains SWIFT and the implications of blocking Russia access to the network.
MBA Crystal Ball – March 7 – Senior Director of Admissions for MBA and Specialty Masters Programs Maria Pineda gives five essay tips as part of “How Important are MBA Essays, and Why?”
TalkMarkets – March 5 – Clinical Professor of Finance David Kass gives the “2022 Percentage Returns of Largest U.S. Companies by Market Capitalization.”
Washington Post – March 3 – Associate Professor in Decision, Operations and Information Technologies Jui Ramaprasad comments extensively in “How to Avoid Falling for a Tinder Swindler or a Fake German Heiress” including: The first of Hayut’s victims that viewers meet in “The Tinder Swindler” is cast as a believer in the Disney fairy tale, exactly the kind of person primed to trust that grand romantic gestures — like whisking someone away on a private jet on a first date — are genuine. Confirmation bias, or the tendency to interpret information in ways that align with a person’s existing beliefs, is a powerful force. “If you want to see something as true, you’ll see it as true,” says [Ramaprasad]. “These people wanted to find love, and this guy played into that.” Often, Ramaprasad continues, scammers are able to identify someone’s vulnerabilities. In the case of the Tinder Swindler, that was women seeking love. With “Inventing Anna,” Sorokin’s friends wanted to be part of the glamorous life she led — the dinners, the parties, the clothes. They wanted to believe it was real.
Connecticut Examiner – March 2 – Associate Professor of Management and Organization Evan Starr is a source for “Legislators Consider Bill to Restrict Non-compete Agreements, Disagree on Workplace Impacts”: Starr, who submitted testimony on the bill last year, told CT Examiner that non-competes have been around since the time of trade guilds, when master craftsmen wanted to prevent apprentices from taking the skills they had learned and setting up competing shops. …Sorenson and Starr also say that there needs to be better data collection around how frequently non-competes are used and the contents of the agreements. Starr said he has asked the Federal Trade Commission several times to investigate the contents of employee contracts. … Starr acknowledged that it can be difficult to police what employers put in their contracts. However, Starr, Sorensen and McKernan all said they believed that having legislation would make a difference.
Maryland Today – March 2 – “MPower Partnership Announces $3M in Seed Grants for Collaborative Research” spotlights 17 studies selected for the funding, including “Precision Therapy for Neonatal Opioid Withdrawal Syndrome (NOWS)” co-led by Distinguished University Professor and Robert H. Smith Dean's Chair of Information Systems Ritu Agarwal.
February 2022
CNBC – Feb. 28 – Dean's Professor of Finance Michael Faulkender discusses why removing Russian banks from S.W.I.F.T. could harm the global economy and how much Russia will be impacted by the allies’ sanctions in ‘I Do Fear Russia Will Get Around a Fair Number of These Sanctions.’
Maryland Today – Feb. 28 – "Eye-Opening’ Traveling Exhibit Reveals Atrocities of Tulsa Race Massacre" quotes Associate Dean for Culture and Community Zeinab Karake, who brought the exhibit to UMD: “As Winston Churchill said, ‘Those who fail to learn from history are condemned to repeat it.’ And this is one part of history we definitely do not want to repeat, [said Karake]. “Students told us in their feedback that it was an eye-opener and that they were glad to be exposed to it.”
India Education Diary – Feb. 28 – Roland Rust, Distinguished University Professor and the David Bruce Smith Chair in Marketing, and Clinical Professor of Marketing Hank Boyd explain how the “Olympics Can Defeat Threats Of Pandemic Protocols, Ballooning Costs And Diplomatic Clashes.”
TalkMarkets – Feb. 26 – Clinical Professor of Finance David Kass writes “5 Highlights Of Berkshire Hathaway’s 2021 Annual Report.”
American Banker – Feb. 25 – “CFPB Proposal Aims to Curb Bias in Automated Appraisals” quotes Professor of the Practice Clifford Rossi: Some experts are concerned that regulators have limited resources to evaluate algorithmic computer models. “More concerning is the CFPB does not have the technical resources to properly evaluate these models,” [said Rossi].
