Fox in the News
Philadelphia Business Journal, "3Q is up, doubts remain"
Nov. 13, 2009
With third-quarter earnings season drawing to a close, many of the area's largest publicly traded companies appear to be emerging from the recession profitable but smaller in terms of revenue than they were going into it. "There is no clear indication that we've turned the corner," said Howard Keen, an assistant professor of finance at Temple University's Fox School of Business and a former economist with the Federal Reserve Bank of Philadelphia. "There is a great deal of uncertainty out there. With high unemployment, it's hard to see how consumers will lead us out of this situation." (Link)
KYW Newsradio 1060, "Labor Dept. Says Women Still Earn Less Than Male Counterparts"
Nov. 12, 2009
Recent Labor Department statistics show that women in Pennsylvania
earn only 79 percent of what their male counterparts do. Why do women
continue to earn less than men? Dr. Crystal Harold of Temple
University's Fox School of Business, specializing in human resources,
says one of the main reasons is that women are not as strong when it
comes to salary negotiation. "Women tend to come in with the attitude
that this is a win-win process whereas men are much more competitive.
They aren't afraid to put it all on the table and threaten to walk
away. Women have to get a little bit more of that competitive edge." (Link)
The Philadelphia Inquirer, "530 at Blue Cross accept early retirement"
Nov. 6, 2009
More than 500 Independence Blue Cross employees have accepted early-retirement packages, as Philadelphia's largest health insurer struggles to cut costs. R.B. Drennan Jr., chairman of Temple University's risk, insurance, and health-care management department, said that medical-membership declines were only one factor in the health insurance industry – and that the worst of that was likely over as layoffs had slowed. To hold the line on expenses, "employers are being very aggressive in negotiating renewals," Drennan said. (Link)
Bucks County Courier Times, "Great Depression lessons recalled"
Oct. 25, 2009
The Great Depression, which began 80 years ago this week with Black Tuesday, has many parallels to the Great Recession. Economists said the root cause of the Depression - financial excess - is very similar to the cause of what's being called the Great Recession. "Asset prices were rising. Real estate prices were rising. Everything was go, go, go," said Kenneth Kopecky, chairman of the Finance Department at Temple's Fox School of Business. (Link)
WHYY
Oct. 21, 2009
Prices at the pump are up. The average price of a gallon of gasoline surged seven cents in the Philadelphia area over the weekend and 11 cents in South Jersey. Fred Murphy, a professor at Temple University's Fox School of Business, says the economic downturn is taking a toll on refineries, which has kept gas prices down. “We have not really faced in the gasoline price the effect of rising crude oil as much as normal simply because the refinery margins have absolutely collapsed,” he said. (Link)
Comcast Network
Oct. 15, 2009
David Reeb, professor of accounting and finance at Temple’s Fox School of Business, talked with CN8’s Art Fennel and offered his reaction to our economic woes. “We are a little bit further along at this point than I would have thought given the nature of the banking problems that we have had over the last year or year and a half,” Reeb said.
Philadelphia Business Journal, "Dow Jones industrial average breaks 10,000"
Oct. 15, 2009
The Dow Jones industrial average reached 10,000 for the first time in
a year during Wednesday afternoon trading. Michael Boldin, assistant
professor in finance at Temple University’s Fox School of Business,
said the Dow is not the best gauge of the stock market, which he said
is not the best gauge of the economy as a whole. But he said
Wednesday’s events are a continuation of a steady climb over the past
four months.
“We have seen one of the fastest and largest increases from the bottom
of the stock market,” Boldin said. “And this is just a continuation of
that. It won’t tell people to hire or buy more equipment. But this
continues an upward trend.” (Link)
The News Journal (Delaware), "Dow milestone may augur recovery"
Oct. 15, 2009
Wall Street's on a roll, and Main Street shouldn't be too far behind.
That's the general sentiment following Wednesday's rapid-fire ascent
of the Dow Jones industrial average to 10,000, a feat that almost
surely presages a broader recovery, market experts in and around
Delaware said.
"Things are moving ahead. If the Dow stays above 10,000 for the next
two months, it would be almost complete confirmation we are in
economic recovery," said Michael Boldin, finance professor at Temple
University's Fox School of Business. (Link)
The Philadelphia Inquirer, "Fast growth for Greater Philadelphia Senior Executive Group"
Oct. 15, 2009
For those who like networking of the face-to-face kind, there are all
sorts of professional organizations that have regular meetings,
mixers, and business-card exchanges.
Then there is the nonprofit group started by Temple University
entrepreneurship professor Chris Pavlides in May 2002. The Greater
Philadelphia Senior Executive Group sounds exclusive, and it is.
