One bad corporate apple, it seems, can spoil a whole bunch. That’s the conclusion of a fascinating academic study that examined accounting restatements by thousands of corporations over a 12-year period. Three academics conducted the study, which will appear in the November issue of The Accounting Review, published by the American Accounting Association. They are Simi Kedia of Rutgers University Business School, Kevin Koh of Nanyang Business School in Singapore and Shivaram Rajgopal of Columbia University Business School.
Earnings manipulation is also more prevalent than we might think. The PCAOB report comes on the heels of a recent study titled, “Evidence on Contagion in Earnings Management.” One of the authors, Rutgers Business School professor Simi Kedia, told me that her research showed that if a company is cheating on its financial reporting and gets caught, other firms will “learn about how costly it is to cheat.” If it’s “not so bad,” she says her research shows, other firms will start cheating in the very same way.
If, however, the penalties are severe, other companies are deterred from following suit. This recent research specifically reviewed instances of copycat behavior that followed public information about the cheating, Kedia told me, calling it “public contagion.” The research shows how important strong regulatory enforcement can be.
En garde, world. If 23-year-old Kamali Thompson continues on the path she has been blazing since she graduated from Teaneck High School in 2008, she’ll have the 2016 Rio de Janeiro Olympics on the blade of her very winning saber.
“At first, I was reluctant because it was so different,” she said. “I was a high school kid, and I just wanted to fit in.”
But after her mother took her to see a demonstration at the Peter Westbrook Foundation, a Manhattan-based organization that is dedicated to teaching fencing to minority and inner-city youngsters who might not even be aware of the sport. After that, Thompson said, she decided to give it a try – “and now I am passionate for fencing,” she added.
Discrimination is especially real for minority entrepreneurs. According to a study published by Glenn Christensen, an associate professor of marketing at BYU, Jerome Williams, executive vice chancellor and provost at Rutgers University-Newark and a marketing professor at Rutgers Business School and lead author Sterling Bone, a Utah State University business professor, minorities face more challenges than their white peers in the perennially high-stress process of securing business financing. That racial profiling can lead to discouragement and diminished self-worth.
In years of studying the matter, Rutgers Business School Distinguished Professor Jerome D. Williams said he has never discovered any compelling reason to think that one racial group shoplifts more than others. "The arrest data does not give us the true picture of what you really want to know,” Williams said. "Because the arrest record tells you who got caught, and who got caught is a function of who got watched, and as we know, who gets watched is, in many instances, a function of what color" the person is.
Financial restatements can prompt similar companies to misstate their own earnings, according to a new study.
The authors—Simi Kedia of Rutgers Business School, Kevin Koh of Nanyang Business School in Singapore and Shivaram Rajgopal of Columbia University Business School—believe their study to be “the first to document that peer firms begin managing earnings after an earnings restatement is announced by target firms in their industry or in their metropolitan statistical area.” The study will be published in the November issue of the American Accounting Association journal The Accounting Review.
"I give Trump credit for raising this issue of the offshoring," said Michael Santoro, professor of management and global business at Rutgers Business School. "I do think there is a deal to be made here, but you have to be a tough negotiator because right now I bet a lot of these companies want to bring this money back anyway."
On Tuesday bank earnings season will begin just as it always does: with JPMorgan Chase's Jamie Dimon and Marianne Lake running through the latest results and then opening up the floor to questions.
First among U.S. banks in size and public stature, JPMorgan is also the first to report its financial results in nearly every quarter. For many analysts, investors and journalists, its press releases (ETA normally 7 a.m.) mark the beginning of earnings season.
There’s no rule that makes it so — banks, like other public companies, have wide leeway over when to report their earnings. Yet earnings season is full of unwritten rules, like JPMorgan going first, that are so rarely challenged they seem to have been etched in stone and handed down from on high — a mix of informal traditions and sheer arbitrary habits.
Technology, mobile devices, social media, the sharing economy and the impact of millennial are dramatically changing how people get around, work and play—new behaviors that are dictating trends in workspace location, design and usage.
These trends will be the subject of discussion at NAIOP New Jersey, the commercial real estate development association’s seminar, “Digital Disruption, the Mobile Tech Wave and CRE: The Sharing Economy and Workspace Revolution,” slated for Wednesday, October 21, 2015, 7:45 a.m., at Rutgers Business School’s Bove Auditorium in Newark. The event will feature a keynote address by nationally known expert Andrea P. Foertsch.
Real-estate broker Warren Teller watched as the housing market in Richmond, Virginia, slowed dramatically eight years ago. Today, he’s witnessing a reversal.
“We’re in the best position that we’ve been in since probably 2006 and 2007,” said Teller, 41, who’s even seen bidding wars and appraisal-topping purchase prices. “As far as prices, we’re back on track with where we were before the bubble burst, and as far as inventory, we’re down.”
As residential real-estate prices stage a comeback, Federal Reserve policy makers may be gaining an extra motivation for lifting interest rates for the first time in nearly a decade: They don’t want to let recovery evolve into excess.
Newark has several other supermarkets, but nothing this grand, said Rutgers Business School professor Jeff Robinson.
This is a prime example of what other cities need to be doing. It’s a source of jobs and it’s a large employer. It’s a place where you can find what you need in the community. This is a home run,” Robinson said.
Tashni-Ann Dubroy is not the type of woman to back down from a challenge.
The Rutgers MBA graduate lived up to the challenge at 18, when she immigrated to the United States from Jamaica, applied to a medley of colleges and was denied any scholarships and admission.