Institutional Investor – Feb. 25 – Associate Professor of Management and Entrepreneurship Brent Goldfarb contributes to “ESG and Alpha: Sales or Substance?”: There is little reason to doubt that money flowing into investments can increase prices for a time, thereby allowing early investors to accrue higher returns. Sometimes the rising prices can in turn give a veneer of authenticity to the investment strategy. Stock bubbles are formed in this way, and one could easily see this happening with ESG investing. According [to Goldfarb] market bubbles often continue until some contrary evidence reverses the feedback process. Then, fear of losses causes more selling and drives prices lower. At the same time, research has shown that increasing the supply of capital to sustainable companies will push up their stock prices and lower their future returns, not the opposite.
Louisville Courier-Journal – Feb. 25 – “Guaranteed Income Programs are Expanding Across the Nation. What can Louisville Expect?” quotes Professor of Finance Michael Faulkender: But critics argue free money can be misused or disincentivize work, and some question its need in the wake of pandemic stimulus and an economy facing inflation and more job openings than people to fill them. “The last thing we need to be doing is paying people to not work,” [said Faulkender]. “If people would like money, there are 11 million job openings.”
Maryland Today – Feb. 25 – Associate Director of Executive MBA Career Coaching, Programming and Outreach Rachel Loock is the source for “A Post-Zoom Guide to Meeting Etiquette.”
WNYC – Feb. 24 – Associate Professor of Management and Organization Rellie Derfler-Rozin discusses her ‘Motivation Purity Bias’ research as part of a Brian Lehrer Show segment titled “Managers Are Less Likely to Hire People Who Ask About Salary. Will NYC’s New Wage Law Help?”
WalletHub – Feb. 23 – Professor of Marketing Jie Zhang answers “How Have Consumer Spending Habits Changed During this Last Year?”
Capital.com – Feb. 22 – Clinical Professor of Finance David Kass comments in “$100+ oil futures expected as Russia enters Ukraine”: [Kass said] if three Middle East countries increased their output it would help the markets. According to the Joint Organisation Data Initiative (JODI), a database of energy statistics, Saudi Arabia’s oil production in January 2022 was 10.02 million barrels per day. JODI believes that Saudi Arabia has the capacity to produce 12 million barrels per day. OPEC data shows UAE oil production was 2.92 million barrels a day last month and has the capacity to produce 4.2 million barrels per day. The cartel also said Kuwait’s oil production in January 2022 was 2.58 million barrels per day but has the capacity to produce 3.15 million barrels per day.
TheStreet – Feb. 22 – “Financial and Economic Thought Leaders Join Amberwave Partners' Economic Advisory Board” includes Professor of Finance Michael Faulkender’s appointment to an Amberwave Economic Advisory Board of “leading economists with wide-ranging experience in financial markets and policymaking at the highest levels” and focused on values-based investing in “companies that are most supportive of JSG (American jobs, security and growth).”
FIND MBA – Feb. 22 – “The Best Online MBA Programs Facilitate High-Touch Interaction Between Participants and Instructors” extensively quotes Interim Associate Dean of Master’s Programs Paulo Prochno: At [Maryland Smith], every Online MBA course has synchronous live sessions on Zoom. “The experience is smooth, and it allows for different forms of interactions such as breakout rooms and chat,” [says Prochno]. “We ask students to have their cameras on all the time, so it’s even better than being in a classroom, as everyone can see everyone’s reactions during the live sessions.” For the asynchronous elements, the business school uses Canvas, a course management system that supports online learning and teaching. It allows professors to post grades, information, and assignments online. “Enhancements in technology for virtual classes have improved the overall experience, so the interactions are even more meaningful now compared to a few years ago,” Prochno says. He says that learning from other participants and teaching staff is essential to the overall MBA experience. “An Online MBA is a professional degree focused on developing skills that are essential for senior management positions. There is a lot of tacit knowledge that needs to be developed during the program; exchanging experiences and working in groups to solve practical problems is an essential element,” says Prochno.
Maryland Today – Feb. 22 – ‘Women Managers Go to Bat for Subordinates’ features research by Logistics, Business and Public Policy associate professor Cristian Deszö.