Membership is limited to those who are or were “C-level” executives --
shorthand for the many chiefs in a business -- make at least $150,000,
and have 20 years of experience. Its motto is “networking for life,”
and Pavlides said that’s how we need to approach our careers. “It’s
your best defense now.” (Link)
Philadelphia Business Journal, "TD Bank’s integration woes not uncommon, experts say"
Oct. 9, 2009
Information-technology experts say the recent struggles involving TD Bank’s systems integration are all too common after mergers — this one just received notoriety because it involved the region’s second-largest bank. Munir Mandviwalla, Temple University's founding chairman of the management information systems department, is using the recent events as part of the curriculum for one of his classes. Mandviwalla asked students on his blog if they could reference class material to speculate on how the problems occurred. “Wall Street looks at the financials and marketing, but if there is an integration problem, it is the shareholders and consumers that lose out,” Mandviwalla said. “Questions about integration can no longer be internal because the cost is too staggering. Integration strategy should be made public. In some cases, it might be wise to not merge because the costs are too high.” (Link)
6ABC, "Competition goes after TD Bank customers"
Oct. 5, 2009
Competitors are trying to capitalize on TD Bank's computer glitch, hoping to woo away its customers. But banking experts predict that once the situation settles and customers cool off, many will keep their money right where it is. “Especially people who have direct deposits, they have their online bill pay set up, they know where the ATMs are located for that bank, it’s really difficult to switch,” said Susan Mudambi of the Fox School of Business. (Link)
The Philadelphia Inquirer, "What's behind health costs? Lots"
Oct. 4, 2009
Lots of us think we know why American health-care costs are rising faster than a speeding bullet, or at least faster than our GDP, incomes and inflation. But, industry experts see a much more complicated picture. And, making a dent in this problem, as Washington is discovering, is a tough, disruptive job that not only would change the way people get care, but also threaten the livelihood of powerful vested interests. "Your cost is my income," Tom Getzen, a health economist at Temple University, pointed out. "Real cuts, the kind of cuts that count, are also the kind that hurt." (Link)
Courier-Post, "Business cost cuts mirror public's"
Oct. 1, 2009
Consumers are spending less — and business owners are following their lead. That's the consensus of a panel of executives who gathered Thursday to talk about the challenges businesses are facing after almost two years of economic recession. "You don't spend a dime on anything you don't really need to keep your business rolling," said moderator William Dunkelberg, professor of economics at Temple University and chief economist of the National Federation of Independent Business. Dunkelberg said that many economists believe the recession bottomed out in July or August. Although he doesn't expect retail sales and the housing market to rebound immediately, he said the economy should begin growing again by the end of 2009. (Link)
KYW Newsradio 1060, "Customers Steaming Mad as TD Bank Issues Persist"
Oct. 1, 2009
A number of TD Bank customers were inconvenienced by a glitch in the
bank’s computer system Wednesday, Sept. 30. As problems persisted into Thursday, Professor Munir Mandviwalla, founding chair of the
Management Information Systems department and executive director of
the Irwin L. Gross eBusiness Institute, said the bank’s problems may have more to do with organization and timing than with technological
obstructions. “It's not that the people are incompetent,” he said. “What often happens is that the IT people who could actually think this through are not given enough time, and they don't have a seat at
the table. The financial engineers are the ones who make this
decision, and then the problem is thrown into the laps of the IT
people.” (Link)
Philadelphia Business Journal, "Temple adds Colombia to its international program roster"
Sept. 25 to Oct. 1, 2009
Arvind Phatak, a business professor and executive director of the Institute of Global Management Studies, is one of the pioneers behind Temple’s international Executive MBA program partnership with Pontifica Universidad Javeriana in Colombia. Temple professors and local faculty instruct the program’s multilingual classes, which started in July at the Colombian university’s new extension in the city of Cali. The program helps prepare students for a business career in the U.S. or abroad. “When it comes to business, the Americans wrote the book,” Phatak says. “We know business … we know how to internally manage corporations. We are very good at that.” (Link)
National Association of Broadcasters
Sept. 24, 2009
Bruce Rader of the Fox School’s finance department was one of three panelists on Deon’s Awesome Finance Session moderated by Deon Levingston, vice president and general manager of WBLS-FM in New York. The panel, organized by the National Association of Broadcasters, discussed the state of the economy.
Philadelphia Inquirer, "A stinky problem means a big opportunity"
Sept. 22, 2009
After enduring pairs upon pairs of their soccer-player children's stinky shoes, two New Jersey moms
took the initiative to fill the anti-odor void in the shoe industry. Marketing Department Chair Richard Lancioni explained that the shoe industry's stinky situation is an example of "unrecognized need." He said shoe manufacturers may put tons of research into producing lighter, faster shoes without worrying enough about what happens when their technology meets adolescent perspiration. (Link)
WRTI
Sept. 16, 2009
Professor Kathleen Davis of Human Resources Management outlined the main points of the federal Employee Free Choice Act, which was introduced in March by Sen. Edward M. Kennedy, and responded to claims that the bill would take away jobs and force millions of workers to unionize.
Professor Davis said the act does not require anyone to join a union. She also addressed the allegation that the act would force employers to accept contracts imposed by arbitrators.
