Summer 2003 School of Business Reports University of Southern Indiana

VOL 22, SUMMER 2003 SCHOOL OF BUSINESS REPORTS UNIVERSITY OF SOUTHERN INDIANA

School of Business AACSB International Board of Visitors, faculty establish scholarship Accounting earns special accreditation to honor Phil Fisher The University of The School of Business Board of Southern Indiana has Visitors and faculty, along with joined an elite group friends and colleagues of Phil Fisher, of approximately 160 have established an annual scholar- colleges and universi- ship in recognition of his 12 years as ties that have earned dean of the School of Business. separate AACSB Fisher, whose retirement was accreditation for effective June 30, will develop crite- accounting programs. ria for the Phil Fisher Business The accreditation Scholarship. He and his wife Helen was announced April were honored with a dinner April 11 24-26 in New Orleans in Carter Hall. at the national con- Fisher said, “These have been ference of AACSB the most satisfying years of my pro- International - The

fessional life. Anything that has Association to Elizabeth Courtney-USI been accomplished has been accom- Advance Collegiate Daniel Wade, center, director of accounting programs, displays plished by all of us. I’m pleased to be Schools of Business. the certificate awarding separate AACSB accreditation for the recognized with this scholarship. Dr. Phil Fisher, dean USI School of Business accounting programs. Steve Farrell There is no higher calling than to of the School of Busi- ’73, left, was chair of the Accounting Circle in 2002-03, and make opportunities for young peo- ness, and Dr. Daniel Bob Smith, right, will lead the advisory group in 2003-04. ple.” Wade, director of Students, faculty, business exec- accounting programs, ness programs in 1997. Internationally, utives, family, and friends took the attended the conference. 454 institutions have earned this The School of Business received See Fisher, page 12 initial accreditation for all of its busi- See Accounting, page 4 Eugene Klippel foresees continued dynamic time period for school The clear challenge facing Dr. R. keeper of the influenced his decision to sign on as Eugene Klippel as the new dean of the keys,” he said. “I dean. School of Business is building on the think the school is He listed some of the USI and strong foundation of accomplishments in a dynamic time School of Business strengths: and growth in recent years. period.” • strong senior leadership within the Klippel’s appointment was effective Klippel was University July 1. Reflecting on his acceptance of struck by the colle- • financial health of the institution the deanship, he said the school’s pos- gial atmosphere he • the quality and collegial nature of ture appealed to him. sensed during his Klippel faculty and staff “I was looking for a school that campus interview • expanded program and curriculum isn’t so tradition bound — one that is earlier this year. offered by the School of Business, willing to entertain a fair amount of That, combined with the impressive including bachelor’s degrees in change so you can see progress and strengths of the University of Southern accomplishments and not be just a Indiana and the School of Business, See Klippel, page 5 Dean’s letter Personal attention sets School of Business apart These improvements and others Competitive advantage: belief have brought recognition. We received that every student is important AACSB International (Association to Advance Collegiate Schools of Busi- By Phil Fisher mation systems ness) business accreditation in 1997 and added a and accounting accreditation this year. This is my last column as dean for more technical This puts us among 163 schools in the School of Business Reports. We have major in com- United States and among four in Indi- made many changes during my 12 years puter science. ana (Indiana University, Notre Dame, here, and I want to review some of This past year and Ball State are the others) to achieve both those accreditations. them, but at the same time, I think it’s we began a Fisher major in e- These accomplishments were made It’s the faculty members who business. We’ve possible by a dedicated faculty, a Uni- also done a lot to integrate the use of versity administration that has support- daily show their concern computers throughout the curriculum. ed us, and by a community of alumni for the development and Per capita faculty research produc- and business leaders who gave us both tivity, as measured by published journal guidance and financial resources. success of their students that articles, has tripled. This was made We want to be excellent in every matter most. This has always possible through public and private way, but in managing our growth and resources to support data collection, in striving for improvement, we must been part of the USI travel, and most importantly, time to never lose sight of our best quality, the experience, and it’s what we invest in this activity, which keeps thing that has always been part of the faculty members up-to-date in the USI culture, the belief that every stu- must hold on to as we grow subjects they teach. dent is important, and every student and as we change. We’ve revised our core curriculum, merits our best efforts to help him or placing a greater emphasis on written her be successful. As I look back on my and oral communication and working 12 years here, this quality is what gives just as important to recognize what in teams. We’ve reinstated majors in me the most satisfaction. hasn’t changed and what makes the finance, management, and marketing. University of Southern Indiana and All told we now offer a broad array of the School of Business at USI so special. 10 majors in the School of Business. Phil Fisher’s retirement was effective June 30. What is it that makes the USI School of Business special? When we ask our seniors and alumni to rate us, their highest ratings go to the personal attention they got from their profes- sors. It’s the faculty members who daily show their concern for the development and success of their students that matter most. This has always been part of the USI experience, and it’s what we must hold on to as we grow and as we change. During the past 12 years, we’ve gotten bigger, and by most measures, we are better. We’ve come a long way in preparing our students to use computer technology. We have well- The awarding of special accredtiation for the School of Business accounting programs was equipped computer laboratories and the culmination of a five-year effort. Phil Fisher, dean of the School of Business, and Dan classrooms with plenty of work stations Wade, director of accounting programs, attended the AACSB International annual con- to meet our students’ needs. We’ve ference in New Orleans to accept the certificate of accreditation. From left are John Fer- reinstated the major in computer infor- nandes, AACSB president; Fisher; Wade; and Jerry Trapnell, chair of the AACSB board.

