Month: May 2017

An Overview of Recent Enrollment Declines in MBA Programs

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MBA Programs
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Dr. Antonios (Tony) Antoniou received his BA in economics from Sunderland University and his MSC in accounting and finance from the London School of Economics. Dr. Antoniou also holds a PhD in applied economics. An experienced professor of finance and economics, Dr. Antonios Antoniou stays informed on all the latest academic business trends.

In the past, a master of business administration, more commonly referred to as an MBA, represented a laudable academic achievement. More recently, however, employers’ interest in the degree has fallen, a trend either reflected or influenced by an enrollment decrease in MBA programs.

The MBA’s decline may extend as far back as 1985 when an article in The Wall Street Journal noted that as many as one in four of the nation’s 600 business schools might be forced to shut down due to diminishing enrollment. Eight years later, The New York Times published a similar article, this time specifically calling into question the professional value of the MBA.

By 2005, the trend had reached the nation’s most prominent and respected business institutions. A Businessweek article found that each of the magazine’s top-30 MBA programs experienced a minimum enrollment decline of 30 percent over the previous seven years, with some falling at a rate of 50 percent or higher.

Speaking to The Economist in 2016, experienced staffing and recruiting professional Debbie Goodman-Bhyat determined that, from an employer’s perspective, the MBA has essentially fallen to the level of a bachelor’s degree. Thousands of MBA or equivalent programs are available to students around the world, leaving employees to dig deeper when searching for talent.

Furthermore, the abundance of MBA programs has led to questionable quality. A study in India found that of the 5,500 Indian business students graduating each year, only 7 percent are considered employable because of their schools’ poor faculties and inferior facilities.

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Differences Between Managing Team Members and Leading Them

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Leadership
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Leveraging his experience establishing business schools and his past roles as the head of academic departments for major universities, Antonios (Tony) Antoniou serves as an expert in business leadership and management. With a career in finance and business spanning decades, Antonios Antoniou holds extensive knowledge on various leadership and management styles and the differences between the two positions.

According to an article on Forbes.com, there are a variety of characteristics that distinguish the two. Traditionally, management has meant that one has a group of people that are replaceable and their sole existence in the role was to produce results. Leadership, however, assesses how workers are feeling and makes adjustments as necessary, recognizing that they are human beings, not robots, and that a person’s feelings and perspectives can determine loyalty, behavior, perspective, and productivity.

Another example concerning the differences between management and leadership includes the ways in which the two approach work to motivate the achievement of goals. With management, threats along with limited patience are used to spur workers to action. With leadership, however, a shared goal or mission is used as a motivating factor, creating a common ground.

Dr. Antonios Antoniou: Behavioural Finance Part 1

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Behavioural Finance
Image: investopedia.com

Chief Executive Officer of Finance, Research, Training, and Consulting, Dr. Antonios Antoniou demonstrates a long and productive history of financial research. He has served in academics, consulting, and as a respected author of multiple published financial articles, sharing knowledge gleaned from his research. One of the areas of research on which Dr. Antoniou focuses is behavioural finance.

The social sciences study human behaviour and the effects it has on the way people live their lives. Behavioural finance provides study into the specific area of how psychology affects financial behaviours, as well as the effects that those behaviours have on financial markets. Such knowledge may help provide an understanding of anomalies that occur in securities trading around the world. Most financial theory is based on rational and logical behaviour; however, human beings often defy logic and rationality. Behavioural finance seeks to create models for market fluctuations driven by emotion. For instance, logic dictates that gambling favors the house. A non-behavioural financial model might then posit that most people would not turn to gambling as a financial strategy; however, as many people who buy lottery tickets, attend horse races, or spend significant amounts of time in casinos can attest, gambling for some provides their main retirement plan. Human psychology is the only way to explain this anomaly.

Many common anomalies are attributable to behavioural finance. For instance, the January effect describes the facts that small firms often have a higher rate of return in January than any other month of the year. Another is the winner’s curse, in which winning auction items tend to exceed their intrinsic value. This may be attributable to competitiveness and the desire to win.