• Professor Elam

    Friday Jan 18 2013

    University of Glasgow Professor takes a look at the body language Lance Armstrong expressed on the first night of his interview with Oprah. I have said as much the same thing but interesting to hear someone outside this country with an academic opinion. 

    Again the second segment airs at 8 CST tonite, I hope the ethics students are watching. 

    In contrast, dogs are loyal.  As Harry Truman remarked about Washington DC, if you want a friend in this town, get a dog. 

  • Professor Elam

    Friday January 18 2013

     I watched the entire interview last night,and Oprah returns tonite at 8 PM, 189 on DISH.

    Lance Armstront is a true sociopath, he does not believe the rules apply to him and shows little  to no contrition or remorse for his mis deeds. Auditors are more and more responsbile for uncovering fraud.This is a great case study in one of the biggest frauds of all times spanning continents and years, lying to friends and media and suing them to defend his own lies.

    Con men get their name from the word confidence. I hope you can observe  his reaction to the questions, Bruce Howard will speak on non verbal communication this next thursday on campus, this is a great example of that as well.

  • Professor Elam

    Thursday January 17 2013

    As Jim Rogers observes most acquisitions do not work out. Rio Tinto has taken a $14 B writedown over its disastrous acquisitions prior tothe crash of 2008.  We study accounting to learn about impairment tests and charges. Here is an example of someone doing something just to do something, never a good strategy. But ask FEd EX about Kinko's or HPQ about Autonomy or Daimler about Chrysler, so it goes.

  • Professor Elam

    Thursday January 17 2013 Two alert students let me know that the option for printing our textook did not

    appear on the office depot website. Inotified Michelle Martin our e book coordinator. She is contacting office depot with the correct information. I believe the problem should be fixed by tomorrow Friday Jan 18.

  • Professor Elam

    Monday January 14 2013

    I took time out and spent the last few days with an old friend, Captain John Lee, former Green Beret, US Army, VIet Nam Veteran. I reminded the Captain that we had known one another some 40 years, an anniversay if you will. The Captain lives in Vidor, Tx now surrounded by family and new found friends. He
    PC290170 has lost the lower part of his right leg to maladies of Agent Orange. Rather than get depressed about it, he has re invented himself. The Mascot of the town is the Vidor Pirates High School, well he is now the Official Town Pirate. 

     Green Berets are  indigeous forces who are fluent in local languages. They train locals to resist outside forces. 

    Special Forces, as John told me, are trained to be Burt Reynolds in Deliverance, survivors. Captain Lee was both a Green Beret and Special Forces Ranger. 

    C1114360At any rate, we had a great time. One of the joys of being with someone who knows the area is finding out of the way places to greet, meet, and  and eat. 

     And believe me Peggy's on the Bayou is just that. 

     

     

    I thought they screeened in the porch so taht the mosquitoes would not come in. It turns out the real
    C1114346 reason was to keep George the Gator off the porch.

     

    Come on admit it, you thought I was kidding….

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    At any rate the story on Peggy's has gotten around. The Deputy Sheriffs were there that day. The Coast
    C1114351Guard has a habit of docking their semi-inflatables with .50 caliber guns there, the safest place in Vidor to eat lunch when they are in port I would say. And no wonder, consider this gumbo. The tradition is to have gumbo with yes you see, it, potato salad, different but good. 

     

    We moved on to the Spindletop Museum , next to Lamar University.C1114392

    This is a very well done re creation of the town square of spindletop at the time of the oil boom. The
    C1114389print shop was particularly interesting.

     

     

     

     

     

     

     

     

     Of particular interest to accounting and finance students was the equally booming market in shoares of newly formed oil companies. One building handily featured botha a law firm and a print and
    C1114380 photography shop. The print shop produced the stock certificates created by the lawyers for the new oil companies. Both Texaco and Gulf Oil were founded here. At right is a re creation of the quote board for the Beaumont Oil Exchange which eventually became the Beaumont Chamber of Commerce. 

