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The 10 Best PhD Programs in Finance

In essence, finance is the study of economics and the claims on resources. The best PhD programs in finance help you develop professionally so you can make difficult decisions around fund allocation, financial planning, and corporate financial management. This qualification will also equip you for a career in teaching or research at top universities.

Which of the 10 best finance PhDs is best for you?

Read on to learn everything you need to know.

Table of Contents

Why Get a Doctorate in Finance?

According to the Bureau of Labor Statistics (BLS), finance managerial professionals have an average salary of $131,710 per year, and jobs are estimated to grow by 17% from 2020 to 2030. This is much more than the average across all occupations. With a PhD in finance, you may work as a finance manager or even become a CEO of a large corporation.

Jobs and Salaries for Doctors of Finance

After earning a PhD in finance, you can find well-paid jobs as a professor or in various corporate finance roles.

Here are some of the most common finance professions with the average annual salaries for each:

Financial Manager ( $96,255 )
Financial Analyst ( $63,295 )
Finance Professor ( $73,776 )
Chief Financial Officer ( $140,694 )
Investment Analyst ( $67,730 )

The University of Pennsylvania, The Wharton School

The University of Pennsylvania’s renowned Wharton School of Business is home to faculty who are well-known in the field of business research. The school boasts a low student-faculty ratio in an atmosphere that allows you to work with faculty members as peers. This doctor of finance program emphasizes subjects like asset pricing, corporate finance, and portfolio management. This helps students become experts in research and teaching in these areas.

Courses include: Topics in asset pricing, financial economics, and international finance.
Credits: 18 courses
Financial aid: Fellowships, grants, student employment, health insurance, stipend, and loans.
Acceptance rate: 9%
Location: Philadelphia, Pennsylvania

The University of Chicago, Booth School of Business

Booth School of Business is a major center for finance education because its faculty includes Eugene F. Fama, Nobel laureate and the father of modern empirical finance. This finance doctoral degree has an option for a joint PhD in collaboration with the university’s economics department.

Courses: Financial economics, financial markets in the macroeconomy, and behavioral finance.
Tuition : Refer tuition page
Financial aid: Grants, stipends, health insurance, scholarships, fellowships, teaching assistantships, research assistantships, and loans.
Acceptance rate: 7%
Location: Chicago, Illinois

The University of Illinois at Urbana-Champaign, Gies College of Business

The University of Illinois at Urbana Champaign is one of the best places for studying and conducting research in finance. Its finance research faculty was ranked #4 in the UTD Top 100 Business School Research Rankings between 2016-2019. In this PhD in finance program, students can take the qualifying examination at the end of the first year and, if successful. They’ll be able to start their research project earlier and complete the degree sooner.

Courses include: Empirical analysis in finance, corporate finance, and statistics & probability.
Duration: 4-5 years
Financial aid: Full tuition waiver, stipends, scholarships, grants, student employment, and loans.
Acceptance rate: 63%
Location: Champaign, Illinois

Massachusetts Institute of Technology, Sloan School of Management

The Sloan School is one of the top research centers in the world, which aims to transform students into experts who can handle real-world problems in a wide range of spheres, from business and healthcare to climate change. This PhD program in finance gives students the flexibility to choose between a wide range of electives and even study some courses at Harvard.

Courses include: Current research in financial economics, statistics/applied econometrics, and corporate finance.
Duration: 6 years
Financial aid: Full tuition, stipend, teaching assistantships, research assistantships, health insurance, fellowships, scholarships, and loans.
Location: Cambridge, Massachusetts

Northwestern University, Kellogg School of Management

The Kellogg School of Management allows students to conduct independent research under the supervision of faculty who’ve made significant contributions to the field and have earned numerous prestigious awards. This doctorate of finance program’s admission process has a dual application option. You can also apply to the Economics PhD simultaneously, so if you are not selected for the finance program, you may be considered for economics.

Courses include: Econometrics, corporate finance, and asset pricing.
Duration: 5.5 years
Financial aid: Tuition scholarship, stipends, health insurance, moving allowance, and subsidies.
Location: Evanston, Illinois

The University of California Berkeley, Haas School of Business

The Haas School of Business in Berkeley is an innovative institution that questions the status quo, takes intelligent risks, and accepts sensible failures in its path to progress. This finance PhD program offers students opportunities to learn about cutting-edge research from faculty from around the world.

Courses include: Corporate finance theory, stochastic calculus, and applications of psychology & economics.
Tuition : Refer cost page
Financial aid: Fellowships, grants, tuition allowance, stipends, teaching assistantships, and research assistantships.
Acceptance rate: 17%
Location: Berkeley, California

The University of Texas at San Antonio, Alvarez College of Business

The Alvarez College of Business is one of the forty largest business schools in the USA. It follows a comprehensive and practical approach to education that allows students to apply the knowledge they gain directly in the workplace. This PhD in finance encourages students to do collaborative research with the faculty, which helps them publish their own academic papers before they even complete the program.

Courses include: Corporate finance, international financial markets, and microeconomic theory.
Credits: 84 (post-bachelors)
Financial aid: Scholarships, grants, work-study, teaching assistantships, research assistantships, research fellowships, and loans.
Acceptance rate: 84%
Location: San Antonio, Texas

Liberty University, School of Business

Doctor of Business Administration (DBA) in Finance

Liberty University is a non-profit institution among the top five online schools in the USA and has been offering fixed tuition fees for the past seven years. This is one of the best PhD in Finance programs you can do completely online. It aims to prepare students to address issues in business finance through research, best practices, and relevant literature.

Courses: Managerial Finance, Investments & Derivatives, Business Valuation, etc.
Credits: 60
Duration: 3 years average
Tuition : $595 per credit
Financial aid: Grants, scholarships, work-study, veteran benefits, and loans.
Delivery: Online
Acceptance rate: 50%
Location: Lynchburg, Virginia

Northcentral University

PhD in Business Administration (PhD-BA) – Finance Management

Northcentral University was founded with the objective of offering flexible, fully-online programs to working professionals around the world. This doctorate degree in finance online is flexible and allows you to design your own schedule. You will also get one-on-one personal mentoring from qualified faculty.

Courses include: Business financial systems, business statistics, and business leadership & strategy.
Duration: 84 months average
Tuition: $1,105 per credit
Financial aid: Grants, scholarships, and military scholarships.
Acceptance rate: NA
Location: Scottsdale, Arizona

Things To Consider When Choosing a Finance PhD Program

The right PhD program for you is a very personal decision and will depend on several individual factors.

However, these general questions will help you to make the right choice:

Is the university properly accredited?
Does the university conduct innovative and cutting-edge research?
Are there renowned faculty members who you’ll want to work with?
Do they offer subjects or specializations that match your career goals?
What is the school’s placement history?
What are the tuition fees, costs, and options for scholarships and financial aid?
Does the program offer online study options?

It’s also important to consider if you want to pursue a career in academia or work in organizations as a senior finance professional. A PhD degree will generally set you up for a career in research or academia, while a DBA is more suited to a career in business or government.

Preparing for a Finance Doctorate Program

It’s important to start preparing early if you want to be selected for one of the best finance PhD programs.

These handy tips can help you put your best foot forward:

Research the requirements of the best universities offering PhD in finance degrees, including pre-requisite subjects and qualifying grades. Keep these in mind when completing your bachelor’s or master’s degree.
Understand your strengths and weaknesses in relation to the program’s requirements. Work on your weaknesses and continue to hone relevant skills.
Read extensively in the field and keep up-to-date on regional and global developments.
Join communities of finance professionals to build your network and be exposed to the latest knowledge in the discipline.

Skills You Gain from Earning a PhD in Finance

The most important skills you learn as a doctor of finance include:

Communication skills, including writing and presentation skills
Data analytical skills
Economics and accounting skills
Critical thinking skills
Mathematical skills
Analytical software skills
Management and leadership skills
Problem-solving skills

PhD Programs in Finance FAQs

How long does a phd in finance take.

PhD programs in finance usually take between three and eight years to complete.

Is It Worth Getting a PhD in Finance?

A PhD in Finance is a qualification that’s in high demand today. It is a terminal degree and can help you get top-level jobs with lucrative salaries in corporate or large organizations.

How Much Can You Make With a PhD in Finance?

With a finance doctorate, you can expect to earn a salary anywhere from around $45,000 to $150,000, depending on your experience, role, and the organization you work for. According to the BLS, the average salary for finance PhD holders is $131,710 .

What Do You Need To Get a PhD in Finance?

The admissions requirements vary depending on the program, but you’ll typically need a bachelor’s or master’s degree in finance. The programs can take three to eight years of coursework and research.

To apply, you’ll usually need to submit:

Application
Academic resume
Academic transcripts
Recommendation letters
GRE or GMAT score
Personal essay

Final Thoughts

With a doctorate in finance, you can build a rewarding career in academia, research, or the business sector. Like any doctorate, these programs ask for dedication and hard work. By planning early, you’ll set yourself up to pursue one of the best PhD programs in finance.

For more on how to build your career in the field, take a look at our guides to the best master’s degree in finance , the highest paying PhDs , and fully-funded PhD programs .

Lisa Marlin

Lisa is a full-time writer specializing in career advice, further education, and personal development. She works from all over the world, and when not writing you'll find her hiking, practicing yoga, or enjoying a glass of Malbec.

Lisa Marlin https://blog.thegradcafe.com/author/lisa-marlin/ ACBSP Vs AACSB: Which Business Program Accreditations is Better?
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The Ins and Outs of a PhD in Finance

Landing a PhD in finance – the ultimate undertaking for intrepid souls who yearn to ascend to the highest academic echelons of finance. If you’re serious about being an overseer in this industry, a Doctorate of Philosophy in Finance is what you need! So if wading through tutorials and textbooks isn’t exactly how you want to spend your weekends, we totally understand.

That’s why we’ve broken down in glorious detail all that there is to know about landing a finance doctorate – so no more stressful nights scouring Google for advice on statements of purpose or wondering whether learning Python coding is necessary!

Are You Finance PhD Program Material?

If you’re someone who loves crunching numbers and has a passion for delving deep into financial issues to fully grasp the capital market’s fluctuations, then earning your finance PhD could be just what you need to accelerate your career ! As the financial landscape evolves to include high-speed trading and complex derivative investments, doctoral finance degrees are no longer just for students interested in teaching or research. Instead, these educational programs are offering more opportunities for those looking to take advantage of advancing technologies and modernized markets.

Possessing a finance PhD no longer confines professionals to the traditional lecture hall setting. Instead, this prestigious degree serves as your passport to some of the most innovative jobs available in financial institutions, on Wall Street, and further.

