Research out of Schulich supports disruptive financing option for Spotify

Research out of York University’s Schulich School of Business shows that although Spotify’s option to go public via a “direct listing” challenges conventional wisdom, it works.

Ambrus Kecskés

Finance Professor Ambrus Kecskés says a disruptive financing option would reduce the music streaming company’s cost of going public, pass savings on to investors and increase strategic market timing options for issuing new equity.

Research supports Spotify choosing to take its equity direct to market by listing existing shares publicly on the stock market, rather than using an underwriter to issue new shares.

Numerous reports suggest the music streaming company is seriously considering this option.

The research suggests that going public through a direct listing would benefit Spotify and its current investors, said Kecskés, who has studied companies that have gone public through this unconventional process. This is especially the case, he said, if the firm decides at a later date to sell new shares to the general public.

“Introducing the existing shares of a company like Spotify to the stock market, or direct listing, without simultaneously issuing equity using an underwriter challenges conventional wisdom and would be virtually unprecedented in the United States. It could be considered a form of disruptive financing,” said Kecskés. “However, if Spotify takes this route and is successful, its existing investors will benefit and it could set a new trend in the way firms go public.”

While a common practice in the United Kingdom, taking a company public without raising additional money or issuing shares just prior to a market listing is unprecedented in the U.S., said Kecskés.

Kecskés is the co-author, with François Derrien, of “The Initial Public Offerings of Listed Firms,” published in the Journal of Finance. The 2007 study, which examined firms in the U.K., found that the two-step process reduced financing costs when the firm eventually did raise financing, and it provided firms with the flexibility to separately list and issue equity at more opportunistic points in time.

There are several advantages of taking this two-step approach rather than doing a traditional IPO, said Kecskés. Spotify would avoid paying juicy fees to the underwriting banks. It would largely eliminate the vertiginous underpricing of the firm’s shares, minimizing the dilution of the firm’s pre-listing investors.

Doing so would avoid leaving “money on the table” for the institutional investors and high-net-worth individuals, who typically get shares at the IPO price from the underwriter and then flip their shares for a handsome profit once the firm starts trading on the stock exchange. The firm might even be able to continue to communicate with investors and other outsiders rather than going quiet before and after listing, as required by securities regulation.

Finally, if and when the firm did decide to issue equity in the future, its issuance costs would be minimal compared to an IPO, both in terms of what it would pay the underwriter and the underpricing costs it would bear on the shares it sold.

Spotify’s direct listing strategy, if successful, could lead to other U.S. companies following suit, setting a new trend, said Kecskés.

Seven of York’s graduate researchers awarded thesis prizes

Seven York graduate students celebrated the receipt of their Thesis & Dissertation Prizes with faculty colleagues and program directors at a recent luncheon honouring their research contributions.

“This is one of those great opportunities where we get to celebrate the excellent work of our students,” said Fahim Quadir, interim dean of the Faculty of Graduate Studies, who noted there were close to 500 completed graduate degrees last year.

The Thesis & Dissertation Prizes are distributed by the Faculty of Graduate Studies (FGS) to celebrate exceptional master’s and PhD theses from the previous calendar year.

Master’s recipients

Karam Al Masri, film, Juha the Whale

Al Masri’s thesis is a 13-minute short film that explores the isolation a refugee mother and her young daughter face as they await the status of their claimant hearing in Toronto.

Internal examiner Wenona Giles stated of the film: “Al Masri explores relationships between gender and refugee access to Canada; the impacts of the exile experience on parenting, and on parents and their children; the trauma and loneliness of the refugee experience; and also the strength and tenacity of the human spirit.”

John Greyson, Al Masri’s supervisor and graduate program director in film, said, “This confirms what we knew when we met you. [Karam’s film] combines her twin passions for cinema and social justice.” He noted at the same time she was working towards a master’s in film she was also completing an arts MBA at Schulich.

Juha the Whale was screened to the York community in November as part of the Depth of Field series, featuring the work of MFA alumni and graduating students.

Salman Chaudhry, earth and space science, On the Characterization of Engineered Elastomers At High Strain Rates

Chaudhry’s work explores finite element modelling and material characterization of elastomers. His research is notable as it provides a useful deign for testing, for which standards currently lack in the development of elastomer components for applications.

