Booth in the News, Autumn 2010, Vol. 2
(Covering September 23 to October 25, 2010)
Here are highlights of the latest Chicago Booth news coverage. The digest below represents only a portion of recent coverage.
Section 1: News coverage of Chicago Booth.
- THE WALL STREET JOURNAL. Chicago Booth was featured in an article headlined “Help Wanted ... at Last. Early indications for the M.B.A. class of 2011
suggest that the job drought may be ending,” published September 30. Second-year Booth students returned from their summer internships and reported robust
numbers of job offers, particularly in investment banking and consulting, said Julie Morton, associate dean for career services.
- BLOOMBERG BUSINESSWEEK. Getting admitted to most top business schools is easier than it used to be, but that’s not the case at Chicago Booth, according
to an article published October 14. “While many schools, including Chicago Booth, Harvard and Kellogg became more selective or reported no change, many
others did something that top MBA programs rarely do: They became easier to get into,” the article said.
- BLOOMBERG BUSINESSWEEK. Booth was featured in an article headlined “MBA Interns Land Job Offers: At some schools, more MBA students returned from
summer internships this year with job offers in hand. But don’t break out the Champagne yet,” published October 7. Schools are adjusting to a new reality,
where recruiters are sourcing talent through new avenues, such as presentations via Skype, videoconferencing for first-round interviews, and promoting
undergraduates from with their organizations, said Julie Morton, associate dean of career services.
- FINANCIAL TIMES. Booth’s Executive MBA Program ranked #1 in finance, #1 in economics and 5th overall in a new ranking of the world’s best EMBA programs
published October 25. The nine schools which form the top-tier of EMBA programs according to the Financial Times are: 1) Kellogg/Hong Kong University of
Science and Technology joint program, 2) Columbia/London Business School joint program, 3) Trium: HEC Paris/London School of Economics/NYU joint program,
4) Insead, 5) Booth, 6) London Business School, 7) IE Business School, 8) Wharton, 9) Duke. In the 2009 ranking, Booth was 4th.
Articles accompanying the rankings can be found here:
- THE WALL STREET JOURNAL. Chicago Booth’s Executive MBA Program ranked 3rd in a survey of corporate executives published September 30. When the #3
ranking was combined with results of a survey of recent Booth EMBA graduates, our overall ranking was 16th. The poll surveyed 2010 graduates from the
London, Singapore and Chicago campuses.
- BUSINESS INDIA (Mumbai). Interim Dean Harry Davis published a column about Booth’s values and how they benefit everyone associated with the school. One
value, “tough-mindedness,” relates to the way people work together, he said. It includes a focus on fundamentals rather than on fads, the courage to
challenge orthodoxies, a seriousness of purpose, and respect for data rather than unsubstantiated opinions. Another Booth value is “dogged determination,”
he wrote. “Right from the beginning, people never accepted ‘no’ for an answer but continued to pursue their vision of what could be,” Dean Davis said. The
column appeared in the October 4 issue of this magazine.
- THE INDEPENDENT (London). Booth was featured in an article headlined ‘Students seek a responsible angle to their studies,” published October 7. “Booth
is seeing its ‘social impact’ classes fully subscribed, and is promoting interest in social ventures in its neighborhood through extracurricular activities
and investment,” the article said. “There are a surprising number (of Booth students) who have been involved in the education of disadvantaged populations
domestically and internationally,” said Linda Darragh, clinical associate professor and director of entrepreneurship programs.
Section 2: News coverage quoting Chicago Booth faculty.
- THE NEW YORK TIMES. Professor Richard Thaler wrote the Economic View column titled “What the Rich Don’t Need,” September 25. “Want to give affluent
households a present worth $700 billion over the next decade? In a period of high unemployment and fiscal austerity, this idea may seem laughable.
Amazingly, though, it is getting traction in Washington. I am referring, of course, to the current debate about whether to extend all, or just some, of the
tax cuts of President George W. Bush – cuts that are due to expire at year-end,” Professor Thaler wrote.
- THE WALL STREET JOURNAL. Professor Gary Becker wrote an op-ed titled “China’s Next Leap Forward,” September 29. “The jump from middle-income to rich
status is much harder to achieve than the ascent from poverty,” he wrote. “But there are plenty of reasons to believe China’s growth prospects remain
- THE ECONOMIST. Research by Professors Jean-Pierre Dube and Matthew Gentzkow on consumer brand preferences was featured in the Economics Focus column
September 23. The study “finds a cleaver way” to test the idea that habits formed early in life may affect consumer preferences throughout their life, the
article said. Professor Dube and Gentzkow found “striking evidence” that loyalty to brands used early in life is widespread, deep and long-lasting,
according to The Economist.