Programs at many universities are typically geared toward the study of theoretical finance and train students to gain a comprehensive understanding of financial markets. These graduate-level degrees allow students to delve deeper into business knowledge, as well as provide a stepping stone for those looking to pursue an academic career such as college professors or researchers. PhD students undertaking this degree are at the forefront of understanding and developing new markets, theories, and ideas. Furthermore, PhD in finance students have a unique opportunity to shape future leaders who will one day be responsible for managing our ever-changing world. After completing this higher-learning finance program, graduates are usually well-prepared to pursue successful careers either in the public sector or as consultants and researchers within administration or business.

What is a Finance PhD Program?

A PhD in Finance is a terminal finance degree for students seeking to specialize in advanced financial topics and theories. This degree program typically requires PhD students to gain expertise in areas such as investments, corporate finance, quantitative methods, theoretical modeling, modern empirical finance, and international finance. Most finance PhD programs involve rigorous coursework and the completion of a dissertation project that demonstrates the student’s knowledge within his or her chosen area. With this degree, graduates are well-prepared to pursue a career as an academic researcher or work as a financial analyst in a variety of settings. Upon completion of the program, students can be confident that they possess the knowledge and skills necessary to succeed in their chosen field.

What Are the areas of specialization for PhD programs in finance?

PhD programs in finance typically offer a variety of specializations, depending on the university. Common areas of specialization for these programs may include corporate finance, financial risk management, international finance, financial market regulation and banking law, real estate investments, corporate governance, quantitative methods, and econometrics. Depending on the program chosen, PhD students may also specialize in areas such as financial engineering, computational finance, empirical asset pricing, and derivatives. PhD candidates in finance may also specialize in a particular country’s banking system or a specific type of financial instrument.

How Long Does It Take to Earn a PhD in Finance?

Getting a PhD in Finance is not an easy task , and it requires considerable dedication and hard work. Generally, the duration of a finance PhD program depends on the institution, department, research topic, and degree requirements. On average, completing a PhD in Finance may take four to five years. This includes coursework, passing qualifying exams, conducting independent research, and writing the dissertation. In some cases, doctoral students may have to take additional courses or complete an internship to fulfill the requirements for graduation. Additionally, some universities require that their doctoral students attend and present at conferences or publish scholarly articles in peer-reviewed journals. All these add up to the total time it takes to complete doctoral studies. Ultimately, the length of time it takes to complete a PhD in Finance depends on the student’s level of commitment and dedication.

What Jobs Can You Get with A PhD in Finance?

Pursuing this type of finance degree can provide you with the theoretical and practical knowledge necessary to become an expert in your chosen field. With a PhD, you will gain the skills and expertise to succeed in a variety of finance-related roles. You’ll be able to analyze financial data, develop financial models, and advise both individuals and organizations about the best strategies to achieve their goals. You will also gain valuable research experience that can help you make valuable contributions to the field of finance. With a PhD in finance, you can enjoy a broad range of career options in the banking, finance, and accounting industries. These can include roles such as financial analyst, portfolio manager, investment banker, risk manager, or financial consultant. The possibilities are virtually limitless; you could be a leader and innovator in the field of finance, or simply use your skills to help others make wise financial decisions.

How Difficult Is It to Get Admitted into a Good Program?

Pursuing a PhD in finance can be an incredibly challenging endeavor. The amount of knowledge required and the rigorous academic requirements to gain admission to a top-tier finance program are daunting. Because of the rigorous admissions process, competition for admission is intense. Applicants must demonstrate a comprehensive understanding of financial concepts, strong quantitative and analytical skills, as well as an ability to think critically and independently. Prospective PhD students must also demonstrate a strong commitment to academic research, as well as the ability to develop and complete original research projects. Those who are successful in gaining admission to a PhD in finance program will reap the rewards of a top-tier education and will be well-prepared for an exciting career in the field of finance.

What Does the Application Process Look Like?

A Ph.D. in Finance is a terminal degree, meaning the highest level of education available in that field. It requires years of study and rigorous coursework to earn. To be eligible, students must have completed a bachelor’s degree with a major in finance or a related field and have acquired a minimum cumulative grade point average of 3.3. Most programs require that applicants submit GRE scores , letters of recommendation, and professional experience.

Generally, doctorate programs require four to five years of in-depth assessment and coursework as well as the writing of a dissertation; therefore, it stands to reason that admission into such programs will be highly selective. During the application process, admissions committees formed by finance faculty strive to guarantee that a student will do whatever is necessary for them to be successful in their program. This can take some time because universities are searching for worthy candidates with knowledge of their field and impressive academic credentials.

To be considered as an applicant, the following materials and resources are needed:

submitting your paper or online application form
a statement of purpose
covering the applicable fees
providing official transcripts from any educational institutions attended.
well-crafted letters of recommendation from former employers and instructors that are familiar with his/her academic accomplishments.
a scholarly writing sample accompanied by official GRE or GMAT scores.

After you’ve submitted your documents, the end step of the application process is usually an interview with a member of the admissions committee. Each business school is different and thus has specific admission requirements; while one program may need candidates to go through an interview , another might only require providing a writing sample portfolio.

Is A PhD in Finance Worth It?

The answer to this question depends on your individual career goals and ambitions.A PhD in finance can open doors to a variety of interesting and lucrative careers in the financial sector. It can also provide you with an opportunity to advance your research and teaching skills, and it may even lead to a higher salary. However, it takes a substantial amount of time and effort to complete a PhD program, so you should weigh the pros and cons carefully before deciding if it is the right move for you.

What Are The Top 10 PhD in finance programs in the world?

The top 10 PhD in Finance programs in the world are highly sought-after for their rigorous curriculum, finance faculty, and international recognition. The most distinguished programs can be found at institutions such as Harvard University, the Yale School of Management, Massachusetts Institute of Technology (MIT), Stanford, London Business School, the Wharton School of Business , Cornell University’s Johnson Graduate School of Management, the Kellogg School of Management, and the University of Chicago Booth School of Business. These esteemed programs provide students with the opportunity to explore cutting-edge finance topics from a global perspective. With access to world-renowned faculty members, highly competitive internships, and outstanding research facilities, graduates from these top 10 PhD in Finance programs are equipped with the knowledge and skills necessary to become leaders in the field. Pursuing a PhD in finance from any of these schools will give students a unique advantage as they enter the corporate world or pursue academic positions.

How Competitive Is It to Get Admitted Into a Top PhD in Finance Program?

PhD in finance programs are highly competitive and rigorous, requiring a strong knowledge base and advanced research skills to succeed. Many of the top universities offering PhD in finance programs have extremely select criteria for admissions, including GRE scores, academic achievement, professional experience, and recommendations from faculty members. The competition for admission is intense; most universities will only admit a handful of students each year.

How Can You Increase Your Chances of Getting Admitted into a Phd in Finance Program?

Completing a doctorate in finance is an ambitious endeavor, but it’s not impossible. To make yourself a more competitive applicant when applying to a doctoral program in this field, it’s important to focus on building your qualifications and doing meaningful research prior to applying. Start by obtaining a high GPA during your undergraduate education and impressing your professors through meaningful research and participation in course discussions. Then, gain relevant experience with internships or other professional opportunities that relate to the field of finance. From there, build a strong portfolio of academic achievements such as journals, published articles, presentations, and awards. Once you have established yourself as an ambitious researcher with a commitment to the finance field, you are ready to apply for a PhD program.

Working with a graduate school admission consultant prior to applying to a PhD program can also increase your chances of getting accepted by providing you with a solid foundation on how to build a portfolio that impresses admissions committees. A specialized consultant can help you make sure all your application materials are in order, as well as provide insight into the admissions process and what makes an applicant stand out—and get noticed. Make sure to check out our PhD application services or schedule a free consultation to find out how we can help you reach your career goals!

With a Master’s from McGill University and a Ph.D. from New York University, Dr. Philippe Barr is the founder of The Admit Lab . As a tenure-track professor, Dr. Barr spent a decade teaching and serving on several graduate admission committees at UNC-Chapel Hill before turning to full-time consulting. With more than seven years of experience as a graduate school admissions consultant, Dr. Barr has stewarded the candidate journey across multiple master’s and Ph.D. programs and helped hundreds of students get admitted to top-tier graduate programs all over the world .

Subscribe to my YouTube Channel for weekly tutorials on navigating the PhD application process and live Q&A sessions!

The main benefits of having a PhD if you want a job in finance

If you're a student who wants to go into financial services, you may be wondering whether it's worth spending the extra time and money to get a PhD.

During the financial crisis two or three years ago, I would have unequivocally advised staying in school. Layoffs, downsizing, and hiring freezes made it a very difficult environment to land a good job. However, the tide has (or at least, had ) turned and many financial institutions are gong back to their normal hiring modes.

So should you do it? Well...

Independently of the economic environment, the decision to do a PhD often comes down to the opportunity cost of spending another three years' in education. Personally, I believe a PhD is financially worthwhile: starting compensation packages for PhDs are generally higher than for non-PhDs. However, I strongly advocate participating in as many internships as possible to gain experience, network, and possibly even land some job offers before you finish your degree.

I also believe that a PhD really does separate you from the rest of the pack. Employers are generally keen to hire PhDs for a variety of reasons. These are the main three:

(1) A PhD proves that you can do independent research This is a huge positive. Even those with the best grades do not necessarily have the ability to conduct independent research. Having a PhD is an excellent indication that you can start and finish a large project with minimal supervision - a quality employers strongly desire.

(2) A PhD topic can demonstrate competence in a particular field In-depth academic research is probably the closest thing someone can get to experience without actual experience (though I reemphasize the importance of internships!). Moreover, if your thesis is closely related to the career path you are planning on, then this also shows some interest and initiative that a prospective employer will appreciate.

(3) Perception There is no doubt that many people believe that PhDs are smarter. Finance attracts all types of people but PhDs generally attract more respect. Admittedly, there are many people who could have achieved a PhD but chose not to. However, there are also others who might not have been up for the challenge. Getting a PhD removes all doubt.

Aaron Brask is a former banker at JPMorgan and Barclays Capital with a PhD in mathematical finance. He's also the author of the Wall Street Primer .

I'm currently doing diploma in fundamental of financial service and I wanted to do accounting science but now since I've started I fell like I have to finish because if I would change it would be a waste of money and time. So I thought a Ph.D. In financ will do but reading your comments and other sources if no longer want to do it. Please help me to know which job in finance that is a bit more like CA and please know that your comments can build or destroy someone's life. Thank you.

This article is really rather misleading for anyone who stumbles upon it. A PhD in Finance is a HUGE committment, and not something that can be decided easially. PhD programs in general, even for lower (<100 ranked) schools, have acceptance rates of less than 5%, and those who do get in generally have an extremely rigorous undergraduate with courses in upper level math, statistics and computer science.A PhD normally takes 5 (five) years to complete, and is entirely dedicated to learning to research ideas.

