In the Media

ROI-NJ
Newark, NJ
Tuesday, November 21, 2017

ROI-NJ

For all the campaign talk about funding pensions, sanctuary cities and legalizing marijuana, the business community knows one issue will dictate the success or failure of the next governor’s administration: economic development and job creation.

While Gov.-elect Phil Murphy spent the past six months campaigning, the Smart Growth Economic Development Coalition, a nearly 50-member group filled with experts in all areas of real estate development, met on a regular basis to formulate a detailed proposal of recommendations before the inauguration. The group created a detailed plan, together with corresponding draft legislation, regulation and executive orders that will be delivered to both Gov.-elect Murphy and the new Legislature.

The Smart Growth Economic Development Coalition has set its sights on four areas where state and local government must pave the way for the private sector and labor to create the volume of housing units and commercial premises that will be essential to New Jersey's economic growth in the years ahead:

Public incentives;
Local land-use law;
Regulations; and
Shortage of land.

SHORTAGE OF LAND: It takes a state to create space

The chair: Morris Davis, academic director for Rutgers Center for Real Estate at the Rutgers Business School

New Jersey needs a concerted effort at every level of government to assist the private sector in "making land." In other words, the state needs to eliminate or reduce the hurdles inherent in remediating, assembling and entitling large-tract sites. For starters, land held by public and quasi-public agencies in strategically located areas should be freed up for redevelopment. Examples include salt domes and DPW maintenance yards along valuable roadways when comparable alternatives are available elsewhere.



Newark Patch
Newark, NJ
Saturday, November 18, 2017

Newark Patch

A new report unveiled by Rutgers Business School reports that minority-owned businesses seeking small business loans are treated differently than their white counterparts, despite having identical qualifications on paper. The organization released its study Friday, titled "Shaping Small Business Lending Policy Through Matched Paired Mystery Shopping". The study examines the gap between marketplace policy protections and the reality of the vast majority of small business entrepreneurs.

Full Article



Tuesday, November 14, 2017

Legal Theory Blog

Scott Callahan (Rutgers, The State University of New Jersey - Rutgers Business School), Darius Palia (Rutgers Business School; Center for Contract & Economic Organization), Eric L. Talley (Columbia University - School of Law) have posted Appraisal Arbitrage and Shareholder Value on SSRN

Abstract:

Post-merger appraisal rights have become the focus of heated controversy in mergers and acquisitions law in recent years. Though traditionally perceived as an arcane and cabalistic proceeding, the appraisal action has gained prominence through the ascendancy of appraisal arbitrage—whereby investors purchase target-company shares shortly after an announcement solely to pursue appraisal.

Several commentators have decried appraisal arbitrage as an imposition of unnecessary risks and costs on deal activity and pricing, advancing the position that the liberalization of appraisal reduces/destroys shareholder value.

This paper interrogates such claims, utilizing an auction-design model that delivers several testable implications. We find that—consistent with our model's predictions—the appraisal-liberalizing events of 2007 were associated with a significant increase in deal premia, as the enhanced credibility of appraisal implicitly raised the de facto "reserve price" associated with M&A auctions. We further argue that the nature and extent of these shocks suggest that shareholders likely benefited ex ante from liberalized judicial policies related to appraisal.

Legal Theory Blog

Appraisal Arbitrage and Shareholder Value on SSRN



Newark, NJ
Saturday, November 11, 2017

New Jersey 101.5

Thanksgiving means turkey, stuffing, pumpkin pie — and don't forget Black Friday specials to start the holiday shopping season.

Some stores are already out with their sales, while specials are "leaking" onto the internet via sites like BestBlackFriday.com.

Sandy Becker, professor of marketing at Rutgers Business School in New Brunswick and Newark, says the original purpose of Black Friday — to bring extra traffic into stores and malls — has not changed.

Becker said Black Friday sales spilled over into Thanksgiving in the past few years when stores began opening in the afternoon and evening.

"There was a lot of negativity around opening on Thanksgiving Day," Becker said.

"I believe it was last year or two years ago there was a lot of public relations issues … a lot consumers were unhappy not only for opening but forcing their employees to work on Thanksgiving Day and not being with their families."

