Georgetown College Business & Economics Department Newsletter Spring 2014

Ten Bagger Annual Newsletter Published by

The Business Administration and Economics Department Spring 2014 : Volume 19

BUA Faculty

The BUA Faculty Serving the Professions

Thomas Cooper, Professor and Chairman Economics

Dr. Tom Cooper

Cathy Buckman, Assistant Professor Accounting Zahi Haddad, Professor International Business and Management Nancy Lumpkin, Professor Finance and Economics Deborah Madden, Associate Professor Accounting Scott Takacs, Associate Professor Marketing Dan Vazzana, Associate Professor Economics Adjunct Instructor: Glenn Williams, Attorney Business Law Support Staff: Betty Barkley, Administrative Assistant You may contact us at (502) 863-8205 or by e-mail: Betty_Barkley@georgetowncollege.edu www.georgetowncollege.edu

Financial Executives International Dr. Zahi Haddad

Rachel Renee Penn was the r ecipient of the student award [FEI Scholar] from the Financial Executives International for the year 2012-13. FEI is a preeminent professional association representing 14,000 senior financial executives from over 8,000 corporations throughout the United States and Canada. Other recipients from recent years were Carson Keally, Amy Thaxton, and Sarah Williams. Georgetown College students have won the FEI Scholar award every year since 1992. Dr. Haddad served as a president and is currently a board member.

While you are all well aware of the energy and effort the Business faculty commit to their classes, you may not realize that many also make significant contributions to their professional organizations as well. These activities are essential for maintaining healthy organizations that can, in turn, provide ongoing support for professors in the field. Our departmental faculty have assumed a number of leadership roles in their respective organizations, often providing direct benefits for our students.

The Accounting professors provide good examples of the types of roles people might assume. As a Certified Management Accountant, Cathy Buckman is active in the Bluegrass Chapter of the Institute of Management Accountants (IMA), where she has served on the Board for over a decade. For many years she was the Director of Member Retention and Participation, and she has helped plan the IMA Student Night each time it has occurred. Needless to say, she uses that Student Night to introduce some of our students to the local professional network.

Currently she is Vice-President of Membership and CMA Director for the chapter. Debbie Madden is active in the Kentucky Society of CPAs (Certified Public Accountants). Currently she is the chair of their Members in Education Committee. This committee organizes the annual Educator’s Conference which provides necessary continuing education opportunities for accountants in the state (Mrs. Buckman and Mrs. Madden both attend almost every year). This committee also sets up the KyCPA Interview Day held at Georgetown College each September. Many of our accounting graduates can

testify to the value of this event, for it was there that they interviewed for the jobs and internships they held right after graduation.

Marketing professor Scott Takacs has pursued different directions of activity. Professors often submit paper proposals that they hope to present before colleagues at a conference. A few years ago Dr. Takacs reviewed some of these proposals for the American Marketing Association Summer Educator’s Conference, and he later discussed some of the papers presented at the conference. He also has been very active with Phi Beta Lambda (PBL); he led the effort for Georgetown College to host the state Fall Leadership Conference a few years ago, and he has made presentations at the PBL National Leadership Conferences in Nashville and Orlando.

Our professor of Management and International Business, Zahi Haddad, is an active member of the local chapter of Financial Executives International, where he has served as president and as a board member. This group annually awards a scholarship to one of our top finance or accounting students.

KyCPA Accounting Interview Day

The Economics professors have focused most of their professional efforts on the Kentucky Economic Association (KEA). Nancy Lumpkin, our professor of Economics and Finance, has served several years as a board member of the KEA. In 2012 she became President-Elect and Program Chair, which meant she assumed the responsibility for organizing the annual KEA conference. Georgetown College hosted the conference, which had Nobel Prize winner James Heckman as the featured speaker. (Since the conference was on campus, some of our students had the opportunity to attend.) Dr. Lumpkin is now in her second year as President of the KEA. Economics professor Dan Vazzana has also been a KEA board member, and he has chaired the committee that selects the best student paper presented at the annual conference.

Sponsored by KyCPA and Georgetown College, this annual recruiting event provides accounting students from smaller colleges and universities an opportunity to interview in one central location with recruiters from several different firms. CPA firm recruiters, representing nine local, regional and national firms, interviewed 38 students from 16 schools. Based on results from the survey completed by recruiters attending this year, 100% feel that this event benefits their firm. Participating firms indicate that many students have been hired over the years as a result of Accounting Interview Day. The firms participating this year were: BKD LLP, Blue & Co. LLC, Crowe Horwath LLP, Dean Dorton Allen Ford PLLC, Harding Shymanski & Company PSC, Louis T. Roth & Company PLLC, Mountjoy Chilton Medley LLP, PricewaterhouseCoopers LLP and Ray Foley Hensley & Company PLLC.

2

Ms. Debbie Madden

KyCPA Accounting Interview Day was held on Tuesday, September 24, on Georgetown’s beautiful campus. Brittany Sims, a Georgetown junior, had this to say about the day. “I went into interview day thinking that it would be a good experience to grow in my interview skills and make contacts. I was so excited to hear back that I got an offer for the spring! It's great to have this opportunity as a junior.”