If you are interested in working in something like M&A, being a financial analyst, or other careers like these a PhD is going to be a terrible fit for you and is absolutely not worth your time and effort. If you are interested however in being an options trader, in risk management, or being a quant, a PhD is no longer something that sets you apart, but is something expected and required. That being said however, many quant jobs have starting salaries posted at 250k+, and many business professors make 175k+, so regardless you can do fine for yourself with a PhD, but you need to do it for the right reasons.

Surely it depends what you want to do. A professional qualification like CFA, Actuarial Science, ACCA etc prove that you have the drive to work and study as opposed to the relatively less stressful phd environment which gives you free reign. I've worked with numerous phd's who were very smart and researching say physics or stats hypotheses and were very good in an academic environment, but when it came to dealing with people and content in the workplace fell down quite badly. Clearly if you're talking about a quant type of role, you would want a specialised stats phd however.

Doing a Ph.D restricts your career in research / education sector. Industry would prefer a professional degree in accounting and finance OR at the minimum - an MBA

Doing a PhD is a complete waste of time if you want to work in Finance. I would rather spend 3 years gaining experience in the field, stepping up the corporate ladder and working on a more relevant certification like the CFA.

Few PhD's know early on that they'll end up in Finance. Those who don't usually are scientists who wake up one day and realize there are no high-paying jobs in their fields. They then drift to becoming quantitative analyst or developers, and are stepped over by everyone else in the firm.

The arguments you put forward only serve on point: landing a good first job; which is not worth spending 3 years in school. In my opinion, the only reason a PhD would serve you is if you already have experience in the industry, find a hard relevant problem and go back to the research lab to solve it.

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The field of finance covers the economics of claims on resources. Financial economists study the valuation of these claims, the markets in which they are traded, and their use by individuals, corporations, and the society at large.

At Stanford GSB, finance faculty and doctoral students study a wide spectrum of financial topics, including the pricing and valuation of assets, the behavior of financial markets, and the structure and financial decision-making of firms and financial intermediaries.

Investigation of issues arising in these areas is pursued both through the development of theoretical models and through the empirical testing of those models. The PhD Program is designed to give students a good understanding of the methods used in theoretical modeling and empirical testing.

Preparation and Qualifications

All students are required to have, or to obtain during their first year, mathematical skills at the level of one year of calculus and one course each in linear algebra and matrix theory, theory of probability, and statistical inference.

Students are expected to have familiarity with programming and data analysis using tools and software such as MATLAB, Stata, R, Python, or Julia, or to correct any deficiencies before enrolling at Stanford.

The PhD program in finance involves a great deal of very hard work, and there is keen competition for admission. For both these reasons, the faculty is selective in offering admission. Prospective applicants must have an aptitude for quantitative work and be at ease in handling formal models. A strong background in economics and college-level mathematics is desirable.

It is particularly important to realize that a PhD in finance is not a higher-level MBA, but an advanced, academically oriented degree in financial economics, with a reflective and analytical, rather than operational, viewpoint.

Faculty in Finance

Anat r. admati, juliane begenau, jonathan b. berk, greg buchak, antonio coppola, peter m. demarzo, darrell duffie, steven grenadier, benjamin hébert, arvind krishnamurthy, hanno lustig, matteo maggiori, paul pfleiderer, joshua d. rauh, claudia robles-garcia, ilya a. strebulaev, vikrant vig, jeffrey zwiebel, emeriti faculty, robert l. joss, george g.c. parker, myron s. scholes, william f. sharpe, kenneth j. singleton, james c. van horne, recent publications in finance, behavioral responses to state income taxation of high earners: evidence from california, beyond the balance sheet model of banking: implications for bank regulation and monetary policy, fee variation in private equity, recent insights by stanford business, “geoeconomics” explains how countries flex their financial muscles, car loans are a hidden driver of the ride-sharing economy, public pensions are mixing risky investments with unrealistic predictions.

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Is it worthwhile to get a financial planning phd.

November 17, 2016 07:39 am 17 Comments CATEGORY: Personal/Career Development

Executive Summary

With over 75,000 CFP certificants, having an advanced designation is not the differentiator it once was in the marketplace. Instead, the successful growth of CFP certification, along with rising consumer awareness of the CFP marks, is turning the CFP into a minimum standard to be recognized as a professional, and those who really want to differentiate must pursue even most "post-CFP" certification instead.

In this week’s #OfficeHours with @MichaelKitces, my Tuesday 1PM EST broadcast via Periscope, we explore whether getting a PhD in personal financial planning is a good way to differentiate as an advanced practitioner... or rather, why a financial planning PhD is probably a bad idea for even sophisticated financial advisors.

Because the reality is that a financial planning PhD is really not just the ultimate advanced designation in financial planning. It's really a research degree, with content that teaches students how to actually do real research, applying proper research methods and conducting the appropriate statistical analyses. A financial planning PhD doesn't actually teach much at all about how to do financial planning; in fact, most of the PhD programs will expect candidates to have already learned that before applying (and/or may have to take "pre-doctoral" courses just to get the requisite education first).

Instead, the real purpose of getting a PhD in financial planning is to teach financial planning (at a higher education institution), or to do real research in financial planning. The good news is that there are a growing number of opportunities in both - in fact, the whole purpose of the origin $2,000,000 seed grant that the CFP Board made to Texas Tech's personal financial planning PhD program in 2000 was specifically to help create financial planning PhDs who could go create and teach in other financial planning PhD programs (which is exactly what happened). And there is certainly no shortage of applied financial planning research opportunities.

But the bottom line is simply to recognize that practitioners who want "advanced" financial planning designations should seek out post-CFP designation programs, or perhaps a Master's in Financial Planning . But a PhD is not just a more advanced designation; it's really a teaching and research degree, and is best suited for those who really want to teach and do research, either in lieu of becoming a financial planning practitioner, or perhaps as a second career for those practitioners who are ready for a fresh new challenge!

Author: Michael Kitces

Michael Kitces is Head of Planning Strategy at Buckingham Strategic Wealth , which provides an evidence-based approach to private wealth management for near- and current retirees, and Buckingham Strategic Partners , a turnkey wealth management services provider supporting thousands of independent financial advisors through the scaling phase of growth.

In addition, he is a co-founder of the XY Planning Network , AdvicePay , fpPathfinder , and New Planner Recruiting , the former Practitioner Editor of the Journal of Financial Planning, the host of the Financial Advisor Success podcast, and the publisher of the popular financial planning industry blog Nerd’s Eye View through his website Kitces.com , dedicated to advancing knowledge in financial planning. In 2010, Michael was recognized with one of the FPA’s “Heart of Financial Planning” awards for his dedication and work in advancing the profession.

(Michael’s Note: The video below was recorded using Periscope, and announced via Twitter. If you want to participate in the next #OfficeHours live, please download the Periscope app on your mobile device , and f oll ow @MichaelKitces on Twitter , so you get the announcement when the broadcast is starting, at/around 1PM EST every Tuesday! You can also submit your question in advance through our Contact page !)

#OfficeHours with @MichaelKitces Video Transcript

Welcome, everyone! Welcome to Office Hours with Michael Kitces!

I want to talk today about advanced financial planning education.

For most of the history of financial planning, educational programs associated with advanced designations like the CFP certification or the ChFC marks were the highest level of advanced education available. Unlike some fields that offer graduate level advanced education, though, most of these programs were typically taught as adult education certificate programs.

These adult education programs were created to teach the core knowledge (and maybe in the case of CFP marks, to specifically prepare you for the test), but not necessarily to develop 'advanced' practitioners. Most financial planning designation programs are functionally the equivalent of about a half a dozen undergraduate level courses at the most.

In the past 15 years, though, we've seen the rise of actual college degrees in financial planning . Much of that growth was spawned by a visionary grant from the CFP Board to Texas Tech – which seeded $2 million in 2000 to the personal financial planning PhD program at Texas Tech University, and started the growth of higher education programs for financial planning.

The goal of the grant was to create PhD graduates from Texas Tech, who in turn could go out and create other PhD programs, since most higher education institutions require a professor having a PhD in order to teach in a PhD program.

Financial Planning PhD Programs [Time - 1:38]

Now, 15 years later, the education landscape looks very different. We've reached the point where there are as many degree based undergraduate and graduate programs in financial planning as there are adult education certificate programs!

We've also seen the rise of about a half a dozen Ph.D. programs. These include, the original Texas Tech personal financial planning PhD program itself, as well as PhD programs at the University of Georgia , Kansas State University , and the University of Missouri – each of which have had some faculty who received their doctorates from Texas Tech. More recently launched programs include Louisiana State University and the new Ph.D. program at the American College of Financial Services taught by Dr. Wade Pfau , who many of you know from the world of retirement research.

With the growth of all these advanced programs in financial planning, I'm actually hearing more and more practitioners asking the question: is worthwhile to get a Ph.D. in financial planning?

So that's the question I want to tackle today. What's the relevance of a PhD in financial planning for a financial planning practitioner?

What Is A Financial Planning PhD, Really? [Time - 2:37]

To answer the question, first I think it's really crucial to recognize what a PhD actually is. A PhD is a professional research degree. It is not an advanced financial planning designation for practitioners.

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You'll see this distinction if you actually look at the curriculum of a PhD program. You may see some credit hour requirements for mastering the core financial planning body of knowledge, but many programs actually characterize these as pre-doctoral foundational classes – stuff they would've expected you to get in a Master's degree, but if you haven't, then you can do that first.

Within the PhD program itself, you'll often find courses that are heavily research oriented. You'll find courses on research methods, quantitative models, possibly even econometrics – all built around how you actually do research in financial planning.

A PhD program will culminate in a doctoral dissertation where you're going to do a very in-depth research study into something related to financial planning. Some programs will let you do a dissertation composed of three slightly smaller original research studies that you can later submit for journal publication (a "three papers" dissertation, rather than one mega study).

But I can't emphasize enough that the focus of financial planning PhD content is not advanced financial planning like a Master's degree might be. It's about actually doing research in financial planning!

Using A PhD in Financial Planning To Become A Professor [Time - 4:03]

Given these dynamics, what do you do with the financial planning PhD?

As the funding from the original CFP board grant indicates, one of the primary opportunities for getting a Ph.D. in financial planning is to teach personal financial planning, particularly in a higher education institution. And I think it's worth noting this is a really exciting time for the growth of financial planning as an educational discipline, as we grow the number of degree-based programs.

My gut is that in the coming decade we may actually see a shift where the requirements for financial planning education move up and require more college course work in financial planning. We already require a general bachelor's degree to get your CFP marks , but perhaps will require more actual content in financial planning. After all, when you compare financial planning to other more established professions - such as law, accounting, medicine - they all require graduate degrees to really master the content, and then you learn to be a practitioner as you get your experience and actually attain your license!

As financial planning grows and expands its body of knowledge, we may soon get there as well with an important caveat: If we actually require everybody who's getting CFP marks to get college education in financial planning, there are not enough professors to teach them all! Particularly not if we require coursework at the graduate level, which will require more PhDs to build more programs and continue to grow the field.