There are even websites that track which stores WON'T open on Thanksgiving.

But Black Friday isn't likely going away, Becker says, and it remains an opportunity for both online and brick-and-mortar retailers to start the holiday shopping season.

"There's an encouragement to continue to show up in person where there are some sales that are in-store only. There is a wide range of opportunity online as well. There's Cyber Monday, the first Monday after Thanksgiving, with significant sales there," Becker said.

Full Article



New York Post
New York, NY
Wednesday, November 8, 2017

New York Post

Remember how people used to cheat by stealing peeks at their neighbor's tests? Kids today are way more high-tech — such as Trevor Graves, a college student whose digital-age grade-rigging spree not only got him kicked out of school, it also landed him in hot water with the FBI.

For all the high-tech wizardry, kids' motivations for cheating are pretty old-fashioned. Don McCabe, a Rutgers Business School professor who researched test scammers, spoke to the Denver Post about students' justifications for their high-tech deceptions. "They feel a test is unfair . . . Maybe they had something to do the night before and didn’t study."

Full Article



CDP
Mumbai, India
Monday, November 6, 2017

CDP

Big business is investing in water security at record levels, according to the annual Global Water Report published today by CDP (the non-profit global environmental disclosure platform).

A group of 53 companies (7%) are establishing internal values on water that account for social and environmental costs and benefits that are often absent from pricing and decision making. The report states that when water is undervalued, the business case for action is often misunderstood or difficult to see.

Those placing an internal price on water include Colgate Palmolive Company and Diageo Plc. On average, Colgate has found that the 'true' cost of water is 2.5 times more than the purchase cost. The company uses a 'True Cost of Water Toolkit', developed with Rutgers University Business School and its Supply Chain Management Program. Used by 95% of Colgate sites, the tool was designed to quantify some of the hidden costs of water such as pre-treatment, pumping and wastewater treatment.

Full Article



TopMBA
Newark, NJ
Monday, November 6, 2017

TopMBA

Business school students are increasingly pursuing careers in healthcare, according to anecdotal evidence from schools, where they can positively improve patient care, whether working in the finance department or directly with patients.

At Rutgers Business School in New Jersey, for example, 35% of last year’s cohort went to work in the healthcare, pharmaceutical and biotechnology sectors, by far the largest contingent, says Dean Vera, director for MBA career management, citing a desire to make an "impact" as the main motivation.

Healthcare is now among the fastest-growing industries for the recruitment of MBAs, according to the MBA Career Services and Employer Alliance, with 8% more business schools reporting increased healthcare recruiting activity last year compared with 2015.

Full Article



NorthJersey.com
Rockaway, NJ
Friday, November 3, 2017

North Jersey

Four candidates seek election to two, three-year seats on the school board on Nov. 7.

Russell Babcock and Robert Kurland are incumbents. Nancy Helbourg and Lisa Mezik are newcomers.

Kurland is associate dean of undergraduate programs at Rutgers Business School in Newark.

"I think one of the biggest challenges that our district is facing is not unique to us, instead it is a challenge for our entire educational system," said Robert Kurland, who is the current BOE president.  "That challenge is to prepare our educators' mindset and approach to teaching our children to be ready and successful for 21st century learning."

Full Article



Khabar
Orangi Town, Pakistan
Wednesday, November 1, 2017

Khabar

"Oh, my God, we won." Those were the words of Moneeb Mian, chief financial officer of Roshni Rides, as he approached the stage at the UN headquarters in New York City to accept the coveted $1 million Hult Prize.

The Hult Prize was created in 2009 to generate startup ideas from young people to sustainably solve the world's most critical social challenges. This year's Hult challenge was to improve the well-being of one million refugees by 2022.

Roshni Rides, created by four Pakistani-American students and alumni of Rutgers Business School, student Gia Farooqi and new graduates Hasan Usmani, Moneeb Mian and Hanaa Lakhani, provides a ride-sharing service for auto-rickshaws. Currently operating in Orangi Town, a slum of 2.4 million people outside Karachi, it allows drivers to follow set routes and passengers to easily share fares. The drivers ferry more passengers and earn more money, but passengers spend far less than if they had to travel alone and independently negotiate with drivers.

