Does AACSB Accreditation Matter? Evidence From Large Firm CEOs

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Terrance Jalbert
Mercedes Jalbert
Kim Furumo

Keywords

AACSB, Accreditation, CEO Performance

Abstract

Accreditation from the Association to Advance Collegiate Schools of Business (AACSB) is highly sought after by business schools both in the United States and internationally. Business schools devote considerable resources to earn and maintain the accreditation. Despite this effort and expense, surprisingly little literature has examined the extent to which AACSB accredited schools outperform non-accredited schools in market driven situations. This exploratory study is a first effort to fill this gap in the literature. The research here examines CEOs from large U.S. firms. Specifically, compensation earned by CEOs from AACSB accredited schools are compared to compensation earned by CEOs from non-accredited schools. We also examine the extent to which CEOs from accredited and non-accredited schools manage their firms differently and earn higher profits than other CEOs. The findings indicate that a large proportion of large firm CEOs earned their degree from an AACSB accredited school. The empirical findings are mixed, but the general picture is that graduates from AACSB accredited schools do not outperform other CEOs.

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