So for those of you who are practitioners and think a second career as a financial planning educator might be appealing, a PhD can be a very good path for you.

Doing Original Research With A Personal Financial Planning PhD [Time - 5:36]

The second alternative for what to do with a financial planning PhD is to actually do research .

To be honest, I think research in financial planning is woefully inadequate right now. There's so much we advise on that relies on rules of thumb instead of real, validated research. I think we're especially weak about this when it comes to the science of actually delivering financial planning.

You can even see it in our labels. It's common to call the technical stuff the "science" of financial planning, while the delivery is the "art" of financial planning (or the "soft side" of financial planning).

However, there's actually a hard science to the soft side of financial planning as well! If you look at fields like medicine and psychology, there is extensive research in the soft skills that relate to connecting with patients and giving people advice that helps change their behavior. When we look at financial planning, we don't even teach behavior change in most financial planning programs! It's certainly not a material part of the core curriculum.

Imagine all the research that can be done on the softer side of financial planning – not to mention all the stuff on the hard research side as well, such as retirement research, research on how to positively impact spending and saving behaviors, research on how to improve the psychology of insurance so people who actually need coverage would buy it, and research on how our financial literacy grows, develops, and changes over time.

For instance, there's fascinating research out there already on how our financial literacy tends to decline with age, though our confidence in financial literacy does not . We continue to be confident, even though we actually know less. That has all sorts of implications around how we might engage as planners, but you need research to validate and support it. As a financial planning PhD, if you want to go down that road, you can contribute to that research!

If there's one thing you take away from this, it is to recognize that a personal financial planning PhD is not an advanced financial planning practitioner designation – it's a research degree (or at least it's a teaching and research degree). It's something that you get if you want to be a professor that teaches financial planning, or if you want to be affiliated with a university that does financial planning research, or maybe you want to do your own independent financial planning research. It's not meant for simply being an advanced practitioner, and that's an important distinction.

In fact, realistically, if you don't like doing mathematical analyses, building models, working with giant spreadsheets, and learning how to use real number crunching software – recognize that you're probably not going to be very happy in the program. Good PhD programs are generally very quantitatively oriented. So at a minimum, be certain that you go into it with your eyes wide open about what it really entails because the cost is not trivial. A lot of PhD programs will cost you tens of thousands of dollars.

If you just want your CFP education as Eddie just noted [from Periscope], you can get a CFP designation and maybe pursue a Master's degree – most of which are structured as advanced practitioner degrees. But, a PhD is really something different. If your passion is teaching and research, go get a PhD If you're a practitioner that's maybe thinking about a second career and interested in conducting research, you may want to consider a PhD as a second career path. But, if you simply want to get a more advanced knowledge and education as a financial planning practitioner, look to graduate degrees and advanced designations – not a PhD!

So I hope that helps a little as some food for thought. This is Office Hours with Michael Kitces 1:00 p.m. East Coast time every Tuesday. Thanks for hanging out with us and have a great day everyone!

So what do you think? Do you have any interest in getting a Ph.D. in financial planning? Do you think we will continue to see research more heavily influence our industry? Are Master's degrees or advanced designations better options for most practitioners? Please share your thoughts in the comments below!

November 17, 2016 at 12:21 pm

I appreciate your blog post on this topic, Michael, given that I’m currently a doctoral student at Kansas State’s Personal Financial Planning program. The impetus behind my decision to pursue a Ph.D. was 1) I was seeking a career switch from portfolio management to financial planning; 2) I needed to complete the CFP board education requirements to acquire the CFP designation; 3) I already have a master’s degree (in finance) and wasn’t interested in pursuing a second; 4) I’ve always had aspirations for learning and teaching.

The Ph.D. program, particularly at KSU, can be a fantastic option for existing or aspiring practitioners, who already have an advanced degree, and who seek to earn the CFP mark while expanding their horizons in subjects like financial therapy, applied behavioral finance, and money and relationships – skillsets that can absolutely be utilized from a practitioner’s standpoint. In fact, the hybrid nature of KSU’s program (mostly online with summer residency requirements) makes it perfect for current practitioners to stay working in the field or running their practices while pursuing a doctoral degree.

For the most part, I agree that a Ph.D. is primarily designed for educators and researchers. However, doctoral programs (like anything else in life) can be whatever you make of it. If you seek to use it to teach, then teach. If you want to be a researcher, then use it as a research degree. If you want to stay working in the field, or perhaps switch gears towards working as a financial therapist, the industry is currently working on licensing and credentialing requirements for practitioners looking to go that route.

The opportunities you have with a Ph.D. in financial planning are indeed endless, and I’m so excited to see where my program takes me.

November 18, 2016 at 10:08 am

Thank you for being passionate about Financial Planning. We need folks like you to pioneer new ideas and strategies for the rest of us to copy and utilize for the benefit of our clients 🙂

With that said, the cheaper/quicker/easier route for a college graduate practicing planner to get their CFP will likely be to go through a non-degree program (e.g. certificate programs at American College and College for Financial Planning). As I’m sure you’d agree, a PhD may be overkill for the average reader of this blog.

I was one of the lucky few that knew I wanted to go into planning very early on so my undergraduate degree is in a CFP-approved program. I ended up getting my Master’s degree in personal financial planning from Texas Tech as well, but honestly it was more my ignorant method of delaying entering the job market (I didn’t want to go into the high pressure insurance sales jobs that were plentiful in my area). I don’t regret it since I’ve done fairly well, but I wouldn’t suggest that route for younger colleagues.

My suggestion for other millennials that are on the younger side and are interested in planning would be to take their degree and get nearly any job in financial services/banking. Get first-hand experience with clients and financial products/services. It may not be remotely close to that perfect fee-only pure planning job, but it’ll give you experiences to draw from. Then if you like it, take the steps needed for the CFP. I had a good number of classmates that ended up with a decade of student debt, but aren’t in the industry.

Side note: Kansas State is a great program. I had classmates that did their undergraduate work there and they were top-notch.

November 27, 2016 at 8:59 pm

Millenialing – thanks for your input on K-State. I plan to eventually pursue a PhD, but currently I am getting my Masters while working full time; which I think is the best of both worlds.

On that note, I’m getting my masters at the College for Financial Planning and it is fully accredited by the Higher Learning Commission (i.e. the credits transfer to major institutions). The first half of the program is the CFP classes (minus the capstone) and the second half is core/elective coursework on more advanced topics of financial planning like Social Security, health care, reverse mortgages, portfolio construction, etc. Overall the Master’s program can be completed in two years and is under $15,000.

That said, although the K-State PhD sounds promising, my only hesitation is that it’s not through an AACSB business school – just like Missouri, Georgia, and Texas Tech. When LSU started offering a financial planning PhD through their AACSB accredited business school (in 2014) I was really excited and planned to apply once I completed my Masters. Unfortuntely, however, they terminated the program after a year because they couldn’t get enough interest.

Overall, I’m not saying K-State or the other financial planning PhD programs are bad, but unfortunately academics is often based more on pedigree than actual intellect and skill. With that in mind, the ugly truth is that a PhD from an AACSB business school will lead to a higher salary and more opportunities (both short and long term) than a PhD from a human sciences school; which ultimately means from a personal career perspective you may want to consider a PhD in finance, accounting, or economics instead and later circle back and teach financial planning to undergrads in a business school. However, if you are truly passionate about a PhD in financial planning, then go do it, but realize the limit you’re placing on your personal career. And that’s not to say those limits can’t be broken, but it will be considerably more difficult since your degree is not from a business school.

Hopefully this will change within the next few years and more AACSB business schools will start offering a PhD in financial planning while financial planning programs from non-business schools are terminated, but until then you’ll either have to go the finance/accounting/economics route or follow your passion for a PhD in financial planning but face the uphill battles.

November 28, 2016 at 1:07 pm

DJ, you are correct that KSU’s doctoral program is not AACSB accredited, but the Ph.D. program is not really a “business degree.” It is housed under the department of Family Studies and Human services because the focus of the program is the soft side of financial planning (i.e. financial therapy, money and relationships, applied behavioral finance).

I encourage you to check out the most recent research on Ph.D. financial planning programs. A recent study performed by the CFP Board highlighted that 63 percent of higher education institutions cared less about hiring financial planning Ph.D’s from AACSB-accredited institutions and gave more weight to coursework, experience, and personal characteristics.

http://www.bizedmagazine.com/archives/2016/4/features/preparing-financial-planning-faculty

January 11, 2017 at 10:09 pm

Just to piggy-back on this comment: personal financial planning degrees at K-State, Mizzou, UGA (don’t know about TTU) are converts from what was Consumer Economics. That’s why they are not in the business schools.

Don’t want to get into the optics/politics of non-business school faculty teaching a financial discipline (i.e., financial planning), but for anyone considering a PhD in personal financial planning: look at the numbers in that article very carefully. There’s a big difference between “somewhat likely” and “very likely.” Also, only slightly more than 50% of reporting schools were AACSB-accredited (and not all AACSB schools necessary pay top dollar). Only another 19% were ACBSP accredited (which pay lower than AACSB schools). So about 30% had no business school accreditation (hard to tell what they pay — they could be unaccredited business schools, but they could also be non-business school programs like K-State that actually pay pretty well, although half of what a new finance professor would make at a top 70 business school). What does all that mean? It means that chances of getting a job at a nationally-ranked business school aren’t great with this degree.

That’s not to say it isn’t worthwhile: there are obviously a number of programs that are looking for grads from these programs. (Seems like a few positions open up each year). These are going to be at smaller regional schools (just look at the list of CFP Board registered programs to get an idea). There are some really impressive people and students out at Utah Valley University, for example. But do not undertake one of these PhDs thinking that it is going to open doors to finance departments at ____ State University or its peers where you will be earning a paycheck on par with an Assistant Professor of Finance. (Many salaries at these schools are public information, by the way, so don’t take my word for it — look it up.)

December 22, 2016 at 12:41 pm

Actually, if you take some finance courses in the K-state Ph.D. program, you will be qualified to get a AACSB business school position. But I would actually argue your premise that the salaries are higher. Financial planning professor salaries are creeping up, largely due to the groundbreaking research being done.

January 11, 2017 at 9:32 pm

I am finishing one of the PhD programs listed above, and it does not qualify one to teach at an AACSB school. At many of the (ranked) business schools the CFP program is a certificate program taught by adjuncts that have professional experience and meet minimum education requirements. When hiring a tenure-track Assistant Professor, the nationally-ranked AACSB business schools pretty much hire only candidates with a PhD in Finance from (top ranked) business schools.

There is the AACSB bridge program — but if you look at UF’s site (for example) you will see that placement is not very good, and most folks who do have teaching jobs actually had their academic position before they started the program.

