We investigate the consequences of the “revolving door” for trial lawyers at the SEC’s enforcement division. If future job opportunities make SEC lawyers exert more enforcement effort to develop and showcase their expertise, then the revolving door phenomenon will promote more aggressive regulatory activity (the “human capital” hypothesis). In contrast, SEC lawyers can relax enforcement efforts in order to develop networking skills and/or curry favor with prospective employers at private law firms (the “rent seeking” hypothesis”). We collect data on the career paths of 336 SEC lawyers that span 284 SEC civil cases against accounting misrepresentation over the period 1990-2007. We find overall evidence consistent with the “human capital” hypothesis as well as some cross-sectional evidence of “rent seeking.” The revolving door impacts a large spectrum of issues. Our study is limited and is not able to study administrative or non-accounting enforcement cases, the choice of which cases to pursue, the incentives of employees other than trial lawyers and how the revolving door affects rule making. Subject to these caveats, our results provide an important first empirical look into the effects of revolving door incentives on the SEC’s enforcement process.
Representatives from business, education, government and the community will gather Friday at the University of Michigan to discuss creating business strategies for urban communities.
The inaugural Urban Entrepreneurship Symposium will be held at the Gerald R. Ford Presidential Library and is intended encourage and empower entrepreneurs and businesses to solve problems urban communities.
“When you bring the university and corporate community, the small business community alongside the people who focus entirely on entrepreneurship support, and you throw in some students into the mix, you will find community folks who are ready to do what needs to be done to transform these urban areas,” said Dr. Jeffrey Robinson, director of the Center for Urban Entrepreneurship and Economic Development at Rutgers Business School.
In response to the Global Financial Crisis of 2008-2009, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) in July 2010. Among its various provisions, Dodd-Frank outlines a series of broad reforms to the Credit Rating Agencies (CRA) market. Many observers believe that CRAs’ inflated ratings of structured finance products were partly to blame for the rapid growth and subsequent collapse of the shadow banking system. In response, Dodd-Frank’s CRA provisions significantly increase CRAs’ liability for issuing inaccurate ratings, and make it easier for the SEC to impose sanctions and bring claims against CRAs for material misstatements and fraud.
In our paper, Impact of the Dodd-Frank Act on Credit Ratings, forthcoming in the Journal of Financial Economics, we examine whether Dodd-Frank achieves its stated objective of improving the quality of credit ratings, or whether the law unintentionally leads to a loss of relevant information in the CRA market. The quality of credit ratings may improve as the law encourages CRAs to invest in due diligence, strengthen internal controls and corporate governance, and improve their methodology (disciplining effect). Alternatively, CRAs may respond to the greater threat of legal and regulatory action by lowering their ratings beyond a level justified by an issuer’s fundamentals (reputation effect). Doing so helps CRAs protect their reputation in a market where issuing overly optimistic ratings is expected to have far greater legal and regulatory costs than issuing overly pessimistic ratings. As CRAs lower their ratings regardless of their information, investors rationally discount CRAs’ rating downgrades and some valuable information is lost to the market.
Penn State may have stolen a win from the Scarlet Knights in football, but according to LinkedIn’s new rankings, Rutgers may be the better option for media and marketing students.
On Oct. 1, LinkedIn came out with its rankings on the top universities to attend for various career paths. Out of 25 possible slots in each category, Rutgers ranked 22 for finance, 16 for marketers and 13 for media.
According to LinkedIn, the rankings were based on which schools led graduates to desirable career outcomes.
They defined desirable careers based on how well companies attract external employees and retain current ones.
Ashwani Monga, chair of the Department of Marketing in the Rutgers Business School, said these rankings should prompt more students to create LinkedIn accounts so they can try to connect with highly successful people.
“It’s the beginning of a very virtuous cycle,” Monga said.
Monga said the rankings matter specifically because they are based on career outcomes.
NJMEP and NJBIZ held its inaugural New Jersey Manufacturing Awards event in celebration of Manufacturing Day on Friday.
The all-day event kicked off with a welcome address by Harold J. Wirths, commissioner of the New Jersey Department of Labor, and the event’s keynote speaker, U.S. Sen. Cory A. Booker, both of whom addressed the need for the state to continue to help finance employee training and further regulate uncompetitive corporate tax rates and trade practices in order to better assist the manufacturing industry.
Kevin Lyons, associate professor in the Department of Supply Chain Management and Marketing Sciences at Rutgers Business School, led panelists in a discussion about supply chain management.
The panelists discussed why New Jersey’s strength is in being a supply chain state, and how to better develop good relationships with vendors to create strategic partnerships and handle changing regulations with ease.