During his master’s, he served as co-author on seven international conference publications and presentations, as well as three journal papers. The examining committee noted that his intellectual proficiency and output was at the level one might expect of a doctoral student. Chaudhry thanked his supervisor Alex Czekanski for his support and expertise during his degree.

Kathryn Hardill, nursing, That Look That Makes You Not Really Want to Be There: Health Care Experiences of People Who Use Illicit Opioids in Small Urban and Rural Communities – A Critical Social Theory Analysis

Hardill’s research examines a timely and important topic impacting our health-care system and offers valuable insight for the nursing community. Through 17 interviews with 10 opiate users and six interviews with nurses who care for these individuals, her data and analysis provides critical information to influence future health policy in this area.

Graduate Program Director Jacqueline Choiniere, attending on behalf of supervisor Cheryl van Daalen-Smith, read van Daalen-Smith’s remarks. She called Hardill “a Canadian nursing icon whose work I followed. Her research critically explored the health-care experience of marginalized persons whose voices would otherwise be dismissed.”

Hardill said, “It has been exhilarating to be able to marry two of my passions: providing nursing care to people who have been marginalized and my political world view.”

Doctoral Recipients

Melissa Dalgleish, English, Her Constellated Mind: Jay Macpherson’s Modernism and the Canadian Mythopoeic Turn

Dalgleish’s thesis looks at the first 20 years of Canadian poet Jay Machperson’s career and examines her mythopoeic modernism and its influence in post-war Canadian poetry.

Noted was her exemplary archival work in regards to fonds used for critical insight. The examining committee stated: “The diplomatic, investigative and archival work required to compile the primary materials for the study were, in a word, monumental, and have results in a an archive that will be foundational for future scholarship in the field.”

The Essential Jay Macpherson, with selections by Melissa Dalgleish, was published by The Porcupine’s Quill earlier this year.

Supervisor Lily Cho said one of the amazing things about the amount of research Dalgleish did, was that she published a book before defending.

“What’s not in the dissertation is almost as riveting as what’s in the dissertation,” said Cho. “There are another two or three books there.”

Dalgleish is currently a professional and career development specialist at the Hospital for Sick Children in Toronto. Prior to this, she served as the research officer in the Faculty of Graduate Studies, and coordinated the launch of the Graduate & Postdoctoral Professional Skills program (gradstudies.yorku.ca/gpps).

Angus Gavin Grant, law, Confronting (In) Security: Forging Legitimate Approaches to Security and Exclusion in Migration Law

Grant’s work explores national security considerations in Canadian immigration law and, through interviews with migrants, makes significant contributions to the discourse between immigration and security policies.

The examining committee noted: “Mr. Grant’s fine-grained analysis of the relevant Canadian case law is manifestly infused with the minutiae of his professional background as a practising lawyer, allowing him to mesh very convincingly theoretical thoughts with practical considerations.”

Speaking on behalf of supervisor Sean Rehaag, Graduate Program Director Sonia Lawrence said, “Angus is an exceptional scholar. This dissertation is a first-rate work of law and society scholarship.” She pointed out he came to the graduate program in law after a decade of practise in the area of refugee law.

Grant said there were times he “felt slightly fraudulent. I had been in legal practice for more than a decade.” But he said he was able to draw on that experience to help him explore how the law is operating on people.

Paul Christopher Gray, political science, The Tragedy of Marx and Justice: A Critique of Marx’s Failed Attempt to Dispense with Principles of Justice

Gray’s research examines Karl Marx’s theory of justice and its deployment, and contributes to broader debates in contemporary political philosophy. Citing its foundation in philosophy, expert use of detail and its originality, the examining committee noted an outstanding contribution to the scholarship of Marx.

Supervisor David McNally said the supervisor’s job, as he sees it, “is to get out of the way when you know your are dealing with a candidate who is on fire.”

