MBA News: Shrinking Endowments Lift All Boats?
June 29th, 2009
Months ago, we raised the issue of the decline in endowments and the potentially negative impact on your business school experiences. In an article published today in the Financial Times, Rebecca Knight informs readers of a leveling of the field. Currently, some private schools—such as Harvard, Stanford and Tuck—are reeling because they depend on their endowments to fund day-to-day operations, but these endowments have now decreased by 20%–40%. Meanwhile, public schools—such as Berkeley, the University of Virginia and the University of North Carolina—depend on their endowments to cover far less of their day-to-day funding and are thus able to hire professors without being outbid, for example.