WHYY, “Searching for what works in medicine”
Sept. 16, 2009
There has been much discussion and controversy about comparative effectiveness research and its role in healthcare reform. Thomas Getzen, a health economist at Temple University's Fox School of Business, was featured as one of two experts during a live online discussion on comparative effectiveness research. (Link)
Philadelphia Inquirer, “Lehman collapse began the fall 'off a cliff'"
Sept. 15, 2009
In a dramatic Sunday a year ago, the 158-year-old New York investment bank Lehman Bros. Holdings Inc. collapsed like a house of cards as it filed for bankruptcy protection, and eventual liquidation, with more than $600 billion in debt. "It was the sheer shock that they actually failed," William Dunkelberg, a Temple University professor and chief economist with the National Federation of Independent Business, said of Lehman Bros.'s inglorious end on Sept. 14, 2008. "It generated so much uncertainty. Everybody pulled back." (Link)
WHYY, “A break on hospital prices in Central PA”
Sept. 14, 2009
The Pinnacle Health System in Central Pennsylvania says it's caring for a growing number of people who can't afford their medical bills. The health system is offering a 15 percent price break to uninsured patients, and people who pay out-of-pocket for care. But some health policy analysts say the discount isn't much of a bargain. Thomas Getzen is a health economist with Temple University: “Hospitals have something that they call charges which are approximately the same as the list price on camcorders and stuff like that, that is to say that nobody in their right mind would ever pay that.” (Link)
Philadelphia Inquirer, "Health-reform impact on insurers unclear"
Sept. 11, 2009
One of the health care reforms being considered by legislators is a national insurance exchange, which would permit individuals to shop
for an insurance plan. Depending on how it is structured, an insurance exchange for individuals and small businesses could also step up competition. Tom Getzen, a health economist at Temple's Fox School of Business, said an exchange likely would give individuals and small groups more choices and information than they now have. That could lower profits for the companies. "It's going to be a tougher, competitive market for them," he said. (Link)
McClatchy Newspapers, "The elite NFL is pro sports' billion dollar baby"
Sept. 10, 2009
The National Football league has become the premier sports league in the country, if not the world. The NFL's unprecedented success is "thanks largely" to Pete Rozelle, according to Michael Leeds, an economist at Temple and co-author of The Economics of Sports. Shortly after he became the commissioner of the NFL in 1960, Rozelle persuaded NFL owners to share television revenue and then persuaded lawmakers to allow the league a limited exemption from the antitrust laws. (Link)
Phillyburbs.com, “Murphy: Health care reform would reduce costs”
Sept. 9, 2009
Under proposed House reforms, by 2017 an estimated 165 million people would have their primary insurance coverage through an employer, or about three million more than under current law, the Congressional Budget Office and the Joint Committee on Taxation wrote in a July 14 report to the House Ways and Means Committee. Tom Getzen, a health policy professor at Temple University's Fox School of Business, said that, historically, new competition has benefited consumers, not businesses, but there's no way to know if the public [health care] option would work unless it's rolled out. He added that the biggest issue with health care costs is how - and who - pays for the people who require the most health care and how can you make it fair and affordable for everyone. "Those are political problems that have a lot of dollars attached," he said. (Link)
Bizjournals.com, “Seed fund group, Temple to study venture trend"
Aug. 19, 2009
The National Association of Seed and Venture Funds said Wednesday that it has entered into a research partnership with Temple University’s Fox School of Business that will focus on early-stage investing trends. The partnership’s initial venture will be a survey of senior executives of early-stage funds to gather information. Rajeswararao Chaganti, a professor of general and strategic management at the Fox School, will lead the team that conducts the survey, which is slated to be the first of a series. (Link)
NB10, CBS3
Aug. 12, 2009
As part of the Fox School of Business's first official day of service, dozens of first-year, full-time MBA students spent the day painting the interior of a recreation center in an underserved North Philadelphia neighborhood near Main Campus. The mandatory orientation exercise wasn't just a one-and-done event — the students will be charged with developing a business plan for next year's day of service.
