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MBA as an investment

The MBA is not always the golden gate riches beyond desire. Indeed, it can lose you money. Investment of time and money on an MBA will give a return commensurate with the quality of establishment and the effort expended. Therefore that institution needs to br carefully selected.

The release of rankings by the Chinese edition of Forbes magazine shows that the list is headed for the third time by China Europe International Business School (CEIBS), so you can take it with a track record like that CEIBS safely leads the pack.
 
The best institution offering a part-time MBA was said to be Guanghua School of Management at Peking University, where the ranking is not quite so positive.

The rankings were based on a survey conducted in 45 domestic B-schools and mainly drew upon the comments of students who graduated in 2005 and 2009 – people who have now been in the workplace for five years and one year, respectively.

Surveys can always be varied in their results. The survey found MBA programs in certain Chinese B-schools have differed greatly in the past few years, with some faring much better this time around and others doing markedly worse.
Liu Ruiming, executive editor of the Chinese edition of Forbes, put across the view that it is a good thing to get an MBA or an EMBA. But much better to get it by way of an excellent program and first rate tuition.
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Taking CEIBS as an example, students who completed the MBA program realized a five-year income growth of 116.7%.
 
On the other hand, five years after graduation, some MBA holders had not even recouped the costs of their tuition and lost salary.
 
The survey measures indicators such as return on investment after five years. It also looks at the first-year starting salary for graduates and the income growth rate after graduating.
 
AsiaOneEducation reported that in respect of return on investment, it found B-schools paid back quite nicely in the long run. Overall, five years after full-time 2005 MBA graduates left school, they received an average income 3.4 times higher than what they had earned before the programs.
 

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