Wyatt, who holds B.S., M.S., and Ph.D. degrees in accountancy from UIUC, served on the Commerce faculty from 1950 to 1965, then went on to international success in the private sector as a partner and managing director for accounting principles at Arthur Andersen. A highly regarded elder statesman, he was a member of the Financial Accounting Standards Board from 1985-87 and the United States representative on the International Accounting Standards Committee from 1988-93. He chaired the committee from 1990-93. After retiring from Andersen in 1993, Wyatt returned to his first love, teaching. At the college, he offers a course in financial reporting issues each fall. He also takes pride and pleasure in advising seniors on the challenges of the interviewing cycle, and has been instrumental in the development of Project Discovery.
HELD OCTOBER 22-24, 1998, ON THE U OF I CAMPUS, THE THIRTEENTH SYMPOSIUM ON AUDITING RESEARCH drew presenters and discussants from around the country. Every other fall (alternating with the U of I Tax Research Symposium), the event provides an influential forum for a range of cutting edge audit research papers, presented and discussed by esteemed scholars and faculty from across the U.S. "Our audit symposia are renowned for lively interchange," notes Ira Solomon, who co-chaired the conference with fellow faculty member Mark Peecher. "We specifically constrain the size of the meeting so there's lots of interaction between the presenters and the audience."
Among the highlights of the gathering was the debut of the first case study sponsored by the KPMG/University of Illinois Business Measurement Case Development and Research Program. (The program was established in the 1997-98 academic year, with Solomon as U of I director.) Centering on an Alabama facility where Mercedes/Daimler Benz manufactures sport utility vehicles, the case study the program's first to be shared with a public audience offers an overview of "the strategic vision and business processes used to guide the financial statement audit," according to Solomon. The symposium, also sponsored by KPMG, thus made a fitting venue for launch of results from the program, which sponsored a total of eight case studies in 1998. (A call for proposals has gone out for a second round of case studies, to be funded in 1999. Submission deadline is February 12.)
Keynote address for the symposium was a luncheon talk given by J. Terry Strange, vice-chairman, assurance and advisory services, KPMG Peat Marwick LLP. He spoke on the topic of how changes in technology are affecting the auditing and assurance environment. His provocative address challenged the academic community to get involved in ongoing changes in auditing, and help to shape the profession's future.
Keynote speaker, J. Terry Strange,
|HONG KONG WAS THE DESTINATION IN JUNE FOR BUSINESS ADMINISTRATION HEAD KENT MONROE, who co-chaired a conference there. Hosted by the Chinese University of Hong Kong, the Asian-Pacific Meeting of the Association for Consumer Research attracted 134 researchers from North America, Europe, Australia, and Asia. "We had a separate dinner for Illinois alumni, who earned doctorates between 1968 and 1998," recalls Monroe. "There were about sixteen of us presently faculty at Ohio State, the University of Minnesota, the National University of Singapore, the University of Hawaii, several universities in South Korea, and several in Taiwan. Included in this alumni group were a past editor of the Journal of Marketing Research and past and present editors of the Journal of Consumer Research."|
Monroe, who is J.M Jones Distinguished Professor of Marketing, also recently published a volume titled The Pricing Strategy Audit: An In-Company Assessment to Help Create the Best Possible Pricing Strategy for Your Organization. Published by Cambridge Strategy Publications, the book is part of The Portfolio of Marketing Audits Series. Distributed world-wide, the series is aimed at the executive business market.
GROWTH IN THE UNDERGRADUATE MAJOR IN BUSINESS ADMINISTRATION HAS BEEN EXCEPTIONAL. Program enrollment has increased by 30 percent since 1994. With the total number of undergraduates now at more than 800, three areas have experienced the greatest growth: management of information systems, which has grown a whopping 270 percent, to more than 160 students; marketing, where majors have surged by over 60 percent, passing the 400 mark; and industrial distribution management, where the 65 percent increase over the past four years brings enrollment to 95.
WHEN IT COMES TO FUNDING, ONE MUST SOMETIMES CONSIDER THE DIFFERENCE between cash and currency. Larry Neal must, anyway. As director of the new European Union Center at UIUC, he's looking at a rather different kind of budget one couched in the new money known as the euro or ECU (European Currency Unit). "I'm not exactly sure how much we're going to end up with," muses the economics prof. In rough translation, though,
Carol Hartman and Larry Neal
Photo by UI News Bureau/Bill Wiegand
|Neal has been awarded approximately $155,000 in funding for the first year of the
center. Following an intense competition, Illinois was selected as one of ten such centers
established in 1998 by the European Union the eleven nations that have banded
together in hopes of becoming a world economic powerhouse. Located at colleges and
universities across the U.S., from Harvard to UCLA, this network has been created in the
interest of researching and promoting pan-Atlantic trade.