Full Article



NJBIZ
Newark, NJ
Monday, October 30, 2017

NJBIZ

It's great when smaller businesses get involved with corporate social responsibility efforts, but there's often a limit to what they can do alone, said Jeana Wirtenberg, associate professor of professional practice in the Management and Global Business Department of Rutgers Business School-Newark and New Brunswick.

"A study of Fortune 500 companies indicate they collectively spend more than $15 billion a year on CSR activities, and that number is on the rise," said Wirtenberg, who is also president and CEO of Transitioning to Green, a Montville-based training and consulting firm that helps companies and organizations make sustainability and corporate social responsibility a mainstream, routine business practice.

"To make a greater impact, smaller companies need to band together, perhaps through business associations and other organizations." Her company, Transitioning to Green, has created a model called "Shared Value to Collective Impact," that offers a kind of blueprint for small businesses to gather and leverage their muscle.

Full Article (PDF)



NJBIZ
Newark, NJ
Monday, October 30, 2017

NJBIZ

The concept of Corporate Social Responsibility is pretty broad, according to Michael Barnett, a Management and Global Business Professor at Rutgers Business School Newark and New Brunswick.

"CSR entails a broad set of activities that most companies have always engaged in to some degree, whether it be providing pay and benefits to employees that at least marginally exceed what's required by law and is necessary to retain them, or donating to local charities in the community," said Barnett, whose research includes firms' CSR activities. "It seems that more companies are using the broader concept of CSR to bundle together, manage, and advertise such activities, though, whereas in the past companies may have given less heed to explicitly organizing under the CSR umbrella."

This is particularly true for companies that deal with consumers, and ones that depend on highly skilled and younger workers, he said. "Consumers and employees now have more information available via digital and social media about how firms are being both socially and environmentally responsible, as well as irresponsible, and are more willing to make purchase and employment decisions on these bases," Barnett said.

Large companies have more resources and a bigger voice, so they "obviously make larger splashes when they announce major CSR initiatives," Barnett said. "But smaller businesses can have a much more direct impact on their local communities, from supporting local workers better, paying their fair share of taxes, donating to local service organizations and encouraging their employees to do so; and by using fair, transparent governance practices, to name but a few," added Barnett.

Full Article



Cambridge, MA
Monday, October 30, 2017

Harvard Law School Forum

In Is Say on Pay All About Pay? The Impact of Firm Performance, we seek to answer the question whether "say on pay" votes really focus on executive compensation. As policymakers evaluate the decision whether to retain say on pay, it is worth examining more carefully the information that shareholders convey through their vote on executive compensation, a question we examine in this article. We find that, although pay plays a role in voting results, the say on pay vote is largely a means for shareholders to express dissatisfaction with firm performance.

Jill E. Fisch is Perry Golkin Professor of Law at the University of Pennsylvania Law School; Darius Palia is Professor of Finance at Rutgers Business School; and Steven Davidoff Solomon is Professor of Law at UC Berkeley School of Law. This post is based on an article authored by Professor Fisch, Professor Palia, and Professor Davidoff Solomon, forthcoming in the Harvard Business Law Review.

Full Article



Fortune
New York, NY
Monday, October 30, 2017

Fortune Magazine

Steve Jobs was partly correct when he said, "A lot of times, people don't know what they want until you show it to them." By the time Ford (F, +0.66%) sold its first car in 1903, there were no paved roads or gas stations, so consumers wanted faster horses, not cars. Until Starbucks (SBUX, +0.53%) showed there was such a thing as premium coffee, all deli store coffee were considered to be the same. And in 2007, mobile phones didn't really have third-party apps yet, so the Blackberry was the most desired phone—until the iPhone came along, of course.

But, there are still radical innovations that people will scratch their heads over even after they have seen them. Consider Apple's innovative-but-failed products: Pippin game console, Newton PDA, Macintosh TV, G4 Cube, Macintosh Portable, Macintosh TV, Apple Lisa, and so on. Now it seems that the new iPhone X's Face ID feature is on the test.

