True or False: MBAs make Better CEOs

The Conversation Blog on Harvard Business Review asked the question recently, Does an MBA make you a better CEO?

Professors Herminia Ibarra of INSEAD and Morten T. Hansen of UC Berkeley School of Information tried to answer this question empirically by analyzing data from their recent study of CEO performance and have concluded that, indeed, MBA CEOs had a slight performance edge over their non-MBA peers.

“In our analysis and ranking of the performance of 2,000 CEOs around the globe, CEOs who had an MBA on average ranked 40 places higher than CEOs who didn’t have an MBA (a statistically significant effect),” they write.

However, the answer may not be so cut-and-dry, the professors found. Age may play an important role as well. Read the entire article for the study breakdown, but know that the year-effect raises an important question: “Is the value of the MBA for aspiring leaders declining? Or is it more important than ever as we dive into a highly global and uncertain business world this new decade?”

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