- THE WALL STREET JOURNAL. Professor Steven Davis was quoted in an article headlined “Unfilled Openings Frustrate the Jobless,” published October 11. The
slow uptake could be a good sign if it means unemployment is being held up more by a temporary lack of confidence than longer-term structural flaws such as
improperly trained workers, according to the article. “It means there is some reason to think there’s an exit path from the weak labor market that doesn’t
require us to retrain the entire work force,” Professor Davis said in the October 11 article.
Research by Professor Davis on employment was featured in the newspaper’s Real Time Economics blog September 29.
- DER SPIEGEL (Germany). Professor Raghuram Rajan was featured in a long Q&A interview about the economy. “There are still hidden fractures that
threaten the global economy,” he said. “The United States papers over it with an extreme degree of stimulus which creates conditions for excessive
consumption and investment … We witness a recovery, though it is a false, unstable recovery.” The interview was published October 12.
- CHICAGO TRIBUNE. Professor John Huizinga was quoted in an article about China’s attempt to slow its growth by raising interest rates. “If China slows
down, the concern is that it won’t buy as much. And with less buying, the stock markets can fall,” Professor Huizinga said. On the other hand, with less
consumption of commodities, inflationary pressure on everything from food to oil and metals could be relieved, according to the article which appeared on
the front page of the business section October 20.
- THE WALL STREET JOURNAL. Research by Professor Erik Hurst was featured in an article headlined “Can Lotteries Help Poor Save More?” published October
15. The research found that “Prize Linked Savings Accounts” – bank accounts that allow savers to win a cash prize in proportion to how much they save –
could be a good way to get low-income Americans to save more money.
- THE WALL STREET JOURNAL. Professor Luigi Zingales was quoted in an article headlined “Financial Regulation Overhaul Draws Weak Public Support,”
published October 21. Just 12 percent of respondents to the latest Chicago Booth/Kellogg School Financial Trust Index survey said they were satisfied with
the Dodd-Frank law to revamp financial oversight, while 54 percent were dissatisfied, the article said. The survey was conducted by Professor Zingales and
a Kellogg faculty member.
Fortune also ran an article about the Chicago Booth/Kellogg School Financial Trust Index October 21.
- CHICAGO TRIBUNE. Professor Steven Kaplan was quoted in an article headlined “Mergers and acquisitions picking up,” published September 28. Busier
takeover lawyers and investment bankers are a positive development, he said. “You don’t see a lot of deals in terrible equity markets, when banks are
hurting and when companies are nervous about the future,” Professor Kaplan said. “Deals are a sign that the economy is doing better.”
- THE GLOBE AND MAIL (Toronto). Professor Raghuram Rajan said it was a mistake for policy makers in the U.S. to deal with both the current crisis and the
one in 2001 only through fiscal and monetary stimulus. “… It seems to me the fundamental problem is more a structural one, which will need a variety of
other methods and may in fact take longer,” he said in an article published September 22 headlined “Five questions for Raghuram Rajan.”
- MARKETPLACE RADIO. Professor Randall Kroszner was interviewed for a story about the Financial Stability Oversight Council. There are some things the
Council could do to help blunt the impact of a future financial bubble, he said during the broadcast which aired on American Public Media October 1.
- NATIONAL PUBLIC RADIO. Professor John Cochrane appeared on All Things Considered, discussing the Troubled Asset Relief Program, better known as TARP.
“The biggest downside of it is now we have the expectation that the government will always bail out all banks,” he said in the October 3 broadcast.
- BARRON’S. Professor Raghuram Rajan was cited in a review of “Inside Job,” a critically-acclaimed movie documentary about the finance crisis. Professor
Rajan appears on-screen in the movie. He is “accurately presented as having anticipated the meltdown in a 2005 paper called ‘Has Financial Development Made
the World Riskier?’” Barron’s said in the article published October 23. The article also mentions “Fault Lines,” Professor Rajan’s latest book. Read more
- LOS ANGELES TIMES. Research by Professor Christopher Hsee on happiness was featured in an article headlined “Busy bodies, happy minds,” published
September 20. “Busy people are happier, even if they are forced to be busy,” he said. “We believe that people may well be happier when building bridges to
nowhere than being idle, especially if they are given a justification for building the bridges.”