2 University of Southern Indiana School of Business School of Business briefs

Four faculty recognized for excellence

Johansen Saxby Two granted tenure Dr. Jane A. Johansen, associate professor of business education, and Dr. Carl L. Saxby, assistant professor of marketing, recently were granted tenure. Both joined the faculty in 1997. Johansen completed a doctorate at the Uni- versity of Wisconsin in 1982.

Elizabeth Courtney-USI Saxby earned a doctorate from The School of Business has recognized four faculty members for their excellence during University of Memphis in 1997. 2002-03. The awardees were Dr. Mehmet Kocakulah, professor of accounting, excellence in teaching; Dr. Phil Fisher, dean of the School of Business, and Dr. Brian McGuire, Alumni Association honors associate professor of accounting, excellence in service; and Dr. Craig Ehlen, professor of Kern-Raibley, Hermann accounting, excellence in research. Dr. Abbas Foroughi, professor of computer information Two School of Business gradu- systems, and Jeanette Maier-Lytle, instructor in accounting, served on the selection com- ates were honored in May by the mittee. Both were award winners last year. From left are Kocakulah; USI President Ray USI Alumni Association. Tina Hoops; Fisher; McGuire, Maier-Lytle; Ehlen, and Foroughi. The awards were presented Kern-Raibley ’86, management, in May. received the Alumni Service Award. She is the alumni repre- sentative to the USI Board of Trustees. Kern-Raibley is general Stephen Callaway, Holly Payne complete doctoral degrees manager for ID&A, Inc., in Evansville. Daniel S. Hermann Two School of Business faculty instructor at Temple. He holds a bache- ’79, accounting, received the members recently completed doctoral lor’s from Ball State University and a Distinguished Alumni Award. He degrees. master’s from Indiana University. Call- is president and CEO of Black • Stephen K. Callaway, assistant away teaches courses in international Beauty Coal Company and Black professor of management, has complet- business and in policy formulation and Beauty Resources, Inc., based in ed a doctorate in business administra- administration. His research interests Evansville. He has served on the tion at Temple University. Prior to include adoption of new technologies, School of Business Board of Visi- joining USI in fall 2002, he worked as international entrepreneurship, and e- tors since 1997 and is a past chair senior accountant at Siemens Elec- commerce issues. of the Accounting Circle. tromechanical Components and as an • Holly Payne, instructor in business communications, has completed a Bob Griffin awarded doctorate in communication at Univer- honorary doctorate sity of Kentucky. She holds a bachelor’s Robert Griffin, chair of the in marketing and a master’s in commu- board of Escalade, Incorporated, nications from Western Kentucky Uni- was awarded an honorary doctor- versity. Payne joined USI in fall 2001. ate by the University of Southern Her research interests include organiza- Indiana at Commencement May tional and interpersonal communica- 11. He is a member and past chair tion, specifically communication com- of the School of Business Board of petence and other communication Visitors and a life director and facets of organizational behavior. Callaway Payne former chair of the USI Founda- tion.

Summer 2003 3 Accounting oldest, largest, and most rigorous busi- Accounting Circle members also have Continued from page 1 ness accrediting organization examined helped with recruitment events, estab- recognition. Of these accredited insti- our programs and found that they met lished a scholarship for the master’s tutions, only 163 have received sepa- the organization’s standards for our program, and provided input on cur- rate accreditation for their accounting mission and planning process.” riculum design. programs. Fisher said the school pursued Wade said that the accounting In Indiana, 12 schools have accounting accreditation “because the program also has a student advisory AACSB accreditation for their busi- standards provide a template of best group which has provided valuable ness programs and four of them have practices. By meeting them, we have input and feedback. earned separate accreditation for become a better school, and our stu- The AACSB accreditation team accounting. In addition to USI, schools dents, their employers, and our com- which visited USI in November com- in the state with accounting accredita- munity are better served.” mented favorably on the school’s tion are Indiana University, Ball State A number of senior executives in internship program for accounting University, and University of Notre public and corporate accounting in the faculty, strong professional interaction, Dame. southwestern Indiana region serve on the highly involved Accounting Cir- Wade said the quest for separate an advisory board to the accounting cle, the student advisory group, the accreditation has been a five-year pro- programs. The group, called the Accounting Club, the Toastmasters cess, which included a final year of self- Accounting Circle, has played a signifi- Club, and the overall dedication of study. cant role in helping the accounting faculty and staff, students, and alumni. “This was a way for us to have an program improve. Scott Reed, president of the external motivation to keep making Members have provided faculty Accounting Club and a member of the the accounting program better,” he internship opportunities which keep student advisory group, said the said. faculty current on accounting practice. AACSB recognition makes a USI The USI accounting program They have made presentations to degree in accounting “more valued” includes 10 full-time faculty members sophomore-level accounting classes, and thanked faculty and Accounting and about 350 students. The School of which all School of Business majors Circle members for making it happen. Business offers both bachelor’s and complete, to encourage interest in Wade said, “This is only the master’s programs in accounting. accounting as a major. They initiated beginning. Continuous improvement is At a recent dinner celebrating the and support the Speaking Eagles Toast- ongoing. We look forward to making achievement, Fisher said, “Accredita- masters Club which helps students additional improvements to make the tion means that representatives of the develop better communications skills. accounting programs even stronger.”

