Present Financial Fiasco

Present Financial Fiasco

Present Financial Fiasco –Are MBA’s Responsible? On the other hand Buffet, Gates, Branson and their non-MBA entrepreneurial counter parts, who normally have contrarian ideology to the MBAs, still remain unshaken. Is there a need to revamp the MBA program as such to avoid future debacles? Was the crisis caused owing to poor legislation/regulation, greedy business ethics and short sighted risk management only? The problem with the MBA qualification offered by most business schools is that it is focused largely on the development of the intellectual mind and very little on that of the social / emotional mind. This of course produces highly intellectually-skilled graduates who unfortunately have "functional holes" in their brains and minds with respect to social and emotional development. Leadership is largely about emotional and spiritual intelligence. Greed, a negative emotion which generates dysfunctional behavior, is one of the consequences of a weakness in emotional self-control (a competence of emotional intelligence).Therefore those MBA institutions which fail to develop their student's social / emotional minds to the same high degree that they do their intellectual minds can certainly be accused of letting loose into the world people who are capable of the kind of financial destruction and market meltdown recently witnessed. What went wrong? In finance, the efficient-market hypothesis (EMH) asserts that financial markets are "information efficient", or that prices on traded assets, e.g., stocks, bonds, or property, already reflect all known information. The efficient-market hypothesis states that it is impossible to consistently outperform the market by using any information that the market already knows, except through luck. Information or news in the EMH is defined as anything that may affect prices that is unknowable in the present and thus appears randomly in the future. Opponents of the EMH is behavioral finance theory, this theory sometimes cites...

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