I’ll tell you what I wish I knew a few years ago: if you really want to be a professor and teach at a business school, then get a PhD in Finance from a good program. If you’re really passionate about financial planning research, you can still do that. These financial planning programs hire Econ and Finance PhDs. Finance programs do not hire Financial Planning PhDs.

January 12, 2017 at 6:51 am

Not that I would want to teach anyway (I do a lot of court testimony and a Ph.D. holds up better than a couple of master’s), but I, too am in the K-State program. There is specifically a track at my school for those who would like to teach at AACSB schools. Also, there are a couple of good private school (AACSB-accredited) that are looking specifically to start a financial planning MBA track and are looking for Ph.D. graduates in Financial Planning, one at the school where my wife is a professor.

Once again, not my thing, but I know a few people who have structured their plan of work that way.

Most mid-career financial planners would find the pay cut (even at the associate and full professor salaries) appalling. My wife’s spending habits wouldn’t let me take that pay drop.

November 17, 2016 at 4:49 pm

Masters of Taxation is another option. I am in the program at Golden Gate University. It is kicking my butt. Fairly large law component.

November 19, 2016 at 8:38 pm

Got the masters in 1991. Much much better than CFP but very limited in material in the real world. And since 1995 .almost the entire knowledge base changed with the internet and personal computers. And it keeps happening over and over again almost each and every year. The degree ‘forces’ one to recognize that the demand is everyday and that one has to do additional investigation to keep up. MPT has been shattered, long term care is a mess, et al. Then we have behavioral elements never previously addressed. Now we have the DOL which is clueless, Same with SEC and NAASA.. The designations are severely limited save for the CFA- but that effort is also suspect at times and certainly does not incorporate finanical planning. The MS is now a minimum but how to stay current is a bear. More so if one addresses insurance- which must be done for retirement.

November 21, 2016 at 9:05 am

I completely agree with Michael that the value of the CFP marks has shifted over the years. Our firm has been kicking around the Ph.D. route for the past couple years to improve our “intellectual capital” and differentiate from the CFP a bit. However, I feel the CPWA (certified private wealth advisor) may be more representative of our firm. Does anyone have any insight to the CPWA and if they felt it was worthwhile? Thanks.

November 21, 2016 at 9:50 am

Marc, See https://www.kitces.com/blog/what-comes-after-cfp-certification-finding-your-niche-or-specialization-with-post-cfp-designations/ for some further thoughts on CPWA (and other post-CFP designations). – Michael

November 21, 2016 at 11:34 am

Thanks, Michael. Much appreciated.

November 24, 2016 at 9:18 pm

Are the American College and Kansas State the only online PhD. programs?

November 28, 2016 at 12:25 pm

Fred, yes those are currently the only two financial planning doctoral programs offered asynchronously. Although, keep in mind that American College’s Ph.D. program is not CFP-board approved.

November 29, 2016 at 9:35 am

Thanks. From reading your post and others; I have a lot I need to know about programs before I jump in with both feet.

December 14, 2016 at 5:09 pm

i typically don’t post but with so many credentials in the market i would say it depends on the purpose. if you are interested in the educational knowledge, expertise, and furthering your thirst for knowledge that’s one point. Note: i chuckle when i meet advisors that display many designations on their business cards or letterhead – its a waste – Who are you? Clients don’t know what the alphabet soup means. Are you an expert in all these areas and disciplines? whats your sole focus? Also, we have enough designations out there, don’t need more in the world. Does it help build trust when you see five or six designations on a business card? questionable. The most recognizable credentials in the industry are CPA, CFP, CFA, JD, CLU, ChFC. If you want PHD on your card, go for it – do it for the right reason. I think i have a PhD camera on my iphone – Press Here Dummy. it auto focuses, and one click its a simple picture. Why a PhD is the question i would ask someone – no right – no wrong! keep up the blogs, love them

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Why Do a Ph.D in Finance?

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As a sophomore undergrad, how can I best position myself to get into a good Ph.D. program? I plan on doing a masters beforehand, and I was wondering if it would be in my best interest to seek out work experience prior to applying to Ph.D. programs or if I should just do research and work towards publications at my University (which is a top 25 school).

What are the requirements for a Top 25 Ph.D. in Finance?

Getting into a top Ph.D. in Finance program is extremely competitive. A firm foundation in math is essential as is economics. To set yourself apart, a letter from a well-published professor is going to give you an edge. If you can get yourself an internship with this professor, even better.

Any and all experience you can get prior to your Ph.D. application will be useful. The most effective approach is getting published in a top finance publication, however with the limited research knowledge and experience received in an undergrad, this can prove difficult.

Finance related work experience and internships are valuable as they display your dedication and work ethic but they are not likely going to be enough for your Ph.D. application. What they will do is give you a better of an idea what a career in finance would be like and if you would prefer to be in a bank/corporate setting or academia post-graduation.

Finance Ph.D. Ranking

Take a look at some of the top-ranked business schools according to Bloomberg

teenagepirate: Top finance Ph.Ds are more competitive than any entry-level job within banking. A publication always helps. Research experience helps more than internships but competitive internships (top name bank etc.) have value because they're a signal that you're capable of working hard. Admission to the top 25 schools is essentially a lottery. Average GMAT for Chicago's finance Ph.D. was 760+ for instance. Work hard, do your math courses, do your economic courses, get good recommendation letters from well-published finance profs (try to do research internships with them). Independent research won't get you very far because as an undergrad, you're just not trained well enough to do it to a high level.

What do Finance Ph.Ds do after Graduating?

A Ph.D. in Finance will set you up for a position at a quantitive trading desk. They land fewer jobs with I-banks and more often work behind the scenes and are generally less involved directly with clients as their reputation tends to be that they are more academic and less business oriented. What it does set you up for, however, is a career in academia as a professor or researcher.

Schumacher: I-banks generally have economists and market strategists (not sure who gets these jobs and how) that generally most of these people carry PhDs. The trend at most quant trading desks seems to lean more towards the physics, mathematics, statistics PhDs. It's a great degree to have if you want to break into trading. To be honest, a Finance Ph.D. is basically only beneficial to people who want to become college professors, which has its perks (ridiculously short hours, low-stress environment, and great pay assuming you can get a job at a half-decent college).

https://www.youtube.com/watch?v=tnn4Ny67DY4

UES802: I was talking a bit ago with an MD at an MM I-bank and someone asked him a similar question. He responded with, while anything is possible, attaining a Ph.D. in Finance won't really help your chances to get into I-banking all that much. He personally felt that people who go this route tend to get too used to the culture and routine that is involved with school, and are better equipped to become a professor than to attempt to enter the business world.

Academic-based positions can be extremely lucrative and appealing due to the great benefits and hours but if you’re keen to work with clients and in the front end of things, it would probably be more book education than you need.

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It's fairly difficult. Princeton admits 1-2 PhDs each year. Same with the other top ten schools.

My advice is to write a paper that gets published in a Big Three journal (Journal of Finance, Journal of Financial Economics, Review of Financial Studies.) If you can do that, you should get in just about anywhere.

IlliniProgrammer: It's fairly difficult. Princeton admits 1-2 PhDs each year. Same with the other top ten schools. My advice is to write a paper that gets published in a Big Three journal (Journal of Finance, Journal of Financial Economics, Review of Financial Studies.) If you can do that, you should get in just about anywhere.

Wow, are non-ivies (say, top 30 schools) a little easier? How about a publication in a good health economics journal? (I hope to get more involved in healthcare finance research)

Would my undergrad summers best be utilized by doing research or internships at F500 or investment banks ?

Top finance PhDs are more competitive than any entry level job within banking. A publication always helps. Research experience helps more than internships but competitive internships (top name bank etc.) have value because they're a signal that you're capable of working hard.

Admission to the top 25 schools is essentially a lottery. Average GMAT for Chicago's finance PhD was 760+ for instance. Work hard, do your math courses, do your econ courses, get good recommendation letters from well published finance profs (try to do research internships with them). Independent research won't get you very far because as an undergrad, you're just not trained well enough to do it to a high level.

Finally, don't post here, post on urch.com and read econjobrumors.com . People here are a little bit retarded and think a PhD is something you do if you don't get a job and you want to be lazy. A finance assistant prof (ie straight out of PhD) at a top 25 school will get $200k+ for 9 months a year and a professorial lifestyle. Hell, even PhD students get a $30k stipend (and can raise external financing for the program). It's not as much as you get paid in industry, but it's pretty excellent when you consider the lifestyle and the fact that you don't have to wade through as much bullcrap in your career.

teenagepirate: IlliniProgrammer: It's fairly difficult. Princeton admits 1-2 PhDs each year. Same with the other top ten schools. My advice is to write a paper that gets published in a Big Three journal (Journal of Finance, Journal of Financial Economics, Review of Financial Studies.) If you can do that, you should get in just about anywhere.

How are the results for attending a program outside the top 30 or even top 50? Does it get increasingly tough to get tenure and industry opportunities?

Also, I was on academic probation during my freshman year due to poor grades. If I bounce back to about a 3.7 GPA or so by time of application, would it come back to bite me?

Thank you for your response, it helped greatly!

Between Harrison Hong, Markus Brunnermeier, and Ben Bernanke, we have our fair share of research on the financial markets.

Everyone has access to WRDS; everyone can crank out an analysis and figure out if there's something publishable in about a week's time; and the papers are examined blindly. This is something any 21 year old with Excel and WRDS can do; it's not exactly like this is 1978 and some 18 year old is trying to invent the PC in his parents' California garage. (Oh wait.)

Ask a tough question for which there is financial or economic data to answer it with. Then find an appropriate journal to submit your analysis to. They don't really consider the fact that you're an undergrad until the decision to publish has already been made.

Get something published- just make sure you have something really interesting. The JoF's submission fee is something like $250 and they have a twelve week turnaround time.

just u are, idiots

just ure retarded

The market is very good, solid 6 figure salaries for starting associate professors. Pretty much everything you read about getting into economics PhD programs can be cross applied to finance PhD programs. The most improtant things are going to be:

Math background: math stats, probability, differential equations, and real analysis would be very good.
Recs from profs
Experience working as a research assistant, writing a senior thesis, etc. These are the sorts of things that make for good recs.
A non disqualifying GRE quant score (as close to 800 as possible).

Also look into econ PhDs where you can concentrate in financial economics. They won't care about interning at a F500 or whatever, it's irrelevant.