Accounting student awarded distinguished leadership internship Bethany Shafer, a senior accounting major, is one Mayor Bart Peterson, and Jeff Smulyan (Emmis Communica- of 10 students chosen from universities throughout the tions). Leaders and students will meet once a week. The stu- state for a distinguished summer internship program dents will visit each leader’s facility during the summer for a called the Leadership Connection. discussion or workshop that may include a question-and- Sponsored by Indiana INTERNnet, the program answer session, tours of the building or facility, or presentations is designed to connect leaders of Indiana industry, on happenings within the organization. government, nonprofit organizations, and higher edu- Shafer also is completing an accounting internship this cation institutions with outstanding college students. summer at Defense Finance and Accounting Service in Indi- Janet Johnson, career coordinator in USI’s Office of anapolis. Career Services and Placement, said developers of the Career Services and Placement was awarded a grant in the program want to keep Indiana’s brightest students in fall by Indiana INTERNnet to increase internship opportuni- the state. ties in the state for USI students. The funds have been used to Ten community leaders in Indianapolis are partic- sponsor round-table discussions including employers, faculty, ipating in the pilot program. They are Ellen Annala and students; to prepare a step-by-step brochure telling stu- (United Way of Central Indiana), Tony Dungy (Indi- dents how to obtain an internship; to develop marketing pro- anapolis Colts), Larry Glasscock (Anthem), Barbara grams directed at employers; and to increase student awareness Henry (Indianapolis Star), Jerry Israel (University of of services offered by Career Services and Placement. Indianapolis), Lieutenant Governor Joseph Kernan, Indiana INTERNnet is a program of the Greater Indi- John Myrland (Greater Indianapolis Chamber of anapolis Chamber of Commerce, University of Indianapolis, Commerce), Jeff Patchen (The Children’s Museum), and other colleges and universities in Indiana.

4 University of Southern Indiana School of Business Klippel R. Eugene Klippel Continued from page 1 Klippel’s appointment as dean of the University of Southern Indiana School of Busi- computer information systems, ness was effective July 1. economics, e-business, and others • accreditation of the school and Education the accounting programs by Ph.D. in business administration, The Pennsylvania State University; AACSB International - The M.B.A. University of Cincinnati; B.B.A., University of Cincinnati Association to Advance Colle- Academic positions giate Schools of Business • quality of the student body and Michigan Technological University: 1994-2003, School of Business and Economics (1994-2001, dean; 2001-02, sabbatical leave; 2002-03, professor of marketing) growing number of student West Virginia University: 1991-94, College of Business (Distinguished professor and organizations Kmart Chair/professor of marketing) • dedication of the community to Grand Valley State University: 1975-76 and 1980-91, F. E. Seidman School of Busi- the success of USI and the School ness (1975-76, associate professor of marketing; 1980-85, professor of marketing; 1988- of Business 89, acting dean; 1984-91, chair and professor of marketing • strong commitment of alumni and University of South Florida: 1976-79, College of Business Administration (associate friends through membership on professor of marketing) the Board of Visitors and University of Florida: 1971-75, College of Business Administration (assistant profes- Accounting Circle and annual sor of marketing) Harvard University: 1970-71 Graduate School of Business (assistant professor of contributions supporting academic business administration) initiatives. Klippel comes to the School of Business experience Business from Michigan Technological Independent consultant: 1980-94, national and international clients including University, a 6,000-student university Haworth, Inc., Westinghouse Furniture Systems, IBM, Honeywell, Caterpillar Inc., on Upper Michigan’s Keweenaw Penin- and others sula. Klippel served as dean of the Management Horizons, Inc., a division of PricewaterhouseCoopers: School of Business and Economics from 1979-80, vice president 1994-2001, leading the school during Marketing Research of Florida: 1976-79, president that time to attain accreditation by Cummins Engine Company: 1966-70; Chrysler Corporation: 1966; Ford Motor Com- pany: 1964-66; NCR (National Cash Register Company): 1957-63 AACSB International. Also while he was dean at Michigan Tech, the num- Research and teaching interests ber of students majoring in business Strategic marketing management and international marketing management grew from 250 to 500, and the endow- ment for the School of Business and Memberships Economics increased from $100,000 to American Marketing Association more than $5 million. Academy of Marketing Science Klippel congratulated his USI Marketing Management Association predecessor, Phil Fisher, saying that Editorial Review Board, Journal of Marketing Management Fisher set the bar high as dean with a record for continuous improvement. Both the initial AACSB accreditation for the USI School of Business in 1997 1. Gain reaffirmation of accredita- 3. Increase the number of endowed and the separate accreditation in April tion by AACSB with separate student scholarships for students of this year for the accounting pro- reaffirmation of accreditation for pursuing a degree program in the grams occurred while Fisher was dean the accounting programs. With a School of Business. from July 1991 through June 2003. five-year window required for 4. Increase the number of endowed One of Klippel’s priorities as the review, the 2002-03 academic professorships within the School USI School of Business continues to year will serve as the base year for of Business. move forward is the establishment of a the school’s next AACSB self- 5. Expand on the school’s tradition faculty-driven strategic planning pro- study. The challenge will be to of service to the community and cess that will have input from the demonstrate continuous improve- the region. school’s many stakeholders. ment in key academic areas while Klippel said that he and his wife Klippel offered five broad goals meeting the established standards Alverda look forward to living in that the School of Business should for reaffirmation. Evansville. Both grew up in southwest- pursue aggressively over the next five 2. Maintain and manage controlled ern Ohio. years. growth of enrollment.

