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Business and Management Studies

Unit of Assessment
Research Assessment Exercise 2008



By percentage of research activity in the submission judged to reach quality standard

UOA 36 Business and Management Studies

FTE Cat A Staff submitted for assessment






London School of Economics and Political Science







Since the last RAE, LSE has created a new Department of Management, headed by Professor Saul Estrin. Together with two other departments, the Department of Accounting (led by Professor Peter Miller) and the Department of Finance (led by Professor Ron Anderson), these three units provide the core of LSE's research in Business and Management.

Since 2006, the new Department of Management has attracted a significant number of highly-regarded international faculty to its ranks, including Professors Harry Barkema, Luis Garicano, Ignacio Palacios-Huerta, Richard Steinberg, Leslie Willcocks and Paul Willman. This initiative has enabled LSE to build strategically on existing strengths and intellectual leadership in this area. 

With 30 per cent of research activity deemed 'world leading' in terms of originality, significance and rigour, the Business and Management group at LSE is rated as joint fifth in the country. The heads of the relevant LSE departments (Professors Estrin, Miller and Anderson) concurred that they were extremely pleased to find that so much of their departments' research had been classed as world-leading.

In the Department of Accounting, there have been some substantial contributions to research. Professor Michael Power published Organized Uncertainty, and Professor Wim Van der Stede and his colleagues won the 2007 American Accounting Association's Notable Contribution to Management Accounting Literature Award for their paper, 'Determinants and Effects of Subjectivity in Incentives'. And most recently, the head of the department, Professor Peter Miller, was one of only ten participants invited to present papers at this year's Nobel Foundation symposium in Sweden. He presented his work on investment appraisal and pre-competitive information exchanges in the microprocessor industry.

Across in the Finance Department, Professor Ron Anderson said that the department had long been a major contributor to corporate finance theory, and "has been one of the leading centres in understanding how simple features of financial market institutions can give rise to crises endogenously." He added that: "In recent years our Finance department has become a leader in both theoretical and empirical asset pricing." The research of Professors Dimitri Vayanos and Christopher Polk illustrate the two strands of this work. Other notable research includes Yves Nosbusch's "Interest Costs and the Optimal Maturity Structure of Government Debt", and Xiaoji Lin's "Endogenous Technological Progress and the Cross Section of Stock Returns", awarded the prestigious Trefftzs Prize for the Best Student Paper at the Western Finance Association meetings in 2008.

The Department of Management is still in its early growth phase, but Professor Estrin noted that the RAE results were extremely encouraging. His department's ambition is "to become the premier management department in Europe, and one of the top departments in the world, in both teaching and research." The department was only established in 2006/2007 and unites four formerly separate academic units at the School into a single department, with the objective of creating a world-class environment for multi-disciplinary research on management issues. Major research themes for the department include economics of strategy and the design of incentives (Garicano, De-Meza, Ferriera, Kittsteiner); innovation (Barkema, Hill, Wang, Willcocks); pensions (Willman, Avrahampour); and entrepreneurship (Estrin, Qin, Huysentruyt).

The Department of Management is located in LSE's New Academic Building, which offers a state-of-the-art, sophisticated learning environment. When the Queen opened this building in November 2008, Professor Luis Garicano had the opportunity to explain the credit crunch to her. In answer to the Queen's question: "Why did no one see it coming?", Professor Garicano explained: "We economists knew a crisis was coming, but should have made our warnings heard."

See Definitions of Quality| 4*,3*,2*, 1* and u/c

See RAE 2008 Analysis of Results| in the RPDD website for more detailed information.