"We are living in a time when it is very difficult to live the dream of middle-class America," said Michael Santoro, a business ethicist and professor at Rutgers Business School. "Is minimum wage the answer to this problem? No, certainly not by itself."
Jared Pincin, an economics professor at The King's College, David Talcott, Pincin's colleague and writing partner at King's, Santoro, and others don't question that many Americans are finding it difficult to make ends meet, and applaud the growing sense that an extreme imbalance in income distribution hurts everyone. Yet they assert that the current debate isn't offering a fair picture of what's made possible through a minimum wage increase.
"The problem of (income) inequality in America has become so deep and affects so many families. There's a general sense that we need to do something," Santoro said. "The minimum wage debate is where we wound up, but it shouldn't be the only focus of our efforts to make the lives of working people better."
Fees and penalties for everyday banking have never been greater, according to a BankRate survey released Monday.
And New Jersey’s biggest financial institutions are taking their cut with each dip of the debit card.
“Punitive-type fees, such as ATM fees and overdraft fees, have shown the most consistent increases over time,” said Greg McBride, the chief financial analyst for BankRate.
The New York metro area was near the top for average fees to use other banks’ ATMS, at $1.90, which rocketed to $4.50 when including surcharges banks charge at their own ATMs, according to the survey. Philadelphia’s metro area was ranked slightly lower, at $4.23.
The experts said expanding fees are unlikely to decrease in the future – but they are not inescapable. Banks are no longer the only institutions doing large financial transactions - and banks have to find a way to survive, said Arthur Guarino, an assistant professor of professional practice at Rutgers Business School's Department of Finance and Economics.
"The playing field is different - banking has changed," said Guarino. "That means charging fees they didn't charge before."
Morris A. Davis, the first professor to fill the Paul V. Profeta Chair at Rutgers Business School, plans to create a Center for Real Estate Studies in 10 years that is on par with programs at Columbia, New York University and Wharton.
The real estate world is filled with big plans and Davis, a mild-mannered economist, is adding his own.
He expects a board of advisors to the Center for Real Estate Studies to be in place within a year. He plans to generate an excitment about the program before Rutgers begins offering classes in 2015. Ultimately, he wants "world class” and "Rutgers” and "real estate” to be part of a recognizable brand.
Most fathers and sons dreaming of a trip together that they could talk about for years might head to the Adirondacks for some camping and hiking, New York City for a Yankees game or maybe even California, taking in the American West.
Not Jerry and Dan Stoll.
As a way to celebrate Jerry's 70th birthday, the Stolls channeled the spirits of none other than Marco Polo and his father, Niccolo, the famous "Merchants of Venice," who in 1271 traveled east towards China, winding up at the palace of Kublai Khan.
In the year 2014, the Stolls, the almost-famous "Merchants of Greece, N.Y.," headed east to Istanbul, Turkey where they, like the Polos, continued in the direction of China using an ancient trade route that is still referred to today as the Silk Road.
"It was always a dream Dan and I shared to travel the Silk Road, and we used the birthday as a way to make it happen,'' said Jerry, a retired Rochester City School District teacher and administrator, who, like his son, is a seasoned world traveler. "You gotta find an incentive and that did it."
The original incentive to travel through this mysterious part of the world that was the cradle of civilization happened to be a giant world map that hung in the family dining room when Dan, 43, was a boy.
"That was our conversation piece eating pizza or spaghetti, talking about where we wanted to go or where people had been, just looking at crazy names you can't pronounce on the map and picturing ourselves going their someday," said Dan, director of communications for Rutgers University's business school in Newark and New Brunswick, N.J. "It took us awhile, but we got there.''
Six thousand baby horseshoe crabs are making their way in the waters near Cape May this weekend, thanks to the New Jersey Aquaculture Innovation Center of Rutgers University that grows and releases them into the wild.
A property in the crabs’ blood called limulus amoebocyte lysate is coveted by the pharmaceutical industry, which uses it to test for contamination in drugs and medical devices. Mike DeLuca, senior associate director of the Rutgers Institute of Marine and Coastal Sciences, said five groups have permits to harvest horseshoe crabs in New Jersey for medicinal purposes.
The crabs are also a crucial food source for several species of endangered or threatened shore birds.
Gene Slowinski, director of open innovation research at Rutgers Business School, said a team of six Rutgers MBA students is working on a marketing plan for the marine life the center produces.
“The fun part of all this is the marine guys got together with the business guys who got together with the students,” he said.
