Haas NewsWire

Haas NewsWire, June 14, 2004

Haas Welcomes a New Class of Berkeley-Columbia Executive MBA Students
Six New Professors to Strengthen Haas School Faculty
More Jobs and Better Pay Greet 2004 Grads
State Grant Funds Deeper Research into the Effects of Outsourcing
Women Prefer to Work with Men, New Study Finds
Nondorf Tracks Business Impact of Accounting Methods
How to Get it Fixed and Where to Find Keys at Haas
Campus to Offer Passport Services
Haas in the News
Happening at Haas

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Berkeley-Columbia Executive MBA
Berkeley - Columbia Executive MBA

Haas Welcomes a New Class of Berkeley-Columbia Executive MBA Students

The largest incoming class of the Berkeley-Columbia Executive MBA program, chosen from a record number of applicants, began their 19-month stint here at the Haas School on May 25.

This year was marked by a 37% increase in applications to the program, with 67 students enrolling, up from 62 students in the previous two cohorts.

"In three short years, the program has really established itself as a major resource for executives looking to expand upon their skills," says Robert Gleeson, executive director of the Berkeley-Columbia program.

The new cohort of students includes presidents, vice presidents, principals, and senior managers from a wide range of companies including Oracle, Gap, JP Morgan Chase, Sun Microsystems, Microsoft, Cisco Systems, Deloitte & Touche, and Bank of America. They have an average of 12 years of work experience with them, mostly in the financial services/banking, high-technology, telecommunications, and pharmaceuticals/biotechnology industries.

"The program is rich with seasoned and successful professionals from diverse industries and backgrounds," says student Roland Deal, vice president and account director at GREY Advertising in San Francisco. "My study group is comprised of a physician who is an officer in the Army Reserve; an ex-Navy F-118 pilot who is an executive at a prominent yacht club in Seattle; and a programmer at a leading software company in Silicon Valley. Such divergent backgrounds bring perspectives to the business problems and cases that are presented to us in class that I would be hard-pressed to replicate. That kind of experience is priceless."

Merging the strengths of two top business schools, the Berkeley-Columbia Executive MBA program offers on-campus instruction featuring the same rigorous curriculum and world-class faculties as the prestigious full-time programs. Graduates receive two degrees, one from each institution, and join the ranks of two worldwide alumni networks. Each of the five semesters in the 19-month program consist of five long weekends (Thursday through Saturday), with four of the five sessions held at Haas and one at Columbia. For more information on the program, visit http://www.berkeley.columbia.edu/.

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Six New Professors to Strengthen Haas School Faculty

Six new assistant professors from top universities will join the Haas School's faculty this fall.

The hiring of these six new faculty members, under the leadership of Associate Dean for Academic Affairs Philip Tetlock, will raise the number of ladder-track faculty members to 81.

The Operations and Information Technology Management (OITM) group is netting two new faculty: Xuanming Su and Pinar Keskinocak. Su earned a Ph.D. from Stanford University. Keskinocak, who will be on leave during 2004-05, completed her Ph.D. in Operations Research at Carnegie Mellon University.

Eduardo Andrade will join the Marketing Group. He holds a Ph.D. from the Warrington College of Business Administration at the University of Florida.

Waverly Ding, a recent Ph.D. graduate from the University of Chicago, will join the Organizational Behavior and Industrial Relations Group.

The Accounting Group is welcoming Shai Levi, who holds a Ph.D. in Accounting from the Stern School of Business at New York University.

Alexandre Mas comes to the Economic Analysis and Policy Group with a Ph.D. in economics from Princeton University.

Look for profiles of the six new assistant professors in issues of Haas NewsWire in the fall.

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More Jobs and Better Pay Greet 2004 Grads

With salaries and signing bonuses on the rise, the employment outlook is upbeat, according to a recent Haas School survey of 2004 Full-time MBA graduates.