Summer 2003 5 The company we keep, 2002-03

Michell Land Harris Jason Whann ’97 Nancy Epperson Carol McMichael Speakers The Evansville Courier SpectraCare Integra Bancshares CMC The following individuals were among speakers to business Bonnie Lavender Larry Whiteside ’82 Susan Everett ’81, MBA ’99 Vickie Mehringer ’99 Indiana University Kelly School Bristol Myers Squibb Co. Keller Crescent Co. Old National Bank classes. of Business Edward Wicht ’92 Chris Feagens Lana Meyer Kristen Barber ’03 Carol Ann Lukens Securities and Exchange Keller Crescent Co. Northwestern Mutual Financial Gaither Rutherford & Co., LLP Wabash Plastics, Inc. Commission Network Darlene Fisher Jeff Barnes ’99 Thomas Magan Tricia Wiexler University of Southern Indiana David Montgomery One Star Communications Kahn, Dees, Donovan & Kahn Becker Conviser CPA Review Cintas Jeff Fisher ’00 John Bolger ’80 (retired) Cecile Martin Lisa Woolsey Silgan Closures Cindy Moore Commercial Credit Corp. Bodyworks School of Massage, CMC Deaconess Hosipital Inc. Debbie Fleck ’91, M.B.A. ’00 Gary Bolinger Marvin Wright American General Financial Jerry Moore INCPAS Molly McConnell Wright Accounting Services The DOMA Group University of Southern Indiana Teresa Bradley ’89 Demetrius Young Cheryl Giesman Allen Mounts ’74, MBA ’91 General Electric Paige McFarling Northwestern Mutual Financial Koch Air Old National Bancorp Old National Bank Network Don Breivogel ’83 Chris Gilbert Mike Murphy American General Financial Tim McGuire ’86 Vectren Shoe Carnival, Inc. Services CMC Robert Gossman Steve Niemeier Tim Buecher J. J. Mohr Mock Interviews Bootz Manufacturing Human Resources Support, Inc. University of Southern Indiana Deaconess Hospital These individuals conducted Christine Hachmeister Bryan Norman Steve Byelick mock employment interviews Mary Lou Moore for students in the career HR Solutions, Inc. Berry Plastics Corp. Bank of Evansville CMC planing and professional John Halverson Janice Oliver Amy Clem ’02 Steve Mudd development classes. Human Resource Support, Inc. Keller Crescent Co. Harding Shymanski & Co. Riney Hancock & Co., PSC Mendi Bartlett Ashley Hamilton Vickie Oshodi Pat Coslett Greg Newman ’88 Mead Johnson Nutritionals/Kelly American General Financial University of Southern Indiana Pat Coslett's Furniture Festival Kemper CPA Group, LLC Services Services Marci Philipps Gary Cotter Les Nunn Julie Bennett ’95 Jamie Heeke ’00 American General Financial Harding Shymanski & Co. University of Southern Indiana Old National Bancorp Shoe Carnival, Inc. Services

James Derk Dane Partridge Brenda Bosecker Chris Herr Mary Reese Scripps Howard University of Southern Indiana Red Spot Paint & Varnish Co., Fifth Third Bank Berry Plastics Corp. Inc Steve Farrell ’73 Kelly Perry Scott Herrell Jessica Rittichier ’00 Gaither Rutherford & Co., LLP BKD, LLP Jason Braun Rexam Closures Shoe Carnival, Inc. Fifth Third Bank Dave Freeman ’00 Rebecca Pike ’00 Patricia Jackson '89 Sam Rogers BKD, LLP ARC Angie Brawdy ’93, M.B.A. ’99 Vectren Deaconess Hospital University of Southern Indiana Matt Giles ’02 John Rittichier April Jones Lucas Rosbottom Old National Bank Harding Shymanski & Co. Melanie Bretz ’91 Cintas Cintas Hilliard Lyons, Inc. Jon Mark Hall Brad Rust ’89 Frank Kanowsky Bob Scheller University of Southern Indiana German American Bank Mark Chandler ’01 Ferro Corp. Deaconess Hosipital Old National Bank Donna Harris ’94, M.B.A. ’01 Randy Schulz Amanda Klass Dennis Shannon Community Methodist Hospital Harding Shymanski & Co. Michelle Choate ’91 St. Mary’s Medical Center American General Financial Red Spot Paint & Varnish Co., Services Barry Hart Stacey Shourd ’91 Inc Laura Knight ’96 University of Southern Indiana Evansville Teachers Federal CMC Jennifer Sontz Credit Union Fred Cox Fifth Third Bank J. J. Hershey Vectren Mike Lamey General Electric Bob Smith American General Financial Cris Stichler Berry Plastics Corp. Chasity Coy ’99 Services St. Mary’s Medical Center Janet Johnson Integra Bank University of Southern Indiana Darryl Spurlock Michelle Land Harris Stacy Thomas Umbach & Associates, LLP Jean Crowe The Evansville Courier Old National Bancorp Phyllis Johnson Casino Aztar Uniscol Paul Sullivan Carol Lukens Kim Tran Forell Enterprises Jennifer Cruz Wabash Plastics, Inc. American General Financial Jennifer Kellams American General Financial Services University of Southern Indiana Dan Wade Services Dick Lynch University of Southern Indiana Vectren Susie Traylor Jeff Lake Katie Dahmer CMC Business Center for Developing Trish Wallace CMC Susie Mattingly ’84 Enterprises, Inc. BKD, LLP Keller Schroeder & Associates Tom Utley Andy Ellerbrook ’98 Koch Air Mike Lamey Jill Welden ’00, M.S.A. ’02 Shoe Carnival, Inc. Molly McConnell American General Financial Kemper CPA Group LLC University of Southern Indiana Emily VanWinkle ’99 Services Nancy Evans Vectren John Wellemeyer Old National Bank Cindy McGee Bristol Myers Squibb Co. Old National Bancorp

