April 2005 Issue

Lubin Graduates First Class in China
President of History Channel to Be Honored at 13th Annual Lubin Luncheon
At the Center: Blood on the Street
Let 'Em Eat Cake!
It's Tee Time...
AOM President Addresses Lubin Honor Students
Spring Break Field Studies on Two Continents
World Conference on Management Accounting Research
Alan Tucker Ranked Among Most Prolific Finance Authors
Flexibility Is the Key to Culture Change
Study in Thailand Proves Transformative
Stressed About Tax Time? VITA to the Rescue

Lubin Student News
Entrepreneurship
Pleasantville Accounting Society
Network at the Spring Banquet
LGS Holds First Elections
Network at the Lubin Industry Conference
Finance Club Offers Career Insights

Lubin Graduates First Class in China

[Shanghai students]
Shanghai students' graduation
In January 2005, after two years of intense studying, 12 students of the inaugural class from the Pace-Shanghai Master of Science in Accounting program celebrated their graduation. The program is offered jointly by Pace University's Lubin School of Business and the Shanghai University of Finance and Economics (SUFE). SUFE is recognized as one of the leading business institutions in China, providing a premier education to students interested in learning the most current accounting and research methodologies. This innovative program was designed by the Lubin School to fit the needs of Chinese accounting students who are playing a role in China's emergence as a major global player.

Focusing on U.S. accounting theory and practice, the program provides an excellent opportunity for students, all of whom have worked in the accounting and finance field in China for years, to expand their knowledge of accounting, auditing, and taxation from a global perspective. "I am so proud of being one of the students of the first-phase class in this program," commented Wu Yue. "The last two years were very hard, but very worthwhile. I developed a firm understanding of accounting principles ...and mastered a comprehensive American accounting background....I do hope [the program] will continue to benefit more Chinese students."

Inspired by discussion of the Activity-Based costing system in the Accounting for Planning and Control course, Shi Yin Yu designed a cost system for his company. "To my surprise, it works very well in our corporation," he said. "I revised the U.S. accounting theory based on Chinese conditions... [because] the way to success is to join the two [systems] together."

Present at the festive graduation ceremony, the first one in the history of Pace University held outside the United States, were Lubin Dean Arthur L. Centonze; Dean of Graduate Programs Peter Hoefer; Chair of the Accounting Department Rudy Jacob, and Professor of Accounting Charles Tang, the program's director. Noting that Lubin participation in the program created a very positive experience for both the students and the professors, Dr. Tang stressed that the program was a huge success both academically and culturally. "We definitely want to continue it," he said.

[Daniel E. Davids]
Daniel E. Davids
President of History Channel to Be Honored at 13th Annual Lubin Luncheon

Daniel E. Davids, BBA '72, MBA '74, president of the History Channel, will be honored at the 13th Annual Lubin Alumni Achievement Award Luncheon to be held on December 2, 2005, at the JPMorgan Chase executive banquet hall in downtown New York City. For more information about sponsorship opportunities, please contact Arleen Johnson, anjenterprises@optonline.net. For more information on the Luncheon and to read Mr. Davids' biography, visit www.pace.edu/lubin/alumniluncheon.

At the Center: Blood on the Street

[Charles Gasparino]
Charles Gasparino talks with a Pace student
"When was the last time you heard of a Wall Street executive putting integrity above money?" questions Charles Gasparino, a senior writer for the business section of Newsweek, in concluding his recently published book Blood on the Street (New York: Free Press, 2005). Gasparino lectured to a packed audience of Pace faculty, staff, and students on Wednesday, February 16, 2005, at the Pace New York City downtown campus. The "At the Center" lecture series event was organized by the Center for Global Finance in association with the Lubin Alumni Board. The book is a sensational inside story of how Wall Street analysts deceived a generation of investors during the Internet boom. "[The book] is a vivid tale and a powerful lesson for all who want to make their living on Wall Street and in business," stressed Lubin Dean Arthur L. Centonze in his opening remarks.