TalkMarkets – Feb. 19 – Clinical Professor of Finance David Kass gives the “2022 Percentage Returns of Largest U.S. Companies By Market Capitalization.”
Harvard Business Review – Feb. 18 – Dean’s Professor of Management Subra Tangirala co-authors “The Unintended Consequences of Asking for Employee Input” based on his research forthcoming in the Journal of Applied Psychology.
WUSA-9 – Feb. 17 – Associate Professor of Management and Entrepreneurship David Kirsch explains how NFTs play into the new digital economy, in “Financial Investment or Fad? A Closer Look at the NFT Craze”: [Kirsch] explained an NFT starts as a digital file: an image, a sound, or video. The creator then adds another layer of code on it. That code then registers that file on the ledger of the internet, what is called the Blockchain. It’s that authentication that makes it unique. “I can take a picture of this wall and share it with you or-I can take a picture of this wall and make it into an NFT,” Kirsch said. “Then it is a certified, singular version of that picture of that wall.” … Kirsch is a little more blunt about the future of NFTs. “If you want my honest answer, I’m going like 99% fad, 1% business development on the NFTS” he approximated.
The Diamondback – Feb. 17 – “UMD Business School Hosts Discussion on Predicted Global Trends” recaps Research Professor and Center for Global Business Academic Director Kislaya Prasad’s discussion with Kearney’s Global Business Policy Council Managing Director Erik Peterson on Kearney’s recent “Promise and Perils: Global Trends 2021-2026” report, as part of CGB’s Distinguished Speakers in International Business Series.
Yahoo Finance – Feb. 16 – The livestream interview, “Charlie Munger Speaks at the Daily Journal’s Annual Shareholder’s Meeting” includes CNBC’s Becky Quick identifying Clinical Professor of Finance David Kass and relaying a pair of his questions to Munger (starting 37:37), which yielded the Berkshire Hathaway Vice Chairman’s views on the movement against stock trading in Congress and the antitrust scrutiny (here) on big tech.
Pensions & Investments – Feb. 16 – ‘3 win Markowitz Award’ includes Russ Wermers, Paul J. Cinquegrana ’63 Endowed Chair in Finance and Center for Financial Policy director, receiving Special Distinction honors for his paper “Active Investing and the Efficiency of Security Markets” as part of the 2021 Harry M. Markowitz Awards from the Journal of Investment Management and New Frontier Advisors.
Maryland Today – Feb. 15 – Marketing professors Amna Kirmani, Hank Boyd and Judy Frels critique the Super Bowl 56 commercials in “Super Bowl Ads: Celebrities, Cars and Crypto.” Kirmani, in addition, commented extensively on Super Bowl advertising in Katie Couric Media’s “A Behind-the-Scenes Look at How Super Bowl Commercials Are Really Made” and Boyd previewed the ads via WTOP radio just prior to the Super Bowl kickoff.
Healthline Magazine – Feb. 15 – Associate Professor of Marketing Yogesh Joshi contributes research findings and related comments to “Local Lockdowns and COVID-19: How Effective Were They?,” including: In Joshi’s study, he and his colleagues found that stay-at-home orders reduced mobility in most countries they looked at. But after a while, people began moving around more in the community, even though the stay-at-home order continued. One of their analyses showed that on average, by 7 or 8 weeks after the start of the lockdown, mobility was essentially back where it started. “When lockdowns extend for long periods of time, then the past data shows us that mobility levels start rebounding,” said Joshi. While they didn’t look specifically at the effectiveness of shorter stay-at-home orders — sometimes called “circuit breakers” — Joshi “speculates that shorter lockdowns should yield higher compliance, in terms of [people] staying at home.”
The Business Monthly – Feb. 14 – “Maryland Smith targets startups with Blockchain Accelerator” (an initiative of the Supply Chain Management Center and the Dingman Center for Entrepreneurship) includes: Participants will showcase their progress and business models to the Dingman Center Angel Group and other attending venture capitalists during the virtual Demo Day. “The Dingman Center Angels is one of the region’s most active investor networks,” said [Dingman Center Managing Director] Holly DeArmond. “Partnering on this blockchain accelerator will allow us to build a pipeline of strong, investment-ready companies for our investors, while also providing the accelerator participants with connections to active angels at the Demo Day.”