We find significant evidence of mean reversion in closed-end fund premiums. Previous studies substantially understate the magnitudes of arbitrage profits in the closed-end fund market. Capitalizing on the property of mean reversion, we devise a parametric model to estimate expected fund returns by incorporating the information content of a fund’s premium innovation history. Our strategy of buying the quintile of funds with the highest expected returns and selling the quintile of funds with the lowest expected returns yields an annualized arbitrage return of 18.2 percent and a Sharpe ratio of 1.918, which are substantially higher than the corresponding figures produced using the extant methods. The results are robust to a wide range of tests. They greatly deepen the closed-end fund discount puzzle and pose a challenge to the market efficiency in these products.
Business education is an increasingly competitive market, and the world's leading business schools are turning to social media websites to give themselves an edge as they fight to secure applicants.
These schools are also using social networking platforms to bring a wider audience to their faculty research and to drive traffic to their websites.
A growing number of business school aspirants also see social media as increasingly important in their MBA applications, new data show.
Schools are teaching their MBA students the value of social media in marketing and research – but they see such tools as essential to market themselves, too.
US-based Rutgers Business School, for example, uses YouTube and Youku – China’s largest video site – to showcase its MBA. “The goal was to reach the families of prospective students,” said Daniel Stoll, director of communications.
In a recent paper, Morris Davis of Rutgers Business School and co-authors Stephen Oliner and Edward Pinto at the American Enterprise Institute, calculated values for the land under 600,000 houses in Washington DC since 2000.
They argue that land prices - which are much more volatile than the price of houses - provide a useful warning signal about the danger of the house price crash. To get the land valuations, they combine the sale price for individual houses with databases about construction costs and the size of housing plots.
"This implies that an explosive rising land prices, even when not accompanied by a relatively large increase in house prices, provided a valuable signal about the risk of a severe house-price drop," the paper says.
The first of several workshops, "Putting the How-to in Resilience" sponsored by the NJSBDC, USRP and the SBA, focused on strategies to mitigate impact of disruptions, sharing best practices and tools to make companies resilient to volatility and leveraging resources through partnership being key to survival and recovery.
"Preparedness is key to prosperity and competitiveness. Superstorms or other natural disasters cause disruptions and businesses have to be prepared," said Deb Smarth, Chief Operating Officer and Associate State Director of the NJSBDC. "Small businesses represent 98 percent of all employers and more than 50 percent of the private sector employment yet research indicates that more than 43 percent of businesses do not reopen following a disaster and 29 percent close for good within two years. Small businesses and large businesses are interdependent; small businesses are part of local supply chains and create economic vitality in communities."
Miryam Shapiro thought that after college, she was on the path to a long retail career. But after four years at Sears and Bed Bath and Beyond, she realized that sales and merchandising work didn’t fit her personality.
“I found that I cared more about the operations side of the business, ensuring things run smoothly, that we are set up for success and that processes are efficient,” said Shapiro, who earned a bachelor’s degree in business management at Rutgers University-New Brunswick.
Shapiro decided to pursue an MBA at Rutgers Business School - Newark and New Brunswick, focusing on supply chain management, after noticing the school’s outstanding Gartner ranking, the standard used by the supply chain industry, and the strong rate at which Rutgers MBAs receive job offers.
In the Colombian city of Medellín, nestled in a valley in the Andes Mountains, one can see the remnants of a tragic past and, at the same time, glimpse a hopeful future taking hold across much of Latin America.
Public education has significantly improved, and graduates of higher-education institutions, including business schools, bolster the country’s burgeoning innovation sector.
Medellín is not an outlier in Latin America; rather it is an example of the region’s turnaround. With both its middle class and its regional economy growing, Latin America has turned to education as a vital part of its blueprint for success.
Business schools, especially those that are committed to entrepreneurship and that pride themselves on their international diversity, have a role to play here.
Partnerships between business schools in the U.S. and Latin America aren’t yet as common as strategies that expand into Asia. Such schools as Rutgers Business School, the University of North Carolina’s Kenan-Flagler Business School, Duke University’s Fuqua School of Business, and many others have created dozens of partnerships, built campuses, and connected with area companies.
Rutgers Business School has watched enrollment in its undergraduate program skyrocket by more than 40 percent over the past four years. Today, nearly 8,000 students attend classes on its two campuses in Newark and New Brunswick, N.J.
“Our dean likes to say that if the business school were a separate institution, it would be the second-largest university in New Jersey,” says Kevin Dowlin, executive director for the Rutgers Business School’s Office of Technology and Instructional Services.