(the reason I mentioned Etula there in the last paragraph is not because he's a retard or anything but because his asset pricing paper was mentioned on Falkenblog yesterday http://falkenblog.blogspot.com/2013/01/is-broker-dealer-leverage-elusiv… and I really wasn't convinced by it yet this guy is an "asset pricing expert" in QIS at GSAM )

teenagepirate: (the reason I mentioned Etula there in the last paragraph is not because he's a retard or anything but because his asset pricing paper was mentioned on Falkenblog yesterday http://falkenblog.blogspot.com/2013/01/is-broker-dealer-leverage-elusiv… and I really wasn't convinced by it yet this guy is an "asset pricing expert" in QIS at GSAM )

How difficult is getting into an accounting phd program? What undergrad/ MS concentrations would set me up best for this and/or finance?

jackd9999: teenagepirate: (the reason I mentioned Etula there in the last paragraph is not because he's a retard or anything but because his asset pricing paper was mentioned on Falkenblog yesterday http://falkenblog.blogspot.com/2013/01/is-broker-dealer-leverage-elusiv… and I really wasn't convinced by it yet this guy is an "asset pricing expert" in QIS at GSAM )

As for your undergrad, it's not super important. Undergraduate accounting tends to be way more practical than what research is. Your best bets are math, econ, statistics and finance, with a few accounting courses so that you understand the very basic concepts. After those come engineering, physics etc. Essentially, you just need to be able to show that you can handle the very quantitative courseload. Often, you'll need to have done a few basic courses in micro-economics and finance, but this is not a hard requirement at all schools. Some schools (Stanford comes to mind, MIT too I think) also require some programming proficiency so it makes sense to do a bit of compsci as well.

And are you serious about "everyone can crank out an analysis and figure out it there's something publishable"? It takes Hong, Brunnermeier etc. a year or so to go from idea to publication and that's with an army of research assistants and co-authors. It's virtually impossible for an undergrad to know the established methodologies for a given field, to know whether their question is relevant and to be able to write the paper in the right way to get their point across in a way that's acceptable to the editors. An undergrad is not going to get a top 3 pub in econ/acc/fin, they may get their dissertation in if their supervisor puts a lot of work into it, but I've never seen a BSc diss make it, only masters level ones. And, as I said, the supervisor usually helps a lot with that.

If you have a trading strategy that can generate a big enough sharpe ratio, it's not too tough to get it published in the JQFA. And if it's big enough and obvious enough to raise a lot of doubt about the EMH or CAPM , you're now talking about a big three publication.

You can vet a trading strategy in about three days in industry. It took me a week to come up with something that can consistently generate a Sharpe of 2.

Most of the quants who held Finance PhDs I worked with in industry were published multiple times in grad school. Seriously, it's not all that tough. And it doesn't really matter your school's ranking- it matters what you, personally get published. Attending a school with a brand name can also be helpful, but you're only the sum of your work product.

Bottom line: If you want into grad school, get something published .

IlliniProgrammer: And are you serious about "everyone can crank out an analysis and figure out it there's something publishable"? It takes Hong, Brunnermeier etc. a year or so to go from idea to publication and that's with an army of research assistants and co-authors. It's virtually impossible for an undergrad to know the established methodologies for a given field, to know whether their question is relevant and to be able to write the paper in the right way to get their point across in a way that's acceptable to the editors. An undergrad is not going to get a top 3 pub in econ/acc/fin, they may get their dissertation in if their supervisor puts a lot of work into it, but I've never seen a BSc diss make it, only masters level ones. And, as I said, the supervisor usually helps a lot with that.

You can vet a trading strategy in about three days in industry; probably less. It took me a week to come up with something that can consistently generate a Sharpe of 2.

Just randomly picked 3 top 10 schools that showed CVs of their current students / job market candidates. Most of them have no publications, a few have one paper with a supervisor or something. You don't get a top 3 publication for figuring out a trading rule, you don't even get a JPM or FAJ for that. No one cares, it's probably the result of data mining or ignoring something like liquidity/ trading costs etc..

And what do you mean by quant? You mean someone working derivs, or a quant as in someone who specializes in quantitative investing? Basically mathematical finance vs. asset pricing? Because in mathematics and physics it's a lot easier to publish than in finance, articles are much shorter and take less time to get through.

If getting a top journal publication was easy, leading professors wouldn't travel half-way around the world to present papers at seminars and get comments on them.

teenagepirate: IlliniProgrammer: And are you serious about "everyone can crank out an analysis and figure out it there's something publishable"? It takes Hong, Brunnermeier etc. a year or so to go from idea to publication and that's with an army of research assistants and co-authors. It's virtually impossible for an undergrad to know the established methodologies for a given field, to know whether their question is relevant and to be able to write the paper in the right way to get their point across in a way that's acceptable to the editors. An undergrad is not going to get a top 3 pub in econ/acc/fin, they may get their dissertation in if their supervisor puts a lot of work into it, but I've never seen a BSc diss make it, only masters level ones. And, as I said, the supervisor usually helps a lot with that.

Uncovering Hedge Fund Skill from The Portfolio Holdings They Hide This paper studies the “confidential holdings” of institutional investors, especially hedge funds, where the quarter‐end equity holdings are disclosed with a delay through amendments to Form 13F and are usually excluded from the standard databases. Funds managing large risky portfolios with nonconventional strategies seek confidentiality more frequently. Stocks in these holdings are disproportionately associated with information‐sensitive events or share characteristics indicating greater information asymmetry. Confidential holdings exhibit superior performance up to 12 months, and tend to take longer to build. Together the evidence supports private information and the associated price impact as the dominant motives for confidentiality. http://onlinelibrary.wiley.com/doi/10.1111/jofi.12012/pdf

Ok, so someone had the neat idea of running a regression of hedge fund performance against the percentage of portfolios that they disclose through amendments. Woohoo! Journal of Finance! Oh, wow, it was probably mostly done by a grad student too (Yuehua Tang).

As for the strategies, of course you have to take bids and asks. These are reported in nearly every market database. You also have to be conservative in estimating market impact for larger strategies- the fact is that you may not be able to execute some strategy with millions of dollars off of a bid or ask of 500 shares, but there are a number of models commercially available for empirically guessing how much such a transaction would move the market.

If you (1) have a valid arbitrage strategy that WILL make money and (2) use it to make a convincing argument about financial theory, you pretty much have a publication in either the Big Three or one of the next few journals.

Of course, sometimes the best strategies and ideas never get published.

1.) Come up with a theory about the markets. Ideally one that relies on data that wasn't available 20 years ago. (This may rule out theories on cash equities) 2.) Design a strategy to test that theory. 3.) Figure out whether the results show anything. Ideally, try to have a natural experiment with a control and a test. 4.) Figure out how interesting and meaningful those results are. 5.) Clean it up and try to publish it.

You should be able to cycle through 1-4 in 40 hours of work. 5 will take another ~80 hours before you submit to your first journal. Also it's wise to submit to some repository so your idea doesn't get scooped.

I just noticed you also asked about the UK in your first post. So I'll mention that briefly as well.

Basically, in the UK, LBS is basically an American school and is the only UK school that ranks really well globally. LSE has a good name in industry but they're very large and not that respected internationally in "academic finance" or accounting, and apparently treat their PhD students quite poorly. LSE , Warwick, Imperial, Cass, Oxford and Cambridge are pretty much what you would treat as the second tier of schools in the UK after LBS with each having some sort of problem: Cambridge's faculty of finance is tiny and very junior but decent, at the other end of the spectrum you have LSE and Cass which are really big but with a lot of mediocre people and bought talent. Oxford had like 3 people go to this year's AFA meeting which was quite impressive for a faculty as small as theirs. For the UK and finance, LBS is the way to go and should that fail, then LSE and Oxford. But there are many many schools that are as good as LSE and Oxford which are not impossible to get into in the US so at that point it becomes a point of how much funding you can get and how well the research interests match yours. For accounting, I have no idea really because it seems like accounting research in Europe and accounting in the US are done completely differently and European researchers are just unable to get good publications into the top US journals but dominate publishing in AOS. I don't know enough to rank the schools but LBS's department of accounting seems fairly good by international standards (faculty seem to publish in the top US journals), even though it's quite small.

As for if you have a valid arbitrage strategy, lots of people think they do and try to publish them but get rejected. Why? Because most likely they're ignoring something... A lot of professionals think they've got a winning strategy but if they exposed that strategy to the kind of scrutiny that academic ideas get they'd realize just how flawed it actually is.

There have been a couple of arbitrages published in recent years but in reality they're quite rare.. If you have a valid arbitrage strategy that will make money, chances are that either you can use it to make a lot of money (doesn't happen often in practice) or you can publish it (doesn't happen often either).

This isn't that complicated, though.

Anyhow, OP, I strongly recommend http://www.urch.com/forums/phd-business/ instead of here. Here you just have too few people who know anything about the process and too many people who will answer without knowing anything for this forum to be useful (not referring to anyone on this thread but this whole forum)

PhD in Finance vs. Working ( Originally Posted: 10/28/2012 )

I'm early into a PhD program in Finance at a 10-20 ranked b-school. I'm not so sure about going the academia route if I do complete my degree, and find myself more excited about building a career as a researcher in the AM industry. Considering the options of (1) finishing the PhD and going into AM as a researcher, or (2) trying to find a buy or sell side research job and quitting the program (I already have a Master's), does anyone out there with experience have any advice or comparisons for these two paths? Is the ceiling higher with the PhD, and is it worth the 5 year investment?

Geez, finance PhD programs are insanely competitive. If you're in a good program, I would stay where you are.

Depending on your location, you should be able to find part-time work/ internships / consulting jobs while you are working on your degree. If you come out with strong work experience and a good thesis, just about any buyside firm will at least give you a look.

I assume you have a stipend? Then the only cost is opportunity. In this market, staying in a PhD program isn't a terrible idea. You could always quit if you get an offer from a top fund - but in the meantime, you are building your resume (and hopefully getting work experience).

I do have a stipend, but unfortunately my program won't allow me to take outside work while enrolled in the program. So my options for building work experience are pretty limited.

A phD will definitely get you noticed but if you don't have any relevant experience, summer internship , etc, then you will be just like every other PhD who is having a career crises. The problem with a masters at a non-feeder school is that there are many people with them (MFE, etc.) so your resume won't stand out too much. I would say the ceiling is not higher with a PhD but it will help you get noticed by top shops/ AM firms.

If you don't want to do quant/systematic strategies then the value proposition of a PhD diminishes. But again, a PhD will get you noticed in any shop that isn't straight fundamental.

I would think that if you're at a top school then many of your professors consult for the industry. you should ask them about their experience and then also see if they can help you get a summer internship or help them on a project. that should give you a better idea if you think it's worth quitting your program.

Since you're pursuing a PhD in Finance, you're most likely going to be offered positions in quantitative finance research(derivatives pricing). It isn't that bad of a place to be. If you don't want to complete your thesis, then by all means start applying to all the major companies.

You're most likely in a small predicament. I'm guessing you don't know how to program the common languages used like c, c++, java, and python which would rule you out of many quantitative research positions. Given that, you'll be in a more competitive pool competing with students straight out of undergrad for research positions. Since you have a masters, many company HR reps will say you deserve higher pay. But then you've got to think about the department budget and who's running it and what they're willing to sacrifice. In a sense, you run the risk of being overqualified for a research position but under-qualified for another(quant finance research).

