America’s most popular sport may soon be knocked out as a result of significant market forces, according to Chris D. Birkel, assistant professor of legal studies at the College of Charleston School of Business.
A paper authored by Birkel argues that increasing insurance costs driven by threats of lawsuits – similar to that of the NFL Players Association’s (NFLPA) against the National Football League (NFL) for damages caused by concussions – will create changes to the current marketplace for football that could threaten the economic viability of football as currently organized.
“I decided to pursue this topic when the lawsuit between the NFLPA and the NFL was initially launched,” says Birkel. “The settlement negotiations and final settlement agreement injected some enthusiasm into my research.”
Earlier this year, the NFL reached a settlement of more than $870 million for concussion-related brain injuries among its retired players, agreeing to compensate victims, pay for medical exams and underwrite research.
Because Birkel can’t predict the future of football, he makes his argument by creating parallels to two instances where increasing insurance costs seem to have affected popular childhood activities in the not-too-distant past: diving boards and playground equipment.
According to Birkel’s research, the number of diving boards in public pools and the number of monkey bars, seesaws, and merry-go-rounds found in public playgrounds have both decreased drastically over the years. While there is no consensus regarding this widespread disappearance, Birkel points out that both activities “caused either significant injuries or the likelihood of significant injury that led to the threat or reality of significantly higher insurance premiums attendant to prospective lawsuits.”
In the same vein, Birkel argues that an increase in insurance premiums as a result of lawsuits will affect the future of football. The more injuries, the more lawsuits, the higher insurance premiums will be for football programs at all levels – down to the Pee Wee leagues. As a result, Birkel argues that fewer boys will participate in football programs, thus shrinking the pool of talented, experienced players from which college programs recruit, which will ultimately affect the sustainability of organized football as we know it.
“Fewer players mean fewer competitive teams and less enjoyment for participants and fans,” says Birkel. “It’s not clear whether this is a net-positive or a net-negative for business and society but it’s a conversation that needs to start before the changes to organized football are too profound to reverse.”
Knocked Out: The Once and Future Demise of Football by Chris D. Birkel will be published in the Berkeley Journal of Sports & Entertainment Law 4:1.
A common debate among stock market investors is whether the market is efficient – that is, the degree to which stock prices reflect all available, relevant information. The Efficient Market Hypothesis, developed in 1970 by economist Eugene Fama, is based on assumptions that there are no anomalies that can survive the fierce and precise force of arbitrageurs who attempt to profit from price inefficiencies in the market, that every trader makes fully rational financial decisions based on fundamentals, and that markets have so many participants that security prices cannot deviate from intrinsic values.
However, recent advances in behavioral finance dispute the Efficient Market Hypothesis and suggest that sentiment is a factor that can significantly push prices away from equilibrium, indicating that sentiment (or unbacked investor expectations) is a risk factor that should be considered when evaluating securities. Behavioral finance models suggest that a significant number of investors seem to misperceive the true distribution of expected returns and, as a result, their trading leads to observed security prices that are inconsistent with the idea of market efficiency.
“Our research seeks to provide more evidence that supports the notion that security prices are actually affected by behavioral biases introduced in the market – even by sophisticated investors,” says Daniel Huerta-Sanchez, assistant professor of finance at the College of Charleston School of Business. “We focus on particular industries that are usually observed to be transparent, unbiased, and even unaffected by irrational traders.”
One industry that Huerta-Sanchez focuses on in his research is real estate, specifically examining the impact of sentiment on the return-generating process of Real Estate Investment Trusts (REITs).
REITs are unique securities that offer a hybrid investment between equity and real estate. Investing in REITs allows ownership in professionally-managed real estate portfolios that most financially-constrained investors could not have otherwise owned given the illiquid characteristics of the real estate market and the large and long-term commitment of the typical real estate investment (Chan et al., 2003).
As such, REITs are a magnet for both individual and institutional investors who simultaneously seek diversification via indirect commercial real estate ownership and who are concerned with allocating their capital in liquid securities that can be traded without incurring in significant transaction costs (Han and Liang, 1995).
“The tangible nature of the underlying asset in REITs seems to lead investors to believe that this market is highly transparent and that deviations from net asset values are uncommon, meaning a causal relationship between sentiment and REIT prices should be insignificant and non-persistent,” says Huerta-Sanchez.