New York Times, "Repairman's Advantage: Even in Hard Times, Things Need to Be Fixed"
Aug. 6, 2009
Some small contractors, including plumbers and electricians, have found opportunities during the recession. "Small construction-type businesses may lose house-building or large renovation jobs, but there is still a lot of fixing and repairing to do," said Eustace Kangaju, director of the Fox School of Business's Small Business Development Center. "I would say city businesses are better off than suburban ones in this economy. Philadelphia, for instance, has older housing stock and things need repairing all the time. Not only are they not building many houses in the suburbs right now, but those that are there are newer and probably in less need of repairs." (Link)
Market Watch, "Key House panel approves say-on-pay bill"
July 28, 2009
The House Financial Services Committee approved a package of legislation, including a controversial provision that would require federal regulators to prohibit "certain compensation" structures at large financial institutions if they could have a "serious adverse effect on financial stability." Steve Balsam, a professor in Temple’s Fox School of Business, said he worried that any rules written by a bank regulator to limit incentive-based pay packages of financial institutions could have the unintended consequence of limiting important investments that could be considered risky, but are necessary to drive creative innovation in operating businesses. "Treasury bills aren't risky, but what if all financial institutions invested in T-bills to meet risk rules," Balsam said. "There would be no money to go into businesses." (Link)
Business Week, "Business Courses for Go-Getters"
July 2, 2009
Sports fans might enjoy learning about teamwork and leadership in a course at Temple University's Fox School of Business and Management that is team-taught by Lynne Anderson, associate professor of business, society, and ethics, and basketball coach Fran Dunphy. The class, which is only for honors business students, takes field trips to Philadelphia stadiums to meet managers and teams. Kobe Bryant's high school coach, for example, spoke to students about nurturing great talent. Students also sit in on Temple basketball practices to observe and then write about the development of work groups. (Link)
Philadelphia Business Journal, "Highest-paid CEOs' comp bucks downturn"
June 26, 2009
There were no major changes in CEO salary, bonus or deferred compensation, but the average value of perquisites and miscellaneous payments fell from $272,000 to $150,000. Steven Balsam, an accounting professor at Temple's Fox School of Business, who has written a book on executive compensation, said companies offer executives stock options for two reasons — to motivate executives to increase the stock price and in order to retain those executives. (Link)
CNN.com, "Businesses find it pays to consult students"
June 18, 2009
At Temple University's Fox School of Business in Philadelphia, MBA students can participate in the Enterprise Management Consultant Practice (EMCP). The EMCP charges companies $20,000 for a consultancy, but managing director TL Hill estimates this is only a tenth of the commercial going rate.
Hill says the fee is offered on a sliding scale for non-profits, charities and smaller companies. He gives the example of a project working with a Philadelphia arts program that has created more than 2,000 murals around the city.
Hill says the MBA consultants helped the arts program think about ways of using its copyrighted artwork images to generate extra revenue, including selling prints and T-shirts featuring the artworks. (Link)
Financial Times, "Top notch advice with a budget price tag"
June 15, 2009
According to TL Hill, the managing director of the student management consulting practice at Temple University's Fox Business School in Philadelphia, companies are increasingly interested in partnering with the school. Fox students used to complete an average of 16 projects per year but that has risen to 19 this year and will further increase to 23 next year.
"In good times we position our [programme] as 'executive extended', an inexpensive way to increase your capacity. Now we're awkwardly turning people away," says Prof Hill. "We're not trying to compete with consulting firms. We're not trying to make as much money as possible."
Prof Hill says that as companies clamp down on expenses, they are increasingly giving students high-level, high-priority strategic projects, whereas in the past, they tended to give low-risk, tactical assignments. "Companies are starting to feel the pinch and are saying: 'We need this work done and we're watching our bottom line'."
The Fox consulting group, which is offered as part of the MBA programme, charges companies $20,000 per project. The fee helps to pay for a clinical faculty member to oversee the project, as well as research and administrative costs.
Companies are taking the student projects more seriously than in the past, Prof Hill says. "We're having executives flying in for meetings, they're not calling in. You can feel the concentration of resources."
Student team brings fresh perspectives
When Andy Weber, president of Farm Journal, the agricultural magazine, wanted to develop a new e-commerce model for his Philadelphia-based publication, he had a problem. His company - with revenue of a little less than $50m a year - lacked a business development division or a mergers and acquisitions department.
To hire an expensive consulting group was out of the question. So he turned to a student team from Temple University's Fox Business School in Philadelphia.
The Fox consulting group had well-known clients, Dow Chemical had demonstrated repeat business and the price was right.
Mr Weber was impressed by the students' work. For example, the students found several of Farm Journal's assumptions about its potential venture were wrong. Had the company acted on those assumptions, "it would have cost us a lot of time and money", says Mr Weber. (Link)
Allentown Morning Call, "Firms reap millions in fees from swap deals"
June 7, 2009
Recently, to ease financial strain, it was proposed that the Bethlehem School Board amend two variable-rate derivative bond deals called "swaps," which come with hefty fees. They are used to hedge against a potential increase in the underlying bonds' variable-rate interest. Swaps also are used to try to make money. While hedging and betting with taxpayer money, the school board ignored the first law of finance. "If someone offers you something that sounds too good to be true, it probably is," said Bruce Rader, a finance professor at Temple's Fox School of Business. (Link)