PBL Detailed results from 2013 are as follows:

PBL Comes Home Dr. Scott Takacs

At the Spring Leadership Conference and Competition in Paducah, Kentucky, fewer students than in previous years were able to compete because of the distance, but Georgetown was still well represented.

Last year, the PBL Spring Leadership Conference was held in Paducah, Kentucky, at West Kentucky Community & Technical College. Although the distance presented a challenge, Georgetown students rose to the occasion, with Olivia Zendja taking First Place in Accounting Analysis and Decision-making, Sayde Daniels taking First in Job Interview, and Whitley Martin as Third in Business Law. These students all represented us well at the National Leadership Conference in Anaheim, California.

First Place: Accounting Analysis & Decision-Making: Olivia Zendja Job Interview: Sayde Daniels Third Place:

At the National Conference, Sayde Daniels won 9th Place in Job Interview. Dr. Takacs also competed in the Professional Division and was awarded Second Place in Business Law. Having never been to law school, he was very happy with this accomplishment. Our chapter hopes to do even better in Nashville this coming year, though the competition is strong.

Business Law: Whitley Mar tin Each of these women was eligible to compete in Anaheim, and although not everyone was victorious at Nationals, Georgetown can be proud of how these students represented themselves in a national competition.

Also, for the first time, Georgetown College is hosting the Spring Leadership Conference for Kentucky. This April 10 and 11 will be a busy time for everyone from our advisors and our chapter’s President, Joseph Lane, to every member who can play a role in making this event a success. Please wish us luck as we provide hospitality, access, and hopefully a strong showing at this event.

3

Invited Speaker Series

The 2012-2014 Georgetown College Investment Team

Ms. Cathy Buckman

Advisor: Dr. Nancy Lumpkin

The Business Administration and Economics Department and Phi Beta Lambda co-sponsor an ongoing Invited Speaker Series on Careers and Leadership. Our speakers, some of whom are Georgetown College graduates, are business leaders from a wide variety of industries. These businessmen and women describe their companies and industries, their career paths, and career opportunities within their companies. Cathy Buckman plans and coordinates the speaker series. The following is the schedule of speakers for the current school year:

The Investment Team portfolio for 2012-2013 climbed from $210,196 to $240,295, a growth rate of 14.32% for the time period of the team. This return was a bit less than that earned on the S&P 500 and the Dow indexes, without transaction costs, at 16.06% and 19.38% respectively. Notwithstanding this comparison, the team learned a great deal about investing in the stock market.

Stock performance for the year was very strong and the biggest challenge for the team was finding the best ways to diversify the portfolio out of a large cash holding. Since they were still learning about how to investigate stock opportunities, it took the team some time to move their money into the market. In the first term of the team’s tenure, they were basically deciding what to sell or keep from the previous team’s portfolio. They sold the stock on Apple for approximately a 200% return and abandoned a couple of energy stocks for a loss of 7% each. In their second semester the team did very well with companies like Thermo Fisher Scientific (earning 85%) and Valero Energy (earning 40%). The team tried to buy Apple again, but the company did not bounce back during the team’s investment horizon and the holding was sold for a 10% loss. The team left the portfolio in a very strong place, however, for example by earning an unrealized 100% return on HCI Group (insurance) and 108% on Spartan Corp. (aerospace). Today, the portfolio’s value stands at $266,000.

The Schedule of Speakers for the 2013-2014 School year is as follows: Tuesday, September 17, 11:00 a.m.

Mr. Kris Kimel, Pr esident Kentucky Science & Technology Corporation Lexington, KY Topic: Science and Technology: Policy, Programs, and Entrepreneurship Tuesday, November 5, 11:00 a.m.

Mr. Joe Guillory, Dir ector of Reimbur sement Exceptional Living Centers Lexington, KY Topic: What Now? Making the Most of your Liberal Arts Experience in a Non-Liberal Arts World Tuesday, February 4, 11:00 a.m.

Mr. Jason Barnes, Par tner /Fin. Tr ansfor mation Deloitte & Touche LLP Cincinnati, OH Topic: Life After Georgetown College

Investment Team 2012-2013: Rachel Penn, TatLun Tsung, and Greg Peebles. Wence Peraza also served on the team before he graduated in December 2012.

Tuesday, March 4, 11:00 a.m.

Mr. Alan Stein, Pr esident/ CEO Stein Group, LLC Lexington, KY Topic: Making Business Better

During fall 2013, I took my second sabbatical (Yes, I have now been at Georgetown for 15 years!).

While I continued to administer the portfolio during this time (much like summers), a new team for this academic year has not yet been chosen. The department will move forward this month in choosing the new team looking especially for members that might commit to serve for three semesters instead of two. This will put the Investment Team on track again for an academic year rotation.

Tuesday, April 1, 11:00 a.m.

Mr. Mike Berry, Pr esident and CEO Kentucky Derby Festival Louisville, KY Topic: The Business of Fun All sessions will be held in Asher Science Center 112, unless stated otherwise.

4