A Social Issue
"I really believe there is a social issue here," said Gasparino, referring to the fact that most of the people who lost their money during the '90s bubble were those who gambled that Wall Street would be the place to save for their retirement. "The reason why [the bubble burst] is an interesting topic not because of the mechanics of it but because of the people," he opined. Gasparino, who tells his story of the greed, arrogance, and corruption of Wall Street analysts, focuses on Mary Meeker (the former Internet lady of Morgan Stanley), Henry Blodget, and Jack Grubman (former leading analysts of Merrill Lynch and Citigroup, respectively), as some of "the handful of stock analysts who achieved rock-star status during the stock market boom," but ended up in dishonor.

"As I was a reporter, I found out that each of these people brought their own sort of absurdity to the job," commented Gasparino. "They were [seen] by their firms as having all the answers, when they had none." He pointed to the lack of integrity of Jack Grubman, whose whole career was a series of lies; the unethical actions of Henry Blodget, who was telling his friends to stay away from some stocks, while recommending them to the average investors; and the failure of Mary Meeker to exercise her supposedly high standards under pressure.

Regulators' Conflict of Interest
"For many years... [analysts] were shields for investment bankers," said Gasparino referring to the fact that analysts issued positive stock ratings to help investment bankers. However, he opined that the real reason why millions of unsophisticated investors "got taken for a ride" is the system itself, which is "clearly set out to divert small investors, [and where] regulators didn't do a good job. One reason why I think this whole thing could happen again is that I don't believe regulatory structure has changed," said Gasparino, who has written consistently on some of the biggest financial scandals of recent years. "The SEC still doesn't do a good job [because], for most people who work at the SEC, the next job is in private industry [so] they don't want to [harm] their potential employers and tend to think of it as a club where they all are together."

Is Media to Blame?
"I often criticized the Wall Street Journal for dressing up Wall Street as a business of tough guys and moguls," said Gasparino in answering a question from the audience about whether journalists praising Wall Street were to blame for what happened. "[In the '90s] there was this feeling of euphoria among the editors of the WSJ, without the necessary cynicism. Editors didn't want to bring the negative news, because the public didn't want it," he added. When asked if business schools don't teach ethics well enough, Gasparino commented: "I don't think you can teach [ethics], but you can teach that if someone asks you to do something illegal you are rolling a dice, which is your life." A former writer for the Wall Street Journal, where he reported for nine years, Gasparino holds a BA in literature and communications from Pace University and an MA in journalism from the University of Missouri School of Journalism. He was nominated for the Pulitzer Prize in beat reporting in 2002 and is a winner of the New York Press Club award for the best continuing coverage of the Wall Street research scandals.

Let 'Em Eat Cake!

[Cake Man Raven Patrick De Sean Dennis]
Cake Man Raven
On March 3, 2005, Raven Patrick De'Sean Dennis, III, the founder of Cake Man Raven Confectionery, the bakery business that has such celebrities as Regis Philbin, Robert De Niro, Oprah Winfrey and Katie Couric, to name a few, among its clientele, spent a day at the Lubin School of Business as an Entrepreneur in Residence. Cake Man shared with the fascinated [and hungry] audience of Lubin faculty, staff, and students his tips on how to start and grow your own business during an inspirational lecture at the Pace New York City downtown campus.

Fond of making mud pies as a child, Raven grew up in his grandmother's home in South Carolina. After she taught him how to cook, making cakes became his hobby. Because he was always baking, people called him ‘cake boy'. He sold his first cake at the age of 13, when his schoolteacher asked him to make two coconut pies for her. He was very happy to get $2.50 for each of those pies, which are now sold at his bakery for $16 each. The teacher also inspired him to develop his own business. "It was a business in the making [then]," commented Raven, "As time went on, I started getting more clients and making one cake a week. Making cakes became not only a hobby but a business."