MarketWatch, FOX Business, "Target-date funds under the microscope"
June 5, 2009
401(k) plan sponsors can automatically enroll employees into qualified default investment alternatives, including target-date funds. For those workers who weren't contributing to their 401(k), automatic enrollment and contributions to target-date funds are better than not investing, say some experts. Ditto for older workers who invest in target-date funds of their own volition. Before target-date funds came along, many plan participants invested too much of their money in stock, said Jack VanDerhei of Temple's Fox School of Business. "Target-date funds seem to do a good job of taking plan participants away from extreme equity positions, of having either too little or too much invested in stocks," he said. (Link)
NBC Philadelphia, NBC Chicago, NBC Bay Area, more
May 21, 2009
President Obama's suggestion that it may be a good time for the best and the brightest to work for the government has inspired more than a few students, but a government job has other virtues. "It seems more secure from the student perspective and the benefits are good," said Zelon Crawford, director of graduate career management and corporate relations at Temple University's Fox School of Business. (Link)
Pittsburgh Post-Gazette, "Some say executive pay reforms don't go far enough"
February 8, 2009
Some experts say that President Obama's executive pay reforms don't go far enough. "Is compensation really going to be cut or are companies just going to find a way out of it?" asks Steven Balsam, a Fox School of Business accounting professor. Balsam, who told the U.S. Senate Finance Committee in 2007 that disclosure doesn't necessarily curb executive pay, says shareholders already have information on executive pay based on disclosure requirements adopted by the SEC. (Link)
The Washington Times, "Salary cap misses one Obama appointee"
February 8, 2009
Weeks before the Treasury Department announced a salary cap for executives at companies taking federal aid, one of President Obama's top political appointees reported a seven-figure compensation deal with Citigroup, a recipient of bailout cash. Had the new pay rules been in place last year, Citigroup executives likely would have seen their pay cut. "I think they certainly would have," said Steven Balsam of Temple's Fox School of Business. "They were paying out huge amounts of money…and it backfired. All the while, they were getting bonuses." (Link)
Philadelphia Business Journal, "Schools say campus recruiting is down, but not as deeply as you might think"
May 15, 2009
Students graduating from area colleges this spring may be having a tougher time finding a job than their predecessors have in recent years, but they’re still better off than their counterparts in other parts of the country.Career placement officials at the region’s two- and four-year schools say the number of companies recruiting on their campuses is the same as, or somewhat down from, previous years, and most of the companies that are recruiting are filling fewer jobs than they used to.But they also say the situation for graduating students isn’t as dire as the news about the economy indicates and that although graduates have to work harder to find jobs, there are jobs out there.“It’s definitely a little bit tighter than it has been in the last couple of years, however, we are trying to instill a sense of hope in the students and make them understand that it’s not hopeless,” said Corinne Snell, the executive director of the Center for Student Professional Development at Temple University’s Fox School of Business. (Link)
CNBC, "New High-Tech Biz School Opens"
April 20, 2009
Broadcasting live in prime time from the celebration of the opening of Alter Hall, the "brand new, state-of-the-art" home of Temple's Fox School of Business, CNBC's Tyler Matheson interviewed Temple President Ann Weaver Hart and Fox Dean M. Moshe Porat. Dean Porat addressed how Fox prepares students for careers during a recession. "We try to prepare them to be their own bosses -- to be entrepreneurs -- more and more," he said. President Hart highlighted the importance of Temple's role in economic hard times. "It's part of our core mission to provide access to an excellent education for people who are prepared but don't have $50,000 a year to spend," she said. (Link)
6ABC, NBC10, Fox29, Philadelphia Inquirer, more
April 20, 2009
Hundreds of alumni, students, faculty members and staff gathered in Alter Hall, the new home of Temple's Fox School of Business, to celebrate the facility's opening with a ribbon-cutting ceremony and guided tours of the building's high-tech classrooms and stunning art work. Among the speakers at the ceremony were President Ann Weaver Hart, Fox Dean M. Moshe Porat, Temple trustees Daniel H. Polett and Richard J. Fox, men's basketball coach Fran Dunphy and Temple alumnus and Advanta chair and CEO Dennis Alter, whose leadership gift of $15 million helped make Alter Hall possible. (No Link)
1210-AM The Big Talker2009
April 18, 2009
Steve Cordasco, alumnus of Temple's Fox School of Business and host of "Big Money," interviewed fellow Fox alumnus Bret Perkins, a senior executive with Comcast. The two reflected on their undergraduate experiences and the enormous improvements at the school -- including Fox's new, state-of-the-art facility, Alter Hall, in heart of Temple's Main Campus. Cordasco invited listeners to attend the ribbon-cutting ceremony at Alter Hall on Monday afternoon. (No Link)
Wall Street Journal, Associated Press, "Retirement Outlook Drops to Record Low"
April 14, 2009
A long-running survey about Americans' plans for their later years shows that confidence about retirement security has deteriorated to record lows. The results don’t surprise Jack VanDerhei, a faculty member at Temple's Fox School of Business and research director of the Employee Benefits Research Institute, which conducted this year's poll. "But the good news is, I really do think this will be a wakeup call for many people who had false optimism in the past," said VanDerhei. (Link)
Consumer Reports Money Adviser, "How to play catch-up: You might need to revamp your retirement savings strategy in light of investment losses and employer cutbacks"