Gray was one of those candidates, he noted, and periodically, his job was to just throw a log onto the fire. His dissertation “not only said something new, he simply said, ‘Here’s an entirely different way of looking at it.’ ”

Gray commented that McNally “fed more logs for that fire than he knows.” Gray also added that most Marxist scholars have just accepted that Marx is incredibly ambiguous and vague about justice. “None of them thought to critique Marx according to a Marxist approach.”

Dennis Kolosov, biology, The Role of Tight Junction Proteins in Regulating Epithelial Permeability in Fishes

Kolosov’s research examines the composition of tight junctions in teleost fish, and consists of a number of molecular level experiments conducted at York. A better understanding of these proteins is an important contribution to a number of research areas including gene cloning and pharmacology, among others.

“I feel very lucky to have students in my lab like Dennis,” said supervisor Scott Kelly.

“It’s easy enough to do the work you’re excited about,” Kolosov said, “it’s harder to do the stuff so that it excites other people.” In addition to his thesis, Kolosov has published in 10 academic journals in the field of comparative and epithelial physiology, and is the lead or second author on two invited review articles in international journals.

Quadir said to the recipients, “The seven of you were chosen from a large number of students who are already doing wonderful work. All of you have shown excellence in research and writing.”

Wade Cook: A 45-year legacy of academic excellence at Schulich

The York University community gathered recently to celebrate the career of the Schulich School of Business’ longest-standing faculty member, Wade Cook, the Gordon Charlton Shaw Professor of Management Science.

The celebration took place at the Schulich Executive Dining Room on Wednesday, June 14.

Cook has held many positions since joining Schulich in 1972, including: associate dean, Student Affairs; PhD program director; chair of Tenure and Promotions Adjudication Committee; area coordinator, OMIS; and associate dean of Research.

He was awarded a University Professorship by York University in 2010 and received the Dean’s Research Impact Award for Lifetime Achievement in 2015. In terms of research, Cook has close to 6,000 citations, has published approximately 150 articles and six books, and has been awarded over $1 million in research funding over the course of his career.

“Wade was one of the greatest teachers and educators this Faculty has ever had, respected by his colleagues and his students,” said Dean Dezsö J. Horváth at the retirement event. “His work earned him the esteem and admiration of researchers in his field from around the world.”

Horváth said Cook’s greatest legacy is one that will carry on long after his retirement; it is the way he transformed the research culture at Schulich. As the long-standing associate dean of Research, Cook helped to elevate the calibre and quality of research.

“He played an instrumental role in turning our school into a powerhouse on the world stage of management research,” said Horváth. “And he did it in his typical style – with kindness and compassion, with motivation, with humour and with determination.”

Non-profit led by York alumna provides MES student with rich internship experience

York University’s Faculty of Environmental Studies (FES) is providing opportunities for current students and alumni to work together through enriched mentorship and real-life work experiences.

Master of Environmental Studies (MES) candidate Craig Stephens recently completed an internship with Plug’n Drive, a non-profit organization lead by York alumna Cara Clairman (MES LLB ’93) that is accelerating the adoption of electric cars in Canada.

Stephens’ internship was one of 18 opportunities FES’s Work Placement Program created for their undergraduate and graduate students this year. The program assists students in finding internship opportunities for course credit and work experience. This year’s success is largely attributed to the network of FES alumni that are keen to mentor current FES students.

Clairman, president and CEO of Plug ‘n Drive, says work experience for students is a key stepping stone to career success.

“Mentoring is really important to me,” she said. “I remember how difficult it was to get into the job market and, for sure, having some hands-on experience is a big deal. So if I can help some FES students with that, I’m happy to.”

The world of Electric Vehicles (EV) and the work at Plug’n Drive had a natural alignment to Stephens’ major graduate research project of creating a hybrid motorcycle. During his internship, he had the opportunity to see both sides of the company. He worked on the front lines of Plug’n Drive’s new Electric Vehicle Discovery Centre (EVDC) and behind the scenes as part of the team revamping the organization’s business model for Charge My Car, a web-based service to sell electric car chargers.

“There are so many benefits to bringing students in,” said Clairman. “Millennials have a different perspective and, in our business, there are definitely changes coming in car ownership. It is a good way to recruit new talent and we certainly hope everyone who works with us will be an ambassador for electric vehicles in the future.”