Facial recognition is already available in other smartphones, tablets, and laptops, with varying degrees of successful implementation. The Face ID is claimed to be the most sophisticated among them, but it will still need further refinements and updates in the coming years to work flawlessly. To get there, Apple has to overcome several hurdles.

Chan Choi is a professor of marketing at Rutgers Business School.

Full Article



New Haven, CT
Tuesday, October 24, 2017

YaleGlobal Online

India – with a young, talented and entrepreneurial workforce and an economy that relies on low wages – could provide formidable competition to China as factory to the world. India's Prime Minister Narendra Modi has promoted a "Make in India" campaign and likewise expects consumers to buy in India, too. But like consumers everywhere, Indians appreciate a bargain.

Even fierce nationalists do not hesitate to snap up low-cost goods made in China from tiny figurines of Hindu deities to smartphones, explains Farok J. Contractor, a professor in the Management and Global Business Department at Rutgers Business School. Despite rising labor costs and long shipping distances, China manages to outcompete India's producers for all types of goods. Contractor lists seven impediments for Modi’s campaign including burdensome regulations, an unreliable electric grid and pervasive corruption.

"Despite the 'Make in India' campaign, India's trade imbalance with China and the world has only worsened," Contractor concludes. "Eliminating unnecessary bureaucratic interference could help someday turn India into a factory for the world." – YaleGlobal

Full Article



NJTV News
Newark, NJ
Thursday, October 19, 2017

NJTV

An escalating intercity fight for Amazon's second headquarters and the high paying jobs and taxes that would come with it. Gov. Chris Christie is backing Newark's bid with a near-record $7 billion in tax incentives. But, other Jersey cities are pitching Amazon as well. Rhonda Schaffler looks at the deals they’re offering.

"This is big deal. Amazon.com coming to your state, or to your city or region, as a possibility is fantastic," said Associate Professor Jeffrey Robinson, management & global business, Rutgers Business School.

Full Article



Relevance
Upper Marlboro, MD
Wednesday, October 18, 2017

Relevance

The importance of digital marketing to businesses, both big and small, has flourished in the recent years. With it, the popularity of digital advertising resources like KISSmetrics, Moz, Entrepreneur, and Wordstream have become essential parts of many businesses’ performance in the online market.

Here are 50 of the most influential names in digital marketing as of 2017.

7) Heidi Cohen
Heidi Cohen is the Chief Content Officer of Actionable Marketing Guide. Her expertise lies in her approach towards marketing, by taking difficult concepts and bringing them to an easily understood level. She currently runs her own consultant company, Riverside Marketing Strategies, and teaches graduate-level marketing classes at institutions such as New York University, SUNY-Hunter College, and Rutgers.

37) Chad Pollitt
Chad Pollitt is a decorated veteran of Operation Iraqi Freedom and former US Army Commander. Today, he is an Adjunct Professor of Internet Marketing at the Indiana University Kelley School of Business and an Adjunct Instructor of Content Marketing at the Rutgers University Business School. He is also the co-founder of the award-winning digital publication, Relevance.com. He has authored ‘The Native Advertising Manifesto,’ ‘The Content Promotion Manifesto’ and “51 Things Your Mother Taught You About Inbound Marketing.” He also contributes regularly to the Huffington Post, Guardian and Social Media Today and other media outlets. Chad has been named as one of the top five content marketing thought leader and is among the top 20 CMO influencers.

40) Mark Schaefer
Mark Schaefer is the director of Schaefer Marketing SolutMark and Schaefer Marketing Solutions. With over 28 years of experience in global sales and marketing, Mark is a much sought-after consultant. He holds advanced degrees in business and applied behavioral sciences. He is also an award-winning business writer, university sciences. He holds seven international patents for new product ideas with Fortune 100 companies. Mark also teaches at the Pellissippi State College in Knoxville and serves as an adjunct professor of marketing at Rutgers Business School.