She lived up to the challenge when she instead applied, and then attended community college in New York City, and then transferred into Shaw University on scholarship in Raleigh, North Carolina. Years later, she would walk on the same campus grounds, except instead of being a student, she was president.
When she was at the business table at BASF, she was over her head, she said. She had no business experience, but she wanted to contribute to the discussion. So she took the first step to developing a sense of business savvy, and eventually enrolled in the Rutgers Business SchoolMBA program, where she chose to study marketing.
“I have reaped significant returns on my investment on my Rutgers MBA,” she said.
Jeffrey A. Robinson, who teaches courses in social entrepreneurship at Rutgers Business School’s Management and Global Business department, hopes to be able to impact his undergraduate students with some of the smaller seminars and joint faculty work with the Honors College. "I do work on social innovation and entrepreneurship, and how do you use entrepreneurship to solve social problems, which is one of the college’s themes this year," Robinson said.
Donald Trump has sprinted to the front of the pack of Republican presidential hopefuls by defying party orthodoxy on certain issues, while embracing it in other ways.
His tax plan does both.
In proposing to give U.S. multinationals a tax break in return for repatriating overseas profits, Trump is hewing to previous Republican policies, including a tax "holiday" enacted in 2004 under President George W. Bush. Trump said Monday that levying a reduced tax rate on those profits will encourage big U.S. companies -- including Trump's own global real estate empire -- to invest much of the $2.5 trillion they have parked offshore here at home, sparking job-creation and economic growth.
"This was a good idea for five years ago," said Michael Santoro, professor of management and global business at Rutgers Business School. "There's been reporting that U.S. multinationals are already bringing some of this money back. Especially with the decline of China, for all our problems here in the U.S., our economy is pulling away from the rest of the world as far as being a safe place to invest."
Millennials have the reputation of not being in a hurry to settle down, and it's true that young people are waiting longer to purchase property than previous generations, a trend that's likely contributed to historically low homeownership rates. But this is changing as my generation acquires wealth and starts to want the stability my adult-but-boring Arizona friends have.
"You have to buy smart and get lucky at the same time," explained Davis, the Rutgers prof. "So for example, if you knew to buy real estate in London in the 50s, it would have been the most spectacular investment you could ever make. But you had to know to buy in London—if you bought in Manchester or Nottingham or Dover, it would have been lousy."
"People think New York is overpriced," Davis continued, "But is it? It's cheap compared to London and San Francisco. If you think it will look eventually like either of those places, you should buy a home there."
Reji, a 20-year-old Rutgers Business School junior, is one of six young men who acquired $290,000 in seed funding on Sept. 22 for Drizzle SMS, a mobile app that pays users to text their friends by placing small banner ads in personal conversations. Rewards are distributed in forms of “Drops,” which can be translated into cash, PayPal, Amazon gift cards and charity donations.
“When I first arrived at Rutgers, we were teaching one or two courses and had 20 or 30 students,” Robinson said. “And then more and more students found out, and we had to increase the number of sections and then we created the minor and we opened it up across the University.”
Do you think an elevator speech has more impact going up rather than down? What if the building only has two floors?
The term was coined by Vanity Fair editor Michael Caruso and has nothing to do with Otis elevators. There are many differing opinions on what constitutes a great elevator speech. I decided to seek varying opinions and let you decide how to create or refine the elevator speech for your business.
"Many people think strictly about business when discussing a pitch," Blake said. "I liken pitching to a date."
"Is your pitch attractive? Questions to ask: Is your message appealing, who else believes you, do you own it, is it authentic? Compared to dating, these qualities are: appeal, validation, confidence and trust."
Akhil Shah grew up on dishes like these, Indian staples prepared by his mother. But he knows that meals like these are unfamiliar to many, and that busy people who enjoy home-cooked meals don’t have the time to seek out new ingredients and learn how to prepare them.
“It kind of fit my need,” said Shah, who began working on the business concept in July 2014 while employed as a claims specialist for Liberty Mutual. “I work a full-time job, and right now I have a mom who is able to make food for me. But I was thinking long term. I love Indian food, and also, there are a lot of first-generation, American-born Indians that can use this.”
He also realized that plenty of people are interested in Indian food but that making it at home can be “really complicated, with the spices and the prep,” he said. “It’s becoming more and more popular, more restaurants are popping up. If people can (have this at home) to fit a busy schedule, why not?”
Home cooks agreed: Chutney Chefs launched in January, and Shah receives between 70 and 80 orders a day from New Jersey and 10 other states.
But before judging the response to the refugee crisis by some EU countries, consider the existing social conditions in the Europe, where this wave of displaced people seek sanctuary. Across much of Europe, youth unemployment is already at an all-time high, with one in five young people ages 15 to 24 being idle. In countries like Greece, Spain and Italy youth unemployment ranges from 40 percent to over 50 percent. "In Greece youth unemployment is 50 percent, but in Germany youth unemployment is only 7 percent, with overall unemployment well below 5 percent and jobs going begging,” says Farok J. Contractor, professor of management and global business at Rutgers Business School.
Arash Azadegan, associate professor in the department of supply chain management at Rutgers, says the supply-chain management program trend started about 10 years ago, after companies decided they couldn't do everything in-house and decided to recruit suppliers, especially cheap suppliers in emerging economies such as India, China and Brazil. Now, says Azadegan, his students go on to a host of different careers under the supply chain umbrella, including procurement, supplier development engineering, management, supply chain analysis, or supply risk management.