Located at Dufferin and Finch, the EVDC is the first facility of its kind in the world. The centre provides an experiential learning environment for electric vehicles, where visitors can learn the environmental and economic benefits of driving an electric vehicle, read up-to-date information on government incentives, and can even test drive the latest electric vehicle models from leading manufacturers, including the BMW i3, the Chevrolet BOLT, Ford C-Max Energi and the Nissan LEAF.

“It’s not like walking into a dealership,” Stephens said. “It’s amazing to come and learn in a non-sales environment. We give an unbiased opinion and we are experts in the whole spectrum of EV ownership.”

Interacting with the public in EVDC and at Plug’n Drive’s hugely popular International Canadian Auto Show booth helped Stephens gain an understanding of what the EV audience is concerned about and looking for.

“You can learn a lot from people,” Stephens said. “Even when you’re supposed to be the expert, there are always new perspectives. I have a better understanding of what the perceived barriers are to owning an electric vehicle and how to respond to that.”

Part of Plug’n Drive’s mission is to aid in the development of Canada’s electric vehicle industry and to enhance current electric charging accessibility for consumers. Through Charge My Car, Plug n’ Drive has created new access to the growing EV market, and for Stephens, his internship has brought his studies to life.

Within his MES program, Stephens is pursuing a diploma in business and the environment, which is offered jointly by FES and the Schulich School of Business. At Plug n’ Drive, he is directly supporting the Charge My Car’s business development by assisting the project manager with everything from business analysis, from sales trends to the costs involved from inventory to shipping.

“It’s amazing to have this hands-on experience as a part of my degree,” Stephens said. “I know I want to pursue a career in EV and I’m confident it will open doors for me down the road.”

Those interested in exploring the EVDC can check out its upcoming event and learn more about the future of electric vehicles with Clairman and Stephens.

Schulich professor wins prestigious Early Researcher Award

Theodore Noseworthy, associate professor of marketing and Canada Research Chair in Entrepreneurial Innovation and the Public Good is the first Schulich School of Business professor to receive the Early Researcher Award (ERA) from Ontario’s Ministry of Research & Innovation.

Noseworthy will put the $190,000 grant to good use by exploring the real-world impact of how dressed-up junk food can hinder peoples’ ability to self-regulate consumption, leading to over-consumption. The ERA will help Noseworthy build on his innovative research.

“The grant will bring in a postdoctorate student who will run and operate our behavioural lab (NOESIS) at Schulich,” Noseworthy said. “We will specifically dig deeper into food consumption, public opinion of GMOs, the psychology of man-made food and the marketing of functional food specifically to children.”

The results will have a direct impact in the real world by informing public policy makers and raising public awareness. Primarily, the findings of Noseworthy’s research conducted in the NOESIS Lab will extend the discussion around food consumption to the psychological consequences of market-driven food ambiguity.

“Our area of research tends to do field studies and experiments that cost a lot of money and resemble what is going on in the real world,” Noseworthy said. “We are building an expertise in the lab that allows us to get a better approximation of reality and fabricate an environment so as to get an accurate read on what is going on. It is in the pursuit of ecological validity where we try and test something in a real-world setting.”

The province’s ERA program will support 77 projects across 17 leading institutions. It will help sharpen Ontario’s competitive edge by fostering discoveries, including new technologies, treatments and cures for illnesses, while supporting high-quality, knowledge-based jobs across the province.

Four York U faculty receive Early Researcher Awards

word collage for connection grant story
word collage for connection grant story

York University Professors Ian Garrett, Theodore Noseworthy, Sapna Sharma and Graham Wakefield have each received $140,000 in funds through the Ontario government’s Early Researcher Awards program.

“York is delighted to have these four individuals receive the Early Researcher Award,” said Vice-President Research & Innovation Robert Haché. “The funding provided by Ontario’s Ministry of Research and Innovation will help to provide these researchers with the resources to continue to build their innovative programs.”

