March 2003 Inaugural Issue

Corporate Governance Conference - Finding the Road Back
Lubin Launches Degree Program in China
Are We Getting There?
Grooming Future Leaders and Scholars
Executive in Residence - CEO, Barnes &
Lubin Welcomes New Faculty Members

Corporate Governance Conference - Finding the Road Back

  [Congressman Oxley]
Congressman Oxley
"One of the strengths of our system is our ability to recognize problems, move to fix them, and almost every time we do that, we become stronger and more efficient and better for it," said Congressmen Michael G. Oxley (R-Ohio), co-author of the Sarbanes-Oxley Act of 2002, in his keynote address at the second annual Lubin Leaders Forum entitled "Financial Integrity and Investor Confidence: Finding the Road Back." On the topic, Oxley commented, "There are a lot of other issues going on ... in the international community that obviously have an effect on the market. The uncertainty about whether we go to war obviously has a major effect on people's psyche. But the structural changes that were made are now being put into place and that is a very, very positive development for our country."

In light of the business scandals in the last year, the focus of the conference was corporate governance and accounting; asking the crucial question of whether reforms already enacted are sufficient to restore financial integrity to institutions and investor confidence in the markets.

Lubin's Center for Global Finance and the School's department of accounting jointly hosted the conference on February 3, 2003, at the Mutual of America building in Midtown Manhattan. Corporate sponsorship was provided by Booz | Allen | Hamilton and strategy + business magazine. The more than 130 participants included executives, scholars, government officials, and business students.

The conference panels were moderated by Randall Rothenberg, editor-in-chief, strategy + business magazine and director of intellectual capital, Booz | Allen | Hamilton. In his opening remarks Rothenberg opined, "There are two components of our national character: ambition and fairness.... Certainly, those ideals can and do come into conflict. What is now routinely referred to as corporate scandals of the past year are examples of that conflict. While legal courts have yet to rule fully, the court of public opinion has judged that leaders of too many publicly held companies, together with their aides, and the accounting and legal professions have tried to better themselves at the expense of the shareholders." In light of this, he started the discussion off by asking the corporate governance panelists, "Based on stock market performance, investor confidence appears lower today than any point in almost six decades. Do you believe this is a cyclical or a structural issue?"

Beth Brooke, global vice chair-strategy, Ernst & Young, answered, "I think it is certain to say that investor confidence is at an all time low. I think Alan Greenspan's warning against irrational exuberance indeed was met with irrational exuberance.... I think it is critical now to start looking forward; we all play a role in restoring investor confidence. But there are no silver bullets and this session is appropriately entitled 'Finding the Road Back.'" Brooke, a strong proponent of Sarbanes-Oxley, said of the Act, "I don't think this is well understood. Sarbanes-Oxley really is landmark legislation. And I don't know if it is being viewed that way. [It is] clearly one of the most sweeping reforms of the accounting profession and corporate governance since the depression."

The panel also included Gordon Grand III, managing director, head of CFO Practice, Russell Reynolds Associates, Inc.; Paul Kocourek, senior vice president, Booz | Allen | Hamilton; and Susan Schmidt Bies, Board of Governors of the Federal Reserve Board.

Sarbanes-Oxley Act
Michael Oxley has been a leading voice in Congress for 20 years on issues related to Wall Street, banks, and the insurance industry, as well as trade, telecommunications, and energy. As chairman of the House Financial Services Committee, Oxley held the first Congressional hearings on the accounting abuses of Enron, WorldCom, and Global Crossing.

During his keynote address he gave a concise history of how the Sarbanes-Oxley legislation came about and said that next on the agenda will be the Committee's review of transparency and fee structure for the mutual funds industry. "That will hopefully allow us to pursue the same avenue we did with Sarbanes-Oxley... because it is a fact that when the market was going gangbusters in the '90s and everybody was making a lot of money, no one was paying a lot of attention to the fees... And now we are in our third year of a bear market. People are starting to pay attention and rightly so. They want to know about fees, they want to know what they are charged and what they are based on. So the committee is planning a series of hearings to flush that out."

When asked in the Q&A where he thinks transparency stands now and how far should it go, Oxley candidly answered, "I think transparency will go as far as any potential scandals will take it, that is, historically... every time you have a scandal of some proportion, normally part of the fix is to provide more transparency in the system, and that transparency moves as far as the political system ....will allow it.... The transparency concept ... to me, is incredibly valuable. I think it does set apart our systems and that is why our markets are the strongest in the world, as opposed to rigid regulation that in many ways dampens the entrepreneurial spirit and risk-taking that is so necessary in our system."