“However, results from our studies suggest that REIT returns are not only influenced by overall market sentiment, but if we distinguish sentiment from institutional investors and individual investors, we find that both groups influence REIT returns in their own way.”
Research by Huerta-Sanchez and Gutierrez also focuses on other industries such as the financial industry and the American Depository Receipt industry and how behavioral biases affect their firm prices. At this moment, Huerta-Sanchez et al. have papers under review at the Quarterly Review of Economics and Finance and at Managerial Finance. Recently published papers can be found at the Journal of Economics and Finance and at the Journal of Investing.
Jake Durham believes that one of our greatest freedoms as Americans is the right to vote. Unfortunately, most Americans have lost patience with the process and long waiting lines to take their turns at the polls. Some even say that the tone and tenor of politics doesn’t warrant their attention.
According to a Washington Post article, just 36% of eligible voters casted a ballot in the November 2014 midterm elections. While presidential races have significantly higher turnout, only 62% voted in 2012.
Jake, a sophomore studying business, entrepreneurship and political science, sees an opportunity for social change that could reenergize the American spirit on election day.
During the celebration of the College of Charleston’s Global Entrepreneurship Week, he was one of eight students who participated in a SharkTank-like event hosted by the School of Business, the Honors College, and ENACTUS. Dubbed the “Wild Pitch for Social Change,” Jake presented his new voting app concept and registration process that would give voters an easier, less time consuming way to register and vote. In his mind, a technology-driven solution could help spur greater turnout in local, state, and national elections.
Sixty-one students applied for a spot in the competition and eight were chosen to make their pitch. The top Wild Pitch prize of $1,000 went to Jake for his voting app idea. Mary Frances Zeager placed second for her idea of establishing a coop among the School of Business Microfinance Club, Corpus Callosum, Sherman Capital and Meeting Street Academy for students and parents to create businesses and sell their products. The third place winner was James Lee, a senior business administration major, who conceptualized a StudySimple app to consolidate course syllabi and streamline how students could select courses each semester. Other College of Charleston students who made pitches include:
- Kesha Rainey
- Michelle Smith
- Joey Baldwin
- Laura Fuenfstueck
- Anna Baginski
“The number of applications shows how quickly entrepreneurship is spreading among our students, especially now with our new minor,” says David Wyman, director of the Center for Entrepreneurship and assistant professor. “Our students are a great asset and see no boundaries to the growing entrepreneurial activity in the Charleston region. The business community is engaged in the business school and our students learn so much from successful thought leaders who have their time, resources, and networks to share.”
The event also featured a “Beat the Professor” component with Kelly Shaver, professor of entrepreneurship, who presented Phoenix Recycling, a business in Richmond, V.A. Phoenix Recycling reduces landfill waste and creates a profitable revenue stream from restaurant owners and others who pay for pick up and delivery of recyclable material to a processing facility. This system of manually loading recyclables in small trucks fills a market need in cities with narrow streets, particularly on historic Richmond alleyways.
The judging panel was comprised of notable entrepreneurs including:
- George Stevens, President and CEO, Coastal Community foundation
- Stuart Williamson, Executive Director, The Alabastar Jar Foundation
- Ian Sanchez, Owner, Purposeful Entrepreneurship
- Jennifer Morrow, Owner, RootedID
- Rachel Duey, Founder, Humble Diggs
- Derek Snook, President, IES Labor Services
“Throughout this competition, I learned that it wasn’t necessarily about what I saw as broken, but rather that I was in good company with many influential social entrepreneurs on our judging panel,” says Jake. “They gave me the motivation to realize that my dream may actually be a reality.”
The next steps in his business plan include developing a working prototype with a programmer and presenting it to high-profile politicians including U.S. Senator Tim Scott.
If mail-in ballots are any indication that a new voting process does dramatically improve turnout in states such as Oregon, Washington, and Colorado, then Jake’s idea could have a transformational impact on our elections.
“I know many people in our government today and worldwide have one time or another thought that mobile voting would be ideal, but have written it off as either too risky or just not feasible. But why not? In the technological day and age we are in, it’s within our grasps if someone has the ambition and determination to take that next step. Hopefully that person will be me.”