TalkMarkets – Feb. 12 – Clinical Professor of Finance David Kass gives the “2022 Percentage Returns of Largest U.S. Companies By Market Capitalization.”
Bloomberg Law – Feb. 9 – “Red State Lawmakers Look at Noncompete Bans for Low-Wage Workers” includes: Research into Oregon’s ban on noncompetes for low-wage workers—published by [Maryland Smith Associate Professor of Management and Organization] Evan Starr and FTC Economist Michael Lipsitz—found the law might have helped produce a small boost to wage growth and job mobility.
KCM (Katie Couric Media) – Feb. 11 – Ralph J. Tyser Professor of Marketing Amna Kirma comments extensively in “A Behind-the-Scenes Look at How Super Bowl Commercials Are Really Made,” including: This year, some companies shelled out over $7 million just for the rights to air a commercial during the big game. That’s up from a rate of about $6.5 million for a 30-second spot last year, [Kirmani told us]. “That’s just a ridiculous amount of money,” Kirmani says. But the research continues to show that for emerging businesses like the handful of cryptocurrency companies advertising during this year’s game and even for big, legacy brands like Anheuser Busch, Frito-Lay, and Coca-Cola “the return on investment is very high,” she says. A splashy commercial creates brand awareness and signals to consumers that these companies are thriving with money to burn.
AI TechPark – Feb. 11 – “CHITA 2022 Set for March 4-5 in D.C.” previews the 12th Annual Conference on Health IT and Analytics, hosted by the Maryland Smith’s Center for Health Information and Decision Systems (CHIDS), and quotes conference chair and CHIDS co-director Ritu Agarwal, Distinguished University Professor and Robert H. Smith Dean’s Chair of Information Systems: The conference is designed to “deepen our understanding of strategy, policy and systems fostering health IT and analytics’ effective use, and to stimulate new ideas with both policy and business implications… This forum provides a vibrant venue to facilitate collaboration among academia, government and industry.”
Bloomberg – Feb. 10 – Clinical Professor of Finance David Kass contributes to “Warren Buffett’s Top Stock Last Year Was the Bank He’s Been Bailing On”: That progress came too slowly for Buffett. His pullback from the bank started in 2017, a year after the scandals began erupting, and then accelerated during the pandemic. The reduction probably reflects Berkshire rethinking its bank exposure amid Covid-19’s fallout, and a shift toward Bank of America, in part because of frustration with the pace of Wells Fargo’s cleanup, [said Kass]. Buffett has “very high ethical standards” when it comes to stock picks, Kass said. ... Generally, Buffett “likes financials, he likes banking, he understands it well,” Kass said. “And he switched his allegiance, in terms of an investment perspective, to Bank of America.”
Global Association of Risk Professionals – Feb. 10 – “Managing People Is Risky Business” (Amid the pandemic and the Great Resignation) quotes Professor of the Practice Clifford Rossi: “Companies are trying to fumble their way through this new world,” [observed Rossi]. Rossi recommended employers pay attention to what people say they want. “It’s a competitive labor market out there,” he cautioned. “It’s about relationships and trust.” … Do employers get it – that business as usual may very well be a thing of the past? “COVID has completely blown up the standard business model,” Rossi cautioned. “I’m not sure how many companies have come to that realization.”
Analytics Insights – Feb. 9 – “Top 10 Online Business Data Science and Analytics Courses” includes: Maryland Smith’s “Professional Certificate Program in Data Science and Business Analytics (homepage)” as “one of the best online business data science and analytics courses to take in 2022.”
Small Business CEO – Feb. 8 – “4 Reasons Going for a Post Grad is Worth it” cites Maryland Smith’s Online MBA Program: Moreover, COVID-19 has helped everyone realize that you no longer have to be physically present in school. Still, rather you can pursue your higher education in your field of interest through an online MBA from the Robert H. Smith School of Business at the University of Maryland. The prospects of getting a postgraduate degree are numerous, and you do not want to miss out on the opportunities that can come your way if you proceed with specializing in your field.