Accounting Standards
Randall Rothenberg opened the accounting panel by asking, "What happened to the integrity of the U.S. accounting system? Was it, is it, a systemic problem or merely a few bad apples?" Trevor Harris, managing director, Equity Research, Morgan Stanley responded that in his view, "...fundamentally it is a systemic problem. I don't think this is a case of bad apples. The profession and the accounting system are at the heart of the problem.... What made U.S. accounting the pinnacle of the world was the fact that we focused on economic substance over legal form. What changed in the last decade is that we went in the exact opposite direction. And part of that was a reflection of litigation protection and the way it created a perception of precision, this one number that people felt they could rely on." The problem, Harris went on to say, is that "...we don't focus on transparency, we don't focus on trying to make this understandable, we focus on compliance with federal rules."

Asked to comment on the financial reporting failure aspect for the current situation, Katherine Schipper, member of the board, Financial Accounting Standards Board, began, "I want to make a statement which I think is self-evident - and that is that bad accounting doesn't cause business failures; losses cause business failures." Schipper then outlined the various forms of business failures and asked, "Did the enterprise follow generally accepted accounting principles [GAAP]?... Was it a failure of governance?... Or, alternatively are we looking at a failure of auditing? ...We might also ask if there was a failure of enforcement.... And if we are to correct these problems, I believe we must first diagnose the underlying cause."

The accounting panel also included Arthur Bowman, editor-in-chief, Bowman's Accounting Report and Robert K. Elliot, Partner, KPMG (retired).

Steps in the Right Direction
The Lubin Leaders Forum brought together representatives from all financial industry stakeholders: corporate executives, accounting professionals, government regulators, and investors for a timely and honest discussion of the aftermath of recent corporate scandals and how to move forward with better systems in place. The conference made clear that the Sarbanes-Oxley Act, with its structure and symbolism, set the tone for American business reform of the accounting profession and corporate governance practices and laid the groundwork for future actions that stakeholders have to take to restore financial integrity to the markets and to regain investor confidence.

Lubin Launches Degree Program in China

Pace University's Lubin School of Business is offering a pilot MS in Accounting program for students in Shanghai in conjunction with Shanghai University of Finance and Economics (SUFE).

  [MS in Accounting in Shanghai]
Lubin's new MS in Accounting in Shanghai
"This mutual endeavor provides an excellent opportunity for Chinese business professionals to study United States accounting, auditing and taxation," said Arthur L. Centonze, dean of the Lubin School. "The program is timely in light of China's emergence in the global economy and specifically in its ties to U.S. business."

The program enables students in Shanghai, who are mainly working full-time, to complete the identical program in which students participate at Pace University in New York. Courses are presented in English by Pace faculty in SUFE classrooms with SUFE support personnel and facilities.

Almost 40 individuals applied for admission to the pilot program, 12 of whom were selected to form the initial class. Given the background and prior training of this particular cohort, it will take less than two years for the students to complete the required 37 credits in accounting and business communication. In the future, cohorts of between 15 and 25 students are expected to form every two years, and will spend time in New York City as part of the educational process.

"We foresee a rapid growth in the demand for talented accounting professionals in both China and the U.S.," said Xin-Yuan Chen, dean of SUFE. "This program allows accounting professionals in China to expand their knowledge beyond China's national borders and serves the growing market for accounting, auditing and taxation skills."

The program received formal approval by the Chinese Ministry of Education and the Chinese Central Commission of Academic Affairs. The initial class participated in an opening ceremony in Shanghai. Attending the ceremony were professors and senior administrators of the Lubin School and SUFE in Shanghai; and guests from KPMG, Shanghai National Accounting Institute, Ernst & Young Dahua, and PricewaterhouseCoopers.

Are We Getting There?

"We are engaging in assessment because we want to get better at what we do," comments Dr. James C. Hall, professor of Management, who has recently assumed the new position of associate dean for Planning and Assessment. "…As a business school we must see ourselves not only as a source of learning for students, but also as an organization that has goals and objectives. We established Lubin's Strategic Plan so that we can set priorities and measure our progress toward our goals."

As co-chair (with Dr. Randi Priluck) of the Lubin Select Committee on Assessment, Hall was active in designing Lubin's new learning assessment program. He remarks: "While Lubin's plan says where we are going, assessment gives us the sense of whether we are getting there. Assessment data becomes the basis on which we improve."