Yet there’s another, much smaller number that’s just as meaningful to Dowlin: As the demand for additional IT services and support grows alongside enrollment, the 70 technology-enabled rooms and more than 1,400 computers at both state-of-the-art IT facilities are supported by a lean IT team of eight people.
The programme, known as "quantitative easing" (QE), is about to come to an end in October.
The crucial question will be: has the programme worked?
Andrew Huszar, a senior fellow at Rutgers Business School and former manager of the Fed's mortgage-buying programme, has argued that while rates may have been lowered, that didn't necessarily help ordinary Americans.
"QE may have been driving down the wholesale cost for banks to make loans, but Wall Street was pocketing most of the extra cash," he argued in the Wall Street Journal last November.
If you think earning a college degree should be about seizing the opportunity to achieve, while rolling up your sleeves to help tackle global challenges found right in your own community, then Rutgers University-Newark is the place for you. And you can learn all that it has to offer you by attending the fall Open House. On that day, the undergraduate schools and colleges of Rutgers University- Newark will host an Admissions open house for high school students considering higher education, or transfer students from other colleges.
Representatives from the Newark College of Arts and Sciences, University College-Newark, the Rutgers School of Nursing, the Rutgers Business School-Newark and New Brunswick, the Rutgers School of Criminal Justice, and the Rutgers School of Public Affairs and Administration will be on hand to answer questions one-on-one and will present information sessions.
Prospective students and their families also will be able to get information on financial aid, the admissions process, housing on campus, student life, campus services, and other vital information. The day’s activities include walking tours of the campus’s academic buildings, laboratories, student center, recreational facilities, and residence halls.
The Fall Fest Street Fair and other Homecoming celebrations are being held that day as well, and will offer a fun look at campus life, including a barbecue, and basketball and softball games. For more information on Homecoming: http://www.newark.rutgers.edu/homecoming
In celebration of National Hispanic Heritage Month beginning Sept. 15, WalletHub assessed the minority business climate within the 150 largest U.S. cities. It did so by examining 19 key metrics such as Hispanic entrepreneurship rates, corporate tax systems and the share of businesses owned by Hispanics. WalletHub, a social network launched by Evolution Finance and built around personal finance for consumers and small business owners, reached out to experts, including Rutgers Business School Professor Arturo Osorio, to flush out their rankings with commentary on issues related to Hispanic business ownership.
James Abruzzo co-founder, Institute for Ethical Leadership, spoke with Chris DeBello regarding the Sussex County Community College ethics probe. Abruzzo shared his anaylsis of ethics questions regarding the Sussex County NJ Community College Board of Trustees.
Sussex County Community College trustees Glen Vetrano, Edward Leppert and Glenn Gavan had conflicts of interest with an engineering firm they hired to do work at the school according to an investigative report released August 25.
Vetrano, Leppert and Gavan all did work for, and were paid by, CP Engineers, a Sparta-based firm that has been awarded hundreds of thousands of dollars’ worth of work by the college since last year, according to the report compiled by Saiber, a Florham Park-based law firm.
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With increasing levels of carbon dioxide accumulating in the atmosphere and moving into marine ecosystems, the world's oceans are becoming more acidic.
The oceans may be acidifying faster today than at any time in the past 300 million years, scientists have found.
To address concerns for acidifying oceans, the National Science Foundation (NSF) has awarded new grants totaling $11.4 million through its Ocean Acidification program. The awards are supported by NSF's Directorates for Geosciences and Biological Sciences.
From tropical oceans to icy seas, the projects funded will foster research on the nature, extent and effects of ocean acidification on marine environments and organisms.
Paul G. Falkowski, the first holder of the Bennett L. Smith Chair in Business and Natural Resources, and Co-Principal Investigator with Debashish Bhattacharya, Department of Ecology, Evolution & Natural Resources, School of Environmental & Biological Sciences, received funding for their project: Ocean Acidification: Mechanisms of Coral Biomineralization, sponsored by Rutgers University - New Brunswick.
From the abstract:
This research seeks to understand how corals make their skeletons. The skeletons of stony corals are critically important biological structures that support huge areas of tropical and subtropical marine life as well as providing natural barriers against waves, storms, and floods. However, it is not yet known how corals construct their skeletons, nor is it fully understood what the effect of ocean acidification will have on this process.
The research team will create online learning modules for undergraduate students. In addition, the research will be incorporated into the Education and Public Outreach group at Rutgers University for marine science education of K-12 students and training of K-12 teachers. Finally, the project includes training and career development for two post-doctoral fellows.
As Hailee Bellusci enters her final year of college and begins finishing her curriculum as a student in the Rutgers Business School, she knows she will walk away with a skill not taught in any of her courses: golfing.
