BUSINESS: Disney takeover just what the doctor ordered
   A takeover by Comcast would probably do the Walt Disney Company a world of good, says Georgia State University finance professor Jim Owers, a noted expert on corporate governance. "Disney needs shock treatment," he says. "Disney needs a complete shake-up at the top." Owers believes that ineffectual leadership of Disney's chief executive officer, Michael Eisner, and the company's board of directors in recent years invited the hostile takeover attempt. The fact that company leaders were surprised by a takeover move is compelling evidence of the need for their departure, Owers says. In coming weeks, other companies will emerge to compete with Comcast for Disney, he predicts. If the Comcast/Disney merger is successful, Owers says the combined entity's status as a major media conglomerate could be lessened by the likely sale of such Disney properties as ABC television network. "Disney's many properties may be worth more sold off than as a whole," he says. Contact Owers at 404/651-2619 (office), 404/307-8684 (cell) or jowers@gsu.edu.

BUSINESS: Governance issues crucial to company performance, study shows
   Good corporate governance -- especially at the board-of-directors level -- definitely pays off, according to Georgia State University accounting professor Lawrence Brown. His recent study, commissioned by Institutional Shareholder Services, found that better-governed companies are more profitable, less risky and pay bigger dividends to shareholders than firms with weak governance. Companies with strong governance had five-year average annual returns that were nearly 8 percent above their industry averages, while firms with weak governance returned 4 percent less. In evaluating corporate governance, Brown's study looked at such factors as board composition, compensation, takeover defenses and auditing. "We learned that board composition is by far the most important factor," Brown says. Contact Brown at 404/651-0545 or ldb@gsu.edu.

BUSINESS: Consumers should exercise caution with mutual funds
   Recent exposure of the scandalous trading practices of many mutual funds hasn't dissuaded many people from using these investment tools, says Conrad Ciccotello, associate professor of risk management and insurance and director of Georgia State University's personal financial-planning program. "They're still a primary savings vehicle offering a lot of advantages to people, so mutual funds aren't going to be replaced anytime soon," Ciccotello says. "Consumer education is the key to avoiding problems with mutual funds and other financial products and services. There are a lot of different funds, and you have to be aware of what you're buying, as with any complicated product." Ciccotello recommends consulting certified financial planners and financial Web sites to reach informed decisions. Contact Ciccotello at 404/651-1711 or cciccotello@gsu.edu.

LAW: Offer sincere apology to stay out of court
   Often simply saying "I'm sorry" can save a lot of money and court time, but the sincerity of the apology is key, says Georgia State University law professor Doug Yarn, a noted expert on conflict resolution. Though many lawyers advise clients against making apologies because they can establish liability, studies have shown that apologizing can substantially reduce damage awards. Some hospitals are experimenting with apology policies in an effort to reduce their liability when mistakes are made. "When doctors don't apologize for mistakes, people are much more prone to sue," Yarn says. But institutionalizing apologies probably makes them less personal and therefore less effective. "If people are apologizing as a matter of policy, you can no longer tell if it's sincere," Yarn says. "Is the institution taking advantage of your need to forgive?" Yarn says he takes an evolutionary biological approach to researching conflict resolution and how the law addresses apologies. "We as a species have a reproductive strategy of cooperation," Yarn says. "When we're offended, we have a strong desire to forgive. Apologies are a way to enter back into cooperation, avoiding moralistic aggression." Contact Yarn at 404/651-2147 or dyarn@gsu.edu.

LAW: Courts shouldn't skimp on pain-and-suffering damages
   Capping jury awards for pain and suffering in medical malpractice cases is unfair, says Georgia State University law professor Andi Curcio. Georgia legislators are considering such a proposal, and other states may follow suit. Twenty-eight states have already imposed caps on jury awards. In Georgia, medical associations do not seek limits on "economic" damage awards, which compensate a person's lost earnings and medical expenses, but they want a $250,000 cap on pain-and-suffering damages. "I feel strongly that this is an idea that devalues elderly people and women who choose to stay at home," Curcio says. "One of our ways of stopping nursing-home abuse would be seriously curtailed." Curcio believes insurance companies, which have raised prices on medical malpractice insurance in recent years, have created the myth that jury awards in such cases are spinning out of control when they've lost much more money from the stock market decline, Sept. 11 terrorist attacks and business-to-business suits. "The companies have picked an easy constituency to blame because these victims don't have a lot of voice or power," she says. Contact Curcio at 404/651-4157 or acurcio@gsu.edu.

LAW: Gay marriage adrift in a sea of uncertainty
   The recent decision of the Massachusetts Supreme Court to legalize gay marriage in the state has set off a firestorm of controversy across the country. Tanya Washington, assistant professor of law at Georgia State University, is available to discuss the many uncertainties involving the issue as Massachusetts and other states consider constitutional amendments to define marriage as exclusively between a man and woman. "These definitions could leave out a whole category of people, and there should be a justification for it," Washington says. "Forty years ago, interracial marriages were illegal. People need to make sound legal arguments and not just emotional ones." Contact Washington at 404/651-2096 or lawtbw@langate.gsu.edu.

Happening at Georgia State University:

Law lecture: 'How Hobbes Works'
   The College of Law's Henry J. Miller Distinguished Lecture Series will feature Stanley Fish at 6 p.m. Feb. 26 in the Student Center Speaker's Auditorium. In his lecture, "How Hobbes Works," Fish will discuss philosopher Thomas Hobbes' view of classical liberalism. "Classical liberalism has always understood itself to be centered on a set of substantive values -- liberty, equality, freedom, free expression and individual self-realization," says Fish, dean of the College of Liberal Arts and Sciences of the University of Illinois at Chicago. "In Hobbes' version of liberalism, however, these supposedly positive values are identified as the source of danger and error." Fish is well-known for his studies and views on popular culture, the First Amendment and various political and critical theories. His books include "There's No Such Thing as Free Speech, and It's a Good Thing, Too" and "Professional Correctness: Literary Studies and Political Change." The event is free and open to the public. For more information, contact Delita Marsland at 404/651-2040 or delita@gsu.edu.

Georgia State Leads is a biweekly e-mail publication from the Department of University Relations. For more information about the publication or to sign up to receive Georgia State Leads, contact Beth Flannigan at 404/651-3576 or bflannigan@gsu.edu.

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