Nurturing Faculty Development

  [James C. Hall]
James C. Hall
Hall has held a number of senior administrative posts in higher education. He was dean of University College at Pace University, and held similar positions at the University of Montana and Roosevelt University. He also served as the chair of the Graduate Management Program in the Lubin School and co-director of the University's Pforzheimer Center for Faculty Development.

At the Pforzheimer Center, Hall initiated a series of successful programs to improve faculty teaching. The Center's teaching portfolio workshops encouraged faculty to document and reflect on their work with students. Other workshops helped faculty incorporate new technologies into their teaching. Hall speaks of technology as a critical element of success these days, "We use [technology] because we can create community through it; we can make learning more efficient for our students. Technology makes an enormous difference in the way people learn and in the way faculty members organize their teaching."

Hall is also working on many other important issues, including the School's reaffirmation by AACSB International (the Association to Advance Collegiate Schools of Business), which is the premier accrediting organization for business schools in the world. "The basis for our reaffirmation will be whether or not we are following our strategic plan, and how well we are progressing toward our goals. The plan is the central most important item in the accreditation process," says Hall.

A graduate of the University of Chicago, Hall holds an M.A. and a Ph.D. in Adult Education. His research has focused on corporate training and development, use of interactive television for education, online education, faculty development, and the use of the Internet for business education.

In talking about university life today, Hall, who has been at Pace University for more than 20 years, admits that the amount of information that students and faculty have to deal with can be daunting. He suggests a simple fix: "As we go into any activity, we need to have a sense of where we are headed, and we need to set priorities. Not trying to do everything, but rather focusing on what's important to move us toward our goals, will increase our likelihood of success."

Grooming Future Leaders and Scholars

The newly created Lubin Leaders and Scholars Program (LLSP) is designed to provide a select group of outstanding B.B.A. students with an enhanced, challenging, and rewarding academic experience to prepare them for leadership positions in business. The program started its student recruitment in the Fall 2002 semester and the founding class is estimated at about 100 students from both the New York and Pleasantville campuses.

Building upon the University Honors Program (UHP), the LLSP is focused primarily on the junior and senior years and is open to Lubin students who are members in good standing in the UHP and have achieved a minimum CQPA of 3.30. A limited number of Lubin students who are not members of the UHP, but who have served in a leadership position in Pace student organizations or in community-based organizations and have achieved a minimum CQPA of 3.30, will also be eligible to join the LLSP in their junior year. Transfer students who have achieved at least a 3.30 CQPA at their previous college or university and have a record of leadership will also be considered for admission.

LLSP students will be eligible to enroll in honors-level sections of Lubin business core courses, attend applied workshops and events, develop enhanced relationships with faculty and other top-level students, and will qualify for special recognition at graduation. An especially exciting aspect of the program is the unique opportunity it will offer participants to pursue advanced study of a topic in their major area (research- or application-oriented) under the direction of a faculty mentor.

The LLSP sponsored the Business and Economic Panel Discussion, "9/11's Aftermath," as part of last semester's Pace Anti-Terrorism Conference. Future events will include field trips, site visits, workshops, seminars, and distinguished speakers.

For more information, please contact LLSP Director Dr. Eric Kessler on the New York Campus at or on the Pleasantville campus, LLSP Associate Director Dr. Kathy Winsted at kwinsted@, or visit the Lubin Leaders and Scholars Program Web page.

Executive in Residence - CEO, Barnes &

  Marie J. Toulantis
Marie J. Toulantis
Marie J. Toulantis is chief executive officer of Barnes &, the publicly-traded Internet commerce company of which Barnes & Noble, Inc. and Bertelsmann A.G. own 36% respectively. Barnes & ( offers millions of books, both new and out-of-print, music, DVDs/video, as well as online courses.

Ms. Toulantis joined Barnes & as chief financial officer in 1999 and oversaw its successful initial public offering, which raised nearly $500 million in the largest Internet initial public offering to be completed at that time. She was appointed president and chief operating officer in 2001, and under her leadership, Barnes & has become one of the top five e-commerce sites, attracting 10 million unique visitors per month, the largest audience reach of any brick-and-mortar company with an Internet presence.

Ms. Toulantis first joined Barnes & Noble, Inc. in 1997 as executive vice president with responsibility for finance and was later appointed chief financial officer. Prior to working for Barnes & Noble, Inc., she served as senior vice president at the Chase Manhattan Bank where she was responsible for the Bank’s relationships with mid-sized companies in Manhattan.

