Thomas E. Campbell, Management Teacher, Dies
Thomas E. Campbell passed away on July 4, 2007. Campbell graduated from The University of Texas at Austin with a degree in business in 1961 prior to joining the U.S. Marine Corps. After nearly 30 years of service, he retired at the rank of colonel. In 1990, he joined the Department of Management as a senior lecturer, where he maintained his tradition of demonstrating excellence until his second retirement in 2005. During his 15-year tenure, he earned the Eyes of Texas Award, Harkins Foundation Award for Teaching Excellence and several other outstanding teaching awards. He was a beloved member of the McCombs community and will be missed.

In the News: Clement Research Finds Favors for Wall Street Analysts Often Benefit Firms
Financial Times, Reuters, BusinessWeek, USA Today, et al., July 27, 2007
When corporate executives provide even small favors to security analysts, it can pay off in positive research coverage of their companies, according to a study co-authored by Michael Clement, associate professor of accounting. In the study, the authors examined surveys from security analysts from 2000 to 2003, in which 63 percent said they received favors from CEOs and CFOs. Analyzing the data, the authors concluded that the favors often dissuaded analysts from downgrading a company’s stock after an underwhelming earnings report or an acquisition of another firm in a different line of business “The bottom line is that favor-rendering is widespread and that it seems to be compromising the guidance experts provide to investors,” Clement said. The favors were not illegal, “not as blatant as bribery,” he added, and policing it would be difficult. There is no simple solution, Clement said, but “our findings suggest that it deserves to be taken seriously.”
Read More in USA Today and BusinessWeek.

Granof Selected for Prestigious University Award
Michael Granof, professor in the Accounting Department, has been selected to receive the prestigious Civitatis Award for exemplary service. This award is one of the highest honors bestowed upon members of the UT community. It was established in 1997 to recognize outstanding faculty citizenship throughout a career. The award’s name derives from the Latin motto that appears on the university’s seal—Disciplina Praesidium Civitatis—taken from the words of Mirabeau B. Lamar, former president of the Republic of Texas, “Cultivated mind is the guardian genius of democracy.” 

Texas MBA Team Faces Off Against
Top Schools on CNBC Show
It is well known that the high-pressure world of business awaits graduating MBAs at The University of Texas at Austin. For six current MBA students, however, that type of pressure—having to think quickly and act decisively on matters of business—came a year early. Recently, Ben Jones, Tim Killgoar, Justin Sander and Chris Semain took leave from summer internships to fly to New York and take part in a business-themed game show at CNBC. Classmates Brad Gurasich and Ryan Nixon filled out the team as alternates. The “Fast Money MBA Challenge” premieres August 1 at 8:00 p.m. Austin local time on CNBC, with the team from Texas taking on top-seeded MIT in the first round.
Get the full story.   

Murray to Succeed Anderson as UPO Associate Dean; Anderson Becomes Accounting Chair
Effective Sept. 1, 2007 Paula Murray will become associate dean for the Undergraduate Programs Office, replacing Urton Anderson, who will become chair of the Accounting Department. Anderson is completing 10 years as associate dean. Paula Murray joined the McCombs faculty in 1981 and has built a solid reputation as an accomplished teacher, scholar and service contributor in the Information, Risk and Operations Management Department. She has served in several administrative roles, including associate director of the Business Honors Program.

In the News: CMOs Rapped for Having Zero Impact on Sales
Ad Age, July 9, 2007
A recent study co-authored by Vijay Mahajan, McCombs marketing professor, concludes that chief marketing officers on top management teams don’t have any effect on a company’s financial performance. The report is scheduled to be published in the January 2008 issue of the Journal of Marketing. The authors themselves admit the study is limited because it focuses on financial-performance metrics, such as sales growth and profitability, and not brand equity, and both were quick to offer caveats to the conclusion. The common financial metrics used to measure the performance of CFOs and CEOs don’t apply as well to the CMO position, Mahajan said. “Those are very short-term,” he said. “You cannot use short-term metrics to measure the performance of someone who is supposed to have a long-term impact.”

In the News: Brandl Analyzes Local Tradeoffs for Private Growth
Wisconsin State Journal, July 17, 2007
In Madison, Wis., economists are forecasting fewer jobs in the public sector and increased private growth. Some worry this will produce fewer family-supporting jobs and more minimum-wage ones. Others expect that many of the jobs will be in the high-tech industry. Michael Brandl, senior lecturer in finance, said Austin went through a similar economic shift. With an increase in high-tech jobs, the community’s economy might become a little less stable, because a big share of government jobs helps insulate a city from cyclical market downturns. Also, the government needs to be prepared to respond to private growth since there may be a sudden need for roads, schools and sewers. “Are you ready, if you want to encourage a lot of (business growth), for bumper-to-bumper traffic every day?” said Brandl, whose own 19-mile commute to work takes an hour.
Get the full story.

In the News: Hirst Discusses MBA Tracks
MBA Podcaster, June 26, 2007
Eric Hirst, associate dean for graduate programs and accounting professor, was a recent guest on an online program at a site dedicated to future MBA students. Hirst said when considering MBA programs with an accounting concentration applicants should look for schools that are also strong in finance. “More and more accounting is based on what we call fair values, and fair values come out of valuation models,” Hirst said. “Sometimes they come out of market prices, but there are an awful lot of assets and liabilities that require measurement using much more sophisticated models. The best accountants are the ones who really have a very solid understanding of economics and finance as well.”
Get the full story.

In the News: Granof Says Post-Retirement Health Insurance More Cause For Concern
Dallas Morning News, July 2, 2007
KUT, June 26, 2007 
Texas Attorney General Gregg Abbott says several state and local pension plans are carrying about $23 billion in unfunded liabilities. Officials at the Teacher Retirement System of Texas said they are making efforts to reduce their unfunded liability of $13.7 billion. For its 2006 fiscal year, TRS was 87.3 percent funded. But Michael Granof said the bigger issue is the money needed to fund post-retirement health insurance is not being listed. “State and local governments have been putting aside money for their pensions…maybe not always adequately…but they have been funding them,” Granof said. “But with respect to health care, they haven’t been funding them at all, so the liability is huge.”
Listen to the KUT story. 
Read the Dallas Morning News article. 

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