Technical.ly – Feb. 7 – “UMD is Launching a Blockchain Accelerator” announces Maryland Smith’s 45-day virtual program – at the intersection of venture capital and blockchain and created by the Supply Chain Management Center and the Dingman Center for Entrepreneurship.
Baltimore Sun Education – Feb. 6 – “STEM Programs: Advancing Education for All Students” (Page 3) features Maryland Smith’s Artificial Intelligence and Machine Learning for Business Leaders certificate program and quotes its academic director, Professor of the Practice Suresh Acharya: “What business leaders need to understand is that the world of AI and ML is moving fast, and the technology is sweeping us away unless the leaders are grounded… This is what the program helps them do. It’s not a coding class or one where we prove mathematical theorems. What you need to understand are the parameters, what it can do, what kind of data makes sense and to understand where this can take you.”
TalkMarkets – Feb. 5 – Clinical Professor of Finance David Kass gives the “2022 Percentage Returns Of Largest U.S. Companies By Market Capitalization.”
Global Association of Risk Professionals – Feb. 4 – In “Model Risk Challenges and Opportunities in 2022,” Professor of the Practice Clifford Rossi explains why “rapidly-changing economic, regulatory and environmental conditions this year should heighten risk model teams’ focus on data, technology and climate change.”
Forbes – Feb 2 – Rudolph Lamone Chair and Professor in Strategy and Entrepreneurship Rajshree Agarwal writes “Lessons From The Road To Super Bowl LVI For Enterprise And Markets,” which references research co-authored with Smith professors Gilad Chen and Brent Goldfarb and includes: “Success accrues to entrepreneurial teams formed with precision–when founders pay attention to who best fills the gaps and who best fits in–as tightly knit pieces of an intricate puzzle.”
Forbes – Feb. 2 – Associate Professor Jui Ramaprasad in the Decision, Operations and Information Technologies department comments in “Social Media Influencers, Beware What You Post”: Influencers shouldn't be overly political even if they are trying to take a stand on important issues of the day. If there are two very vocal sides of that issue, perhaps it is best not to get involved. Otherwise, an influencer can become part of the story – and not in a good way. "In terms of being conscious of social media posts (generally): it is critical for all of us to realize that the posts we make on social platforms become our story," [said Ramaprasad]. "They form the public personas in the eyes of those who read the posts. Readers cannot observe what happens offline, or if someone's views have evolved unless these views are publicly posted," added Ramaprasad… “Authenticity in social media posts has been shown to be valued by consumers," continued Ramaprasad. "At the same time, society is evolving and finally recognizing important issues around bias, discrimination, racism, etc. – so indeed, when one's authentic perspective includes such views as expressed by these reality stars, there will be some repercussions. This often results in being 'cancelled' by the public or – as these stars experience – cancelled by their employer.”
Tasting Table – Feb. 1 – “Why Boycotting KFC And Other Big Companies Doesn't Work The Way You Think” quotes Ralph J. Tyser Professor of Marketing Amna Kirmani: "Boycotts generate typically negative publicity, brands want to avoid it, and as a result they may reach out to organizers of the boycott to discuss what they should be doing," [Amna Kirmani tells Refinery29].
January 2022
Poets & Quants – Jan. 30 – Maryland Smith Launches ‘Blockchain Business Imperative’ Certificate Program (scroll down) includes: Topics that the program will cover over its six weeks include an in-depth understanding of the economic inefficiencies that blockchain will impact, an overview of foundational blockchain technologies; a conceptual understanding of blockchain; implementation details for Bitcoin, Ethereum and Hyperledger; exploration of various blockchain business applications including NFTs, DeFi, CBDC; and a final discussion on potential opportunities and challenges stemming from blockchain.
TalkMarkets – Jan. 29 – Clinical Professor of Finance David Kass gives the “2022 Percentage Returns Of Largest U.S. Companies By Market Capitalization.”