6 University of Southern Indiana School of Business Brian Wallace Jim Beyers Eric Sargent ’89 Comprehensive Accounting University of Southern Indiana American General Financial Jasper Bolt & Screw MasterBrand Services Career Services Services Crane Naval University of Southern Indiana Sean Crooks David Stieler ’90 Crane NSWC Fitness Center Joella Wilson Sisco, Louisville Food Service Bristol Myers Squibb Co. Deloitte and Touche University of Southern Indiana Fifth Third Bank Co. Downtown Evansville, Inc. Residence Life Courtney Titzer Evansville Museum USA Defense Finance and Susan Wilson Heath Eckert ’03 Sanofi-Synthelabo Evansville Police Dept./Criminal Accounting Service Old National Bank Northwestern Mutual Financial Invest. Vector Corp. Network Gene Wagner Evansville Psychiatric Children’s Walt Disney World Scott Wunderlich ’98 EEMSCO Center Old National Bank Ann Fisher Families Through In’tl Adoption Evansville Executive Inn Larry Williams Family Hearing Center Valerie Zink Industrial Filter Manufacturing Fehrenbacher Cabinets Service Learning American General Financial Jennifer Harpole The Finish Line Services Lamar Outdoor Gaither Rutherford & Co., LLP These organizations provided GE Plastics service learning opportunities Lisa Zwahlen Jeff Johnson Internships and Harding, Shymanski, & Co. for students in statistics classes. Mead Johnson Nutritionals/Kelly Lehigh Portland Cement Co. Henderson Chamber of Services cooperative Commerce Evansville Kennel Club Bob Krohn Indiana Academy of Family Evansville-Area Human Diebold programs Physicians Resources Association Almost 100 School of Business Integra Bank Career exploration Matt Michael Kimball International WSTO students were in internships Koch Originals These people provided career and cooperative programs at Frank Komar, CPA exploration interviews or job Marcus Montooth the following 52 employers Mead Johnson Nutritionals shadowing experiences for MASCO Retail Sales Support during the summer 2002, fall Media Mix students in personal selling and 2002, and spring 2003 terms. Midland Powder Co. David Morris Mt. Carmel Sand & Gravel marketing management classes. Plumbing & Industrial Supply Abercrombie & Fitch Northwestern Mutual Financial Co. AK Steel Network Larry Arnold Old National Bank Sullivan Schein Dental American General Financial Angela Price Services Prudential Securities, Inc. Philips Medical Systems Anchor Industries Roundy’s Tim Babcock SIGECOM Becker Symtema, Inc. Artec Manufacturing Ken Qualls AssisTTec SMG ESCO/CED Berry Plastics Corp. Solarbron Gene Baker St. Mary’s Medical Center Towne Air Freight BKD, LLP Greg Richardson Richard Campbell & Co., PC Toyota Motor Manufacturing Fairfield National Bank Career Associates Indiana Chris Ballis University of Southern Indiana Lamar Advertising of Evansville City of Evansville Water and Sewer Dept.

John Schroder: 32 years of separation between degrees John Schroder, a member of the University’s first graduating class in 1971, was awarded a second bachelor’s degree in a business discipline at Commencement this year. In 1971, he majored in management. This year he earned the degree in computer information systems. As assistant director of the Indiana Department of Family and Children in Evansville, his return to the classroom was prompted by a desire to learn the newer technology that his staff uses. Schroder began classes for his first degree at USI’s start-up location, Centennial School, and remembers the move to the present campus in 1969. When he received his diploma during the University’s first graduation ceremony on the lawn in front of the Science Center, he was one of 151 graduates. This year he was one of 1,483 degree candidates in the Class of 2003 at Roberts Stadium. One thing has not changed in the 32 years since he earned that first degree. He says that faculty and staff continue to be as helpful as they were when he first enrolled. Schroder also holds a master’s degree in public administration which he earned in 1979 while Indiana State University offered the program on the USI campus in Evansville. Elizabeth Courtney-USI

Summer 2003 7 Livability — Do Indiana MSAs measure up?

