The Daily Beacon

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Is “The Big C” just a Cgrade show?

Football fall camp preview

Friday, August 6, 2010

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E D I T O R I A L L Y

Issue 19 I N D E P E N D E N T

http://dailybeacon.utk.edu

Vol. 114 S T U D E N T

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PUBLISHED SINCE 1906 N E W S P A P E R

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T H E

U N I V E R S I T Y

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T E N N E S S E E

Rankings list UT among top 373 colleges Robby O’Daniel Editor-in-Chief According to The Princeton Review’s rankings, UT rates among the best 373 colleges, placing UT with roughly the top 15 percent of four-year colleges. UT also ranks among the top 50 best value public colleges and the top colleges in the Southeast. Out of a 60-99 scale, the university’s fire safety rating (83) and green rating (85) put the university at above average, while the school’s academic rating (71) and quality of life rating (74) put UT at average. Meanwhile the university ranked No. 10 on The Princeton Review’s Least Beautiful Campus list, “based on students’ rating of campus beauty,” according to the publication’s website, and No. 20 on Jock Schools, “based on a combination of survey questions concerning intercollegiate and intramural sports and the popularity of the Greek system.” Rob Franek, The Princeton Review senior vice president, publisher and author of the 2011 edition of “The Best 373 Colleges,” said staff spend a good deal of time on the road visiting colleges, and the 373 number comes from The Princeton Review not wanting to “back into the number each year.” “It’s a wonderful distinction to simply be in the best 373 colleges,” Franek said. Franek said The Princeton Review evaluates schools as best value schools based on “how aggressively a school has offset their stickerprice tuition through grants and scholarships but also providing those students with an

exceptional academic experience.” The publication also asks students if professors are good teachers, if they engage in the classroom, if they are accessible outside of the classroom and if they encourage class discussion. The best 373 colleges ranking and all 62 ranking lists of The Princeton Review are compiled 100-percent based on the opinion of current college students. 122,000 students from the 373 colleges contribute opinion to the 2011 ranking. That averages out to about 325 opinion surveys per campus, but for large universities like UT, Franek said the response can amount to several thousand responses. He said The Princeton Review asks students about their college experience in four major areas: themselves, academia and administration in their school, life at their school and the student body. The ranking is not a comparison between universities. It is compiled simply through students talking about their experience at their home campus. Then the data is compiled and evaluated separately. “I’m not asking students to compare to their experience or observation at other schools,” Franek said. “I’m simply asking them to rate their experience at their school.” For specific categories like Best Campus Food or Happiest Students, it, again, comes from the surveys, where students answer questions based on a five-point scale. Concerning UT’s ranking among Least Beautiful Campus, the two-page summary of the university from “Best 373 Colleges” sheds

Two professors participate in study of corporate fraud

some light: “’Down by the river is gorgeous’ but, on the whole, this concrete-ridden campus is ‘not very aesthetically pleasing.’ In fact, ‘aside from some of the buildings on the outside’ and the ‘top-notch athletic facilities,’ it’s ‘ugly.’” The summary also relays students’ responses on professors. Students say professors are a “mixed bag” with some professors “active in their field” and “passionate,” while others are “horrible.” One senior quoted in the summary offers a stern warning about what he calls the “Big Orange Screw.” “You might get the runaround a bit,” the senior says. “It’s always best to get everything in writing.” The summary also calls the university “large, dynamic” and “very affordable.” Survey results say the school has a great library and athletics facility. Survey responders say students are happy, that everyone loves the Volunteers and that student publications are popular. In the same vein as cheering on the Vols, students call UT “a party school,” with a popular Greek life and occasional drinking at frat houses, house parties and bars on The Strip. The student description of the student body gets specific, saying students are “physically active” and wearing “at least one North Face jacket, a pair of Sperry shoes and plenty of Ralph Lauren clothes” will help new students blend in. But the survey also mentions the many different opportunities and clubs UT provides, such as theater, music, LGBT, Greek life and others. How does such a specific consensus about UT life get boiled down into a two-page sum-