Raven's sheer talent made him the winner of a cake competition in his home town, competing against grown women who had been baking for years. Even though numbers and math were not his strongest suits, that didn't prevent him from winning the top entrepreneurship award in South Carolina in 1984 and 1985 for his business plan.

After moving to New York, Raven ran his cake business for 10 years out of a small kitchen in his Harlem apartment, where he was constantly running up and down the stairs to check on his cakes baking in the ovens of neighbors on other floors. Then he had to deliver the cakes by subway because it was too expensive to take a cab. All this time Raven dreamt of opening his own bakery, but it didn't come easily: "I tried to open a bakery seven times and every single time there was a problem just when I got to the last point," he recollected. To find an appropriate place for a bakery was challenging, he said, but it was even more difficult to get a bank loan to finance renovations and other start up costs.

"Just like in a cake, [in business] you need to have a foundation, i.e., people who can make things happen," continued Raven. One night when he was frantically trying to make all the cakes ordered for the following day, Raven got a phone call from a man who said his boss really wanted to have a cake made and delivered to him the next day. Though hesitant, Raven agreed to do it and went to deliver the cake himself. He was exceedingly pleased when it turned out that Bill Cosby was the one who had ordered the cake. "It was a real lesson learned on how not to say no," said Raven. "Entrepreneurs are not supposed to say no [because] the customer is always right and you have to make things happen [for him]."

From then on things were taken to a whole new level for Raven, who was able to renovate and equip the place he found on Fulton Street in Brooklyn, where his bakery is currently located. Raven's ability to absorb the lessons learned since his childhood had given this young entrepreneur the confidence and business sense to make a successful career for himself and for many others who had crossed his path over the years, as his loyalty to his staff is still a trademark of his work.

Those attending the lecture had an opportunity to not only enjoy the sparkling humor and humility of the speaker but also to try some delicious cakes made by the famous Cake Man.

Raven holds a master's in Hotel and Restaurant Management from Johnson & Wales University in Rhode Island.

For more information about the Entrepreneur in Residence program and to read Cake Man's biography, visit www.pace.edu/lubin/entrepreneur.

It's Tee Time...

[7th Annual Golf Classic]
Foursomes are still available! The Lubin School's 7th Annual Golf Classic will be held on Tuesday, May 31, 2005, at the Wheatley Hills Golf Club. Join us for golf on an outstanding private and challenging Devereux Emmett designed course, 5-star cuisine at a brunch and dinner/cocktail reception, fabulous raffle prizes, and silent and live auctions.

Last year's event was a big success. This year we are asking for your support to help make it even better. Sponsorships are available at all levels and all proceeds will benefit student leadership initiatives.

The registration fee is $400 for an individual golfer and includes green fees, cart, gifts, buffet brunch, refreshments, cocktail and dinner reception, prizes and awards.

Register today and join us for what promises to be an exciting event.

[Dr. Denise Rousseau]
Dr. Denise Rousseau
AOM President Addresses Lubin Honor Students

As part of the Lubin Leaders and Scholars program, on Thursday, April 14, 2005, Dr. Denise Rousseau, the president of the Academy of Management (AOM), will visit Pace University’s downtown New York City campus to deliver an evening address and meet with students. The author of six books and over a hundred articles on careers, employment, and human resource strategies, Rousseau is the editor-in-chief of the Journal of Organizational Behavior.

For more information, visit the Lubin Leaders and Scholars Web site at www.pace.edu/lubin/llsp/, Dr. Rousseau's Web site at www.andrew.cmu.edu/user/rousseau/ or the Academy of Management Web site at www.aomonline.org.

Spring Break Field Studies on Two Continents

Lubin Students Green Map an Area of Brazil
In March 2005, 25 Lubin undergraduate students traveled to Parati, Brazil, with Management Professor Claudia G. Green, as part of the MGT 347 Field Study in International Management course, to not only learn about the business, culture, society and economics of the country but also to participate in the Green Mapping System (GMS) - a global movement of charting important environmental and cultural sites using the GMS designed, award-winning universal visual language. They will Green Map Parati, Brazil, for this project.