For more information about entrepreneurship at the College of Charleston, contact David Wyman at [email protected]
For the past several weeks, the flow of cargo at several major West Coast ports has slowed due to disagreements over a labor contract.
While some U.S. retailers have raised concerns that the issue could affect holiday inventories, Kent Gourdin, a professor and director of the Global Logistics and Transportation Program at the College of Charleston, says the strife isn’t likely to ruin Christmas.
“The bulk of the movement of goods for the holiday shopping season occurs in late summer and early fall, so I think any impacts from a serious freight stoppage now would be felt in the spring,” Gourdin says. “The impact on the average consumer right now is pretty minimal since it takes a while for any effects to filter down through the supply chain.”
RELATED: Learn more about the Department of Supply Chain and Information Management in the School of Business.
At issue is a labor contract between the International Longshore and Warehouse Union and waterfront employers. The sides are negotiating a new contract to replace one that expired at the end of June 2014.
“Working without a contract always raises tensions,” Gourdin says. “In addition, some truckers are striking in LA/Long Beach to protest the improper classification of impendent contractors. While neither of these situations has resulted in a port being shutdown, sporadic disruptions have occurred.”
Following a similar contract dispute in 2002, dozens of West Coast ports shut down for 11 days, causing estimated economic losses of $1 billion per day. The 2002 lockout ended when then-President George W. Bush invoked emergency provisions of the Taft-Hartley Act. But President Barack Obama has so far declined to wade into the current dispute.
Port slowdowns are a fact of life in maritime trade, Gourdin says. Because labor contracts must regularly be renewed, tensions are inevitable as both sides vie for better deals. That posturing coupled with the ever-increasing size of container ships creates a fragile situation that can dramatically disrupt world commerce.
“The bottom line is that more than ninety percent of global trade moves via the maritime industry,” Gourdin says. “In today’s world, there is simply no viable alternative.”
See original article on The College Today.
Since its founding in 2009, the Schottland Scholars program in the School of Business has come to embody the best attributes of the College of Charleston: high-achieving students and alumni, dedicated and accomplished professors and selfless community mentors.
A new gift from one of the Schottland program’s most ardent supporters will help ensure these qualities endure long into the future.
Bill Finn, a Schottland Scholars mentor and a member of the School of Business Board of Governors, recently announced a gift of $50,000 to the Schottland Programs Endowment. His gift will permanently name one of the 10 Schottland Scholars in honor of Carrie Messal, founding director of the Schottland Scholars Program.
Messal is an associate professor of management in the Department of
Management and Entrepreneurship. She joined the School of Business in 2007.
“We are now confident that as long as there is a College of Charleston, there will be a Schottland Scholars program,” Messal said. “Thanks to the gift from Mr. Finn, I am honored that my name will also be a part of this lasting legacy.”
Finn made his gift as a result of a call to action by Peter and Susan Schottland, the founders of the Schottland Scholars Program. In April 2014, the Schottlands committed $1 million to establish the Schottland Programs Endowment.
Along with the announcement of their gift, the Schottlands challenged alumni and friends of the School of Business to contribute an additional $500,000 to the new endowment. Finn and others who join the Schottlands will ensure that the Schottland Scholars Program and Schottland Leadership Award will be permanently supported.
Finn is a retired CEO/Chairman of AstenJohnson Inc., a global engineered
products company based in Charleston. He has served as a friend and mentor to all Schottland Scholar graduates and has become an invaluable business advisor to Messal.
“Her commitment, service and dedication to the program as our founding director has been extraordinary,” Finn said of Messal. “Her personal interest in seeing the Scholars succeed combined with her enthusiasm is a winning combination.”
Finn and others familiar with Messal’s work on behalf of the Schottland Scholars say she is the driving force behind the program and the high-impact, hands-on learning experience it provides to students.
Brumby McLeod, assistant professor in the Department of Hospitality and Tourism Management, is serving as the program’s interim director this year while Messal is on sabbatical.
The seeds for the Schottland Scholars program were planted more than 20 years ago when Peter Schottland’s father, Stan Schottland, established the Schottland Leadership Award in 1993. An original member of the School of Business Board of Governors, Stan Schottland is former president and CEO of American Bag & Paper, the predecessor of American Packaging Corporation.