Maryland Daily Record – Jan. 28 – “UMD Smith School Launching Tech Management MBA and Graduate Certificate Program” describes the forthcoming collaboration (including the Feb. 25 free information session) with the “A. James Clark School of Engineering and School of Public Policy to deliver multi-disciplinary skills modern leaders need to successfully identify and implement technology across their organizations and markets.”
Harvard Business Review – Jan. 27 – Associate Professor of Management Science and Statistics Margret Bjarnadottir co-authors “Using People Analytics to Build an Equitable Workplace.”
AACSB Insights – Jan. 25 – New Programs (scroll down) announces: Maryland Smith’s Blockchain Business Imperative certificate: During the six-week synchronous program, students will get an overview of foundational blockchain technologies, learn about cryptocurrencies, and explore blockchain business applications.
MSN Money – Jan. 24 – “U.S. News Ranks 2022 Best Online Programs” includes: Tied at No. 12 among all online MBA programs, the University of Maryland—College Park's Robert H. Smith School of Business was ranked best for marketing.
Washington Post – Jan. 23 – Professor of Business Law T. Leigh Anenson comments in “Federal Prosecutors Have Been Investigating D.C.’s Pension Board, Responsible for $10 Billion Retirement Fund”: Experts on public pensions say best practices recommend reporting all fees so that credit rating agencies can evaluate whether the funds are making unwise investments — as can the tens of thousands of retirees who depend on the fund for their retirement income. An opaque listing of fees could hide an unwise investment or even an improper one, such as a conflict of interest or a bribe. “Do you have to disclose these fees, and should you be having these super-high fees? I think it’s a huge problem when they’re doing that,” [said Anenson], who has published papers on states’ varying rules for public pension funds and advocated stricter state laws mandating transparency measures such as listing all fees.
TalkMarkets – Jan. 22 – Clinical Professor of Finance David Kass gives the “2022 Percentage Returns Of Largest U.S. Companies By Market Capitalization.”
TalkMarkets – Jan. 21 – Clinical Professor of Finance David Kass gives regulatory insights via “The Microsoft/Activision Blizzard Merger And Antitrust.” Also at TalkMarkets: Kass gives the “2022 Percentage Returns of the Largest US Companies by Market Capitalization for Jan. 15.”
Business Insider – Jan. 20 – “Warren Buffett is Ready to Deploy $80 Billion if the Market Crashes This Year” quotes Clinical Professor of Finance David Kass: “If the Federal Reserve's projected interest-rate increases result in the stock market declining by at least 10% in the coming months, that may provide a fertile background for Berkshire to invest some of its $150 billion in cash. Berkshire's recent, $1 billion yen-bond issue may indicate future investments in Japan. On the other hand, more aggressive US antitrust policies may discourage Berkshire from acquiring companies.”
USA Today – Jan. 20 – Career-advice guest columns feature insights from Assistant Dean and Executive Director of the Offices of Career Services Neta Moye, Associate Director of Executive MBA Career Coaching Rachel Loock and Director of MBA Career Coaching Dori Jamison: “This is the Most Important Question You'll Get Asked in a Job Interview” (Moye), “How to Prepare for Your Zoom Interview” (Loock) and “A Simple Guide for Writing the Perfect Cover Letter” (Jamison).
TheStreet – Jan. 18 – “I Don't Trust Bitcoin, But Should I Give Up on Crypto?” quotes Clinical Professor of Marketing Henry C. Boyd III: “Bitcoin is very volatile. It's very risky,” [said Boyd]. He explains that it is for this reason that he has not yet personally invested a penny in the crypto space.
Institutional Investor – Jan. 18 – “Here’s What Companies Can Return When They Don’t Just Focus on Shareholders” covers research co-authored by Associate Professor of Logistics, Business and Public Policy Rachelle Sampson. Smith PhD candidate Nathan Barrymore also contributed to the work jointly released by FCLT Global and The Wharton School and also covered by IR Magazine and others.
The Business Monthly – Jan. 18 – “Maryland Smith Launches Blockchain Certificate Program” announces a six-week synchronous online certificate program on blockchain technology and its potential economic impact across industries.
