Category: 2018

Dear Colleagues and Friends,

We are thrilled to share with you the ninth issue of the Baltimore Business Review: A Maryland Journal. It represents the delightful outcome of the ongoing collaboration between the faculty of the College of Business and Economics (CBE) at Towson University and the Baltimore CFA Society. This journal leverages the relative strengths of both organizations to create an outstanding resource which showcases Maryland’s business opportunities.

This issue reflects the range of expertise our partnership provides and mirrors CBE’s mission to connect theory to practice in curricular, extra-curricular and research activities. In this issue, you will find two collaborated articles between our faculty and students: one studies the initial public offerings (IPOs) for Maryland based firms, and the other addresses best practices in business continuity planning and infrastructure restoration. You will also read about the entrepreneurship program at Towson University as an example to illustrate the development and application of entrepreneurship education, as well as compliance costs for smaller Maryland banks following the implementation of the Dodd-Frank Act.

“This issue reflects the range of expertise our partnership provides and mirrors CBE’s mission to connect theory to practice in curricular, extra-curricular and research activities.”

I would like to express my appreciation to all contributors to this issue of the Baltimore Business Review. It is their generous contributions of time and effort that made this publication possible. As always, we look forward to hearing any feedback.

Best regards,
Shohreh A. Kaynama, Ph.D.
Dean, College of Business and Economics

Dear Colleagues and Friends,

It gives me great pleasure to share with you the ninth edition of the Baltimore Business Review, a product of an important and fruitful partnership between the CFA Society Baltimore and Towson University’s College of Business and Economics. We at the CFA Society Baltimore hope that this partnership continues to strengthen for many years to come. Many individuals have worked tirelessly on this edition. First, I want to thank all the contributors who wrote a variety of thought provoking and informative articles. I also would like to extend special thank you to the editorial team, Farhan Mustafa from CFA Society Baltimore and Jian Huang and Lijing Du from Towson University, and the design team, Rick Pallansch and Chris Komisar from the Towson University Creative Services.

“We at the CFA Society Baltimore work hard to create valuable educational and networking opportunities for our current and future members and continue to look for ways to engage our membership and broaden our reach.”

CFA Society Baltimore traces its history back to 1948 and has over 750 members today. The collective mission of CFA Society Baltimore and the CFA Institute is to lead the investment profession globally by promoting the highest standards of ethics, education and professional excellence for the utmost benefit of society. Participation and membership in the CFA Society Baltimore is open to all professionals who are dedicated to these high standards, and next to this message you can see a list of the top ten employers of our society’s members.

We at the CFA Society Baltimore work hard to create valuable educational and networking opportunities for our current and future members and continue to look for ways to engage our membership and broaden our reach. We hope to engage with you in conversations about timely topics and trends that are affecting the broader financial services industry ranging from gender diversity to the growth of passive investing. In addition to our frequent speaker events, we also organize a variety of events for our members to connect and build a community of like-minded professionals committed to professional excellence and ethics whether that is through a Baltimore Running Festival relay team or volunteering. We invite you to join us for an event in the near future.

Please enjoy this excellent publication. As always, we would love to hear any feedback you might have. To learn more about how CFA Society Baltimore can help support your career development and professional growth, please visit our website or find us on social media.

Tuugi Chuluun, CFA, PhD
President, CFA Society Baltimore

Silas Hoxie
Portfolio Manager, Towson University Investment Group

Regis Breen
President, Towson University Investment Group

During the Fall semester of 2016, the Towson University Investment Group (TUIG) surveyed 200 students on campus, posing the question “If you had $100,000 to invest, and could choose five companies to invest in, which five would you choose?” Continue reading “Can Towson Students Beat the Market? Evidence from a TU Survey Portfolio”

Shanshan Qian, Ph.D.
Assistant Professor, Department of Management, Towson University

Nowadays, a majority of university-level programs are intended to increase entrepreneurial awareness and to prepare students for becoming aspiring entrepreneurs (Weber, 2011). It is noted that education for awareness focuses on the students who had no experience of starting a business so the purpose of this awareness-based entrepreneurship education is to enable students to develop entrepreneurial skills and to assist them in choosing a suitable career (Liñán, 2004). The objective of this paper is to offer suggestions and insights on entrepreneurship education and entrepreneurial intentions by building on this awareness-based entrepreneurship education that is designed for the students who had not already decided which career to pursue (e.g., employment versus entrepreneurship) or who had not experienced starting their own businesses prior to enrolling in entrepreneurship courses. Entrepreneurial intentions refer to one’s desire to own one’s own business (Crant, 1996) or to start a business (Krueger, Reilly, & Carsrud, 2000). Continue reading “Entrepreneurship Education: A Summary of Meta-Analytic Findings and Their Applications at Towson University”

