Managers' research education, the use of FX derivatives and corporate speculation

Arbeitspapier

In contrast to the U.S., many executive managers of continental European firms have a PhD. In this paper we analyze if a research-oriented background in the form of a PhD is linked to the corporate decision-making of CFOs in the use of foreign exchange (FX) derivatives in Germany. After controlling for fundamental firm characteristics, compensation schemes and personal characteristics of managers, we find some evidence that CFOs with a PhD in a business-related area tend to use FX derivatives less, while CFOs with a general business education do so more. Analyzing their behavior with regard to speculation, we find strong evidence that CFOs with a PhD speculate less on the FX market compared to CFOs with another (business) education. A possible reason may be that a research-oriented education is more associated with critical awareness and long-term orientation in corporate decision-making.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Passauer Diskussionspapiere - Betriebswirtschaftliche Reihe ; No. B-32-18

Classification and Topics

• Classification: Management ; Corporate Finance and Governance: General ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Foreign Exchange
• Subject: FX Derivatives ; Risk Management ; Speculation ; Behavioral Corporate Finance ; PhD ; Doctorate

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Entrop, Oliver ; Merkel, Matthias F.
• Event: Veröffentlichung
• (who): Universität Passau, Wirtschaftswissenschaftliche Fakultät
• (where): Passau
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/179481
• Last update: 10.03.2025, 11:45 AM CET