April 2009
As you evaluate your 401(k) options -- even if your employer has ceased to match -- one question to ask yourself: Is choice important to you? You might not find real-estate investment trusts and exotic sector funds any more, but the very fact that 401(k)s aren’t investment supermarkets may make them better suited to the average investor, says Jack VanDerhei of Temple's Fox School of Business. Studies have found that individual investors, faced with too many investment options, can become overwhelmed. “If you give people info overload, you freeze them into inactivity,” he says. (Link)
Charlotte Observer, "Automatic enrollment boosts 401(k) numbers"
March 27, 2009
Finally, there's some good news about 401(k) retirement plans. No, your nest egg didn't go up 20 percent last night. Rather, there's new hope that potentially millions more U.S. workers will start putting away retirement money in a 401(k). That could result in billions more in long-term savings for future retirees. "Everyone is excited about this, but it's so new, we haven't seen the biggest impact," says Jack VanDerhei of Temple's Fox School of Business. (Link)
Wall Street Journal Online, "Many U.S. Employers Cut 401(k) Matches"
March 25, 2009
Workers are making lots of cuts in 401(k) contributions, at what is probably the worst time in terms of potential impact on long-term savings. And companies are reducing or suspending their matches. Jack VanDerhei, of Temple’s Fox School of Business and Management, said what's most significant is whether the suspensions have a long-term impact on retirement readiness. (Link)
NPR’s “Morning Edition”
March 24, 2009
Tapped-out cities and states are looking for ways to bring in revenue. Starting today the city of Detroit will not renew driver’s licenses for people with outstanding tickets. Other cities are upping fees for bus service, trash collection and more. According to Fred Murphy, of Temple University’s Fox School, with tax revenues shrinking, cities have to raise money other ways. "We all have to learn to live within our budgets." (No Link)
KYW News Radio, "Temple Prof. Says Sales, Property Tax Hikes 'Least Painful'"
March 20, 2009
Two tax policy experts at Temple's Fox School of Business, Frederic Murphy and David Ryan, offered their takes on Mayor Michael Nutter's proposal to hike Philadelphia's sale and property taxes in separate reports. Murphy says raising those taxes is the "least painful" solution. "The real estate tax is probably the best choice in terms of not driving jobs out of the city. And the same thing with the sales tax. Here, you're taxing consumption, not the act of job creation," he said. (Link)
Rise Display, "Temple University Fox School of Business Installs 177-foot Web-Based LED Ticker from Rise Display"
March 17, 2009
Rise Display has completed installation of a 177-foot, web-based LED ticker for Temple University’s Fox School of Business. The new ticker uses eight-color LED technology, and displays business headlines, stock quotes, and university messages. It is the largest elliptical ticker installed in a business school, and the longest indoor, eight-color ticker in North America.“We wanted everyone who entered our new facility to understand that this is a serious business operation, and our LED ticker from Rise Display does it dramatically, and does it well,” says John DeAngelo, Associate Dean for Information Technology Business and Management, Fox School of Business at Temple University. “Rise Display offered us a 21st century solution, with full-color display and web-based technology. It includes a simple, direct software solution that is plug-and-play.” (Link)
Philadelphia Inquirer, "Experts see high hurdles to void AIG bonuses"
March 17, 2009
Despite public furor over bonuses paid to executives at AIG, President Obama has few legal options in seeking to force AIG to return the money. Steven Balsam, a professor of accounting at Temple's Fox School of Business, said he doubted the company had much choice in paying the bonuses, nor did the government. It is possible government lawyers might find a legal reason for voiding the contacts, he said, or the company itself could file for bankruptcy to escape its obligations. "I don't think the government can make you violate a contract," Balsam said. (Link)
MarketWatch, "Obama seeks to block bonus payments to AIG: Experts say it will be difficult for government officials to stop the bonuses"
March 16, 2009
Although President Obama says he'll try to block bonuses being paid to traders at AIG, it may be difficult to stop the payments. Steven Balsam of Temple's Fox School of Business pointed out that a provision in the stimulus package limiting bonuses only applies to contracts approved after the stimulus went into effect. "If you have a contract and it was signed before the stimulus went into effect, then those contracts are still binding," he said. (Link)
Fox29
March 13, 2009
During a recession, one way to improve your odds of economic survival is education. Graduating seniors at Temple know there soon-to-be-received diploma is more important than ever. Temple senior Kyle Alexander grew up a few blocks from Temple's campus. "People in my neighborhood grew up without diplomas," he said. "The value after college degree in terms of where it can take you, all over the country, even the world -- you can't get [that] with a high school diploma." Colleges can help by offering career guidance, resume advice, job fairs and networking events. "We posted close to 1,300 job opportunities last year that were screened by us," said Corinne Snell of the Center for Student Professional Development at the Fox School of Business. "These are real jobs that require a degree. They're not busy work; they're real solid opportunities." (No link)
San Francisco Chronicle, “Older job-seekers face special hurdles”
March 9, 2009
Finding a job in a recession is tough, but older job seekers are facing special hurdles. "I was fearful about the economic reality for older Americans before the market turned in September," said Jack VanDerhei of Temple's Fox School of Business. VanDerhei, who has analyzed average 401(k) account balances for 22 million Baby Boomers, says "the vast majority of people do not have enough savings to get out of the workforce at age 65." (Link)
Philadelphia Inquirer, “Getting creative to survive: People in the arts feel the pinch, too, but they can draw on their talent to stay afloat.”
