UMD-Smith School Finance, Marketing Experts Comment on Election 2012

COLLEGE PARK, Md. - In light of the national party conventions and Rep. Paul Ryan's selection as Mitt Romney's vice presidential running mate sharpening the debate, faculty from the University of Maryland's Robert H. Smith School of Business are available to discuss issues relevant to the 2012 presidential election cycle.

Smith experts can analyze topics from economic policy debate to the inner workings of the campaign. Also, the school houses a facility for live or taped interviews via fiber-optic line for television or multimedia content.

Bill Longbrake: 'Capitalism' as a Dominant Theme; the Paul Ryan Factor
"A primary theme often drives presidential election debate. In 2008, it was race relations. In 2012, capitalism - how it should be modified or constrained - is that dominant theme. Mitt Romney has focused on President Obama's abysmal economic record but seems befuddled as to how to respond to Obama's campaign theme which centers on 'How ruthless do Americans want capitalism to be?' Romney has stated his belief in a clear and unapologetic defense of the American ideals of economic freedom, and Paul Ryan's addition to the Republic ticket changes the tenor of the campaign to a more pointed debate about the role of government and future fiscal management, especially around spending policies with Medicare prominent in campaign discussions."

Longbrake, executive-in-residence, has extensive experience in finance and investments, macroeconomics and monetary policy, risk management, housing, and public policy at academic, corporate and government levels. He also can analyze financial policy debate in a broader context. Contact him at 206-588-9044 or [e-mail].

David Kass: Forecasting the Outcome
"While the 2012 Presidential election may be determined largely by the debate over the future of Medicare and how the economy and stock market perform between now and Election Day, a good forecasting tool is provided by Intrade, the online futures market. This indicator has had a very high degree of accuracy in predicting both national and statewide winners in recent years based on its reading the evening before an election. Recently, this highly volatile measure indicated President Obama's probability of being re-elected is approximately 57 percent, with Gov. Romney at 43 percent.The candidate whose probability of winning exceeds 50 percent on the eve of the election has won in the overwhelming majority of statewide and national elections in recent years."

Kass, a Tyser Teaching Fellow in finance, studied corporate financial management with Mitt Romney as a Harvard Business School classmate in 1973. Contact him at 301-405-9683 or [e-mail].

Mike Faulkender: The Debate on Corporate Tax Reform and Job Growth
"The candidates differ on how to deal with the U.S. corporate tax rate - highest among industrialized nations and an obstacle to increasing American jobs and production on U.S. soil. The Romney campaign has suggested a 25 percent tax rate, plus a territorial tax system that would eliminate the repatriation tax on U.S. company earnings already taxed by foreign governments. The Obama Administration has proposed a 28 percent rate and a global minimum tax system based on immediately taxing revenue in the foreign subsidiary on top of the host government tax. Both ideas fall short. A territorial tax would produce no incentive for reinvesting domestically. A global minimum tax could incentivize large firms to entirely pull out of the United States. Instead of overhauling the system, simply flipping the income tax ratio to 15 (corporate) and 35 (individual), for example, would offset potential lost revenue by creating incentives for long-term domestic investment. It would also bolster a sparse tax base. Meanwhile, individuals would be less likely to move abroad. But such a position is politically risky."

Faulkender, associate professor of finance, co-authored "Investment and Capital Constraints: Repatriations Under the American Jobs Creation Act" forthcoming in the Review of Financial Studies. Contact him at 301-405-1064 or [e-mail]

Cliff Rossi: Finance Policy (in general)
With insight from 25 years in senior risk management and credit positions at Citigroup, Washington Mutual, Countrywide, Freddie Mac and Fannie Mae, Rossi can break down financial policy rhetoric encompassing market regulation and related issues involving such sectors as banking, real estate and small business. A Smith executive-in-residence and Tyser Teaching Fellow, he writes the weekly Risk Doctor column for American Banker and is a frequent source/contributor on outlets from Bloomberg,CSPAN and CNN to Canada's Business News Network. Contact him at [e-mail] or 301-908-2536.

Joyce E.A. Russell: Measuring Leadership Style
"A candidate's leadership style signals credibility. Pundits are quick to define the candidates in this context and have suggested such perceivable flaws as Mitt Romney's 'poor connection and lack of empathy' and President Obama's propensity to 'avoid conflict' and to 'compromise with adversaries.'

While voters can scrutinize President Obama's first term, Romney, as the challenger, can't be expected to be prepared for 'everything.' But he should at least be self-aware of what he knows and doesn't know, and demonstrate intellectual curiosity to build his wherewithal and surround himself with experts and advisers who can provide effective counsel."

Russell, vice dean of the Smith School, also is a licensed industrial and organizational psychologist with 25-plus years of private/public sector consulting. Contact her at 301-405-8146 or [e-mail].

Hank Boyd: Candidate Branding
"After three and a half years on the job, President Obama is no longer perceived by voters as a relatively clean slate on which they can foist their aspirations. In light of a tightening race, the president has gone negative, which is undermining his 'nice guy' appeal. As for Gov. Romney, he seems to have trouble finding common ground with middle American voters given his privileged background and past business success. Notably, Romney's camp has tried to invoke national touchstones of entrepreneurial drive and rugged individualism."

Boyd, a Tyser Teaching Fellow and associate chair of Smith's marketing department, also can analyze election campaign marketing strategy in a broader context. Contact him at 301-405-2034 or [e-mail].

Bill Rand: Social Media's Role
"The 2012 national elections mark social media's coming of age. In addition to the likes of Twitter, Facebook and YouTube, new platforms, such as Pinterest and Medium are coming in to their own. Moreover, the power of smartphones has gone up, while their price has come down. This is encouraging more citizens to partake in a truly active democratic process where they can, during every moment of their lives, consume social media about their - and others' - candidates and contribute their own thoughts and beliefs to this important national dialogue... Social media is the ultimate democratic - and potentially meritocratic - tool because it allows anyone with computer access to broadcast their thoughts and opinions to millions... We increasingly see candidates engaging not just with traditional forms of media broadcast, but also on social media."

Rand, assistant professor of marketing, also directs Smith's Center for Complexity in Business. Contact him at 301-405-7229 or [e-mail].

Yogesh Joshi: Attack Ads
"Attack ads - the use of misleading and inaccurate political appeals - are a typical example of an attempt by candidates of tailoring messages towards specific voter segments. The effectiveness of these messages varies from group to group, often driven by how engaged the group is with the election process. For instance, in the 2008 presidential election, a notably engaged group was young voters, a group historically notorious for disinterest in election matters."

Joshi, assistant professor of marketing, co-authored "A Theory of Combative Advertising" (2009) in Marketing Science. Contact him at 301-405-9668 or [e-mail].

For extended commentary and links to further biographical information on these experts, go to http://www.rhsmith.umd.edu/news/hottopics/2012/080312.aspx.

About the Robert H. Smith School of Business
The Robert H. Smith School of Business is an internationally recognized leader in management education and research. One of 12 colleges and schools at the University of Maryland, College Park, the Smith School offers undergraduate, full-time and part-time MBA, executive MBA, MS in business, PhD and executive education programs, as well as outreach services to the corporate community. The school offers its degree, custom and certification programs in learning locations in North America and Asia.

/PRNewswire-USNewswire -- Aug. 22, 2012/

SOURCE Robert H. Smith School of Business