Peter Schottland established the Schottland Scholars Program in 2009. Each year approximately 10 senior business students are selected to participate in the program following a rigorous application and interview process.
The program fosters professional development by providing students with challenging, extracurricular opportunities in the business community, including site visits to local, regional and national companies as well as lectures from invited business and government leaders.
“Having been a CEO/Chairman for over 30 years I have seen the lack of self-confidence many graduates have entering the workplace,” Finn said. “The Schottland Scholars Program builds that confidence through as many as 40 meetings and conversations with C-level executives.”
As a result of the Schottland family’s unwavering commitment, the program has now produced five years of graduates and established a strong network of Schottland alumni who are giving back to the program and staying connected to the College, Messal said.
“It has always been my concern that the network would fade away without continued funding for the program,” Messal said. “Thanks to the generosity of the Schottland family and other great friends like Bill Finn who are responding to their challenge, that network will endure for the long-term.”
Read original article from The College Today.
Trader Joe’s, PeopleMatter, Bank of America, NBC’s the Today Show. These are some of the many local, national and international brands that have been represented at the College of Charleston’s School of Business in 2013 and 2014. CEOs, presidents, global directors, chairmen and editors visited the School to address students and provide insights into the many options available to them upon graduation.
Check out the top 10 speakers at the School of Business so far this year.
1. Anita Zucker: Chair and CEO of the Intertech Group, Inc.
Anita Zucker, who serves on the School of Business’ Board of Governors, spoke to students on August 22, 2014. Zucker, who has long played a critical role at the College, kicked off the new Entrepreneurship Theory and Practice course that is open to all College students. She talked about corporate culture at the InterTech Group and how entrepreneurial spirit is valued in the company.
2. Dan Bane: CEO of Trader Joe’s Corporation.
Dan Bane, who began working at Trader Joe’s in 1998 and has served as CEO since 2001, spoke to School of Business students on October 23, 2014.
3. Pete Selleck: Chair and CEO of Michelin North America.
Pete Selleck became the CEO of Michelin North America in 2011. He shared knowledge from his years of experience with the company on October 18, 2013. Michelin is developing its campus recruitment and internship program at the College, and on October 28, 2013 corporate recruiters met with supply chain, logistics, finance, and other School of Business students.
4. Nate DaPore: President and CEO of PeopleMatter.
PeopleMatter, the human recourses company that recently relocated its headquarters to Charleston’s King Street, has quickly become a leading tech company in the Southeast. PeopleMatter President Nate DaPore will address students on November 21, 2014.
5. Jean Chatzky: Financial editor of NBC’s the Today Show.
Jean Chatzky visited campus on September 27, 2014 to discuss “Making Money Make Sense” with students. Specifically, she spoke about the importance of proactively managing money, why debt is dangerous and how to avoid financial pitfalls.
6. Gary DiCamillo: Retired president and CEO of Polaroid; Board of Directors member of Whirlpool Corporation.
Gary DiCamillo’s rich experience as a business leader makes him an invaluable asset to the School of Business, for which he serves on the Board of Governors. He spoke presented an extensive Harvard case study on Polaroid to the College’s MBA students.
7. Shawn Jenkins: President and CEO of BenefitFocus.com, Inc.
Touted as the fastest-growing technology company in South Carolina, BenefitFocus automates the management of healthcare benefits for a wide variety of organizations. Shawn Jenkins, another Board of Governors member, spoke to the School of Business in 2014.
8. Will Marre: Cofounder and former president of the Covey Leadership Center.
Will Marre spoke on April 9, 2014 to students of the management and entrepreneurship program. Marre’s partner Stephen R. Covey wrote the New York Times bestseller 7 Habits of Highly Effective People. Marre currently focuses on building corporate social opportunity to create a future of sustainable abundance.
9. Dave “Buddy” Morgan: Founder and CEO of Litton Entertainment.
Litton Entertainment has offices in New York, California, Washington, D.C. and even Charleston, S.C. Dave “Buddy” Morgan directs the Emmy Award-winning company, and has taught “The Business of Television” class as a marketing elective to business students for the past four years.