Ian Garrett
Ian Garrett

Ian Garrett, professor in the Department of Theatre in the School of the Arts, Media, Performance & Design (AMPD), will explore the development of hybrid technologies that use GPS, orientation sensors, and cameras embedded in mobile devices to create site-specific event installation “ghosts”. These technologies impose recorded events over their original location, creating a time-shifted interactive historical marker. Garrett will study the creation of performance artworks that may be replayed and which are viewable as originally intended in the landscape utilizing augmented and mixed reality. This offers an immersive experience of environmental change caused by development or climate change, and intrinsically ties events to their place.

Theodore Noseworthy
Theodore Noseworthy

There is growing concern over what is popularly referred to as “dressed-up junk food” (fortified snacks positioned as healthy alternatives). Theordore Noseworthy, professor of marketing at the Schulich School of Business and Canada Research Chair in Entrepreneurial Innovation and the Public Good, will explore how dressed-up junk food can lead to over consumption by confusing category membership and thus hindering peoples’ ability to self-regulate consumption. The results will inform researchers and public policy makers in Ontario, as well as raise public awareness. Primarily, the findings of Noseworthy’s research will extend the discussion around food consumption beyond sedentary lifestyles, caloric deficits and the lack of nutritional options, to the psychological consequences of what we refer to as market-driven food ambiguity.

Sapna Sharma

Lakes are sensitive indicators of climate change. They are experiencing higher water temperatures and reduced periods of ice cover. However, the implications of reduced ice cover and higher water temperatures for water quality remain unclear. Sapna Sharma, a professor of biology in the Faculty of Science is studying how climate change may influence the duration of ice cover on inland and Great Lakes; whether reduced ice cover leads to warmer lakes; and which lakes are at highest risk of poor water quality under climate change. She will analyze long-term ecological datasets from Ontario lakes and relate them to lakes across the Northern Hemisphere.

Graham Wakefield
Graham Wakefield

Virtual Reality (VR) is poised to revolutionize creative industries, yet lacks refined VR-native authoring tools. Graham Wakefield, a professor of computational arts in AMPD and Canada Research Chair in Interactive Information Visualization, will research and develop novel interaction concepts and software tools that exploit the medium’s unique affordances for artists of all kinds to create worlds while fully immersed within them. Wakefield’s project will augment continuous hand gestures with simulated physics for intuitive free-form modeling with rich, fluid complexity, and develop new paradigms of programming VR live utilizing directly manipulable and spatially meaningful representations for collaborative multi-user productivity.

“Ontario’s current and future prosperity and quality of life depend on how well we innovate, which is why our government partners with institutions across the province to support leading researchers,” said the Reza Moridi, minister of research, innovation and science. “Through the Early Researcher Awards program, new researchers will be able to develop their teams and conduct world-class research that will draw investment, boost our economic strength and ensure Ontario remains at the forefront of the global knowledge-based economy.”

The province’s Early Researcher Awards program will support 77 projects across 17 leading institutions. These awards will help sharpen Ontario’s competitive edge by fostering discoveries, including new technologies, treatments and cures for illnesses while supporting high quality, knowledge-based jobs for people across the province. It will also drive Ontario’s ability to attract and retain the best and brightest research talent.

Schulich research shows celebrity memorabilia collectors strongly judged

Research York University
Research York University

New research out of York University’s Schulich School of Business shows that those who collect celebrity memorabilia are susceptible to judgment by others in some unexpected and startling ways.

Many people acquire celebrity memorabilia in hopes that some of the star power will rub off. However, the study “How inferred contagion biases dispositional judgments of others” suggests that owning a “celebrity-contaminated” item sets expectations about the consumer’s subsequent behaviour. If that behaviour deviates from those expectations, there is a disproportionate value judgment made, which can either demonize or canonize the consumer.

Theodore Noseworthy

For example, if someone were to buy a jacket previously owned by convicted fraudster Bernard Madoff and then behave in an honest way, such as by returning a lost wallet with money intact to the owner, he or she would be judged to be even more morally exemplary than the behaviour indicated, said study co-author Theodore J. Noseworthy.

Likewise, if someone purchased the robes once worn by the sainted Mother Teresa and then took candy from a baby, he or she might be judged even more harshly than the actual behaviour would indicate, he said.

