HARVARD BUSINESS SCHOOL is all about its graduates’ “lifelong impact” on society. INSEAD exhorts its alumni to “drive business as a force for good”. Believe these and other MBA prospectuses, and a student arriving as an ordinary human being will leave as a virtuous do-gooder. Such claims have always strained credulity. A new working paper by Daron Acemoglu, Alex He and Daniel le Maire, a trio of economists, puts numbers on the disbelief.
The authors look at newly appointed CEOs in America and Denmark. They find those with MBAs increase returns on assets in the five years after their appointment—by a total of three percentage points
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