She is not a member of the golf team, nor does she have any experience in golf prior to college. But as a member of Women Business Undergraduates in Leadership Development (Women BUILD), a leadership program for high-achieving and motivated women in RBS, it is one unexpected perk she is lucky enough to experience.
As a budding career woman in modern-day corporate America, she is honing her golf skills, readying to play all 18 holes at a future company retreat. But until she graduates, she is still an active part of Women BUILD, networking with former BUILD alumni and learning about effective leadership and communication skills.
The mission of Women BUILD is multi-faceted, said Sangeeta Rao, assistant dean for mentoring programs at RBS. She wants to build women into strategic and business-minded thinkers with an ethical and global perspective.
“We give [the students] the knowledge and the skills in order to [accomplish that],” she said.
The men and women who make up the Class of 2018 at Rutgers, The State University of New Jersey, come from 40 states and more than 60 countries. Collectively, they comprise one of the largest enrolling classes in Rutgers' history, and will be joining a community of students from more than 100 countries and 50 states, as well as the District of Columbia and Puerto Rico.
Courtney McAnuff, vice president for enrollment management, calls them "one of the most academically talented and diverse groups of students to ever enter the university."
Sara Prado of Clark, a graduate of Arthur L. Johnson High School, recently won the Helping Hands Homecare Scholarship presented by DECA, an international association for high school and college students and teachers of marketing and entrepreneurship. She'll be starting at the Rutgers Business School in Newark, with plans to major in marketing and an eye on a career in marketing and promotion for Broadway theaters.
The Ice Bucket Challenge has its fans and critics. But there’s no denying, for a very worthwhile organization, the ALS Ice Bucket Challenge has generated tremendous awareness and financial success. It is likely to go down in history as one of the most successful viral social media campaigns, ever; and to serve as a model for other non-profits and profit organizations who will attempt to duplicate this level of success for their causes.
Rutgers Business School Executive Education, where I teach, has a Social Media Marketing Mini-MBA for Non-Profits. Donna Dourney York, was a participant in the program. Donna has made amazing progress changing the way people perceive ALS.
On top of the 75 percent of white Americans reporting “that the network of people with whom they discuss important matters is entirely white, with no minority presence,” the researchers also found that only 15 percent of white folks reported having a racially diverse social network. In comparison, 65 percent of black Americans reported having an all-black social network, and 23 percent said that their network is diverse.
“Whites help other whites, especially when unemployment is high,” Rutgers Business School vice dean Nancy DiTomaso wrote in The New York Times. “Although people from every background may try to help their own, whites are more likely to hold the sorts of jobs that are protected from market competition, that pay a living wage and that have the potential to teach skills and allow for job training and advancement.”
The three Sussex County Community College trustees who were paid by an engineering firm they also hired at the school weren’t aware of their ethical obligations required by state law and the school’s ethics code, an independent investigation found Monday.
But experts now say they doubt that finding.
“It would be unusual for three members to not know their responsibilities,” added Alex Plinio, co-founder of the Institute for Ethical Leadership at the Rutgers Business School. “Perception is as important as reality when it comes to these situations.”
An impressive slate of national and state speakers will headline the first of a series of solution-based Resilience Workshops that link resilience to competitiveness, preparedness to prosperity, and motivate companies and communities to think it terms of shared outcomes and collaborative solutions.
"A lot of effort was invested in organizing this high level, knowledge packed all-day seminar," said Brenda Hopper, NJSBDC CEO-State Director. "The topic of resilience and related best practices to prevent business operational disruptions are more important than ever and we think small business owners attending will take away a lot of valuable information they can utilize."
"We're encouraged that various size businesses at different levels of growth will participate in this thought provoking session," said Deborah Smarth, NJSBDC COO-Associate State Director. "Having business leaders at all levels sharing their experiences and operating procedures in relation to market disruptions or natural disasters will provide a good framework for other small businesses to follow.
Whether you’ve risen to the ALS Association’s Ice Bucket Challenge with enthusiasm, or its oversaturation on social media has turned you into a wet blanket, local marketing experts said the craze has undeniably become a game changer for fundraising campaigns. How to explain why things go viral? In many ways, said industry observers, it isn’t anything new. That bucket challenges surfaced on a grass-roots level and spread virally traces back to a business phenomenon as old as the hills: word of mouth, said Professor Ashwani Monga, chairman of the Marketing Department at Rutgers Business School in Newark. "As we know, word of mouth matters most in any successful product or method. So in that sense, it has definitely worked," he said.