mary? Franek said The Princeton Review board reads through all of the surveys and looks for consistency and a consensus. “We’re looking for representative quotes,” he said. He said if he heard 50 quotes about how good the campus food was and one witty quote about how bad campus food was, he would opt for the 50 quotes because they were a representation of what students on campus actually think. Toby Boulet, immediate past president of the UT Faculty Senate as well as a member of the UT Board of Trustees, said rankings are good and bad. “They give you an idea of how you’re thought of by the people who make the rankings and the people who contribute to the rankings, but they obviously don’t tell the whole story about the institution,” he said. “And they’re not always completely accurate. “But it’s important that we pay attention to those rankings because that’s how outsiders see us. It contributes to how they see us.” Boulet said this point plays into Gov. Phil Bredesen’s challenge for UT to become a top 25 public research institution. “I think the governor’s point in making that challenge was that UT has a lot of strong points, and we should check to see how we compare to the best schools and find those areas in which we feel like we need to improve and work on those areas,” Boulet said. For UT, which appears also in The Princeton’s Review’s Guide to 286 Green Colleges, the university is lauded in some areas but still seeks improvement in others.

Street section closes for construction

Staff Reports A study by two College of Business Administration accounting professors at UT shows that corporate financial fraud doesn’t pay. Professors Joe Carcello and Terry Neal were part of a team that conducted a 10-year study for the Committee of Sponsoring Organizations of the Treadway Commission, a private-sector organization dedicated to business ethics. The study, “Fraudulent Financial Reporting: 1998-2007,” examined 347 alleged fraud cases investigated by the U.S. Securities and Exchange Commission. “We found that there were long-term, negative consequences associated with fraud,” Carcello said. “Companies engaged in fraud often experienced bankruptcy, delisting from a stock exchange or material asset sales following discovery of fraud — at rates much higher than those experienced by no-fraud firms.” Twenty-eight percent of companies allegedly engaged in fraud went bankrupt and 62 percent had to liquidate assets within two years. Forty-seven percent of the companies were delisted from a stock exchange. The study discovered that within two days of a public company’s alleged fraud being reported, its stock price declined by an average of 17 percent. News of an SEC or Department of Justice investigation was accompanied by an average seven percent stock price decline. The study discovered that CEOs and CFOs are largely to blame. “Out of all the public companies investigated for fraud by the SEC in the 10-year period, 89 percent of cases implicated CEOs and/or CFOs as the responsible parties,” Carcello said. “Within two years of completion of the SEC’s investigation, about 20 percent of the CEOs/CFOs had been indicted and over 60 percent of those had been convicted.” Compared to a previous 11-year study (1987-1997), there was an 18-percent increase in the number of companies investigated during this study — 347 cases vs. 294 cases. However, the authors discovered a 1,600-percent increase in the amount of money involved; the average dollar amount per case soared to nearly $400 million versus $25 million during the previous study. The authors noted that these results were highly influenced by the high-profile fraud cases of Enron, WorldCom and 30 other major frauds during this period. Other findings of the study include: — Companies allegedly engaging in financial fraud had median assets and revenues just under $100 million, significantly greater than comparable companies in the previous study, which had median assets and revenues under $16 million. — There were few differences noticed between the boards of directors of fraud and no-fraud companies in regard to size, meeting frequency, composition and experience. — 26 percent of the firms engaged in fraud changed auditors during the period examined compared to a 12-percent rate for no-fraud firms. — Revenue frauds accounted for more than 60 percent of fraud cases. The study was co-authored by Dana Hermanson of Kennesaw State University and Mark Beasley of North Carolina State University.

Ian Harmon • The Daily Beacon

Traffic through parts of Volunteer Boulevard will be closed into next week as construction on the new student health clinic continues.

Brandi Panter Managing Editor Motorists traveling on Volunteer Boulevard are having to make some changes in their daily commute. Closed until Tuesday, Volunteer Boulevard has been closed since earlier this week as construction workers make changes for the new student health center being built. “An underground utlities line is being installed, and they have to dig a trench across Volunteer to put it in,” said Charles Primm, information specialist with media relations. “They have to close the road for this to happen.” Motorists traveling will not be able to travel from east to west on Volunteer past the intersection but will still be able to travel north and south on Pat Head Summitt Street freely, the intersection at which the closure is occurring. So what are some alternate routes for motorists? One option, Primm suggests, when heading west is to turn right onto Pat Head Summitt Street and then use Andy Holt Avenue as a navigating street to travel from east to west to the desired location. Another option is to turn left onto Pat Head Summitt Street, traveling southbound, and use UT Drive. For students traveling eastward, UT Drive is also an option. The changes will not impact visitors and residents of Fraternity Park. As Tom Helton Drive runs from north to south on Volunteer Boulevard, accessibility will remain as usual. Volunteer Boulevard will reopen on Tuesday at 7 a.m.


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