Started as a local project in New York City in 1992 to help tourists and New Yorkers "develop a renewed personal interest in the natural sites and culturally significant places" of the Big Apple, Green Mapping proved to be such a successful endeavor that it expanded globally. Comprising the ancient art of mapmaking with new, interactive media tools, green maps show connections between natural and human environments, thus helping both local residents to discover and get involved in their community's environment as well as assisting tourists to explore special places.

Green Mapping allows students to learn more about local communities other than their own and to explore such issues as poverty, health, and environment of the local residents. It also preserves the history of the community by recoding it. Participants in the course led by Professor Green also met with the developers of the Rio de Janeiro Green Mapping project.

China From an International Business Perspective
A group of Lubin graduate students also traveled to China as part of the Asian Business Strategies INB 670A Field Study. The Field Study was under the direction of Professors Alan Eisner and John Byrne. Students met with business leaders and participated in several cultural activities.

World Conference on Management Accounting Research

John Y. Lee, Schaeberle Professor of Accounting at Pace, is co-chair of the 2nd AIMA World Conference on Management Accounting Research, to be held in Monterey, CA, in May 2005. Keynote speakers from Harvard, USC, and University of Rochester will discuss "New Methodologies and Paradigms." For more information, visit Dr. Lee's Web page at webpage.pace.edu/jylee/.

Alan Tucker Ranked Among Most Prolific Finance Authors

Finance Professor Alan Tucker has been ranked among the most prolific authors in finance literature in a listing of 200 authors that appeared in an article by Jean I. Heck and Philip L. Cooley, "Prolific Authors in the Finance Literature: A Half Century of Contributions," Journal of Finance Literature, Winter 2005.

Flexibility Is the Key to Culture Change

A Distillation of Research by Robert F. Dennehy, Sandra Morgan, and Karen Lehrburger

When an art museum in a western U.S. city introduced major changes, its staff found they needed motivation and cooperation, as well as Organizational Development (OD) models, to accomplish the transition to a new culture. Click to read the distillation.

Study in Thailand Proves Transformative

"I will certainly be pursuing a career dealing with emerging markets, especially in Asia," commented Pace finance senior Gary Sefcik, winner of a Freeman Foundation Fellowship—a student-faculty fellows program for collaborative research in Asia. The Fellowship gave him the opportunity to study at one of the most prestigious schools in Thailand, Thammasat University, during the fall 2004 semester.

"I chose to study at Thammasat University based on its well-respected economics program," said Sefcik, who not only enrolled in various economics classes but also took a Thai language course and one on art and architecture to expand his knowledge of the country and its culture. "I gained a new perspective on economics from taking the courses in a country where more emphasis is placed on becoming developed and dealing with such organizations as the World Bank and IMF," he added.

Sefcik noted that when taking an International Relations course, he particularly benefited from the ability to see things not only from an American perspective. While attending school, Sefcik also held an internship in one of the government offices. "The most positive aspect of my experience was being able to do an internship at the Thai Government Pension Fund, which allowed me to gain invaluable experience in business." Frequent contact with experts in rural development and the ability to learn and use cutting edge quantitative risk management tools during the program inspired him to do independent research focusing on rural development in Thailand and South Asia through the use of commodities futures.

Exposure to the foreign educational system, meeting people from all over the world, as well as traveling throughout Thailand and Singapore became a "truly transformative type of experience" for Sefcik, despite the trouble of getting used to the local diet. Pointing out that the warmth of the Thai people helped him to feel comfortable in the new environment, Sefcik said: "I can now relate much better to people who come from other countries and I have a greater appreciation for diversity."

Noting that, while he was able to see Thailand's economic growth first hand, he also saw poverty up close: "It makes me realize that there is still an incredible amount of potential in this region, [but] it also leads me to believe that the United States should provide more support for this region," commented Sefcik.