By Peter Cashel-Cordo, Dan close at 145, and Terre Haute was a Friesner, and Sudesh Mujamdar distant 232. Only the Indianapolis MSA was in the top 50. MSAs that are Editor’s note: This paper was prepared for Midwest Indiana’s geographic neighbors have Business Economics Association meetings in March. The full text, including details of the research experienced a similar fate: e.g., Lexing- methodology, is available from the authors. ton, Kentucky, had a rank of 137, and Champaign-Urbana, Illinois, came in The livability rankings produced at 202. by the Places Rated Almanac for We present two empirical analyses. Cashel-Cordo Mujamdar metropolitan areas in the United First, this paper compares Indiana States are by far the most well-known communities to their peer groups in neighboring states to determine ratings and attract a fair degree of Research Methodology whether Indiana’s communities, since media attention when they are The data for our study came from 1997, have in terms of livability rank- released. According to Howard Wall in the 1997 and 2000 editions of the ings continued to “walk in step” with “‘Voting With Your Feet’ and Metro- Places Rated Almanac. Each edition Area Livability,” these rankings “never contains a large number of MSAs from fail to create controversy, eliciting the United States and Canada on gleeful cheers and breast-beating from Livability attributes which data concerning the nine liv- residents of high-ranked areas, and ability attributes is collected from cries of bias and ignorance from resi- 1. Cost of living various government and community dents of low-ranked areas.” development organizations. For each The popularity of the index stems 2. Transportation community included in the rankings from a number of factors. First, it is 3. Jobs for 1997 and 2000, we took the differ- based on a parsimonious set of factors ence between its ranking on each (only nine) that are meant to capture 4. Education attribute with regard to the years 1997 most of the major determinants of a 5. Climate and 2000. Based on this difference, we community’s livability. Second, as the created a series of variables that indi- index provides a cardinal measure of 6. Crime cate whether a particular community livability (where 0 indicates least desir- 7. Arts improved its ranking, held its ranking able and 100, most desirable livability) constant, or reduced its ranking for a it is easy for a community to determine 8. Medical care particular category over the years in how far ahead or behind in livability it 9. Recreation question. is in comparison to its peers. We divided our data into three Besides evoking the diverse emo- groups. The first group consisted of all tions described above, the rankings do Overall* MSAs that are all or partially included serve (whether rightly or wrongly) *Average index computed by taking the within the State of Indiana. The sec- more serious purposes. They are used in mean of the percentile scores for each of the nine categories ond consisted of all other communities the migration decisions of individuals. that are all or partially included in Also, they are used by businesses in states that border Indiana, our geo- making location decisions. While tax graphic “Peer Group.” The remaining incentives and other factors play signif- communities in the data set were or have managed to “steal a march” icant roles in such decisions, the rela- placed in a third group. over their neighbors. The second tive desirability of living in a certain analysis determines how Indiana and place is influential in a firm’s ability to its peer group communities have per- attract and retain highly skilled and formed relative to the rest of the Unit- talented workers. ▼ ed States since 1997. Dr. Peter Cashel-Cordo is asso- Communities in the state of Indi- The rankings have the potential to ciate professor of economics at the ana have not fared well in these rank- generate important social and econom- University of Southern Indiana; ings. For instance, the Places Rated ic consequences for a region and analy- Dr. Dan Friesner is assistant professor Almanac’s 1997 rankings reveal that ses of this type can be of some impor- of economics at Weber State Univer- out of 351 Metropolitan Statistical tance from the perspective of, for sity; and Dr. Sudesh Mujamdar is Areas (MSAs) that were considered instance, the state’s economic develop- assistant professor of economics nationally, the Evansville MSA had a ment institutions. at USI. rank of 144. Bloomington was very