Seventy-five percent of the Class of 2004 graduated with jobs, according to Abby Scott, director of the Haas Career Center. She also notes that the median base salary for a Berkeley MBA student is now more than $90,000, an increase from the $85,000 median of the past two years, and that more students are receiving signing bonuses. In addition to an improved hiring environment, the hard work of the graduates and Haas Account Managers, and increased participation by UC alumni as recruiters have contributed to this upswing, says Scott.

With 96% of the new graduates having reported on their job status, another trend gleaned from the survey is the continuing reign of technology as the number one sector of employment. Financial services and consulting follow close behind, while the number of students entering the biotechnology, healthcare, and pharmaceutical industries is steadily rising.

The top 10 employers of Berkeley MBA students and graduates this year are McKinsey & Company, Gap, Wells Fargo Bank, IBM, Lehman Brothers, Boston Consulting Group, Blue Shield of California, SAP Labs, Deloitte, and Cisco Systems. While many graduates remain in the Bay Area, 16% will be working overseas, and 10% have accepted positions in the Northeastern US.

"In addition, the number of internships posted this year is up 44% and full-time job postings are up 39%," according to Scott.

"We in the Career Center are working to further these positive trends by strengthening existing and establishing new relationships with employers," Scott says. "In addition, we are continuing to work with recent graduates to help them land jobs in industry. Ameriquest, Toyota, Intel, and Walt Disney Studios are just a few of the companies that have recently posted positions with the Career Center, and we expect the postings to continue well into the summer months.

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State Grant Funds Deeper Research into the Effects of Outsourcing

Professor Dwight Jaffee, Ashok Deo Bardhan, and Cynthia Kroll, have received a one-year grant from the California Policy Research Center to study the effects of outsourcing on the California economy.

"We are very proud to have received this grant in a setting in which funding from California state agencies has all but disappeared," says Dwight Jaffee, the Willis Booth Professor of Banking, Finance, and Real Estate. "The grant will allow us to extend the work we have done on offshore outsourcing and to look in more details at the implications for California businesses and policy makers."

Jaffee together with Cynthia Kroll, senior regional economist, and Ashok Deo Bardhan, senior research associate, both of the Fisher Center, recently coauthored the book Globalization and a High-Tech Economy: California, the US and Beyond, published in 2003.

Their research project, Services Outsourcing and California Employment: Implications for State Policy, will focus on the impact of business services outsourcing on California's economic structure and the implications resulting from current outsourcing trends on state policy. The study will rely on two data sets unique to the Fisher Center for Real Estate and Urban Economics as well as other data sources such as interviews, web research, and survey techniques to create better understanding of the implications of outsourcing for industry, the labor force, and existing state programs.

For more information on the California Policy Research Center, visit http://www.ucop.edu/cprc.

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Women Prefer to Work with Men, New Study Finds

Opposites attract, they say, but it's not always what you think. A new study has found that women professionals belonging to all-female work teams are far more likely to want transfers from their groups than men belonging to all-male teams, according to new research by Professors Jennifer Chatman and Charles O'Reilly of Stanford University.

While the men in this study were happy to be on all-male teams, their contentment did not translate conspicuously into a greater commitment to the company, enthusiasm for their work, or a spirit of team cooperativeness. On these three measures, women on all-female teams scored significantly higher than men on all-male teams.

What then accounts for women's unhappiness with all-female teams? It's mainly a matter of status, according to Chatman, who holds the Paul J. Cortese Distinguished Professor of Management at Haas, and O'Reilly.

They explain: "Because of historical status differences between men and women at work, women may have expressed a greater likelihood of transferring out of all-female groups...in which the chances for advancement may be constrained by being in a female 'ghetto'."

The study, which is published in the current issue (April) of the Academy of Management Journal, raises new challenges for the managers of project teams.

The authors suggest that managers "seek ways of easing the tension women face in choosing between the comfort of homogeneous groups and the status derived from male-dominated group. Such efforts might include providing women in male-dominated groups in particular with social support so that they do not have to trade off comfort for mobility."