"We want to focus on
specific policy issues especially those that may be sources of potential conflict
between the U.S. and Europe," says Neal. "And we want to draw on a talent pool
from throughout the university." Plans for 1998-99 call for a round of
interdisciplinary "seminars and graduate student research projects on non-tariff
barriers to "trade. This is a topic of special interest to agricultural companies
that want to export genetically modified organisms (GMOs), such as pest- and
herbicide-resistant soy beans. As well as a lucrative commodity and "wellspring for
the bumper crops of the American Midwest, GMOs are a focal point for agricultural research
at UIUC. "There is a great deal of European resistance to the use of GMOs,"
points out Neal. "And, in general, non-tariff barriers to trade create issues that
cut across barriers on a case-by-case basis." Work on this topic will culminate in a
conference, to be held on the UIUC campus in the fall of 1999.
In anticipation of continued funding, Neal and Carol Hartman, coordinator of
international projects, are planning a second round of seminars, research, and a
conference in the fall of 2000 on the effects of the European common currency on
business, banks, and financial markets. As to the effects of the euro on Neal's own life,
it's already considerable. Not only is he already budgeting in the currency which
will actually become current on January 1, 1999
in September, he discussed it with the Wall Street Journal. In an article about the euro versus the dollar, Neal noted to reporter Michael Sesit that "the euro isn't going to challenge the dollar as a reserve currency
COUNTERINTUITIVERLY TO ALL PREDICTIONS AND FEARS OF DECLINING
ENROLLMENTS among the international student population, CBA's Master of Science
in Policy Economics program is enjoying record enrollments for the fall of 1998.
Eighty-eight students from around the world are currently pursuing the two-year MSPE
course of study and fifty-three of those are in their first year. This means that overall
enrollment is up by ten over 1997, and the number of first-year students has grown by
fourteen an increase of almost 36 percent. "Everyone was worried that this
year we would be hit by the Asian financial crisis," says program director Firouz
Gahvari. "So early on last year, I wrote a personal letter to each of our MSPE alumni
encouraging them to introduce students to us. And a lot are still in fact coming from
Southeast Asia." He cautions, however, that "We may in fact take a hit next
year, should the Asian crisis lead to a decline in government-financed scholarships."
Enrollment of international students has grown in other graduate programs at CBA as well. Jane White, associate director of the Center for International Education and Research in Accounting (CIERA) notes that the number of students in the Master of Science in Accounting program has surged from forty-four in the fall of 1997 to fifty-four in the fall of '98, an increase of almost 23 percent. Enrollment in the Master of Science in Business Administration for International Managers has also increased and now stands at thirty-nine students. However, enrollment in the Master of Science in International Finance program has fallen, from forty-one students to thirty-two. "The decrease is related primarily to the economic situations in Indonesia, Korea, and Thailand," notes program director Roger Cannaday. He adds that the decrease was offset in part by increases in students from Taiwan and Latin America.
- Larry Neal, director, European Union Center
Soon after the investiture, In-Koo Cho
had an opportunity to share
information about his research
with members of the Business Advisory Council at their fall meeting.
WILLIAM S. KINKEAD DISTINGUISHED PROFESSORSHIP IN ECONOMICS WAS ESTABLISHED IN 1982
by a gift from the William S. Kinkead Charitable Fund. A UIUC student during the 1919-20
academic year, which he later described as "one of happiness, if not the happiest of
my life," William S. Kinkead left the Department of Mechanical Engineering to begin a
career in industrial manufacturing. He founded Kinkead Industries, Inc., in 1928 and
served as president and then chairman of the board until his retirement in 1977. Kinkead
Industries is now a subsidiary of U.S. Gypsum Company.
The Kinkead Professorship was established to honor an individual who "displays a commitment to the study and enhancement of an efficient market economy as reflected in topics such as, but not limited to, microeconomics, industry enterprise economics, the theoretical and applied role of innovation and technological change, economic growth, and market structure in the functioning of the American economic system."
"One reason I came here is the strong emphasis on research."