     

     

     

     

     

     
    C1114378

     At left are four examples of adding machines of that day. On the machine second from right, a handle is clearly visible on the right side. This means the machine was manually operated. After entering the digits, the operator pulled the crank. This moved the proper levers forward to print and add to the totals. Hey  no batteries required!

    In the late 1960s IBM produced an advance, I thought, for the time. Othere typewriters used mechanical arms to press the symbol onto paper. At time a fast typist could cause the arms to be tangled with one another. The solution was a replaceable ball which eliminated the arms. IBM called it the  Correcting Selectric. One could change out the ball for a different type font. But  it turns out the Blickensderfer No. 6 had this idea way back in 1906. Once again there is nothing new under the sun. I suspect that was not a particularly catchy name for marketing the device. 

    C1114383

     Here  is a commerative plaque about the Exchange. All in all an interesting trip back in time. 

     

    C1114385

  • Professor Elam

    Thursday Jan 17 2012

    Female hedge fund managers turne din a better performance than male couterparts for 2012. This should be of interest to our female students. Gambling er I mean investing in the markets apparently appealed more to males than females but perhaps that is changing. 

  • Professor Elam

    Thursday Jan 17 2013

    Politicians predictably like to claim they are 'doing  something' about the latest crisis. In the wake of a letter of admonition to the Deputy City Manager, Mayor Castro calls for an Ethics Auditor.

    In his words,“I believe that we should create, essentially, a position … that would have the responsibility for helping to achieve a high-caliber ethical culture and maintain that kind of culture here,” Castro said. “Specifically, that position would be charged with monitoring the highest-profile contracts and ensuring there aren't conflicts there.”

    This is a good topic for conversation on ethics in class. Before the Texas State Board of Accountancy passed its one class on ethics requirement, there was a debate. Should there be one class on ethics after studying accounting for two years or should ethical behavior be embedded in the curriculum across the board? IN other words you don't wait until after all the coursework to remind students of ethical responsibility. 

    I think the Mayor is on the wrong track, here is why. 

    The City already has an Ethics policy, the Deputy City Manager apparently violated it. 

    The City already has an internal audit department. Presumably this is one of their charges. 

    This will cost more money in creating yet another position. And what will this person do that the internal audit department could not do if asked?

    As an A & M School Employee, I am required to take on line classes about A & M policy. One of those courses was about proper ethical and financial behavior. It seems to me that requiring City Employees to take such a class and participate in round table 'case study' discussions would be a better example than a spook who would surely put all off guard with his or her mere appearance. 

    A criticism of SARBOX is that it has done nothing to curb fraud and cost lots of money. We needed enformcement of existing laws, not more laws. This proposal strikes me the same way. 

    Ideally ethical behavior is not something to be enforced, it is something to be practiced. 

  • Professor Elam

    Thursday January 17 2013

    I ran this comment on the investing blog, http://www.themarketperspective.com

     

    Sociopath of the Decade

    I teach the State Mandate Accounting Ethics class at our campus. Tonight and tomorrow night LanceArmstong will huddle with America's High Priestess of Social Mores, Oprah.  Oprah's OWN network is $300 M in debt , these two need one another. Accounting professionals will encounter fraud if they stay in the business long enough. There is an interesting thoughtful article on the last page of today's WSJ about Lance. As the author says, Lance is not in this mess due to one mistake but because he no longer has any way out of the long term fraud. Amazingly Lance told the head of the US Doping Agency that only he, Lance, held the key to his redemption. It is truly interesting  to be able to observe this sort of denial and self admission, at the same time. I began a list of recent convictions on my student blog which I may run here as well, just as a reminder that this business is fraught with lots of individuals quite capable of rationalizing their bad behavior. I suppose investors can be glad that Lance went into cycling and not Hedge Funds. 

     

  • Professor Elam

    Wed January 16 2013

    For the last couple of semesters I have noted that insiders at LULU are furiously selling shares while the stock advanced 60 % this past year. Howard Davidlowitz, always animated and entertaining, likes the shares which continue to post good earnings.

    Or as I have said in class, thanks to LULU one no longer has to bear the stigma of wearing low priced yoga togs to yoga class…