The research, which was partially funded by the Social Sciences & Humanities Research Council of Canada, was published in the April 2017 issue of the Journal of Consumer Psychology. It is co-authored by Noseworthy, who is Canada Research Chair, Entrepreneurial Innovation, and the public good and scientific director of the NOESIS: Innovation, Design, and Consumption Laboratory at the Schulich School of Business at York University; together with Schulich PhD students Sean T. Hingston, who is the study’s lead author, and Justin F. McManus.

“The research shows that people can make some pretty odd inferences about the behaviour of people known to have purchased celebrity memorabilia,” said Noseworthy. “Clearly, there can be unexpected social consequences in owning something that has come into contact with a celebrity, both good and bad. The caveat ‘buyer beware’ is all the more relevant for collectors of celebrity memorabilia.”

In the Schulich study, participants were asked to judge the owners of celebrity memorabilia in a variety of scenarios, based on their behaviour during a single, isolated incident. In one scenario, participants were asked to judge the golfing talent of a person said to have purchased a golf putter used by Tiger Woods during the 2000 golf season. Because of the expectation that someone owning Tiger Woods’ putter would golf well, study participants more harshly judged the putter’s new owner when he reportedly missed his first three putting attempts than they might otherwise have.

Hingston is a fourth-year PhD student studying psychological essentialism, contagion and evolutionary psychology in Schulich’s postgraduate marketing program. McManus is a second-year PhD student studying self-concept/identity, threat, contagion and dual-processing in Schulich’s postgraduate marketing program.

To read the full article published in the Journal of Consumer Psychology, visit sciencedirect.com/science/article/pii/S1057740816300791.

To watch a short videotaped interview with Noseworthy about the research, view below.

Brexit analysis paints bleak picture for UK, potential for Canada

Blurred motion view over the Millennium footbridge looking towards St. Paul’s Cathedral at sunset

Last year’s Brexit vote − the United Kingdom’s (UK) prospective withdrawal from the European Union (EU) − took the world by surprise and left even the most seasoned economists scratching their heads. The Schulich School of Business’ Douglas Cumming, Ontario Research Chair in Economics and Public Policy, has published a sound overview of this remarkably complex situation.

With funding from the Social Sciences and Humanities Research Council of Canada and data collected immediately after the Brexit vote, Cumming researched the international business and entrepreneurship implications of Brexit, and came to a chilling conclusion for the UK, with some potential for Canada. His work, co-authored with the University of Minnesota’s Shaker Zahra and executed with the help of Schulich’s Sofia Johan, was published in the British Journal of Management (2016).

On June 23, 2016, the United Kingdom voted to leave the European Union
On June 23, 2016, the United Kingdom voted to leave the European Union

“We highlight some of the potentially negative consequences for markets in the UK and around the world that result from barriers to trade and immigration associated with the uncertainty created by Brexit,” says Cumming.

June 23, 2016, the day the world changed

Douglas Cummings
Douglas Cumming

It’s hard to image a single electoral event that would have such a ripple effect. This happened on June 23, 2016, with the Brexit vote. “There’s agreement that Brexit will unleash fundamental changes in the British business environment that will profoundly alter the dynamics of the relationship with the EU, North America and, in fact, the rest of the world,” Cumming states.

Immediate questions arose:

  • How would such a split be accomplished? What would this new world look like?
  • What does this mean for the existence of the UK, with Scotland and Northern Ireland indicating that they may be seizing the day to seek independence?
  • How would this affect the long-standing relationship between the UK and North America?

Study focuses on international business and entrepreneurship implications

In this paper, Cumming reviews the practitioner, policy and academic literature over the first month following the Brexit vote, and focuses on the issues associated with Brexit and international business and trade, multinationals and international entrepreneurship.

“There’s agreement that Brexit will unleash fundamental changes in the British business environment that will profoundly alter the rest of the world.” − Douglas Cumming

The existing literature indicates that North American companies will likely seek to retain their mutually beneficial relationship with the EU, one the world’s largest markets with advanced technologies and a highly skilled and educated labour force.

