Business & Entrepreneurship

People’s suspicions about outsourcing are sometimes right; it is just a way for firms to save a buck. But when firms outsource IT projects or share resources with a supplier, they might be creating competitors who could steal customers or profit making ideas, says a professor from the Olin School of Business. Without knowing when it is appropriate to outsource, the financial impact could be quite harmful.

Investors are reluctant to devote resources to female-run companies, according to research from two professors at the Olin School of Business. They found that potential backers are likely to invest 300 percent more in male-run firms than in firms run by a woman; and they would pay a female CEO 86 percent of the salary they’d pay a male CEO.

Randy Korotev with a sample meteorite found in Siberia.The mysterious orb you find in your backyard that wasn’t there just the day before has to be a meteorite, right? Wrong. Overwhelmingly the chances are it’s a meteorwrong, says Randy Korotev, Ph.D., research associate professor of earth and planetary sciences in Arts & Sciences at Washington University in St. Louis. He says that 998 out of 1,000 meteorites are from asteroids, one out of 1,000 is from the Moon, and one out of 1,000 is from Mars. Of the hundreds of meteorites that have been found in the United States, none has been a lunar meteorite, and only one has been a Mars meteorite.

No ad goes unnoticed: MBA students at the Olin School of Business evaluate Super Bowl XL commercials starting at 3 p.m. Sunday, Feb. 5, with pre-game lectures by local advertising professionals.

When managers realize that their corporate earnings per share are in jeopardy of falling short of analysts’ quarterly forecasts, they usually look for a way to avoid that fate. While there has been plenty of research that looks at how companies beat analysts forecast by manipulating their earnings, the effects of stock repurchases has remained unexamined. A new study by a business professor at Washington University in St. Louis, finds that under the right circumstances, repurchasing stock in an attempt to increase earnings per share does not completely fool the market, although it is an effective way to avoid being throttled when earnings per share falls short of market expectations.

You hear about them often in the news — longtime managers who survive corporate mergers with a golden parachute and a backpack full of fabulous perks. They must have done a great job in helping the company grow, right? Not necessarily, according to research done by a professor at the Olin School of Business at Washington University in St. Louis. In a series of studies Litov conducted, he found that, longtime, or entrenched, managers tend to avoid risky investments and projects, which results in saddling their firms with higher debt levels and slowing the firm’s growth.

Two teams of entrepreneurs have won Washington University’s 2005 Olin Cup. Somark Innovations, Inc. and iMobile Access Technologies, or iMAT, will receive a total of $70,000 in seed funding for their enterprises. An additional $5,000 grant for student projects will be split between two winners: HomeWUrk and Suzanne Shenkman Designs. The awards were announced Dec. 1 at a ceremony featuring Robert J. Skandalaris, founder and chairman of Noble International.

The winners of the 2005 Olin Cup Competition will be announced Thursday, December 1. Six finalists are in the running to receive a total of $70,000 in seed investments. Additionally, a $5,000 grant will be awarded to the best student-owned venture. The Olin Cup Competition is an annual business formation contest organized by The Skandalaris Center for Entrepreneurial Studies at Washington University in St. Louis.

The Financial Times has ranked the professors at the Olin School of Business at Washington University in St. Louis tenth in the world in terms of research productivity. The tenth-place designation was announced as part of the Financial Times‘ Executive-MBA rankings in October of 2005.

The Olin School of Business’ non-degree executive education programs ranked tops globally in a survey conducted by the Economist Intelligence Unit, a branch of The Economist Group which also publishes the Economist magazine. Olin’s open programs tied for second place internationally (first-place tie nationally) and its customized programs tied for first place among similar programs worldwide.