Northern Illinois University

College of Business - NIU

Newsworthy Prior to 2007

"Gridlock's Gone, Now What?"

-- written by NIU Finance professor Dr. Gerald Jensen, University of Wisconsin Oshkosh professor Dr. Scott Beyer, and CFA Institute Managing Director Robert Johnson -- is the title of a paper that explores whether or not return on investments fair better during periods of political gridlock. Popular assumption suggests that political gridlock maintains the status quo, thereby providing investors with certainty and, one would expect, higher returns on their investments. Published in The Financial Analysts Journal (Sept/Oct 2006), the paper -- "Gridlock's Gone, Now What?" -- is a result of a study conducted by Jensen, Beyer, and Johnson who examined the monthly inflation-adjusted returns of 10 stock indexes over the period 1949 through 2004. Their findings indicate that stocks performed as laggards during the 402 months of gridlock that occurred within the 56 year period 1949 through 2004; during those months of gridlock, stocks averaged gains of 6 percent a year. Conversely, during the 270 months of governmental "harmony" that occurred within the period 1949 through 2004, stocks averaged gains of 22 percent a year. Findings made in the financial analysts' research paper resulted in media coverage in several major media outlets, including:

The Wall Street Journal

-- September 20, 2006 article: "A First Look at Next Year's Taxes - Analysis Shows How Inflation Adjustments Will Affect Your 2007 Bill."

The article reviews findings made by tax analysts, including NIU Accountancy Department Chair Jim Young, Crowe Chizek Professor of Accounting. By law, the Internal Revenue Service (IRS) is required each year to adjust its income-tax tables as well as dozens of other numbers in order to take into account cost of living increases. The IRS will release the new information later this year. In the meantime, Young and the other two tax analysts -- Mr. Jones of CCH and William Massey, at Thomson Tax & Accounting -- crunched the numbers and predict taxpayers will receive, in general, more inflation-adjusted relief for year 2007 than they will for 2006.

Chicago Tribune

The September 14, 2006 edition of the Chicago Tribune, under "Local Attractions," ran a paragraph mentioning NFL Hall of Fame Defensive Back Ronnie Lott's guest speaker appearance in the NIU College of Business. During his 14-year football career, Ronnie Lott was named All-Pro eight times, All-NFC six times, All-AFC once, and was also named to the NFL's 75th Anniversary Team. Mr. Lott's speaking engagement on what it takes to be a successful leader was sponsored by the Entrepreneurship and Innovation Class. The Entrepreneurship and Innovation Class is team-taught by Dennis Barsema and Richard Boulger, and is offered out of the college's Management Department.

Chicago Tribune

The August 12, 2006 edition of the Chicago Tribune carried the article which included quotes from Marketing Professor Mark Rosenbaum as he discussed his research study on the relationship between "hangouts" and consumption. Dr. Rosenbaum's study - "Exploring the Social Supportive Role of Third Places in Consumers' Lives" - was published in August 2006 in the Journal of Service Research (click for an abstract of the study).

U.S. News & World Report

NIU's College of Business has made the "America's Best Colleges and Programs 2006", as recently published by U.S. News & World Report. The college, as a whole, ranked 116 out of the 404 accredited undergraduate business programs reviewed by U.S. News. This ranking places NIU's College of Business among the top 29% best undergraduate business programs in the nation. For the second year in a row, the college's Department of Accountancy was recognized in the 2005 issue of U.S. News & World Report as one of the 25th best accounting programs in the nation.

"Is Fed Policy Still Relevant for Investors?

-- a paper discussing Federal Reserve monetary policy -- has been covered in media outlets including Forbes, Pittsburgh Post-Gazette (November 15, 2004), Chicago Tribune, Chicago Sun-Times, among others. The paper's authors utilized 38 years of data and examined the relationship between monetary policy and stock market returns by evaluating both cross-sectional and time-series classifications. The paper is authored by NIU Finance Professor Dr. Gerald Jensen, CFA Institute Senior Vice President Robert Johnson, University of Richmond Finance professor Dr. Mitch Conover and, Texas Tech University Finance professor Dr. Jeff Mercer.

"Don't Worry About the Election, Just Watch the Fed"

-- written by Finance professors Dr. Gerald Jensen, Dr. Scott Beyer, and CFA Institute Senior Vice President Robert Johnson -- is the title of a paper that discusses the impact of political cycles and the stock market. The paper -- originally picked up by the Associated Press in the summer of 2004 -- has seen renewed coverage in several major media outlets, including:

  • Smart Money Magazine, November 2004 issue.
  • CBS Affiliate Stations around the country (coverage on November 1, 2004):
    • CBSE CBS Morning News (East) (Nationally Televised)
    • CBS CBS Morning News (West) (Nationally Televised)
    • WREG News Channel 3 Daybreak (Memphis, TN)
    • WHP CBS 21 Morning News (Harrisburg-Lancaster-Lebanon-York, PA)
    • WLNS 6 News This Morning (Lansing, MI)
    • WKRG 5 News at 6 (Mobile, AL-Pensacola, FL)
    • KFSM 5 News at 5:30 (Ft. Smith-Fayetteville-Springdale-Rogers, AR)
    • WSPA Newschannel 7 Daybreak at 5:30 (Greenville-Spartanburg, SC; Asheville, NC)
    • WLNS 6 News at 5:30 (Lansing, MI)
    • WFOR CBS4 News 5:30 (Miami-Ft. Lauderdale, FL)
    • KTVN Channel 2 Morning News (Reno, NV)
    • WDBJ Early Mornin' (Roanoke-Lynchburg, VA)
    • WTSP Tampa Bay's 10 News This Morning (Tampa-St. Petersburg, FL)
    • KWCH Eyewitness News at 5:30 (Wichita-Hutchinson, KS)
    • WPEC News 12 Daybreak (West Palm Beach-Ft. Pierce, FL)
    • WINK WINK News This Morning at 5:00 a.m. (Ft. Myers-Naples, FL)
    • WHP WHP CBS 21 Morning News (Harrisburg-Lancaster-Lebanon-York, PA)
    • WKMG Local 6: First News, Early Edition (Orlando-Daytona Beach-Melbourne, FL)
    • KDKA KDKA-TV News This Morning (Pittsburgh, PA)
    • WTVR CBS 6 Early Morning (Richmond-Petersburg, VA)
    • KUTV 2 News This Morning (Salt Lake City, UT)
    • WTOC The News First Report (Savannah, GA)
    • WDJT CBS 48 Morning News Express (Milwaukee, WI)
    • WTVF Morning News (Nashville, TN)
    • KHQA Tri-States This Morning (Quincy, IL - Hannibal, MO - Keokuk, IA)
    • KCOY 12 News This Morning (Santa Barbara-Santa Maria-San Luis Obispo, CA)
    • KGBT Action 4 Wake-Up (Harlingen-Weslaco-Brownsville-McAllen, TX)
  • Chicago Tribune, October 2004
  • Chicago Sun-Times, October 31, 2004
  • ABC World News - This Morning, National coverage (July 23, 2004)
  • Associated Press (AP) - a Summer 2004 AP story about the paper was picked up in more than 110 newspapers around the world as well as in major media outlets such as:
    • Newsweek
    • CFO Magazine
    • Forbes
    • Dow Jones Radio - "The Dow Jones Money Report (July 29, 2004)
    • CNNfn - Live on The Flipside (July 29, 2004)
    • Bloomberg TV (July 29, 2004)