The study is based on a survey of 178 randomly chosen employees of a large national clothing manufacturer and retailer. Each team consisted of professionals from varied functional backgrounds. They were dedicated to only one project team and did the bulk of their work in that team. For purposes of analysis, the teams were divided into four categories each for men and women -- homogeneous, same sex dominates, balanced, and other sex dominates.

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Nondorf Tracks Business Impact of Accounting Methods

An accountant by trade, Assistant Professor Maria Nondorf joined Haas last fall where she will continue her research into the financial accounting of acquisitions and employee stock options.

Nondorf is currently examining how employee stock options were treated in 400 high-technology acquisitions between 1992 and 2002. "Even though the accounting rule-setters have been increasingly tightening accounting rules," she says. "I'm trying to see if there are ways that companies are still attempting to circumvent them."

In her nine years as an accountant and a senior manager in corporate finance at a major public accounting firm, Nondorf had plenty of opportunity to observe how companies stretched the rules regarding financial accounting without technically breaking the law. When she made a career switch into academia, she decided to focus her research on understanding the economic effects of structuring transactions to achieve particular accounting results.

Nondorf started by looking into investment behavior of high-technology companies that used the now-outlawed "pooling of interests" accounting method for acquisitions. Prior to 2001, companies were allowed to structure a merger so as to hide the amount they paid for an acquired firm that was over the market value of the target firm's assets. Pooling -- or adjusting the numbers to make it look as though the two companies had always operated together -- rendered the overpayment invisible and avoided the drag on the firm's earnings.

One catch was that companies using pooling were prohibited from repurchasing their own stock for two years prior to and following the acquisition. During these restricted periods these firms tended instead to aggressively invest in other projects. "As a result, they ended up taking on unfavorable investments, such as over-investing in research and development and taking on value-destroying acquisitions," says Nondorf. "Firms that chose not to pool were financially better off in the long run."

In the course of collecting data, Nondorf and several colleagues from the University of North Carolina, where she earned her Ph.D., have assembled a database of shareholder information on every publicly traded company. From this database they have learned that a company's mix of shareholders tends to shift systematically over the life of the firm. At first, firms are dominated by large blockholders and insider shareholders and then shift to institutional shareholdings, such as investment banks and pension funds, for about five years. After seven or eight years individual investors become an important part of the mix. This paper is the first in a series of papers that will utilize the shareholder database to examine how the mix of shareholders affects corporate decision-making, including firms financial reporting strategies.

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How to Get it Fixed and Where to Find Keys at Haas

Windows won't shut? Door won't open? Need to arrange a meeting? Here is a guide to getting it fixed, unlocked, or reserved at Haas:

To report a non-urgent maintenance problem in your office or anywhere at the school, contact Gerardo Campos, facilities coordinator, at fixit@haas.berkeley.edu.

For urgent maintenance problems, page Campos at 425-6439, or Meriel Ennik, acting manager of Facilities and Building Operations, at 840-6728.

To request a key, contact Kim Dixon between 11:00 a.m. and noon or 1:00 p.m. and 3:00 p.m. in F514 or call 643-0475.

Send room requests to roomres@haas.berkeley.edu. Include the name of your event, duration (including set-up/take-down), and a contact phone number. Dixon from facilities will contact you to confirm the reservation.

For any additional facilities questions or concerns, contact Ennik at 2-9106 or Campos at 2-4617.

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Campus to Offer Passport Services

US citizens planning to journey overseas can now apply for a passport and obtain photos at a new Passport Acceptance Office in the UC Berkeley Recreational Sports Facility (RSF).

Neither UC Berkeley affiliation nor RSF membership are required to use this office, which accepts passport applications on behalf of the US State Department and is open to all US citizens. Hours are Monday through Friday from 11:00 a.m. to 6:00 p.m., excluding university holidays.