March 4, 2009
Local arts organizations are getting creative to save money. By enlisting Fox School of Business MBA students participating in the school's innovative Enterprise Management Consulting practice to draft a business plan, Philadelphia's Mural Arts Program is minimizing layoffs of part-time employees. (Link)
KYW News Radio, “The Young and the Jobless”
March 4, 2009
In a special weeklong series called "The Young and the Jobless," KYW explored issues related to job hunting for college graduates. Corinne Snell, executive director of the Center for Student Professional Development at Temple's Fox School of Business, is featured in three of the ten episodes. She advises students not to be too picky in light of current economic conditions. "This is the type of market where job-seekers need to be a little more flexible." Temple students were also featured in the series sharing their experiences as they search for that first job. (Link)
Money, "Compound your gains, not losses"
February 23, 2009
By fixing common mistakes, 401(k) investors can make sure that difficult times aren't made worse. One such mistake: An alarming number of workers nearing retirement are too heavily weighted in stocks. Among 401(k) savers 56 to 65, nearly two in five recently had 80 percent or more of their retirement assets in equities, according to Jack VanDerhei of Temple's Fox School of Business. (Link)
Washington Post, "Senate weighing new rules for retirement funds"
February 22, 2009
Target-date retirement funds are coming under increased scrutiny as investors try to contain the damage to their 401(k)s from the worst economic downturn in generations. The funds, also known as lifecycle funds, are designed to minimize risk by shifting the funds' assets from equities to bonds as investors grow older. But with their increasing popularity, target funds are also leaving some investors confused about their makeup and about their level of risk. Other investors may not even realize their retirement plan has invested in the funds. There is widespread agreement that investors should adjust their assets to a more conservative mix as they near retirement. Though target funds can help with that effort, experts say that investors cannot escape keeping an eye on their funds. Jack VanDerhei, Associate Professor of Risk, Insurance, and Healthcare Management said, "Just because it's a prudent selection on the day you pick it doesn't mean you don't have to monitor it." (Link)
Philadelphia Business Journal, "Accounting firms experience season of change, not all bad"
February 20, 2009
Although many businesses are suffering during the recession, accounting firms are finding plenty of opportunities for growth. “There may not be as many new clients,” said Eric Press, associate professor and chair of the Accounting Department at Temple's Fox School of Business, "but even if a company’s business is off 15 percent, that does not stop the need for an audit." Press said that even accounting firms that are laying off some employees are also recruiting his students. (Link)
Philadelphia Daily News, "The recession beaters: Three women small-business owners succeeding in today's economy"
February 19, 2009
IN THE MIDST of the most brutal economy since the Depression, Sureya Mohammed, who emigrated from Ethiopia to America 22 years ago in search of a better life, just opened her second Philadelphia grocery store. "Mom-and-pop grocery stores will do OK because they are one of those recession-resistant businesses that offer services you really can't do without," said Eustace Kangaju, director of the Small Business Development Center at Temple University's Fox School of Business. (Link)
Philadelphia Inquirer, "Out of a job and happy to retire the razor"
February 17, 2009
As the number of unemployed Americans grows, facial hair is becoming an increasingly common sight on the faces of ex-corporate men. "Losing your job is like a death in the family," said James Portwood, professor of human resource management at Temple's Fox School of Business. The layoff beard shouts a certain "I'll-show-them bravado," he said. "And it's a natural way to come to terms with something that's a tragedy." (Link)
Women for Hire, "Class of '09 Hiring:Perseverance Pays"
February 16, 2009
As college seniors prepare to enter one of the toughest jobs markets in years, there's plenty of fear and trepidation -- to be expected, given the economy. But when Women For Hire asked campus career officers to assess the hiring and recruiting outlook this spring, we found plenty of optimism and good tips for the Class of '09. At Temple's Fox School of Business in Philadelphia, "we have only seen a very small decrease (about 5%) in companies posting jobs on campus," says Corinne Snell, executive director of the Center for Student Professional Development. The school's corporate partners "realize the importance of maintaining relationships," Corinne says. "College recruitment programs are typically a way to build bench strength and tie into succession planning. Many employers are still posting jobs, conducting on-campus interviews and participating in our upcoming spring recruiting/networking event – although they do anticipate extending fewer offers this year." (Link)
Los Angeles Times, “401(k)s still lure cash despite big losses”
January 29, 2009
As corporate earnings dive in the recession, it may become more difficult for many firms to sustain those contributions. Any reduction in matching payments threatens to leave workers further behind in saving for retirement, and could force some to stay in the workforce longer than they had planned. "All these individuals who thought they were on the road to retirement are getting this nasty surprise," said Jack L. VanDerhei, associate professor of Risk, Insurance, and Healthcare Management at Temple University."It really brings into focus what we as a country need to be worried about," he said, "because we have more individuals whose 401(k) plans are going to be the only thing supplementing their Social Security." (Link)