10. Joe Scarlett: Retired chair and CEO of Tractor Supply Company; Founder of the Scarlett Leadership Institute.
Joe Scarlett addressed the School of Business on April 1, 2014. He spoke about the role of leadership and ethics in business practices as part of the Initiative for Public Choice and Market Process.
The School of Business was honored to host many more business leaders in 2014, including LeAnn Maxwell, co-founder and CEO of Vixen Enterprises; John Cerasuolo, president and CEO of ADS Security; Jim Newsome, president and CEO of South Carolina Press Association; Robert Martinez, vice president of business development at Norfolk Southern; Steve Swanson, founder and retired co-head of ATD, aCitiGroup Subsidiary; Justin McLain, Chair and CEO of Endeavor and Managing Partner of Duart Mull; and Dan Schneider, CEO of SIB Development and Consulting.
View original article on The College Today.
Keyana Cordano has joined the College of Charleston School of Business to direct MBA Employer Relations and Career Development.
Cordano acts as a liaison between students, faculty, alumni and the community at large. She facilitates career counseling, personal development, interview preparation, internship and mentoring programs, MBA recruitment and more.
“Our one-year program develops students for professional development from day one. Keyana brings the background experience and networking abilities to quickly add value to our ambitious students,” said program director James Kindley. “Her position will generate more opportunities for current MBA students to interact with alumni, influential business leaders, and employers in Charleston and beyond.”
Cordano brings more than 15 years of experience in business management in financial services, higher education and nonprofit industries. Prior to moving to Charleston, she served as the Chief Operating Officer at the Financial Literacy Organization for Women and Girls (FLOW) and is currently on its Board of Directors. She also held sales and program management positions at IBM.
Cordano earned her undergraduate degree from Brown University and her Executive MBA from Florida Atlantic University with Phi Kappa Phi honors.
The College of Charleston will offer a new supply chain management major in the School of Business beginning in the 2015 fall semester. The South Carolina Commission on Higher Education approved the major on October 2, 2014, setting the stage for the only undergraduate supply chain management major in the state.
“This new business program is an investment in the future of the College, the Lowcountry, and the State of South Carolina,” says President Glenn F. McConnell ’69. “Our new Supply Chain Management program is in response to members of the College and at-large community who identified that there are more jobs in supply chain management and operations than there are qualified graduates to fill them. Our new degrees are an effort toward filling that gap in a way that provides our students with a strong liberal arts background and the core competency needed to achieve success in their careers.”
Industry partners have heralded the exciting new major as an opportunity to recruit more employees with supply chain knowledge and applied learning experiences.
Marco Wirtz, President and CEO of Daimler Vans Manufacturing (DVM) in Ladson, S.C., has been a strong industry supporter of the students through new scholarships, relevant curriculum, and overall program leadership. “The Lowcountry has experienced significant growth in the past few years and with growth comes the need for experienced people in all areas of manufacturing. Therefore, Daimler Vans Manufacturing supports the state’s only undergraduate supply chain management major at the College of Charleston School of Business.”“We look forward to working with interns in helping develop their applied learning which will position them for a successful career,” says Wirtz, a member of the School of Business Board of Governors.
About the Curriculum
“The supply chain management major will provide students an end-to-end view of the flow of products and services from raw material provider down to the customer, and the flow of valuable information back upstream for continuous improvement in product delivery,” says Joshua Davis, chair of the Department of Supply Chain and Information Management and associate professor in the School of Business. “Our goal is to develop the knowledge, skills, and industry partnerships to meet the needs of expanding manufacturing and information services companies in our region and across the U.S.”
Course curriculum in the supply chain management major will include planning and analysis, global logistics, operations strategy, Lean Six Sigma, production and operations management, procurement, and management information systems as well as electives in green supply chain, project management, and supply chain risk management.
King Street, located right next to the College of Charleston campus, has been named one of the 10 great streets in America by the American Planning Association. You’d be hard pressed to find someone who doesn’t think King Street is great, but professors and students in the College’s Urban Studies Program explain the “why” behind King Street’s charm
1. King Street is a human-scaled street.
There are few tall buildings and many different types of commercial, residential, recreational and spiritual settings.