- CNBC TELEVISION. Professor Raghuram Rajan was guest host of Squawk Box October 12. Economic stimulus is not the answer to weak conditions in the U.S.,
he said. “Real changes are needed.”
- CNBC TELEVISION. Professor Randall Kroszner was guest host of Squawk Box September 28. There will be growth in the U.S. economy, he said, but not rapid
growth. “The Fed is spot on in what it’s doing.”
- BBC RADIO FOUR (London). Assistant Professor Elizabeth Pontikes discussed her research on the “Red Scare” in Hollywood during the height of
anti-communist sentiment in the early 1950’s during an appearance on Thinking Allowed October 6. The segment begins about 13-1/2 minutes into the 30 minute
- CNN.COM. Professor Raghuram Rajan’s latest book, “Fault Lines: How Hidden Fractures Still Threaten the World Economy,” is a finalist for the Financial
Times/Goldman Sachs Business Book of the Year award, according to an article posted October 18. “Rajan has the unfortunate distinction of being one of the
economists who predicted the financial crisis, and now he examines flaws in the world economic system that expose it to future risk,” the article said.
- BLOOMBERG TELEVISION. Professor Steven Kaplan discussed his research on CEO pay during an appearance October 4. The “outlandish” pay packages given to
a few CEOs in the past are gone, he said, and CEO pay is trending downward. The Dodd-Frank Act adds pressure on CEO pay and could drive qualified
candidates away, Professor Kaplan said.
- BLOOMBERG TELEVISION. Professor Raghuram Rajan said the U.S. has to move away from being “the consumer of first and last resort,” improve the
productivity of its exporting industries and increase the capacity of its workforce. “We have a politically driven policy structure which could create
longer run problems,” he said during an interview broadcast October 21.
- ASSOCIATED PRESS. Professor Jean-Pierre Dube was quoted in an article about a new recall by Toyota involving 1.5 million cars for brake-fluid and
fuel-pump troubles. “It’s hard to imagine this can’t have some effect on how consumers are going to perceive the Toyota brand,” he said in the article
published October 21.
- THE WALL STREET JOURNAL. Professor Raghuram Rajan was quoted in an article headlined “For Fed, Risks of Goosing Market Are Worth It,” published October
13. But Professor Rajan is among those think another round of quantitative easing may not be a good idea. “Additional monetary adventurism at this point
has to be thought of very carefully,” he said.
- THE ECONOMIC TIMES OF INDIA. Professor Steven Kaplan was quoted in an article about the increased investment by U.S. buyout firms in deals in Brazil,
India and China, the so-called BRIC countries. “You look at Europe and the U.S., which have anti-business governments and where the growth is slow for the
time being, (versus) the BRIC countries (where) particularly China is very pro-business,” he said in the October 11 article. “It is completely
understandable that private equity would want to be in these other countries.”
- WLS-TV (ABC7 Chicago). Associate Professor Amir Sufi discussed the Illinois appliance rebate program during the 4:30 p.m. newscast September 24.
Spending incentive programs typically don’t accomplish what they intend to, he said. For examples, the Cash for Clunkers program simply caused people to
buy cars sooner, but it did not cause more people to buy cars, according to Professor Sufi’s research.
- BLOOMBERG NEWS. Professor Raghuram Rajan is featured in Inside Job, “a brilliant film about the (the) causes of the financial crisis,” according an
article published October 9. In the film Professor Rajan talks about his 2005 warning that risking financial practices could lead to a catastrophic
meltdown. “He was right, of course,” the Bloomberg article said.
The New York Times reviewed “Inside Job” October 8 and also mentioned Professor Rajan’s appearance. The movie is listed as an NYT Critics Pick.
- ASSOCIATED PRESS. Professor Anil Kashyap was quoted in an article headlined “Diamond wins Nobel, but fails to convince Senate Republicans he’s worthy
of Fed appointment,” published October 11. “(Peter) Diamond is a giant in economics,” Professor Kashyap said of this year’s winner of the Nobel Prize in
Economics. “To argue that he is not qualified to be a member of the Federal Reserve is just crazy.”
- ASSOCIATED PRESS. Professor Randall Kroszner was quoted in an article headlined “Japan’s central bank cuts rates to zero to fight strong yen,
deflation,” published October 5. With the U.S. economy losing momentum, the Federal Reserve appears poised to launch a new round of debt purchases,
according to the article. “(Fed Chairman) Bernanke wants the Fed to stay focused and ahead of the curve,” Professor Kroszner said. “He doesn’t want the
United States to turn into another Japan.”
