The accreditation standards of AACSB - The International Association for Management Education require schools with only undergraduate students to have at least 40 percent of their faculty with doctorates. Those with MBA programs must have at least 75 percent of their faculties holding doctorates. Doctoral programs typically are rigorous and require study in a chosen field in great depth and with significant research. Faculty with doctorates can therefore be expected to be more knowledgeable and proficient in their fields of expertise. It is reasonable to assume that a higher proportion of doctorate faculty members implies higher-quality teaching.
Schools with a higher percentage of doctorate faculty are ranked higher.