But predicting how the UK will fare with both the EU and North America is more difficult since, for many years, UK, Canadian and American companies have been collaborators as well as competitors. “Facing uncertainty, some of these multinationals have already expressed concern about declining profit margins causing them to reconsider the attractiveness of the UK as a place of business,” Cumming explains.

International finance could move from London to New York

After Brexit, Cumming explains, some anticipate a declining role for London as a global economic and financial centre – a position that this city has held since the 1980s. Additionally, the EU may enact regulations that limit London’s role, which would prompt financial services companies to relocate, possibly to Germany or the United States (US). New York City seems to be the obvious choice as it’s already a global financial hub.

Interest rates would be low as a result, which would affect exports. “This is coupled with predicted slower growth rates in the UK and EU, which may have ripple effects on North American companies as it increases currency (and political risk) volatility,” Cumming clarifies.

Brexit may have triggered the declining role of London as a financial centre. Pictured is the Millennium footbridge looking towards St. Paul's Cathedral at sunset
Brexit may have triggered the declining role of London as a financial centre

All of this poses a risk for financial stability in both the US and UK. The triple threat of excessively high debt levels, excessively low interest rates and excessively low productivity growth pose a particular risk.

This uncertainty, naturally, creates a conservative environment in which companies would start to think about reducing their investment in long-term activities, such as research and development, technology and other start-ups, which could improve the business climate by introducing innovative ideas that would spur growth.

UK firms will take a hit, experience brain drain

In this scenario, institutions are under considerable strain, if not total upheaval. Paradoxically, these developments will make entrepreneurialism very important in the new, post-Brexit environment. “Politicians, business people and entrepreneurs will have to actively work to reform existing institutions, abandon some of them and create new ones,” says Cumming.

However, he underscores the fact that immigration drives entrepreneurialism. So if legal barriers to immigration are set up in the post-Brexit era, this will hinder economic progress.

Cumming also notes that Brexit is predicted to have dire consequences for new start-ups. This is because funders and investors will be more attracted to EU-based businesses. “The uncertainty created by Brexit is a major consideration in making these decisions; this uncertainty is multifaceted and is expected to persist for years,” Cumming says, suggesting that UK start-ups may want to consider relocating to Canada or the US.

Indeed, Brexit may have triggered a situation where UK entrepreneurs are effectively encouraged to set up shop in the EU or elsewhere. Cumming notes that these changes will not play out well in the long-run in the UK, because they will effectively rob the UK of the technological capabilities of younger companies, the source of growth and job creation.

Cumming suggests that UK start-ups may want to consider relocating to Canada.

To Cumming, the first look at evidence specific to Brexit paints a picture in which UK and continental European firms will both be hurt by Brexit – the UK being the worse for wear compared to their continental counterparts.

UK start-ups may want to consider relocating to Canada, which has created programs that aggressively seek global entrepreneurs with strong STEM skills. Pictured is a panorama of the Toronto skyline at sunset.
UK start-ups may want to consider relocating to Canada, which has created programs that aggressively seek global entrepreneurs with strong STEM skills

UK entrepreneurs may be attracted to Canada’s strong STEM programs

This potential brain drain from the UK could benefit North America. According to Cumming, Canada and the US are eager to attract this talent to spur entrepreneurial activities and fill certain voids in existing companies. In fact, both countries have created programs that aggressively seek global entrepreneurs with strong STEM (science, technology, engineering and math) skills.

The paper, “International Business and Entrpreneurship Implications of Brexit,” was published in the British Journal of Management (2016). To learn more about Cumming, visit his website. To learn more about the Schulich School of Business, ranked among the leading business school in the world and #1 In Canada, visit the website.

By Megan Mueller, manager, research communications, Office of the Vice-President Research & Innovation, York University, muellerm@yorku.ca

Schulich students honour best in class with teaching excellence awards

York University’s Schulich Centre for Teaching Excellence has announced this year’s recipients of the student-run Seymour Schulich Teaching Excellence Awards.

Winners were recognized at both the year-end Graduate Formal and Undergrad Formal held at the Liberty Grand in Toronto.

Student leaders credited faculty for going above and beyond, and for enriching the student experience.