"The world has become much smaller. There is no reason why you cannot convey substantial course material over the Internet. It allows students to become familiar with experts in many fields in a very cost-effective manner."
- Patrick J. Crowe
|THE MARKET FOR FINANCE COURSES CONTINUES BULLISH, AS THE RANKS OF MAJORS SWELL. Numbers rose from 657 in 1996-97 to 774 in `97-98 an increase of more than 17 percent. While some finance majors are LAS students (forty-eight in `96-'97, ratcheting up to seventy-four in `97-98), the vast majority hail from CBA. "Our classes are very popular," observes department head Morgan Lynge. "But we've had no corresponding increase in faculty. This puts students under a lot of registration pressure." Lynge notes that the increase in finance majors nearly matches the increase in CBA enrollment overall, meaning that many new finance students are coming out of other business areas. "Once they've been admitted to our college, students can choose any major," he points out. "There are no barriers, no hurdles. The question becomes not so much what they choose to major in but how do they finish? What courses do they take? We struggle to get finance seniors into classes they want and need for their degrees. Finance is now awarding around three hundred degrees a year."|
WHEN STEVE D'ARCY TEACHES, HE'S TEACHING ALL OVER THE WORLD. In the fall of 1997, he took his Financial Risk Management of Insurance Enterprises course (Finance 343) on line, to students in New York, Chicago, rural Kentucky, Switzerland, and the West Indies. "It's a new financial topic geared to financial actuaries," D'Arcy explains. "There's a tremendous demand for the material that's taught in this course, and the Internet provides a very effective way of presenting it." Among the on-line resources provided: lecture notes, assignments, and a chat space. Access to classes on-line, however, doesn't make them easier for students at remote sites. In fact, anecdotal evidence leads us in the opposite direction. "The rate of students who don't finish the course is higher for those off-campus," D'Arcy observes.
The Web site was begun for students on campus enrolled in the course, which D'Arcy has taught for four years. "Once that was in place, we were able to extend it to offer more information on-line," he explains. As to the future, D'Arcy says he's working on an audio component to the course, allowing on-line students to listen to his lectures. As to the value and challenge of the newly emerging concept of distance education, he says: "The ideal is doing both teaching students on-campus and reaching out to interact with others off-campus. I like being able to reach students who find it impossible to come to campus. I enjoy creating new ways of getting information to these students."
Patrick J. Crowe, vice president-market research and actuary for the Kentucky Farm Bureau Insurance Companies, has high praise for the course and the entire concept of Web-based learning. Via e-mail he writes, "The principles of finance are becoming more important to actuaries. We wanted to introduce our members, especially those who received their fellowship ten or more years ago, to these concepts via continuing education. I volunteered to take Steve's course to determine how it could be used for education for actuaries. It was a great course. The world has become much smaller. There is no reason why you cannot convey substantial course material over the Internet. It allows students to become familiar with experts in many fields in a very cost-effective manner."
MBA students team up to present their case for CyberProf this year's topic at the Applying Business Perspectives (ABP) Seminar.
"But today, instead of Henry Ford as innovator, it's Bill Gates."
- Mike Shaw, Professor of Business Administration
"INFORMATION TECHNOLOGY IS REALLY FOLLOWING A PARALLEL PATH TO THE WORLD A HUNDRED YEARS AGO, when the automobile started to be developed. It's revolutionizing society," observes Mike Shaw, professor of business administration and advisor for CBA's high-tech course offerings. "But today, instead of Henry Ford as innovator, it's Bill Gates. Information technology is having a major impact on the way we do things, how organizations are run, the way companies work."
With that idea as background, the Illinois MBA is moving forward to provide "techno tracks" that meet the demand for graduates with the skills to tap the enormous potential of information technology.
"Our goal is to integrate the management of information technology and technology strategy into other Commerce disciplines, such as marketing," explains Shaw. The resources of the Beckman Institute and the National Center for Supercomputing Applications (NCSA), as well as other UIUC colleges, are being tapped for the MBA techno-track program, now known as PROMIST (Professional Track in Management Information Systems and Technology). "The college has recognized the demand in information systems and technology management areas," Shaw observes. "In addition to the MIS courses we are also adding courses in technology strategy, business-to-business marketing, and commercialization of technology."
Sub-tracks in information science now include:
Students may also design their own sub-tracks, choosing courses offered through the College of Commerce, the College of Engineering, and several other units on campus.
