Does AACSB Accreditation Matter? Evidence from Large Firm CEOs
Journal of Applied Business Research, Vol. 27, No. 3, pp. 93-106, 2011
12 Pages Posted: 16 Apr 2011 Last revised: 25 Nov 2011
Date Written: April 13, 2011
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 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. Capital structure, dividend policy and firm valuation are compared for firms having CEOs with different educational backgrounds.
Keywords: AACSB, Accreditiation, CEO Performance, CEO compenation, capital structructure, dividend policy
JEL Classification: A20, I20, I21
Suggested Citation: Suggested Citation