MBA CEOs, Short-Term Management and Performance

Journal of Business Ethics · 2019 · Volume 154 · Issue 2

Abstract

There is ample discussion of MBA self-serving values in the corporate social responsibility literature, and yet empirical studies regarding the corporate manifestations and consequences of those values are scant. In a comprehensive study of major US public corporations, we find that MBA CEOs are more apt than their non-MBA counterparts to engage in short-term strategic expedients such as positive earnings management and suppression of R&D, which in turn are followed by compromised firm market valuations.

Keywords

MBA CEOs, Firm performance, Self-serving behavior, Short-term management, Strategy

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