Washington Post, “Your Company's Fund Is Bruised, but Don't Worry”
January 11, 2009
Both 401(k)s, which are managed by individual workers, and pensions, which are managed by plan administrators, have exposure to the stock market. But if your 401(k) loses value, which many have in the past year, you have to take the loss and hope that the market will recover over time. If you are under a multi-employer pension plan, which typically combines employers around a specific trade such as plumbing, you would get less coverage. Jack L. VanDerhei , associate professor of Risk, Insurance, and Healthcare Management at Temple University said, "It may be quite likely that you work for someone that has an underfunded pension plan, but if I was in that situation, would that worry me? Not as long as I was under that maximum annual guarantee of the PBGC. The vast majority of people are." (Link)
Washington Times
February 8, 2009
Weeks before the Treasury Department announced a salary cap for executives at companies taking federal aid, one of President Obama's top political appointees reported a seven-figure compensation deal with Citigroup, a recipient of bailout cash. Had the new pay rules been in place last year, Citigroup executives likely would have seen their pay cut. "I think they certainly would have," said Steven Balsam of Temple's Fox School of Business. "They were paying out huge amounts of money…and it backfired. All the while, they were getting bonuses." (Link)
Pittsburgh Post-Gazette
February 8, 2009
Some experts say that President Obama's executive pay reforms don't go far enough. "Is compensation really going to be cut or are companies just going to find a way out of it?" asks Steven Balsam, a Fox School of Business accounting professor. Balsam, who told the U.S. Senate Finance Committee in 2007 that disclosure doesn't necessarily curb executive pay, says shareholders already have information on executive pay based on disclosure requirements adopted by the SEC. (Link)
MarketWatch, "Obama limits bailed-out bank CEO pay"
Feb. 4, 2009
Under the new rules, expected to be adopted shortly, executives at large banks receiving so-called "exceptional assistance" and other financial institutions applying for capital are having their salaries limited to $500,000. However, Temple University professor Steven Balsam argued that executives shopping for work have nowhere else to take their resumés. "Where are they going to go?" Balsam asked. "There are not that many jobs available in the banking industry." (Link)
Wisconsin Public Radio
Feb. 4, 2009
Steve Balsam, Ph.D., and Fox professor of accounting appeared on Wisconsin's Public Radio on Wednesday, Feb. 4, 2009. Host, Kathleen Dunn and her guests discussed new proposals for limiting executive compensation.
New York Times, “Working Hard to Look Busy”
January 25, 2009
In today's tough economy, many employees are working harder than ever -- if only to look busy, and thus perhaps avoid the axe. Experts on workplace behavior say that mustering a token show for the boss can backfire. If a worker isn't already regarded as diligent, "This is a bad time to manage the impression that you're a hard worker," said Robert Giacalone of Temple's Fox School of Business. "There's fear out there, and that fear generates suspicion among people in power that workers are trying to manipulate their images because they're afraid." (Link)
KYW News Radio, “More Freelancers Surface Amid Economic Downturn”
January 21, 2009
As the economy continues to slump, more workers are turning to freelance work. Pam Kokkalis of the Graduate Career Management Center at the Fox School of Business said, "I've seen personally a lot of people do better off on their own because they are able to get the word of mouth going for them and because they are on short contracts, it's easy for a company to say 'yeah, I'll hire you for the next three, four six months.'" (Link)
Philadelphia Inquirer
January 20, 2009
The Inquirer published a gallery of pictures of Alter Hall, the new home of Temple's Fox School of Tourism and School of Tourism and Hospitality Management. Alter Hall opened today for classes. (No link)
Philadelphia Inquirer, “Temple business school set to open showcase”
January 18, 2009
The Inquirer's Business section toured Alter Hall, the new home of Temple's Fox School of Business and the School of Tourism and Hospitality Management. "I love the openness of the building," said Fox Associate Dean Diana Breslin-Knudsen. Dean M. Moshe Porat said Alter Hall was designed to embody the school’s educational philosophy and to address issues related to space, faculty recruitment and the nature of business education. "It's much more global, more about entrepreneurship, much more experiential," he explained. The online version of the story includes a four-picture photo gallery. (Link)
CBS3, “Temple opens high-tech haven for students”
January 16, 2009
CBS3 technology reporter Stephanie Abrams took viewers on a hightech tour of Alter Hall, the new home of the Fox School of Business and the School of Tourism and Hospitality Management. Among the highlights: "class capture" technology that will stream every lecture, wireless tablet laptops for instructers and a large video wall. "We have infused every space in the building with technology, and we've made it transparent," said John DeAngelo, associate dean of information technology. (Link)
The Philadelphia Inquirer
January 10, 2009
The unemployment rate rose to a staggering 7.2 percent in December, the Labor Department reported last week, and job cuts came in nearly every category. Presently, 21 million Americans - 13.5 percent of the labor force - are unemployed or underemployed, and the number of people out of work for more than six months has doubled in 2008, to 2.6 million. "Right now the numbers are grim," said Bruce Rader, associate professor of finance at Temple's Fox School of Business. (Link)
