Kellogg in the News

Huffington Post

JPMorgan Chase Warns Investors About Underwater Homeowners Walking Away – 05/11/10
The article references research on strategic mortgage defaults, co-authored by Professor of Finance Paola Sapienza. The research is a part of the Financial Trust Index (Wave VI).

Medill Reports

Google, Cisco, Nokia cater to Indian consumers, small businesses – 05/11/10
The article profiles the India Business Conference.

Medill Reports

Initials are more, not less, in pharmaceutical advertising – 05/11/10
Associate Professor of Marketing Kent Grayson comments on brand name changes.

The American (The Enterprise Blog)

Property Rights for Public Employees: What’s Not to Love? – 05/11/10
The article notes research about the funding status of state-sponsored pension plans, co-authored by Associate Professor of Finance Joshua Rauh.

Crain’s Chicago Business

Mikells and Tague made United fit for merger with Continental – 05/10/10
Professor of Accounting Information & Management Thomas Lys comments the United-Continental merger.

Financial Times (MBA blog)

The annual alumni reunion – 05/10/10
In this Financial Times’ MBA blog, One-Year Kellogg MBA student Nathaniel Lang writes about the school’s alumni reunion and the annual student showcase “Special K.”

First Business Morning News

Strategic Mortgage Defaults – 05/10/10
Professor of Finance Paola Sapienza discusses her research on strategic mortgage defaults. The research is a part of the Financial Trust Index (Wave VI). Watch the interview

FOXBusiness.com

Walking Away From Your Mortgage — On Principle – 05/10/10
From the article: However, even in states where banks can legally try to re-coup some of their loss by seizing other property of a debtor, in most cases they are not pursuing this avenue. “Banks aren’t doing this and borrowers seem to be realizing it,” according to [Professor of Finance Paola] Sapienza, citing this as one reason for the sharp increase in strategic defaults. In Pritchard’s view, consumers are “mad and feel they’re sticking it to the bank.”

IndUS Business Journal

Kellogg School of Management readies for 16th annual India Business Conference – 05/10/10
The article profiles the school’s India Business Conference.

Post Chronicle

Strategic Default Outpaces HAMP Modifications – 05/10/10
The article references research on strategic mortgage defaults, co-authored by Professor of Finance Paola Sapienza. The research is a part of the Financial Trust Index (Wave VI).

Denver Post

Ponzi schemers exploit emotions – 05/09/10
From the article: What distinguishes victims of a Ponzi scheme from people who would never fall for such a ruse? Less than you might think, say psychology and investment experts who have studied financial frauds. Everyone is susceptible to misjudging risks under certain circumstances, experts said. Casino operators understand this and ply gamblers with free drinks and attractive waitresses to increase their risk-taking. Fraudsters prey on investor weaknesses by creating a sense that the opportunity they present is too good to pass up. "Emotions play a significant role in how much risk people are willing to take or avoid," said Camelia Kuhnen, associate professor of finance at the Kellogg School of Management at Northwestern University, who has studied the effect of emotions on financial decisionmaking. "If people, for whatever reason, are very, very excited at the prospect of gains, a particular part of the brain is activated. They become more willing to take risk."

The Sun News

Myrtle Beach area home owners flee deficit – 05/09/10
From the article: In Horry County, there were 655 foreclosures filed in the first three months of the year, which was up about 5.3 percent from the last three months of 2009, but down about 3.1 percent from the same period in 2009, according to Realty Trac, a company that tracks foreclosures across the United States. It's unknown how many of them were homeowners who walked away. "The problem is very much the collapse of the real estate market combined with the fact that at the peak of the market people bought with very little equity in the house," said Paola Sapienza, a finance professor at Kellogg and one of the authors of the research. "It will take a while before the value of the real estate market will pick up again so negative equity will stay negative for quite a while ... therefore people just start making decisions in terms of convenience."

National Affairs (Findings blog)

Groupthink and Psychological Priming – 05/08/10
The article notes a study on how reflecting on “what if” scenarios can influence employees’ actions and commitment. The research is co-authored by Morris and Alice Kaplan Professor of Ethics and Decision in Management Adam Galinsky, Assistant Professor of Management and Organizations Brayden King and Visiting Assistant Professor of Management & Organizations Hal Ersner-Hershfield.

Financial Times

Profile: Kellogg School of Management teaches FBI managers – 05/07/10
The article profiles the school’s Executive Education course designed for the FBI.

Financial Times

Training tips: how to justify training costs – 05/07/10
From the article: Management education can make a poor company better and a good company great. When times are hard, companies need to work harder to identify business opportunities, and investing in the workforce through management education programmes can pay dividends. In a recession, often it is the learning budget that suffers most, says Stephen Burnett, associate dean of executive education and professor of strategic management at Kellogg School of Management. But this can be short-sighted. “At the time when people are most unsure and stop investing [in management training], it simply makes the situation worse,” he says.

Chicago Tribune (Education Today)

Kellogg's first sports business conference draws attention to growing career path – 05/06/10
The article profiles the school’s first-ever Sports Business Conference. The article also highlights the efforts of Kellogg students Edward Shin ’10 and Janet Kang ’10 in spearheading the event.

ChicagoTribune.com (Education Today)

MBA students use learned skills to help others – 05/06/10
Clinical Professor of Entrepreneurship Barry Merkin shares tips on what MBA students should consider before committing to a competition.

Chicago Tribune (Education Today)

Sports management programs growing – 05/06/10
Kellogg student Edward Shin ’10 comments on sports management programs.

Chicago Tribune (Education Today)

MBA students gain valuable practice, companies benefit from fresh ideas – 05/06/10
Clinical Professor of Entrepreneurship Barry Merkin and Assistant Dean and Director of Integrated Programs and Experiential Learning Michele Rogers comment on the value of business case competitions.

CNN.com

Boycotts put Arizona's reputation on the line – 05/06/10
From the article: As the voice of opposition to Arizona's controversial immigration law gets louder, the state's reputation can expect to take a hit. Critics of the law are calling for economic boycotts of Arizona, urging corporations and organizations to refrain from holding conventions in the state. They're also pressuring Major League Baseball to take its 2011 All-Star Game elsewhere, much like the National Football League did in 1993 when Arizona refused to recognize Martin Luther King Jr. Day as a holiday. While Arizona can ride out the backlash in the short term, the impact could hit hard later on, said Brayden King, assistant professor of management and organizations at Northwestern University's Kellogg School of Management. "The reputational consequences will have long-term economic consequences if it's not resolved," King said.