SHRM – Jan. 18 – Associate Director of Executive MBA Career Coaching Rachel Loock contributes to “Jargon: It Creates a Wall Between Managers and Employees”: Jargon can even damage your credibility by skipping over issues that deserve more thought. … And chances are, that "one-off situation" isn't, [said Loock]. When you work in the same industry for years, "jargon falls out of your mouth without [your] thinking," Loock said. But consider how daunting this jargon may be for a new or early-career employee, Loock continued. She suggests that HR provide a glossary of common terms and acronyms in their onboarding packet to familiarize new employees with the organization's lingo.
Security Boulevard – Jan. 18 – “Protecting VFX Production Studios from Content Loss and Exposure” references research by Associate Professor of Marketing Liye Ma: As far back as 2014, [Ma] found that pre-release piracy reduces box office revenues by close to 20% more than when piracy occurred following release. According to Ma, pre-release piracy is particularly harmful because the impact “comes disproportionately from individuals most passionate about and most interested in watching the movie.”
Southern Maryland Chronicle – Jan. 18 – “University of Maryland Predictions for the Mattress Industry, Revisited” assesses a 2015 analysis of the mattress industry by Dean’s Chair in Marketing Science P.K. Kannan.
Salon – Jan. 15 – “How Better Airline Technology Could Minimize Flight Disruptions” includes input from Professor and Chair of Logistics, Business and Public Policy Martin Dresner: Southwest has different vulnerabilities, [said Dresner]. The airline lacks strong hubs with spare crews and planes that other airlines use to pick up the slack when something goes awry (unless, as in the American example, the hub is affected).
Scienmag – Jan. 13 – “Researchers Develop New Metrics to Better Decipher how Companies Exploit Investment Opportunities” covers research co-authored by William A. Longbrake Chair in Finance Vojislav (Max) Maksimovic: In applying the new metrics to predict firm disclosures, Maksimovic and Hoberg show that firms with early life cycle products disclose less in order to hide from rivals. But mature firms disclose more in order to attract synergistic partners – for strategic alliances. And other mature companies are usually the targets… Related coverage via Phys.org.
The Fashion Law – Jan. 13 – Center for Financial Policy Senior Consultant Kristen Fanarakis writes guest column “As New York Lawmakers Unveil the Fashion Act, is Larger Reform on The Way?”
UnDark Magazine – Jan. 12 – Professor and Chair of Logistics, Business and Public Policy Martin Dresner comments in “How Better Airline Technology Could Minimize Flight Disruptions”: Southwest has different vulnerabilities, [said Dresner]. The airline lacks strong hubs with spare crews and planes that other airlines use to pick up the slack when something goes awry (unless, as in the American example, the hub is affected). When bad weather grounded flights in Florida, a big area for Southwest, those planes and crews were then out of position for the next flights scheduled across the country — and so on. “It’s a bit of a cascading effect,” said Dresner, who also heads the Air Transport Research Society, a nonprofit dedicated to transportation research. “Unless you have some surplus crew and surplus aircraft available, then you’re going to be in a very tight situation.”
AACSB Insights – Jan. 11 – “People and Places” (scroll down) announces Maryland Smith’s new Tech Management MBA Specialty Elective Track and Graduate Certificate, including: The 10-month graduate certificate program, which begins in August, is a collaboration with the university’s School of Engineering and School of Public Policy. Students will learn how to identify and implement technology across their organizations, how to quantify the lifespan value and risk of investments in new technology, and how to explore legal and ethical implications of new technology.
EFMA Magazine – Jan. 11 – In a Q&A, Distinguished University Professor and David Bruce Smith Chair in Marketing Roland Rust discusses “The Growing Importance of the Interpersonal in an AI-Driven World,” including: “The Feeling Economy is what emerges as AI takes over more of the thinking tasks. With physical tasks and thinking tasks both automated, humans will need to focus on the area in which they have a differential advantage over AI. For a while, humans will still have an advantage in common sense, creativity, and holistic reasoning, but soon those advantages will dissipate. At that point, focusing on feeling tasks, such as interpersonal relationships, will be what people need to do.”