With that said, i'd recommend you get through the remainder years and complete your phd.

If you really want to go into industry, 2 years of programming will do you well, C++, Java, and Python at the minimum.

I would have to disagree with one of the above posters. Do not tell your professors that you're planning to go into industry. As you already know, the whole point of a PhD is to prepare you to be an academic researcher. You'll most likely face some opposition when planning your thesis if you tell your professors that your headed to industry.

These are some links which should be of help if you're looking for an industry career post PhD

http://www.econjobrumors.com/topic/phd-in-finance-for-private-sector http://www.econjobrumors.com/topic/afa-private-sector-aqr-blackrock http://www.econjobrumors.com/topic/us-industry-salaries-for-phds/page/1 http://www.econjobrumors.com/topic/most-economists-are-losers

http://www.econjobrumors.com/topic/accounting-phd-vs-finance-phd

afajof.org/association/jobs.asp

Also, finish the PhD. Somehow. The signal premium is worth it. You could arguably drop out with an MS which was paid for and go to work on the street as a quant, but Dr. ABC > Mr. ABC.

Also the buy side roles which are available to Finance PhDs are VERY different from the roles held by MFEs.

Incremental benefit for doing Phd finance ( Originally Posted: 04/13/2013 )

Seeing recently stats of leading business school in US and UK (especially), i was amazed to find that msc/ms programs in finance requirements besides funding are less but they create greater monetary value for finance graduate. On other hand, phd guys invest 5 years with no experience/industry links have to end p on almost same salary. Starting salary for MS guy in year 0 ( just after graduation) is suppose 70 K then it would be approx 92 K by end of differential 4 years ( assuming 7 % increment in annual salary) On other hand, how many phd guys cross on such break even of 92 K at start?

I don't think that money is what is driving people to Finance PhDs. At least not as much as MS . But there are probably other things involved as well.

meaning you agree that on monetary ( or more precisely quantitative return on investment ) terms, phd is behind.

i actually put these facts to this forum just after seeing very few "quality" Masters level specialized fin. programs in US, on other hand all big universities are investing through doctorate level finance courses in finance industry.

From my understanding most of the PHD students in business schools go there for free. Most of these people want to teach and do research, which is cool. I don't think most of them get a phd for the money, it is more like credential that they need to be able to teach and do research.

PhD finance for a job in market ( Originally Posted: 07/17/2015 )

I am starting a PhD program in finance this September. My ultimate aim is to be a researcher in the AM industry and maybe in hedge funds. You might think that PhD is a painful and not a certain path to achieve it, but I would also like to keep options open for academia for the future.

My question here would be the areas/topics that industry might find attractive and that I can excel during my PhD. I am interested in topics in asset pricing and behavioral finance, like analysing/creating models to see the difference in prices of financial products in different stages of business cycles, etc. I am not sure whether those are relevant topics for AM and hedge fund analysts?

WRT my background, I do have a BS in Physics and MS in Finance so I feel I have capacities in both quantitative and financial areas. I am quite good in MATLAB, but VBA and C ++ or Java seem a-must to be in the market.

Please let me know which topics I need to focus on my PhD study, the ones that significantly help me to land some jobs in relevant areas. Not sure whether it make any sense, but my studies were in Europe and i want to stay in Europe. The school is ranked in the European top 10-20 with a few excellent researchers.

Many thanks

If you're getting a PhD and know matlab I would assume you can pick up vba in a few minutes, it's pretty basic (no pun intended)

Check out quantnet and poets and quants

I don't have any input here other than that I'd be careful about listening to advice from here for something as sensitive as your PHD thesis. I would reach out directly to HF 's directly and anyone else you want to work with else well.

Finance PhD's ( Originally Posted: 06/28/2007 )

What's the typical starting job for fresh Finance PhD's other than academia? Do they tend to go into quant-based funds or something similar or do a lot start out at Associated at BB 's?

Also, does it matter which school you get your PhD from? Can a PhD from Tier 2 B-school get a good job or is he/she going to have a hard time?

Why are you asking? These types of questions alone are a pretty good indication that you will never be a Finance PhD.

But to answer your question Finance PhDs have been known to secure jobs as quants and associates at BBs . Like always the better the school...the better your chances of landing these types of jobs.

Personally, I think a PhD in Finance is a complete waste of time unless you had your heart sent on the academic world. If youre brainy enough to get a PhD in finance youre probably brainy enough to get a PhD or at least a Masters in Math/Stats/CompSci/Physics, all of which are probably more marketable in the academic world AND finance.

I concur with Schumacher.

I was talking a bit ago with an MD at a MM I-bank and someone asked him a similar question. He responded with, while anything is possible, attaining a PhD in Finance won't really help your chances to get into Ibanking all that much. He personally felt that people who go this route tend to get too used to the culture and routine that is involved with school, and are better equipped to become a professor than to attempt to enter the business world.

One of the top interest rate quants in the world is a finance PhD.

Math Finance PhD to Wall Street ( Originally Posted: 10/17/2015 )

Long time reader, first time poster...

I'm currently a student in one of the top math finance programs. Until recently I'd planned on joining a finance department at a business school after completing my PhD. Unfortunately, having taken a number of finance courses not offered by the math department - we offer few topics courses - and I've discovered that most of the finance research is mathematically and/or statistically unsound.* The math finance research while rigorous is utterly useless.** As such, I'm strongly considering a transition back to the private sector.

Prior to joining my PhD, I worked in data analytics consulting for four years. I've generally held sales roles and have been client facing. I'm not your typical PhD: I love client interations, I wasn't a nerd in college or HS though I went to a good university, and I was an athlete throughout college and HS. Ideally, I'd like a role that facilitates a lot of social interaction and that's close to the money. Seeing the jobs most of our people get, and yes it's mainly quant jobs in banks or hedge funds , I've acquired the impression that those two things don't characterize their everyday tasks. Should I complete my PhD? Is there a role for a PhD that doesn't make you a trader's bitch or turn you into some sort of quasi-academic troll at Two Sigma?

I'm interested in why you think quants are quasi-academic trolls?

I've heard a lot of quants say that having a postgraduate math degree for quant roles is completely unnecessary/overkill, since the math you learn as an undergraduate math major is sufficient. It's more a function of marketability, or advertising on behalf of the firms who hire these math PhDs.

Also, your comments on mathematical-finance research seems reasonable given many of the opinions of renown quants. Apparently, a lot of the research has just become completely useless and unsound - essentially mental masturbation.

Keep in mind, quants at places like AQR/Two Sigma do more than just research - they also develop and execute actual investment strategies.

The issue is that your background already puts you into the 'quantitative roles bucket'. It may be difficult to convince people in roles with more client-interaction that they should hire you. Trading, risk and investment management roles are what's open to you right now. Of these, investment management would probably offer the most client-interactions.

Investment management at a BB like Goldman Sachs Asset Management , as opposed to a quant fund, may offer a bit more of what you're looking for. I have seen some quants (with/without PhDs) in asset management roles at BB banks. I also hear that Asset Management has quite a bit of client interaction, although others are better qualified to advise you on this.

If you want to get out of quant roles completely, then you're going to have more trouble. This is made significantly worse by the fact that you're a Math PhD, rather than straight out of undergrad. It makes you an 'experienced' hire and I'm not sure how well a Math PhD would be able to recruit for an IB analyst role, ect.

Careers options for PhD in Finance (Other than academia) ( Originally Posted: 11/14/2015 )

I am a first year PhD Finance student at a school which has very a solid reputation in overall but not the top in finance. As a PhD student, my priority is on getting an academic position, but I am also interested in career options in the industry.

Are there substantial number of people getting into IBD or Sales & Trading with a finance phd degree? I am also considering to quant or strats positions, but computational language is not something that I am familiar with.

I know that investment banks prefer fresh college graduates or MBA students over PhD candidates for their front office tasks other than quant, but I also heard that some trading desks dealing with more complicated products such as structure rates or exotics willingly hire PhD guys. Is that true?

If my research is on corporate finance , more specifically capital structure of firms, would it boost my employability for IBD ?

In terms of locational preference, I would not mind to work in any of major financial centers around world. (NY, London or HK) So, if you have any knowledge on those places, please give me some insight.

Quant Hedge Funds. Although it totally depends on the penchant of your PHD program. Quantitative Researchers are research (new models) and programming focused.

IBD I would say a no. You're likely too old and a bit too quantitatively orientated for the role which is as much soft skills as hard science. I would imagine you may have an easier time on the S&T side with a quant desk but I would think you'd likely need to develop some coding skills which frankly shouldn't be that hard to pick up.

Thanks, guys. So you guys suggest that only 'quant' related positions would be available for me? And for the programming language, I am currently using matlab and R for my coursework and research. Would it be sufficent?

undefined: Thanks, guys. So you guys suggest that only 'quant' related positions would be available for me? And for the programming language, I am currently using matlab and R for my coursework and research. Would it be sufficent?

Matlab and R are perfect. In trading , you want a language you can crunch data / backtest strategies with (R / Python) as well as one that has solid execution when you go live (Matlab / Python / C++). Look into statistical arbitrage / pairs trading, you should pick this up no problem w/ your background. Download a few data sets online, run some simple analysis to start, and you can formulate a strategy to start paper trading on your own. From there you can join prop desks, HFT , structuring etc.

If algorithmic trading doesn 't interest you and you don't want to go the pure academic route another way in is through a multilateral organization as an economist . After a few years those positions can set you up well to jump to a bank or hedge fund where you can make some serious coin.

I like the idea about economics. There is a third option other than industry and academia... Government!

Federal Reserve has nice paychecks and exit opps... They cap out around 200 k though if I remember right.

And PLEASE... If you want to go to industry do NOT do research on corporate finance . I would use the opportunity to find an arbitrage or something other statistically significant relationship which produces consistent alpha .

econ/finance phd ( Originally Posted: 04/08/2007 )

if you are currently in a econ or finance phd program what exit opportunities are there on wall street

FI and Equity Quant Reserch/Deriv Pricing groups, banks like Lehman and CS have a PhD day/presentation some time in fall, where they tell about PhD opportunities. make sure you school work is quant/econometrics related. Are you Stern fin or econ ?

just looking @ my options

You can become a professor.

Finance Phd ( Originally Posted: 10/23/2011 )

I am doing Phd in finance, passed the first two levels of CFA exams. I have been told that my background fits for buy side firms, especially HFs . My uni is not an ivy league school though. What do you think is the best way for me to contact HFs?

As my uni is not an ivy league school, they are not coming to my uni and it is hard for me to find something through the alumni.

Thanks in advance.