IT'S OFFICIAL. THERE IS A NEW ACCOUNTANCY TRACK IN THE MBA PROGRAM. Approved in the summer of '98, the program drew an enrollment of twenty-five MBA students for the fall semester. Faculty coordinator for the new offering is Mike Sandretto, visiting associate professor of accountancy, who is shaping the track with a view to two career paths: treasurer and controller. "Those students in the treasurer specialization can take extra course work in finance, which has a very strong faculty," he points out. "Those interested in controllership may take extra course work in systems, which has been one of Illinois's major strengths for the past forty years."
Initial offerings include the first part of a two-course financial accounting sequence and a managerial accounting course, both taught by Sandretto. In the spring of '99, the MBA program will offer courses in auditing, taxation, and the second part of the financial accounting sequence. Says Sandretto: "All five courses are similar to ones taught in the accountancy master's program, but have been modified to meet the objectives of MBA students."
He notes: "The financial accounting sequence is primarily designed for students interested in careers in accounting or finance. Although it will help students prepare for either the CPA or CFA examinations, the objective is considerably broader than that." Course materials include a standard financial accounting text, Harvard Business School cases, and annual reports from companies in the United States, Canada, Japan, Germany, Finland, France, England, and Switzerland. "I think the latter is especially important because business is so global," Sandretto observes. "If students are exposed to a range of financial reports in their courses, they will be far more comfortable dealing with that information in their jobs. And since we have students from so many different countries in the MBA program, there is an added benefit. These students can explain some of the finer points about financial reporting in their country because they know far more about local requirements than I do."
Designed for students who plan to work in accounting, consulting, management, or marketing, the managerial accounting course deals mainly in cases, cost analysis, pricing, systems, and related topics.
FINANCIAL DERIVATIVES ARE EVERYWHERE," NOTES NEIL PEARSON. "It is crucial that our finance students be familiar with them."
To make sure that they are, Pearson, an award-winning associate professor of finance, has developed a new course in financial engineering (Finance 472). This second-year MBA course deals with identifying, measuring, and managing risk, as faced by corporations and institutional investors, especially as related to the application of forwards, futures, swaps, and other derivative instruments. The focus is on using various financial instruments to control an entity's exposure to financial risks, with class time split between theoretical models and practical applications. Pearson designed the course for MBA students and other graduate students in finance.
|IN CLASS AND ON LINE SUCH WAS THE STATUS REPORT FOR SEVEN EXECUTIVE MBA STUDENTS who came to class each week at the University of Illinois remote classroom in Oak Brook. Thanks to video, audio, and computer links, the seven students, including five executives from Motorola, were able to study in cyberspace, alongside classmates at Commerce. "One huge challenge was how to share data from the professor," says EMBA program director Merle Giles. "Chalk boards don't compress well on video the contrast is too low." Instead, electronic whiteboards were used. "You can write or type on a whiteboard," says Giles. "And you can project it to the class and share it over the Internet." The hardware set-up thus called for two monitors one showing the instructor, the other for data-sharing." Notes Giles, "Now Larry DeBrock, a professor of economics who teaches in the EMBA program, builds graphs into whiteboard software before the class. He then annotates upon the graphs in class."||
INTRODUCED BY THE EXECUTIVE DEVELOPMENT CENTER IN THE FALL OF '97, THE CERTIFICATE IN BUSINESS ADMINISTRATION program rivals the Krannert calendar for oversubscription, with waiting lists that grow longer with each semester. When we first reported about this program (in our 1997 Annual Report), we had no idea how quickly it would grow or the new directions in which it would take us.
How to account for this success? It's just the degree for careerists who want to get down to business.
"Word is really getting out the program is selling itself a lot," says program director Karyl Van Dyne. "The response has far exceeded all of our expectations." The eleven-week program is drawing a mix of participants from corporations and small businesses, and a few members of the campus community as well. Covering topics which range from strategy, marketing, and finance to negotiations and conflict management, the program has already inspired a high-tech spin-off.
To be launched in January 1999, the Certificate of Business Administration for Scientists program is especially designed for Ph.D. students in the sciences and for scientists and faculty. members who are in charge of laboratory facilities. "A scientist who gets a doctorate, then gets hired by CIBA-Geigy or Eli Lily may well be expected to go out and run a lab," says Van Dyne. "The program is designed to help them when it comes to running the lab, selling ideas, and managing staff."
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