- KHALEEJ TIMES (Dubai, UAE). Professor John Birge was quoted in an article about the type of education provided by business schools. While some experts
are calling on business schools to offer more job skills training, leading schools are best at providing a general management education, he said in the
article published September 21.
- EL MERCURIO (Santiago, Chile). Professor Randall Kroszner commented on the U.S. economy in an article published September 24. The link below will take
you to the article in Spanish.
- HANDELSBLATT (Germany). Professor Christian Leuz was featured in an article about top German economists working in the U.S. The article was published
October 8. The link below will take you to the article in German.
- ABC NEWS.COM. Research by Assistant Professor Jan Risen was featured in an article about sincere apologies versus insincere ones. The “wronged” don’t
distinguish between forced or spontaneous apologies, her research found. She calls it “insincerity blindness” that likely helps save a person’s
self-esteem. The article was published October 15.
- U.S. NEWS & WORLD REPORT. Research by Associate Professor Aparna Labroo on self control was featured in an article published October 21. She found
that clenching your muscles may help boost your willpower to achieve certain goals or resist temptations such as unhealthy desserts.
- SCIENCE DAILY.COM. Research by Assistant Professor Eugene Caruso was featured in an article headlined “Future Offenses Cause More Intense Feelings than
Past Actions,” published October 21. People feel worse about a transgression that will take place in the future than an identical one that occurred in the
past, his study found.
- CHICAGO SUN-TIMES. Clinical Professor Ellen Rudnick was quoted in an article about how entrepreneurs are adapting to a tougher economic environment.
People who start businesses are innovative in all kinds of economies, she said, but “a bad economy often forces people to be more creative and to focus on
more cost-effective solutions for consumers.” The article was published September 25.
Section 3: Chicago Booth students and alumni in the news.
- BLOOMBERG BUSINESSWEEK. Ashish Rangnekar, MBA ’12 was featured in an article about business school entrepreneurs. He co-founded Watermelon Express,
which offers test prep applications for the GMAT, LSAT, MCAT and more. “Professors have been great mentors,” Rangnekar said. “And fellow students have
provided invaluable critique and perspective.”
- CHICAGO SUN-TIMES. Seth Stammler, MBA ’12, was featured in an article headlined “Soccer player’s goal: An MBA,” published September 24. Stammler
retired from professional soccer and enrolled at Booth this year. He played midfield for the New York Red Bulls since 2004. “It’s always a good idea to
have something in the back of your mind that you’d like to get into,” he said. Read more
- DAILY FINANCE.COM. David Legler, MBA ’01, was featured in an article about million dollar game show winners. In 2000, he won $1.76 million on Twenty
One. He used a portion of the money to help his parents and sister, and took a European vacation with his wife. “But most of the money was invested,” he
said in the September 29 article.
- BLOOMBERG MARKETS MAGAZINE. Clifford Asness, MBA ’91, PhD ’94, was profiled in a cover story of the November headlined “The Quant Who Won’t Shut Up.”
He runs AQR Capital Management, one of the world’s biggest hedge funds with total assets of $2.3 billion in September.
- THE NEW YORK TIMES. Roger Sweis, MBA ‘09 and Richard Gengler, MBA ’09 were featured in an article headlined “Veterans Reaching Out for Help Online,”
published October 21. While at Booth, Sweis and Gengler started Prevail Health Solutions and Vets Prevail, an interactive Web program to help veterans
manage post-deployment combat stress and symptoms of depressions.
- FINANCIAL TIMES. Carmen Rey, MBA ’10 (EXP-15) was featured in an article headlined “How to get promoted,” published October 25. “At Chicago Booth, my
classmates came from a huge variety of companies, industries and countries. My advice would be: always be ready to share experience and offer advice to
classmates, and be open to learning from others,” she said. “You’ll expand your network and find new opportunities, perhaps in roles and industries you
hadn’t considered before.”
- ASSOCIATED PRESS. Cheryl Francis, MBA ‘78, and Judson Green, MBA ’76, were appointed to the board of directors of Aon Corp., the insurance
conglomerate, according to an October 1 article. Both were directors at Hewitt Associates, newly acquired by Aon.
- FORBES. Peter Petropoulos, MBA ’11, was featured in the magazine’s Corporate Social Responsibility blog September 23. He spent last summer “immersed in
the LEED rating system at PepsiCo in its business information solutions headquarters in Plano, Texas,” the article said. “His projects can result in a
total reduction in annual energy consumption by approximately 1.9 million KWh for PepsiCo, reducing operating costs by $195,000,” Forbes reported.