Joe Watz, director of marketing for the Department of Recreational Sports, notes that this is the first campus recreational facility in the country to host a passport office. "RSF is an ideal site for this service due to its central campus location, extended hours, and heavy traffic-nearly 5,000 visitors a day pass through our doors during the academic year," he says. "We also have an existing infrastructure to collect fees." He estimates that the office will process close to 2,000 passports a year.

Fees for standard passport processing (receipt within six weeks) are $55 for adults and $40 for youth under age 16.

The new passport acceptance office is located at the RSF, 2301 Bancroft Way. For more information: http://calbears.berkeley.edu/services or 510-642-7796.

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Dean Tom Campbell was featured on KPIX Channel 5 on June 9 in an interview regarding Reaganomics.

David Teece, the Mitsubishi Bank Professor of International Business and Finance, was mentioned in the Wall Street Journal on June 7 in an article titled "Software Secrets May Be Shared at Oracle-PeopleSoft Trial."

Michael Katz, the Edward J. and Mollie Arnold Professor of Business Administration, was quoted in the San Francisco Chronicle on June 7 in an article titled "PeopleSoft, Oracle to Take their Battle Before Judge Today." Katz commented on the complex nature of the business software market. For full text: http://www.sfgate.com/cgi-bin/article.cgi? f=/c/a/2004/06/07/BUGEI711SK1.DTL

Peter Sealey, adjunct professor in the Marketing Group, was quoted in the Los Angeles Times on June 7 in an article titled "Winery Wins the Game of Product Placement." Sealey commented on the effectiveness of product placements in film and on television. For full text: http://www.latimes.com/business/la-fi-closduval7jun07,1,1983678,print.story

Helen Chan, MBA/MPH 05, was the subject of an illustration that ran in the San Francisco Chronicle on June 7 in the Bay Folk Sketchbook comic section. To view the graphic: http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2004/06/07/DDBAYFOLK.DTL

Dean Tom Campbell and Kellie McElhaney, executive director of the Center for Responsible
Business, were featured in a June 6 New York Times Magazine article titled "The Irresponsible Investor," which touched upon the Haas School's curriculum in business ethics and corporate social responsibility For full text: http://query.nytimes.com/gst/abstract.html? res=F50B10FB3F550C758CDDAF0894DC404482. (registration required).

McElhany was also quoted in The New York Times on June 1, titled "After Serving Time, Executives Now Serve Up Advice." For full text: http://www.nytimes.com/2004/06/01/business/01convict.html? pagewanted=print&position= (registration required.)
The same article ran in the following publications:

  • The International Herald Tribune on June 1, titled "White-collar Convicts Hit the Lecture Circuit." For full text: http://www.iht.com/bin/print.php? file=522772.html
  • The Business Times on June 2, titled "Convicted Execs Cash in Their Criminal Past on Lecture Circuit."
  • The Beacon Journal on June 6 in an article titled "Corporate Crime is Hot Topic on Lecture Circuit." McElhany commented on corporate criminals as lecturers.

  • Dean Tom Campbell was cited as a "key player" in the Oracle anti-trust case in a Contra Costa Times article on June 6, titled "Oracle's Big Hurdle." For full text: http://www.contracostatimes.com/mld/cctimes/business/8853242.htm? template=contentModules/printstory.jsp

    Severin Borenstein, E.T. Grether Professor in Public Policy and Business Administration, commented on the future of the oil market in the United Sates in the following publications:

  • The San Francisco Chronicle on June 6 in an article titled "U.S. Addiction to Oil Puts It At Mercy of Risky Characters." For full text: http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2004/06/06/BUG55705QV1.DTL&type=printable
  • The Chicago Tribune on June 3 in an article titled "Oil Prices Likely to Defy OPEC Fix"
  • The Mercury News on May 27 in an article titled "Gas Prices Are Likely to Stay High." For full text: http://www.mercurynews.com/mld/mercurynews/news/8771802.htm? template=contentModules/printstory.jsp
  • The Los Angeles Times on May 25 in an article titled "Oil, Gas Prices Hit New Heights in State, U.S." For full text: http://www.latimes.com/business/la-fi-gas25may25,1,2693973,print.story

  • Hal Varian, professor in the Operations and Information Technology Management Group, wrote an article published on June 3 in the New York Times titled "Exchange Rates and the Economy." To view text: http://www.nytimes.com/2004/06/03/business/03scene.html? pagewanted=print&position=

    The study on job outsourcing by Ashok Deo Bardhan and Cynthia Kroll, both researchers at the Fisher Center for Real Estate and Urban Economics, was mentioned in the Wall Street Journal on June 2 in an article titled "Outsourcing Likely to Slow Rebound in Office Properties."