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newKerala
Montvale, NJ
Wednesday, October 18, 2017

newKerala logo

The PhD Project, an award-winning program to increase diversity in management, announced the 2017 inductees into its PhD Project Hall of Fame.

They are: Geraldine Rosa Henderson, Associate Professor, Loyola University Chicago; Fay Cobb Payton, Professor of Information Systems/Technology, North Carolina State University; and Thaddeus H. Spratlen, Professor Emeritus of Marketing, University of Washington.

Dr. Geraldine Rosa Henderson is an Associate Professor with Tenure in the Department of Marketing at the Quinlan School of Business at Loyola University Chicago. She has been an active contributor and ambassador of The PhD Project since its inception. Even as she advanced her research achievements and served as a role model for students of color in the classroom, she has also been a consistent contributor to The PhD Project's achievement and stature. She is the co-author of Consumer Equality: Race and the American Marketplace.

She was previously the Chairperson and Associate Professor with Tenure of the Department of Marketing and the Associate Research Director for The Center for Urban Entrepreneurship & Economic Development (CUEED) at Rutgers Business School Newark/New Brunswick at Rutgers University. Her primary areas of research include: global marketplace diversity and inclusion, health disparities, public policy, consumption communities, and consumer networks (both cognitive and social). She has published over fifty articles, books, or book chapters. She is a recipient of the 2015 Kinnear Best Paper Award from the Journal of Public Policy & Marketing.

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Newark, NJ
Monday, October 16, 2017

The New York Times

"We have exactly what Amazon is looking for, in terms of expanding their company in a city that will help them grow and where it would have real social impact," said Mayor Ras J. Baraka in an interview. "Newark is an opportunity to make a real statement, about what they're trying to accomplish in the United States in the age of Trump."

On Monday afternoon, Gov. Chris Christie of New Jersey and Senator Cory A. Booker, the former Newark mayor, joined Mr. Baraka at Rutgers Business School, which shares its building in the city with Audible Inc., whose 1,000 employees produce and sell audio entertainment and which is owned by Amazon, to announce that Newark is the state’s official bid in the headquarters race.

Full Article



The Gulf Today
New York, NY
Monday, October 16, 2017

The Gulf Today

NEW YORK: Chinese economy could sustain current growth rate of over 6 per cent for the foreseeable future, a US expert has said.

"The growth rate has come down from the previous eight or 10 per cent, but that is still a very healthy rate and that should be the envy of any other country in the world," Farok Contractor, a distinguished professor at Rutgers Business School, told Xinhua.

Contractor noted that China has made enormous progresses in economic development for the past five years, highlighting poverty reduction and RMB internationalization.

"Today there are only about 50 million Chinese left in grinding poverty, according to the World Bank's criterion, so that's a wonderful accomplishment not just for China but for the whole world," he said.

Having visited China for many times, the professor noticed that income inequality in the country is being addressed, and that "more attention is being paid to relatively poor provinces like Guizhou."

"There has been a more balanced distribution of benefits and more balanced growth," he added.

Full Article



New York, NY
Thursday, October 12, 2017

U. S. News & World Report

Stock markets are sitting at record highs now, but 30 years ago, Wall Street suffered its biggest crash ever. On Oct. 19, 1987, the Dow Jones industrial average lost 22.6 percent of its value in a single day, a percentage drop twice as much as any single day in the 1929 stock market crash. Because of its severity, Black Monday stands out even for people who don't follow financial markets regularly.

A few factors came together to trigger the crash. Many blame a momentum-based trading strategy called portfolio insurance, says John Longo, professor of finance and economics at Rutgers Business School and author of "The Art of Investing: Lessons from History's Greatest Traders." This strategy prompts investors to sell as prices fall, but although portfolio insurance played a role, Longo notes the market also was at a high before the crash, with stocks up roughly 40 percent at their intra-year peak before the crash.

The biggest change to come out of the 1987 crash was the invention of circuit breakers, which stop trading when prices fall past a certain point.

"Another lesson is not to chase performance, either with hot stocks or hot funds, because the stocks that are most likely to fall severely are those that went up the most," Longo says. "So get back to basics and buy stocks with long-term history that pay a dividend."

Full Article