Zachary C. Reichenbach CFA, CPA/ABV
Manager, Ellin & Tucker

Businesses in the United States have a trade secret problem. Four out of five senior executives say their business’ trade secrets are an important and/or essential part of their business.¹ The majority of businesses in the U.S. do not know if their trade secrets have been stolen and do not have action plans in responding to thefts of trade secrets.² According, to the U.S. Department of Commerce, trade secret theft costs U.S. businesses approximately $300 billion annually which is a significant.³

Continue reading “Importance of Knowing the Value of Your Trade Secret”

Jasmin Farahani
Graduate Student, MS in Marketing Intelligence, Towson University

Tobin Porterfield, Ph.D.
Associate Professor, Department of eBusiness & Technology Management, Towson University

Each new natural disaster rekindles businesses’ interest in taking measures to prevent the next one from hurting their operations. But talk has so far led to little action, even after the big disasters of 2017, Hurricane Maria’s devastating effect on Puerto Rico and the U.S. Virgin Islands, three hurricanes making landfall on the U.S. mainland, multiple earthquakes hitting Mexico and Japan, and a 4.1-magnitude eathquake centered near Dover, Delaware, rocking parts of Maryland. With the frequency and cost of storms rising, business owners should be developing plans, building on the existing efforts to protect and preserve life and property in Maryland.

Continue reading “Disasters Strike — Ready or Not?”

Lijing Du, Ph.D.
Assistant Professor, Department of Finance, Towson University

Jian Huang, Ph.D.
Assistant Professor, Department of Finance, Towson University

Adam Macek
President, Towson University Financial Management Association

Annaliese Winton
Major in Financial Economics, Towson University

An Initial Public Offering (IPO) is one of the most consequential events in the life of a company. An IPO creates liquidity for the firm’s shares, provides an infusion of capital to fund growth, and provides cheaper and ongoing access to capital (Celikyurt, Sevilir, and Shivdasani, 2010). Maryland, with its location advantage, has been making good use of IPOs in funding its rapid economic growth, especially its growth in the high tech area. This article aims to provide an overview of the time/industry distribution of Maryland IPOs, and the crucial role they play in Maryland’s economy. Continue reading “Maryland IPOs: High Tech in the Hub”

Niall H. O’Malley, MBA
Portfolio Manager, Blue Point Investment Management

Technology companies are one of the most challenging industry sectors of the economy in which to invest. The risk of failure is above average. New technologies require huge amounts of capital investment before they realize their revenue potential, so the investor bears the cost of building before customers come. Further, valuations are enormous, and the profits are often nowhere to be found. The creative/destructive cycle associated with innovation means there is enormous change. It is important to remember change creates both dislocation and opportunity. Technology is changing how we access information and communicate. Many of the technologies that will shape tomorrow are already present today. The challenge, for the purpose of this article, is identifying the public companies that will offer innovations that will gain acceptance, be perceived as value-added products or services, or even become essential to daily life. Continue reading “Why are Technology Companies  So Difficult to Invest In?”

Michaël Dewally, Ph.D.
Associate Professor, Department of Finance, Towson University

Yingying Shao, Ph.D., CFA
Associate Professor, Department of Finance, Towson University

In the 2014 Baltimore Business Review, we noted a decline in FDIC-insured commercial banks in Maryland. The numbers had fallen from 106 in 1989 to 45 in 2013. At last count, this number stands at 35¹. Meanwhile, in the most recent Annual Report of the Maryland Department of Labor, Licensing and Regulation for the period ending June 2016, the number of state-chartered banks is down to 41². The recent trend stems from 10 mergers in the past three years. Robert DeAlmeida, CEO of Hamilton Bank, cited “low interest rates, increased regulatory demands after the recession and pressure from shareholders” as reasons for the tough times for the banking community.³ Continue reading “Regulatory Compliance Cost for Small Maryland Banks”

 

Mary J. Miller, CFA
Visiting Senior Fellow, Johns Hopkins 21st Century Cities Initiative

Ben Siegel
Executive Director, Johns Hopkins 21st Century Cities Initiative

Mac McComas
Program Coordinator, Johns Hopkins 21st Century Cities Initiative

Baltimore has the potential to be a city that is truly hospitable to small business growth, with all the economic benefits of jobs and tax revenue such growth would bring. But for new and established small businesses to thrive, the city needs a financing system with capacity to meet their needs.

Continue reading “Financing Baltimore’s Growth – Measuring Small Companies’ Access to Capital”