    The Haas School of Business's Global Social Venture Competition was cited as "Ground zero for the (social enterprise) movement" in a June 1 Investor's Business Daily article titled "Managing for Success: Aiming To Do Well By Doing Good." Jerry Engel, executive director of the Lester Center for Entrepreneurship, commented on various aspects of social ventures.

    UC Berkeley's team was featured as the winner of the 2004 Bank of America Low-Income Housing Challenge in the San Francisco Chronicle on May 30 in an article titled "Cal, Stanford Get Top Honors in Housing Project." For full text: http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2004/05/30/REGNS6T4AQ1.DTL&type=printable

    Henry Chesbrough, visiting assistant professor, was quoted in the New York Times on May 24 in an article titled "The Distributor vs. the Innovator." Chesbrough commented on the competition between Hewlett-Packard and Dell. For full text: http://query.nytimes.com/gst/abstract.html? res=F60713F63D5A0C778EDDAC0894DC404482. The article also ran on News.com.

    Mark Rubinstein, Paul Stephens Professor of Applied Investment Analysis in the Finance Group, was quoted in the East Bay Business Times on May 23 in an article titled "East Bay Firms Still Face Options Hit." Rubinstein commented on a proposed Financial Accounting Standards Board rule on stock options. For full text: http://eastbay.bizjournals.com/eastbay/stories/2004/05/24/story1.html

    The Haas School of Business's Global Social Venture Competition was mentioned in the Boston Business Journal on May 21 in an article titled "The Do-Good Projects Get the Money at MIT $50K" For full text: http://www.bizjournals.com/industries/high_tech/semiconductors/2004/05/24/boston_newscolumn3.html

    KQED Radio aired a conversation between Haas School Dean Tom Campbell and former Secretary of Labor Robert Reich, currently a distinguished visiting scholar at UC Berkeley, on May 18 and 19. The talk, "Prosperity: Preparing for the Global Economy," focused on preparing for and competing in the global economy and was hosted by the World Affairs Council of San Francisco.

    Richard Gilbert, affiliated professor of economics, was quoted in the Oakland Tribune on May 19 in an article titled "No Stopping Higher Gas Prices." Gilbert commented on his proposal that refiners should be required to market generic gasoline and brand-name additives separately. Gilbert was also quoted on May 15 in a San Francisco Chronicle article titled "Oracle Reduces Offer for Rival: Anti-trust Suit May Kill PeopleSoft Bid." Gilbert commented on Oracle's lower offer price to acquire PeopleSoft.

    Patrick Awuah, MBA 99, was featured on Ghanaweb.com in an article titled "US College To Honor Ashesi University Founder." For full text: http://www.ghanaweb.com/GhanaHomePage/NewsArchive/printnews.php? ID=57963

    The Haas School of Business's partnership with National Chiao Tung University in Hsin-chu, Taiwan, was mentioned in The Miami Herald on May 17 in an article titled "MBA Degree Soars in Popularity in Asia." For full text: http://www.miami.com/mld/miamiherald/business/8671176.htm

    Joseph Duran, a current Berkeley-Columbia Executive MBA student was featured in the following media discussing his book, "Start it & Make a Mint":

    . CNN's Your Money segment on June 3. For more information: http://money.cnn/ontv/yourmoney
    . Bloomberg Radio on June 2, 6:00 p.m. For more information: http://www.bloomberg.com/media/radio/listen.html.

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