How Good Are Business School Rankings?

Ilia D Dichev

The Journal of Business, 1999, vol. 72, issue 2, 201-13

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.

Date: 1999
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