Poets & Quants – Jan. 11 – “Maryland Smith Unveils Tech Management MBA & Graduate Certificate Program” (scroll down) includes: Students also will gain a broader strategic understanding of the new economics of innovation and data, how to quantify the lifespan value and risk of investments in new technology and explore both the legal and ethical implications of technology development or adoption.
TalkMarkets – Jan. 8 – Clinical Professor of Finance David Kass gives the “2022 Percentage Returns Of Largest U.S. Companies By Market Capitalization.”
Global Association of Risk Professionals (GARP) CRO Outlook – Jan. 7 – Professor of the Practice Clifford Rossi produces guest column “Risk Management Predictions for 2022: Seeking Alternatives in Times of Uncertainty.” Summary: Interest rate risk, regulatory changes, supply chain disruptions, credit risk and human-capital risk are among the threats that will likely be top of mind for risk professionals over the next 12 months, as they attempt to navigate unpredictable, pandemic-altered markets.
Barron’s – Jan. 7 – Clinical Professor of Finance David Kass comments on Graham Holdings stock buybacks, via Letters to the Editor. Kass writes: Andrew Bary presents an excellent case for the undervaluation of Graham Holdings (“This Mini Berkshire Hathaway Flies Under the Radar. And Its Stock Is Cheap,” Dec. 30). However, I disagree with his suggestion that stock buybacks should be given a higher priority than purchasing additional businesses. Presumably, Graham’s recent acquisitions of a consumer internet company and a Virginia Ford dealership represent opportunities for the company to earn an expected rate of return on invested capital that exceeds its cost of capital. These acquisitions would then be expected to add to shareholder value. A company should buy back its shares only when value-enhancing investments are unavailable, and its shares are trading below intrinsic value. This is the same approach being followed by its role model, Warren Buffett’s Berkshire Hathaway.
Global Association of Risk Professionals (GARP) – Jan. 7- Professor Emeritus Dilip Madan is recognized as financial engineer of the year by the International Association for Quantitative Finance and Northfield Information Services, via “University of Maryland Professor Wins Annual Quantitative Finance Award.”
Yahoo Finance – Jan. 6 – “The SCORE Foundation Welcomes Liz Sara as President” introduces adjunct marketing professor Liz Sara as the leader of the nation’s largest network of volunteer business mentors.
Forbes – Jan. 4 – Rudolph Lamone Chair of Strategy and Entrepreneurship Rajshree Agarwal writes “Six Pillars For Building An Intentional Life In This New Year.”
Women’s Wear Daily – Jan. 4 – “What to Watch: The Mass Channel” quotes Professor of Marketing Jie Zhang: At the same time, both Walmart and Target have been able to flex their expansive store fleets – something Amazon and other e-commerce players are not able to do online – so shoppers could touch and feel products in person. In addition, both Walmart and Target have experimented with small-format stores in urban areas. (In Walmart's case internationally.) "Walmart's widespread store locations not only continued to serve a large number of American shoppers in the offline space, but also allowed the retailer to utilize stores as fulfillment centers to meet online demand and to shorten delivery times," [said Zhang]. This explains why both Target and Walmart continued to make gains in recent quarters.
ProMarket – Jan. 3 – Associate Professor of Management and Organization Evan Starr writes “The Ties that Bind Workers to Firms: No-Poach Agreements, Noncompetes, and Other Ways Firms Create and Exercise Labor Market Power.”
BusinessBecause – Jan. 3 – “19 Books To Read Before Your MBA” includes Assistant Dean and Executive Director of of Career Services Neta Moye’s selection and review of Amy Admondson’s “The Fearless Organization: Creating Psychological Safety in the Workplace for Leading, Innovation, and Growth.”
WalletHub – Jan. 3 – Professor of the Practice Clifford Rossi gives consumer advice about the new “Discover it” secured credit card, via an “Ask the Experts” Q&A.
TalkMarkets – Jan. 1 – Clinical Professor of the Practice David Kass gives the “2021 Percentage Returns of 8 Largest U.S. Companies by Market Capitalization.” Previous iterations published on December 24 and December 18.