Ms. Toulantis attended Pace University's Lubin School of Business where she earned a BBA in marketing.

Lubin Welcomes New Faculty Members

This Fall the Lubin School of Business welcomes seven distinguished new faculty members.

  [new faculty member Andrew A. Anabila]
New faculty member
Andrew A. Anabila
Andrew A. Anabila, Assistant Professor of Accounting, received a B.COM. degree with honors (First Class Division) and a Diploma of Education from the University of Cape Coast (Ghana), a M.Acc. (Distinction) in Accounting from the University of Glasgow (UK), and a M.Phil. from Columbia University, where he is currently completing his Ph.D. While at the University of Glasgow, Anabila received a one-year full scholarship award granted jointly by ACU and the University of Glasgow, and won the David G. Lindsay Prize for Accountancy at the end of his studies.

Anabila most recently assisted in the teaching of M.B.A and E.MBA core courses in financial as well as managerial and cost accounting at Columbia Graduate School of Business. He also worked as a research assistant at the TIAA-CREF Institute and Columbia University, and taught financial and cost accounting as well as mathematics to secondary school students in Ghana. His other professional experiences include working as a business analyst, assistant finance manager, and internal audit manager for Guinness Ghana Limited.

With research interests in Financial Accounting, Equity Valuation, International Accounting, and Corporate Governance, Anabila is currently working on two papers: one on improving earning forecasts using intra-industry information transfer and the other on differences between IAS and U.S. GAAP based numbers.

Steven A. Brownstein, Assistant Professor of Marketing, holds a B.S. in Microbiology from the University of Florida, an M.S. in Mathematics from the Lehigh University, and an MBA in Marketing and Statistics from Baruch College. He is about to receive his Ph.D. in Business Administration from Arizona State University.

Before joining Lubin, Brownstein taught marketing research and consumer behavior at Arizona State University. During this time, he initiated incorporation of the Simmons Study of Media and Markets database into the course structure. He also taught mathematics at Scottsdale and Manhattan Community Colleges, New York City Technical College, Baruch College, and Lehigh University, with the courses ranging from college algebra to discrete mathematical structures and calculus. Brownstein also worked as an insurance analyst at TIAA-CREF and was an assistant biochemistry researcher at the University of Florida.

Author and coauthor of a number of publications about the study of motivation, idiographic hierarchies, consumption phenomena, and consumer belief systems, Brownstein is currently working on the study of brand constructs and intergroup perceptions.

Brownstein is a Kenneth A. Coney Memorial Scholar and Southwest Doctoral Consortium Fellow, and a recipient of the Center for Services Marketing Research grant from Arizona State University.

Larry Chiagouris, Associate Professor of Marketing, received his B.S. in Economics (magna cum laude) and A.P.C. in Marketing from New York University, an MBA in Industrial Psychology, an M.S. in Business, and a Ph.D. in Marketing from Baruch College.

Chiagouris' exceptionally strong theoretical foundation combines with more than 20 years of professional experience that includes senior marketing management positions in such companies as, Starz Encore Media Group, Backer Spielvogel Bates Advertising , Bozell Jacobs, Grey Advertising, and Lucent Technologies/ AT&T, to name a few. Before joining the faculty at Lubin, he was a senior partner at BrandMarketing Services, Ltd., where he supervised advertising and Internet marketing consulting engagements.

Chiagouris has lectured at St. Johns University, New York University, Yale University, Baruch College, and most recently at the University of Georgia. He also has presented papers at numerous conferences in the marketing field. An advertising and public relations expert, Chiagouris' areas of interest include copy strategies, brand equity, consumer behavior, media evaluation, as well as interactive communications.

His numerous academic and professional affiliations include membership on the Board of the Advertising Research Foundation, Board of Directors of the AMA, and Editorial Review Boards of the Journal of Advertising Research, the Journal of Segmentation in Marketing, and Marketing Management, among others.

Winner of three Effie Awards for advertising effectiveness, Agency Magazine voted him one of the ten best and brightest advertising agency researchers and strategists.

Natalia Gershun, Assistant Professor of Finance, received a B.A. in Music from the Moscow Conservatory (Russia), an M.A. in Economics from the City College of New York, and is a Ph.D. in Finance candidate at Columbia University's Graduate School of Business.