“The awards are an important annual tradition in celebrating our world-class faculty,” said Frank Paul, the Graduate Business Council president. “The student experience is shaped through our incredible, thought-leading faculty, so it is important that we take the opportunity to honour their passion and dedication to student learning.”

Peter Macdonald, instructor of Strategic Management/Policy accepting the award with Dean Dezsö J. Horváth and VP of the Graduate Business Council Alisa Bialas

This year, the top faculty member in the graduate category was Peter Macdonald, instructor of Strategic Management/Policy; Klaudia Watts (MBA ’14) was ranked first in the undergraduate category.

“I applaud all of the instructors nominated for this year’s Seymour Schulich Awards for Teaching Excellence,” said Dezsö J. Horváth, dean of Schulich. “Through course evaluations, our students have identified each of this year’s nominees as having attained an exceptional level of teaching excellence. These instructors not only imparted knowledge and wisdom, they pushed our students to excel.”

Other faculty members in the top 10 rankings per category included:

Undergraduate
• Heather Colquhoun, ORGS
• Graeme Deans, MGMT
• Alexander Fisher, ACTG
• Mariam Humayun, MKTG
• Ambrus Kecskes, FINE
• Linda Lakats, MGMT
• Peter Macdonald, SGMT
• Thomas Medcof, ORGS
• Alla Volodina, ACTG

Graduate
• Greg Chiykowski, MFIN
• Graeme Deans, SGMT
• Alex Garber, MACC
• Ashwin Joshi, IMBA
• Ashley Konson, MKTG
• Kevin Tasa, ORGS
• Theodore Tolias, ECON
• Mike Valente, MSTM
• Detlev Zwick, MGMT

To learn more about the Schulich Teaching Excellence Awards or to see former award recipients, visit schulich.yorku.ca/faculty-research/centre-teaching-excellence.

Schulich partners with Beijing Institute of Education to launch new Sino-Canadian teacher centre

Chinese and Canadian education experts will be able to work together to deliver highly specialized and practical training programs to Chinese primary and secondary teachers, thanks to a new partnership between York University’s Schulich School of Business and the Beijing Institute of Education (BIE).

Together for the official opening of the Sino-Canadian Centre, from left: Elena Caprioni, program director, SEEC-Asia Business & Management Program (SEEC-ABMP); Dolly Shao, managing director, SEEC-ABMP China; Oussamah Tamim, first secretary (commercial) and trade commissioner consumer products, tourism, education, Canadian Embassy; Alan Middleton, SEEC executive director; John McCallum, Canadian ambassador to China; Huang Wei, deputy director of the Teacher’s Work Department, Ministry of Education; Yang Gongding, party secretary of the Beijing Institute of Education; Li Yi, deputy director of Beijing Municipal Education Commission; He Jinsong, dean and president, BIE

The Schulich Executive Education Centre’s Asian Business Management Program (SEEC-ABMP), and the BIE, affiliated with China’s Ministry of Education, have jointly launched the Sino-Canadian Centre for Teachers Professional Development, located in Beijing.

On April 12, high-level officials and educators, including John McCallum, Canadian ambassador to China, and Huang Wei, deputy director of the Teacher Education Department of China’s Ministry of Education, unveiled the new centre.

Representatives of both SEEC-ABMP and BIE were congratulated for this unprecedented cooperation, and for the accomplishments of the two educational institutions, which strive to benefit the current and next generation of educators.

Canadian Ambassador to China John McCallum chats with He Jinsong, president of the Beijing Institute of Education

The centre is a wonderful example of what can occur when educational cooperation between China and Canada is taken to the next level, “not only training educators, but doing it together,” McCallum said.

Alan Middleton, SEEC executive director of the centre, and He Jinsong, BIE president, together pointed out that the Sino-Canadian Centre for Teachers Professional Development is an important component of the cooperation between two institutions focused on improving the growth of pedagogical strategies for global learners in China.

The centre is a culmination of the long collaboration between SEEC-ABMP and BIE that was born of mutual interests, objectives and respect. Over the past two years, SEEC-ABMP has delivered more than 20 programs and has trained approximately 1,000 educators in Beijing, in addition to hosting several BIE teachers at York University for long- and short-term training programs.