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Upcoming Speakers |
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Energy Technology Group
Speaker Series |
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Jerry Patterson,
Texas Land Commissioner, 11/30
More info |
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Upcoming Events |
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MBA International Night, 11/29 |
In the News:
Companies with Large Profit Gaps Pay Higher Back-Tax Bills,
Mills’ Research Shows
The Wall Street Journal, Nov. 27, 2006
Company profits reported to investors are usually higher than
those reported to the IRS, so in 2004 companies were required to
start detailing the reasons behind the disparity. Depreciation
and equipment-related tax write-offs were two of the culprits
behind the accounting gap. According to research by Lillian
Mills, associate professor of accounting, companies being
audited by the IRS with book income much higher than their
taxable income were more likely to pay bigger back-tax bills.
The bigger the gap, the higher the adjustment.
Get the full story (subscription required).
In the News:
Whinston Predicts Bartering Sites Will Not Gain eBay Fame
The Wall Street Journal, Nov. 14, 2006
Bartering sites such as SwapThing.com and U-Exchange.com that
facilitate the direct exchange of goods and services for other
goods and services are beginning to gain in popularity. But not
everyone is convinced these sites will be as popular as other e-commerce
sites. Andrew Whinston, director of the
Center for
Research on Electronic Commerce at The University of Texas in
Austin and IROM professor, expects bartering sites to catch on
with small businesses though he believes retailer and auction sites like eBay
will remain preferred. “Historically in economies, you argue for the creation
of money to avoid the inefficiencies of having to have this
double coincidence of wants,” he says. “That’s never going to
change.”
Get the full story (subscription required).
Dell CEO Says Business Model Based on
Close Customer Relationship
By Chantelle Wallace
Even though there were just a “handful” of battery-overheating
incidences around the world last summer, Dell Inc. chose to
recall the “maximum rather than the minimum” amount of
merchandise. “We want our customers to know that we’ll fess up
if we make a mistake,” said Dell CEO Kevin Rollins at his Nov.
14 VIP Distinguished Speaker Series talk.
Get the full story.
In the News:
Koehler Says Fingerprint ID Not Perfect Test
Chronicle of Higher Education, Nov. 17, 2006
 Despite popular opinion, it’s a myth that fingerprint
identification is infallible. The judgment of an
examiner is not an exact science and depends on
interpretation. Jay Koehler, IROM professor, coauthored
an article in Science that said fingerprint experts are
reticent to admit that inaccuracies are due to methodology
rather than human error. “Unfortunately, forensic scientists
often reject error-rate estimates in favor of arguments that
there is an error-free science,” Koehler wrote. “Likewise,
fingerprint experts commonly claim that all fingerprint experts
would reach the same conclusions about every print.”
Get the full story.
In the News:
McCombs Alum Rides New Wave of Marketing to Success
Wall Street Journal, Nov. 13, 2006
The next era of online marketing involves product peer reviews, which may inspire more consumer confidence than
traditional marketing techniques. Brett Hurt, BBA ’94,
started Bazaarvoice.com, which allows companies to post and
manage reviews on their Web sites, filtering out those
containing profanity or those that focus on customer service rather
than the products themselves. Bazaarvoice also advises companies
on ways to use their reviews more effectively and generate more
reviews.
Get the full story.
In the News:
Mahajan Examines Ricochet Economy for Harvard Business Review
Harvard Business Review, November 2006
Marketing Professor
Vijay Mahajan coauthored an essay for Harvard Business
Review about the overlooked impact of the “ricochet economy,”
especially in developing countries. The ricochet economy is
described in Mahajan’s book, “The 86 Percent Solution,” as
purchases and investments that bounce money back to expatriates’
homelands. In 2005, immigrants worldwide who worked abroad sent
home more than $230 billion. Of that, $167 billion went to developing
countries. Recognizing the opportunities created by this market,
some companies have launched “bank shot” businesses, which allow
customers to select and pay for products in a developed country
that are then delivered to relatives living in developing
countries.
In the News:
Prentice Shares View on SEC’s Investigation of Dell
KVUE TV, Nov. 21, 2006
KUT Radio, Nov. 16, 2006
 The Securities and Exchange Commission’s informal investigation
of Dell’s accounting practices has upgraded to a formal
investigation. Robert Prentice, professor of business law, said this upgrade probably
indicates the SEC believes Dell has done something improper. “When
they did the informal investigation they’d seen some smoke; now
they think there’s some fire. But until the formal investigation
is concluded they won’t reach any firm conclusions on that,” he
said in the KUT radio interview.
Watch the story on KVUE.
Listen to the story on KUT.
In the News:
Playstation 3 Resale Value Not Worth the Line, Brandl Says
Houston Chronicle, Nov. 23, 2006
Those who spent up to three days in line waiting to purchase
Playstation 3 to resell online are probably not getting a good
return on their time investment. Michael Brandl, McCombs
senior finance lecturer, said that those who spent 100 hours in
line turning a $600 profit, earned just $6 an hour or less when
credit-card interest is factored. Brandl said the “snob effect”
plays a role in the Playstation supply and demand cycle because
consumers scramble to own the new product and once they’ve
gotten it, the demand cools. “It's a ridiculous waste of time,”
Brandl said. “We have a moral responsibility to shame these
people.”
Get the full story.
In the News:
Adams Says Austin Hybrid
Distributors Have a Long Road Ahead
KUT Radio, Nov. 10, 2006
Austin Energy wants businesses and governments to pledge to buy
a certain number of plug-in hybrid vehicles and has invested
$100,000 in its efforts to do so. The utilities provider has
targeted delivery and distribution companies whose fleets could
save substantial fuel dollars using hybrid plug-ins. Rob Adams,
McCombs management lecturer, says if the program is successful,
it will go a long way toward bringing such cars to a wider
market. “The capital required to build a new car is so expensive
that the manufacturers probably have to be convinced there is
firm demand before they commit,” he said.
Listen to the full story.
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