Gershun teaches graduate investment analysis, portfolio management, and managerial economics courses at the Lubin School. She also held teaching positions at Bloomberg, Inc., Columbia University, Baruch College, and Long Island University.

Gershun's research interests include asset pricing, real business cycles, and growth theory. Her current working papers are: "Macrodynamic and Financial Effects of a Large-scale Technology Change," "Asset Pricing in an Economy with Increasing Returns to Scale and Variable Capacity Utilization," and "Financial Performance of the Models with Local Indeterminancy."

Recipient of the Columbia University Fellowship and the Helena Rubenstein Award from CUNY Graduate Center, Gershun is a member of the Financial Management Association. Her professional affiliations include the Financial Management Association and the Association of Women in Economic Profession.

Elena E. Goldman, Assistant Professor of Finance, earned a B.S. and M.S. (with distinction) in Applied Physics from the Moscow Institute of Physics and Technology (Russia), an M.A. in Economics from both Moscow New Economic School (Russia) and Rutgers University, where she recently earned a Ph.D. in Economics.

Most recently Goldman taught econometrics, introductory micro- and macroeconomics and advanced statistics at Rutgers University. With research interests in economics, international finance and economic history, she assisted Professor M. Bordo of Rutgers University in the research for NBER and World Bank projects and performed research work for the Rutgers Center for State Health and Policy.

Goldman authored "Testing Efficient Market Hypothesis for the Dollar-Sterling Gold Standard Exchange Rate 1890- 1906," Economic Letters 69, 2000, and coauthored "A Bayesian Test of Stationarity in Regression Model with an ARMA Error Term," Proceedings of the Annual Meeting of the American Statistical Association, 2001.

In 2001 and 2002 Goldman presented papers at conferences of the American Statistical Association, Pennsylvania Economic Association, New York State Economics Association, First Latin American Meeting on Bayesian Statistics in Brazil, and 7th Valencia International Meeting on Bayesian Statistics.

Goldman is a recipient of the Sidney Brown Prize in Economics. She is a member of International Society for Bayesian Analysis and a referee for Communication in Statistics.

Carol Gorelick, Visiting Assistant Professor of Management, holds a B.S. in Economics from SUNY, an MBA (with distinction) in Management from Pace University, and an Ed.D. in Organization and Human Studies from George Washington University.

Gorelick's wide-ranging professional experience includes both corporate and academic positions. Since 1991, she has been an adjunct professor of management at Lubin. She also taught at the University of Capetown, Southern Methodist University, New School for Social Research, Fashion Institute of Technology (SUNY), and Baruch College. She is the co-founder and Principle of SOLUTIONS for Information and Management Services, Inc., a management consulting company that supports clients to bring together the best in people, processes, and technology to help teams and groups improve their performance. Among the company's clients are Chase Manhattan Bank, First Union National Bank, IBM, and Xerox Business Services. Gorelick has also held managerial positions at Prudential Securities, American Express, American Airlines, Lufthansa German Airlines, and AT&T.

Gorelick coauthored "Leveraging Expertise at British Petroleum: Building an Organizational Capability," with Dr J. Storck, IBM – Advanced Business Institute, 2000. She has delivered papers at numerous conferences, including the Academy of Management Annual Meeting, Organizational Behavior Teaching Conference, McMaster World Congress on Intellectual Capital, and Strategic Thinkers Forum. Her professional affiliations include the Academy of Management, Financial Women's Association of New York, Association of Training and Development, and the Society for Organizational Learning.

Aron Gottesman, Assistant Professor of Finance, is also the Associate Director of the William C. Freund Center for the Study of Securities Markets, and an academic research member of the Individual Finance and Insurance Decision Center at the Fields Institute in Toronto. He has a Ph.D. in Finance, an MBA in Finance and Accounting, and a B.A. in Psychology, from York University (Canada).

Gottesman has taught graduate and undergraduate courses on investment analysis, derivative securities, and the theory of capital markets, and has presented corporate seminars on finance and risk-related topics. He has consulted extensively to both private corporations and governments in the areas of debt management, portfolio analysis, insurance, and online education. Gottesman has also created online courses for the financial services industry.

Gottesman has received a number of awards, research grants, and scholarships, including a research grant and doctoral fellowship from the Canadian Social Sciences and Humanities Research Council (SSHRC), an Ontario Graduate Scholarship, research grants from Pace University and Concordia University, and scholarships from York University. In 2001 he received an award for the best paper on financial institutions at the Northern Finance Association Meetings.

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