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Business education and executive opportunism: The case of MBAs

Revue française de gestion, 2017-05, Vol.43 (265), p.131-133 [Peer Reviewed Journal]

Copyright Lavoisier May 2017 ;ISSN: 0338-4551 ;EISSN: 1777-5663 ;DOI: 10.3166/rfg.2017.00143

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  • Title:
    Business education and executive opportunism: The case of MBAs
  • Author: Miller, Danny
  • Subjects: Business education ; Business schools ; Chief executive officers ; Chief executives ; Compensation ; Earnings ; Earnings management ; Financial performance ; General education ; MBA programs & graduates ; R&D ; Research & development
  • Is Part Of: Revue française de gestion, 2017-05, Vol.43 (265), p.131-133
  • Description: The author and Xiaowei Xu reasoned that if general education mattered to a CEO's performance, surely business education would be even more helpful, as it has greater relevance to managing a business. They were stunned to discover that exactly the opposite was true: graduates of MBA programs were far less able to sustain superior performance than other CEOs who had also made those magazine covers. More importantly, they tended to grow their firms via acquisitions rather than organically, and sacrificed earnings and cash flow in the process. However, strangely, their personal financial compensation increased at a faster rate than that of their counterparts, who had outperformed them! (Miller, Xu, 2016). According to a study of the 5000 or so CEOs present over 10 years in the Boardex database, 35% of the sample who possessed MBA degrees managed in a way that was quite different from their non-MBA counterparts. They tended to engage in techniques of earnings management to artificially boost earnings, and they expended inferior amounts on research and development.
  • Publisher: Paris: Lavoisier
  • Language: English
  • Identifier: ISSN: 0338-4551
    EISSN: 1777-5663
    DOI: 10.3166/rfg.2017.00143
  • Source: Cairn.info - Revues en accès libre
    ProQuest Central

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