Freeman Foundation Fellowships
With the primary goal of increasing the number of American undergraduates studying in East and South East Asia, the Freeman Foundation Fellowship administered by the Institute of International Education in New York City, provides financial assistance and information for students who want to study in the region. The Freeman – Asia program enables U.S. students to gain a deeper understanding of Asia through experiential learning through scholarly research related to their future career plans on site in Korea, Singapore, Vietnam, Cambodia, Indonesia, Laos, China, Japan, and other Asian countries. Student researchers and their faculty mentors go to Asia to explore a common scholarly interest and share a cultural experience. As part of the program requirements, participants are asked to share their experiences with other students from their home institutions, to encourage study abroad by others and to spread a deeper understanding of Asia in their home countries.

For more information, visit the Asia Network at www.asianetwork.org or www.asianetwork.org/freeman/2005sff.html.

Stressed About Tax Time? VITA to the Rescue

With April 15 fast approaching, the Pace University Volunteer Income Tax Assistance Program (VITA) is in full swing. One of the most successful and largest programs of its kind in NYC, the Pace VITA program, sponsored by Pace University's Iota Lambda Chapter of Beta Alpha Psi, offers free tax help to all comers. To be qualified to volunteer at the VITA site, Lubin accounting students receive training from the IRS and take a basic proficiency exam in preparing tax returns. A huge success for the 2003 tax year, when 714 returns were filed, VITA directors are expecting to help even more individuals this year. Pace students, faculty, staff, and private citizens, VITA volunteers are here to assist you. For more information, visit webpage.pace.edu/betaalphapsi/.

Lubin Student News


Entrepreneurship

On Thursday, February 17, 2005, the Pace Association for College Entrepreneurs/New York City welcomed a group of 13 students from the Association of Student Entrepreneurs from Appalachian State University in Boone, North Carolina for a weekend of activities.
The Pleasantville Association will compete in the Students In Free Enterprise (SIFE) Regional Competition on April 8, 2005. Professor Bruce Bachenheimer is the faculty advisor for both groups.

On March 3, 2005, students participating in the society attended the Harvard Business School Entrepreneurship Conference in Cambridge, MA. Visit www.sife.org for more information.

Pleasantville Accounting Society

On April 8, 2005, the Pleasantville Accounting Society will have a raffle to benefit Food Patch and the Pace University Environmental Center. Professor Barbara Farrell is the faculty advisor.

Network at the Spring Banquet

Lubin's 5th Annual Spring Banquet will be held on April 27 from 5-8 p.m. at the Pace New York City downtown campus. This year's theme is "Business Strategies That Play a Vital Role in Everyday Life." Register by April 11, 2005. Sign up by sending an e-mail to lubinspringbanquet@pace.edu, or register online at pace.alpfany.org/rsvp/index.htm.

LGS Holds First Elections

The Lubin Graduate Society (LGS) Executive Board is holding elections for all its executive board positions for the coming academic year. Promoting leadership, professionalism, and friendships among Lubin graduate students, the LGS organizes career-related or cultural activities as well as monthly pizza parties and socials.

Visit www.pace.edu/lubin/lgs/ for more information.

Network at the Lubin Industry Conference

The third annual Lubin Industry Conference will be held on Thursday, April 28th from 10:30 a.m. to 2:30 p.m. at the Pace NYC downtown campus. The theme is networking and students will have opportunities to connect with corporate executives and learn about resume building, interviewing skills, and networking. Visit www.lubinconference.com for more information.

Finance Club Offers Career Insights

This semester, the student-run Pace Finance Club will be hosting visits from specialists Robert Diamant from the Federal Reserve Bank of New York; entrepreneur Robert Robinson, a successful e-company owner; and Vincent Blazewicz, LSB '79, of Certified Financial Services, LLC, to explore ways to build a successful financial career. Trips to the Museum of American Financial History and the New York Stock Exchange are also planned. Visit webpage.pace.edu/financeclub/ for more information.