8 University of Southern Indiana School of Business Results of the Indiana-Peer experiencing a decline in overall liv- Peer Group seems to have gained, Group Comparison ability rankings is 47 percent in com- albeit slightly, over the Indiana MSAs First, in examining the results in parison to 57 percent for the Indiana in the period from 1997 to 2000. A overall livability, we found that statisti- MSAs. similar trend emerged when we com- cally there is no significant difference In individual categories, Indiana pared Indiana MSAs to all other non- between the proportion of Indiana MSAs exhibited a deterioration in their Indiana, non-peer group MSAs. MSAs that show an improvement in performance on the “jobs” category vis- Our findings allow us to postulate overall livability and that for Peer à-vis the Rest MSAs but outperformed a number of policy recommendations. Group MSAs in bordering states. It is them on the “recreation” category. Fur- First, our results support (but do not worth noting that 57 percent of Indi- ther, on each category other than “edu- necessarily prove) the long-standing ana MSAs actually experienced a cation,” the “arts,” and “recreation,” the belief that the Indiana economy’s decline in overall livability in compari- percentage of Indiana MSAs displaying excess reliance on manufacturing- son to only 41 percent for the Peer a decline in the rankings was greater related employment has adversely Group. However, this difference is not than that for the Rest-MSAs. affected the state’s livability. Conse- large enough to be statistically signifi- The above conclusion regarding the quently, policies structured to change cant. Indiana-Peer Group comparison seems Second, we examined the results to apply equally well here. One thing from the tests concerning the various worth mentioning is that while the Our results support attributes of livability. On the “jobs” Indiana MSAs outperformed the Peer attribute, the Peer Group MSAs in Group on the “arts” category, this show- (but do not necessarily prove) adjoining states outperformed the Indi- ing did not carry over with regard to the ana MSAs. This showing was reversed Rest-MSAs. the long-standing belief that for the “arts” attribute. On each attribute other than “education” and Results of the Comparison of the Peer the Indiana economy’s excess the “arts,” the percentage of Indiana Group MSAs vis-à-vis the Rest-MSAs MSAs showing a decline in the rank- We found once again that statisti- reliance on manufacturing- ings was greater than that for the Peer cally there is no significant difference Group. between the percentage of Peer Group related employment has In totality, the above results paint MSAs and the percentage of Rest- a somewhat negative picture of the MSAs showing an improvement in the adversely affected the state’s performance of Indiana MSAs vis-à-vis overall livability rankings. Interestingly, the Peer Group in bordering states. a smaller percentage of Peer Group livability. While education and arts are certainly MSAs (41 percent) experienced a important factors to consider when decline in the overall livability rankings determining an area’s livability, the job in comparison to the Rest-MSAs (47 the state’s employment base (i.e., pro- category is particularly troubling. Logic percent). mote employment in non-manufactur- indicates that the decline is due to the Tests on the individual livability ing fields) are warranted. state’s reliance on manufacturing-relat- attributes reveal with respect to the We are also able to show where ed employment. As the number and “recreation” category that the Peer Indiana communities have, on average, proportion of manufacturing-related Group MSAs soundly outperformed the been able to improve, namely in recre- jobs diminishes within the nation’s Rest-MSAs with 88 percent of the Peer ation and art. So to some extent, past economy, states like Indiana are Group recording an improvement in the policies that support these activities adversely affected by those changes. “recreation” rankings while the corre- appear to have been successful. As a sponding figure for the Rest-MSAs was result, logic indicates that future poli- Results of the Comparison of Indiana only 50 percent. cies should also be implemented to MSAs vis-à-vis MSAs in the Rest of continue this trend. the United States and Canada Concluding Remarks Interestingly, the state improved The results with respect to the Our results indicate, that in terms slightly in its education ranking. With comparison of changes in overall liv- of an improvement in the overall liv- education budgets shrinking dramati- ability in the Indiana MSAs vis-à-vis ability rankings, there is not much dif- cally across virtually every state in the that in MSAs in the rest of the United ference between the Indiana and Peer union, we believe that our findings States and Canada (Rest-MSAs) indi- Group MSAs. We did find that a larger present a unique opportunity for policy cated that statistically there is no sig- share of Indiana MSAs suffered a set- makers. By directing extra funds toward nificant difference between the per- back in the rankings in comparison education, Indiana MSAs would be centage of Indiana MSAs that show an to the Peer Group in border states; able to markedly increase their educa- improvement in overall livability (43 however, this difference was statistically tional reputations, particularly when percent) and that for the Rest-MSAs. insignificant. This leads us to conclude compared to other areas with limited The percentage of the Rest-MSAs that in the rankings sweepstakes the and/or shrinking funds.

Summer 2003 9 Individuals in companies must assume CIS students place responsibility for decisions they make in Webmaster contest at national meeting SEC staff attorney personal accountability, the SEC is working with criminal authorities, Two School of Business stu- Edward Wicht ’92 is speeding up investigations, and taking dents majoring in computer infor- Alumnus-in-Residence other measures to restore investor con- mation systems earned an honor- fidence in American companies. able mention award in Webmas- An increased effort to hold indi- “Everyone has a role to play,” ter competition during the 8th viduals in corporations accountable for Wicht said, “from the federal govern- Annual Association of Informa- their actions and decisions is one of the ment to the individual employee.” tion Technology Professionals steps the Securities and Exchange The SEC’s Enforcement Division National College Conference Commission is using to restore investor includes about 1,000 staff members, held March 28-29 in West confidence, J. Edward Wicht, a 1992 one-third of them in Washington and Lafayette, Indiana. University of Southern Indiana gradu- the rest spread throughout the country. Jason Hopp and John Rus- ate, told students March 24 in his Wicht majored in economics at sell finished in the top five in Alumni-in-Residence presentation to USI. He graduated summa cum laude competition with students from faculty and students in the School of from Indiana University School of Law almost 100 colleges and universi- Business. in 1995 and earned a Master of Laws ties. Other students who attended “Companies are not real,” said with highest honors from George the meeting include John Brock, Wicht, a staff attorney in the Division Washington University School of Law Jay Harris, Craig Kniese, Brian of Enforcement for the Securities and in 1997. Lovell, Ann Patterson, Chris Exchange Commission in Washington, Before joining the SEC’s Division Rider, and Scott Ruwe. D.C. “They do things through their of Enforcement in 2002, he worked as The conference included employees. We look at those individu- an associate attorney for Zuckerman keynote speeches, break-out ses- als in companies who make decisions.” Spaeder LLP in Washington, where he sions, student competition in a Wicht said that financial fraud has dealt with white collar criminal, com- number of categories, an Internet gone on for a long time, but that in plex civil, and legal ethics matters. cafe, and networking opportuni- recent years it has become more preva- Earlier in his career, Wicht worked in ties for students and professionals. lent and has penetrated to a deeper Evansville as an associate attorney at level. His presentation focused on the Bowers Harrison Kent & Miller LLP Greg Valentine chairs SEC’s enforcement of the nation’s secu- and as a law clerk at Noffsinger Price national committee rities laws, particularly those pertaining Bradley & Shively LLP. for economic education to accounting fraud and market manip- Held each spring, the Alumni-in Dr. Gregory Valentine, ulation. He listed emphasis on short- Residence program brings a successful associate professor of business term growth, incentive compensation School of Business graduate to campus education, has been named chair for executives, and changes in the pub- for presentations and discussions with of the Joint Committee on Eco- lic accounting and financial services students and faculty. nomic Education for the National industries as contribu- Business Education Association tors to recent prob- (NBEA). lems related to fraud The joint committee is asso- and financial misrep- ciated with NBEA and Delta Pi resentation in U.S. Epsilon, a graduate honorary companies. society for professionals who “Most people in support the advancement of edu- the midst of financial cation about business. The pur- crises didn’t set out to pose of the committee is to get there but made a enhance the teaching of econom- series of half-rational- ic education. As chair, Valentine ized decisions that will coordinate several conference were not according to sessions and serve as NBEA repre- accounting standards sentative to the National Council Elizabeth Courtney-USI and, in many cases, on Economic Education. were downright Attorney Ed Wicht of Washington, D.C., spoke with students Valentine is director of USI’s wrong,” he said. and faculty about restoring confidence in America’s financial Center for Economic Education. In addition to a markets. From left are Heath Eckert, Wicht, Casey Miller, greater emphasis on and Jill Fisher.