“Places are the most powerful when they provide many different settings in which people can linger and create meaning,” explains political science professor Kevin Keenan, AICP. “King Street provides a venue for people to experience life in the ways that they find meaningful – whether it is seeking solace in a quiet church, romping through an open field with Frisbee wielding teens, viewing the latest art or strutting around with a recently purchased Gucci bag or belt.
2. It invites pedestrians.
“I especially like King Street on Second Sundays when the street is made ‘pedestrian only,” sociology professor Debbie Auriffeille says. “It easily transforms into a mobility utopia that brings people together. Children are running around everywhere, you see people you know, and it makes Charleston feel like one big ‘neighborhood’ out for a barbecue.”
“King Street has a European feel, especially on Second Sundays,” notes history professor Richard Bodek. “Families walking down the street, cafes and vendors set up on the sidewalks.”
3. It is natural smart growth.
“King Street effectively combines residential development with commercial, without losing the overall feeling generated by years of history,” says Ron Hanna III, a graduate student in urban and regional planning. “King Street is smart growth, which has occurred naturally due to the geographic constraints of the Charleston peninsula.”
4. King Street blends seamlessly into its surroundings.
“King Street brings the vibrancy of the city right into the heart of the College of Charleston,” notes Kendra Stewart, director of the Joseph P. Riley Center for Livable Communities. “I love the subtle reminders King Street offers of what is happening on campus, such as the white dresses that students wear at graduation in store windows each April.”
“King Street is where the historic architecture of the past provides the backdrop for present and future life,” says Barry Stiefel, historic preservation and community planning professor. “It is a captivating, four-dimensional place that encourages every generation’s appetite for social interaction.”
“King Street exudes how cities can evolve and stay true to their roots simultaneously,” says Deidre Carr, urban studies student.
6. King Street has energy.
“King Street’s food scene captures the dynamism and creative energy of the city,” notes history professor Lisa Pinley Covert. “There is so much to explore from the diverse offerings at the weekend farmer’s market to the upscale restaurants and the classic Lowcountry Sunday brunch spots.”
7. King Street fosters agglomeration economies.
Economics professor Chris Mothorpe notes, “King Street serves as the vital artery of the historic downtown Charleston area. Businesses and restaurants have located along the street to form an agglomerate that offers services to a diverse set of people and firms. This collection of institutions in close proximity to each other promotes even higher levels of social interactions.”
“I love the variety of King Street: Upper King with its design businesses, consignment stores, funky shops, and the mix of restaurants; Lower King and its antique stores, art galleries, and higher end stores; Marion Square, the centerpiece between the two arms of King, offering open space and a wonderful venue for music, art, occasional movies, and the Farmer’s Market,” says Melinda Lucka, urban studies faculty.
Link to The College Today article.
The School of Business and The Initiative for Public Choice and Market Process invites John Cerasuolo, the chairman of the Beacon Center of Tennessee, and president and CEO of ADS Security, as a part of its BB&T Free Market Process Speaker Series. On Tuesday, October 7, Cerasuolo will discuss the role of business leaders in preserving a free society.
The feature presentation will be held at the School of Business, 5 Liberty Street, Charleston, in the Beatty Center Wells Fargo Auditorium, from at 1:40 – 3:00 p.m. This event is open to students, the business community, media, and other Charleston area residents.
The event is co-sponsored by the Initiative for Public Choice and Market Process, the Schottland Scholars Program, and MGMT 345: Leadership and Management Development.
About John Cerasuolo
John Cerasuolo is the chairman of the Beacon Center of Tennessee. He serves as President and Chief Executive Officer of ADS Security, which he joined in 2008. ADS Security is the 25th largest security firm in the United States and is headquartered in Nashville, Tennessee serving the southeastern United States. The security industry leader has received several notable recognitions including being Honeywell’s four-time National Dealer of the Year. Mr. Cerasuolo recently served as the Vice President of AFL Network Services headquartered in Franklin, Tennessee. In this capacity, Mr. Cerasuolo led a division with 1,300 employees across 35 locations. He began his career as a Naval Officer in the United States Navy’s Nuclear Engineering Program. Mr. Cerasuolo earned his Bachelor of Science degree from the United States Naval Academy in 1983 and a Masters of Business Administration degree in 1995 from Clemson University. He serves on the Board of Overseers of the Atlas Economic Research Foundation.