Managers’ research education, the use of FX derivatives and corporate speculation
| Autor: | Matthias F. Merkel, Oliver Entrop |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
business.industry
Business education Compensation (psychology) 05 social sciences Accounting 06 humanities and the arts 0603 philosophy ethics and religion Critical awareness General Business Management and Accounting 0502 economics and business 060301 applied ethics Business Foreign exchange Speculation 050203 business & management Research education Risk management Overconfidence effect |
| Zdroj: | Review of Managerial Science. 14:869-901 |
| ISSN: | 1863-6691 1863-6683 |
| DOI: | 10.1007/s11846-018-0314-z |
| Popis: | In contrast to the U.S., many executive managers of firms in German-speaking countries 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 that persuades managers to avoid overconfident behavior. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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