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How Good Are Business School Rankings?

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  • Dichev, Ilia D

Abstract

Changes in Business Week and U.S. News graduate business school rankings have a strong tendency to revert. It seems that existing rankings are essentially simple aggregations of 'noisy' information and reversals of this noise are the most likely cause of reversibility in the rankings. Additionally, there is an almost puzzling lack of correlation between the contemporaneous changes of the two rankings, suggesting that most changes are not driven by common revisions of information. Thus, existing rankings should be probably viewed as useful but noisy and one-sided signals, rather than as comprehensive and efficient measures of the unobservable 'school quality.' Copyright 1999 by University of Chicago Press.

Suggested Citation

  • Dichev, Ilia D, 1999. "How Good Are Business School Rankings?," The Journal of Business, University of Chicago Press, vol. 72(2), pages 201-213, April.
  • Handle: RePEc:ucp:jnlbus:v:72:y:1999:i:2:p:201-13
    DOI: 10.1086/209610
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    Cited by:

    1. María José Quinteros & Rafael Sánchez & Mauricio G. Villena, 2020. "How do business schools compete in Latin America? Stability and best predictors of success for the AmericaEconomia MBA Ranking," Applied Economics, Taylor & Francis Journals, vol. 52(50), pages 5546-5563, October.
    2. Bruno S. Frey & Margit Osterloh, 2006. "Evaluations: Hidden Costs, Questionable Benefits, and Superior Alternatives," IEW - Working Papers 302, Institute for Empirical Research in Economics - University of Zurich.
    3. Free, Clinton & Salterio, Steven E. & Shearer, Teri, 2009. "The construction of auditability: MBA rankings and assurance in practice," Accounting, Organizations and Society, Elsevier, vol. 34(1), pages 119-140, January.
    4. Olavarrieta, Sergio & Quinteros, María José & Villena, Mauricio, 2021. "A Strategic Impact Model for Latin American Business Schools," MPRA Paper 107813, University Library of Munich, Germany, revised 17 Apr 2021.
    5. A Jessop, 2010. "A portfolio model for performance assessment: the Financial Times MBA ranking," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(4), pages 632-639, April.
    6. Luis L. Martins, 2005. "A Model of the Effects of Reputational Rankings on Organizational Change," Organization Science, INFORMS, vol. 16(6), pages 701-720, December.
    7. Vicente Safón, 2013. "What do global university rankings really measure? The search for the X factor and the X entity," Scientometrics, Springer;Akadémiai Kiadó, vol. 97(2), pages 223-244, November.
    8. Qi Kong & Michael R. Veall, 2005. "Does the Maclean's Ranking Matter?," Canadian Public Policy, University of Toronto Press, vol. 31(3), pages 231-242, September.
    9. Grove, Wayne A. & Hussey, Andrew, 2014. "Returns to MBA quality: Pecuniary and non-pecuniary returns to peers, faculty, and institution quality," Labour Economics, Elsevier, vol. 26(C), pages 43-54.
    10. Siemens, Jennifer Christie & Burton, Scot & Jensen, Thomas & Mendoza, Norma A., 2005. "An examination of the relationship between research productivity in prestigious business journals and popular press business school rankings," Journal of Business Research, Elsevier, vol. 58(4), pages 467-476, April.
    11. Gottesman, Aron A. & Morey, Matthew R., 2006. "Manager education and mutual fund performance," Journal of Empirical Finance, Elsevier, vol. 13(2), pages 145-182, March.
    12. Fogarty, Timothy J. & Zimmerman, Aleksandra B. & Richardson, Vernon J., 2016. "What do we mean by accounting program quality? A decomposition of accounting faculty opinions," Journal of Accounting Education, Elsevier, vol. 36(C), pages 16-42.
    13. Raj Aggarwal & Joanne Goodell & John Goodell, 2014. "Culture, Gender, and GMAT Scores: Implications for Corporate Ethics," Journal of Business Ethics, Springer, vol. 123(1), pages 125-143, August.
    14. Vicente Safón, 2019. "Inter-ranking reputational effects: an analysis of the Academic Ranking of World Universities (ARWU) and the Times Higher Education World University Rankings (THE) reputational relationship," Scientometrics, Springer;Akadémiai Kiadó, vol. 121(2), pages 897-915, November.

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