10 University of Southern Indiana School of Business Eva Jermakowicz receives Fulbright Research Award to work in Brussels

Dr. Eva Jermakowicz, associate invigorate the international account- In summer 2001, she held a faculty professor of accounting, has received a ing standardization effort.” internship with Mead Johnson Nutri- Fulbright Research Award for 2003-04 With U.S. Generally Accepted tionals in Evansville. She was a Ful- that will take her Accounting Principles (GAAP) facing bright scholar in Poland in 1997. to Brussels, Bel- uncomfortable scrutiny, Jermakowicz Jermakowicz also is active in the gium, for a project said that convergence of national community. In 2002-03, she coordinat- related to interna- accounting practices with IAS world- ed a School of Business project on the tional accounting wide is more probable than ever. economic impact of the bridge con- standards. The grant under the European necting New Harmony, Indiana, with The award is Union Program is for 10 months begin- Illinois. As a board member of the for the project ning September 1. Evansville Branch of the American “Convergence of Jermakowicz holds a doctorate in Association of University Women, she National Account- accounting from Warsaw Technical chaired a career conference for young ing Practices with Jermakowicz University in Poland, where she began women held recently at USI in cooper- International her teaching career. She joined USI in ation with the Girl Scouts. Accounting Standards in the European 1987 and became a CPA in 1990. Jermakowicz was one of eight Union.” Jermakowicz has had a number of women honored earlier this year at the Jermakowicz said, “The recently articles published in professional jour- 2003 Phenomenal Women of USI and enacted European Union (EU) Regula- nals. She is active in professional orga- the Community Recognition Program, tion requiring all publicly traded EU nizations including the Indiana CPA presented by the USI Multicultural companies to prepare their consolidat- Society, Institute of Management Center and the Evansville Chapter of ed accounts in conformity with Accountants, and American Account- the American Association of Universi- endorsed International Accounting ing Association. She serves on the ty Women, underwritten by Old Standards (IAS) from the year 2005 Leadership Cabinet of the Indiana National Bank. onward creates a real opportunity to re- CPA Society.

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Summer 2003 11 and his vision to Fisher globalize education Continued from page 1 in business. Robert W. microphone during the evening to Swan ’72, 2002-03 comment on Fisher’s leadership. chair of the Board of Robert Reid, provost and vice Visitors, thanked president for academic affairs, listed Fisher for the syner- enrollment, curriculum development, a gistic relationship he greater number of faculty members and has developed with more involvement by faculty in profes- the business commu- sional activities, an enlarged role for nity. Kenneth L. the Board of Visitors, more active Sendelweck ’76, engagement with the community, and chair of the Board of the attainment of accreditation by Elizabeth Courtney-USI Visitors for 2003-04, AACSB International among Fisher’s said Fisher had bal- many accomplishments. Reid said he “From ’91 to present day, you’ve been the dean who’s led the anced the theoretical could not imagine a dean who could way.” Rebecca Fisher of Orlando took liberties with the song with the practical. have done more in terms of classroom “My Way” to sing a tribute to her father Phil Fisher at a dinner Fisher recently teaching, interaction with colleagues, recognizing his 12 years as dean of the School of Business. was named a Sag- and service to the community. Fisher amore of the Wabash, the highest has been active with the Chamber of William C. Henderson, assistant honor bestowed by the governor of Commerce, Downtown Rotary Club, dean of the School of Business, said Indiana Tri-State Food Bank, and Evansville about Fisher, “He encouraged us to Museum of Arts, History, and Science. grow and improve and move in a com- University of Southern Indiana is an He is the president of the board of the mon direction.” Other faculty members affirmative action/equal employment Evansville Philharmonic Orchestra. praised Fisher’s mentorship of faculty opportunity institution.

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