Cold call/ cold email tons of firms. Use Linkedin to connect with people at HFs you would be interested in working for. I'd imagine it wouldn't be hard to get responses since you're doing a PhD.

What topics are you studying in finance.. I'm just being nosy as I didn't know they offered such a Ph.d

My thesis in on market microstructure of derivatives market. I also work on asset pricing.

Let's say I am graduating in summer, when do you think I should start sending e-mails?

3 years ago.

buybuybuy: 3 years ago.

Agreed. Start emailing and calling ASAP. Attend as many networking events as possible. Tap into the alumni networks of both your PhD school and BA/ BS school, as well as any possible masters you may have done.

New here & im a PHD Finance hunter ( Originally Posted: 04/11/2014 )

Trying to get ideas about PHD finanace proposal.

Not sure if trolling, but if you're seriously looking for someone else to come up with your Phd topic, you probably should not be pursuing a Phd in the first place.

You should probably be talking with your advisor.

This cant be serious :)

finance phd ( Originally Posted: 10/01/2011 )

I will graduate this summer and I am taking CFA level 3 exam this June.I am good at econometrics , R and Matlab. My uni is not an ivy league school, but has a good reputation.

Sell side quants told me that my profile suits better for buy side jobs. I am wondering which buy side firms hire finance phds. Thanks in advance.

Take a look around the Hedge Fund forum. This site has alot of great resources. Here's some for you:

WSO hedge fund career guide

Phd in Finance profile eval ( Originally Posted: 09/27/2014 )

Hi Gurus out there.

I am interested in applying to Finance Phd program.

I would like gurus here to provide me some insights/ideas on my chances getting into these programs listed below:

Uni. of Michigan, UCLA, Duke, USC, Cornell, Boston College, University of Florida, Rutgers.

To provide info on my background/stats:

UGPA: 3.45 & GPGA: 3.5. Studied EE during undergrad and Comp. Engr as major and econ as minor studies during grad school w/ full fellowship & stipend.

GRE V 156 GRE Q 170 AWA 4... I know i bombed my verbal :(

1.5 yrs of research experience & winning IEEE research fellowship/scholarship for my research.

2 yrs of working @ High tech firm (think apple or google) by the time i enroll to phd program..

I am particularly worried about my gpa since it is not 3.8 or 3.9 as advertised on many phd program website...

Do you gurus think if I have a reasonable chance to get into one of the programs I listed above? And is there any particular area I should improve or work on, say GRE verbal for example?

Any advice or comment will be appreciated :)

Just to add another piece of info...

i received my BSE & MSE from top 5 engineering program.....

Your background certainly isn't bad. I have done some reading in finance PhD programs and I think you have a lot of points in your favor. I think it is likely that you will be able to get in somewhere, however there are a few things to keep I mind from what I've read:

The Math. Have you taken Real Analysis in undergrad? Finance and Econ PhDs are pretty brutal math-wise and knowing the EE students I know, it is very possible to come out of an engineering program without a strong enough math background for a Finance/Econ PhD.

You alluded to this in your post but finance PhD programs are extremely competitive. Even for someone like you it will be tough to get in to a top program.

Research fellowship is a big point in your favor, leverage that in your application.

Great thanks for your comment. First of all, here is a list of math courses I took: Cal I, II, III, IV, Linear Algebra, statistics, Regression/forecasting, Probabilistic method in engineering which covers some Real Analysis, and many other engineering courses requiring intro knowledge level of Real analysis. But I have not taken a course called Real Analysis. And I am aware of the competitiveness of the Finance PHD program :(

What do you think of my lowish gpa and verbal score? Any reg flag or yellow card?

Finance PhD ( Originally Posted: 08/11/2011 )

Most recent post on this seems to be in 2007.

To put it simply, I did my undergrad in Finance, have an MBA , and am taking CFA Level III next June. Working in ER currently.

Really considering going and doing my doctorate. Love the researching professor lifestyle and autonomy. Anyone done this? Advice going forward? (Starting next fall)

That actually sound pretty cool...

I'm actually interested in pursuing this path as well

Professor Jarrow at Cornell was a math major and a MBA from Tuck. He got his PhD at MIT in 3 years after that. Look up HJM model.

To the OP, what specific field within finance are you interested in?

I dropped out of an Econ PhD, so if anyone is considering this path and wants to ask me any questions, feel free to PM me.

The life of an academic is, to misquote Thomas Hobbes, "solitary, poor, nasty, brutish" and shit.

You have much less autonomy you think you do; you're obliged to churn out a constant streams of papers that will (most likely) be read by almost nobody; and, you have to be prepared to relocate to the middle-of-nowhere's-ville to take a job teaching undergrads. To make things worse, the actual process of researching can be incredibly lonely too.

Not for me. And I strongly considered it.

Specific field of interest would be more on the corporate side of things -- M&A, spin-offs, restructurings, etc.

Thanks for the input, all. Definitely is a major decision with ramifications, but there's a major part of me that believes I will regret it if I don't do it.

Also, I think that a major catalyst for my thought process here is that I don't really see myself living tick-by-tick to the stock market, or being so focused on a given industry that I can tell you the exact inventory level for a company 3 quarters ago. Don't get me wrong, I love my job right now -- and I think that analysts who are so in tune with an industry are really good, and it's amazing to see that level of knowledge about companies.

I feel like the things that I like about doing ER I can do for my own portfolio on a go-forward basis. And I also want to make sure that I can have solid balance in my life -- be a husband, be a good dad. Not that it can't be done in ER , but the balance challenge is significantly more difficult.

I'm aware that academia is no bed of roses and that there's no "free lunch", but I feel like, for me, the benefits outweigh the costs.

Fair enough.

Do a Masters and re-assess. I was dead set on avoiding the City and "corporate" economics when I finished my undergrad. Two years later I u-turned.

So long as you apply yourself with gusto- and don't look back- you can't really go wrong, as with most things in life. Until your set off in the direction, keep your options open and don't burn any bridges.

PhD Finance for I-Banks !? ( Originally Posted: 11/10/2007 )

i'm currently studying economics and am considering a phd in finance, I'm still having about 2years ahead until graduation though.

Why I would like yet to get a clear opinion whether or not to pursue a PhD afterwards is, since if I wanted to do one (in a really good school) I would need to concentrate more (maybe entirely) on my studies now in order to get a sufficient good degree, in contrast to doing as many as possible relevant internships in order to get a good job directly after graduation. Aside from that I would need to apply already in about a year I guess.

I read already some related threads about the topic, many advice "do it if you really are interested in the subject" which makes definitely sense and of course I am interested! but if i knew already which job i would like to go for for sure and also knew that the phd wouldnt be usefull for that particular job, i wouldn't do one I think. But since I don't really know yet, what kind of job to aim for (and general whether industry or maybe academia) it also would help me to keep all my options open.

I read many times that in many areas of i-banks a phd absolutely wouldn't be neccessary, though i read as well since financial instruments are getting more and more complex a phd could be beneficial.

So my main question is in which areas of i-banks (i.e. sales, trading , risk management, NOT structuring since that's obvious) is a finance phd (with what specialisation?) beneficial or even neccessary?

I'd really appreciate your input! Thanks a lot in advance!

I don't know much about other areas, but for corporate finance , a PhD is definitely not required, nor is it beneficial.

Ibanks generally have economists and market strategists (not sure who gets these jobs and how) that generally most of these people carry PhDs.

The trend at most quant trading desks seems to leaning more towards the physics, mathematics, statistics PhDs.

If you have a good math background you can check out the MFE programs both in the U.S. and U.K. Its a great degree to have if you want to break into trading

To be honest, a Finance PhD is basically only beneficial to people who want to become college professors, which has its perks (ridiculously short hours, low stress environment, and great pay assuming you can get a job at a half-decent college). If I-banking is what you're after though, dont waste 8-12 years of your life pursuing a PhD when you could be gaining some valuable work exp.

A PhD would be relevant on certain trading desks, research, probably risk management, and I can't really speak to other areas . If you have a finance PhD you will not have a problem getting a job at a bank - they are in very high demand. Having said that, don't get a PhD as a means to get into banking unless you are really, really, interested in the topic you're working on. Something like 50% of PhD finance candidates burn out, and that's coming from an already very select crowd - I've heard admissions stats are somewhere around 10-20%. It's not an easy road.

career advice for PhD student ( Originally Posted: 01/18/2013 )

I wouldn't recommend to do that online MBA . To me that's kinda ridiculous. There are all kinds of majors in IBD , so don't worry about that. Maybe the CFA Level I can show your general interest in finance, but there are very variable notions on this strategy here on WSO

You're Ivy, so that's a very big plus. I would concentrate on getting my story right: " Why do you wanna do finance?" Why now? What can you bring to the table? I also would try to dwell on your quant skills, if there are any.

Your age is a big problem, so be prepared.

restructury, thanks for your comment.

Do I have a realistic shot at an associate position with a MBA? Should I do the UCLA certificate program in investment management and analysis? Is taking CFA 1 is the best course of action if I have some time to spare on preparation for IB job (beside networking)?

Due to my experience you would only have a shot for an assoiciate positions with a prestigious MBA , not at all with an online MBA .

The UCLA program or CFA Level I program is a very good add on in my opinion.

But I think you have to focus on getting a job (networking) more than to add another qualification.

So let me ask you: Why do you wan't to get into finance?

Have you ever thought about consulting? (Your CV and Ph.D. may have mor advantages here) I'm just asking because I do have a couple of friends who want(ed) to get out of their traditional field (engineering, chemistry;..) just to do something more business related without any clear focus.

you're an ivey so....NETWORK, NETWORK and NETWORK!

I am leaning towards a MBA which could open more doors compared to specific training/knowledge I could get from CFA . Even though its online, its the same degree given to other students in the full-time program (the interviewers won't know unless he/she asks me explicitly about the nature of the program) Since I already have access to alumni network and career services at my ivy league schools, I don't care much about the networking opportunity within my MBA cohort. My plan is not get another brand name on my resume - but to retool my management skills and sharpen my business acumen, which I think can be done through an online program.

I am also planning to give a shot at consulting too. BUT English is my second language, and my presentation skills might not be as smooth as those of native speakers. And consulting involves a lot more interactions with clients, social skills play a bigger role to success in consulting than in IB . So I guess I might have better chances of having a career in IB .

I don't want to go into academia. My goal had been to join the private sector since I started my PhD program. Finance fascinates me for several reasons (including great pay). Particularly, I am pretty good with analytical skills and want to help companies search out ways to become more financially independent. Another reason is that my home country does not have an established financial market (no credit bureau , no mortgage loan, no stock exchange ). With international experiences and top-notch training i could get here in the US, my dream is to return home one day and help develop the financial sector back in my country.

Any more suggestions? Thank you!

You can make it into banking- but generally speaking the work is pretty mind numbing and might feel below your intellectual abilities / curiosity, given that you have gone through the trouble of getting an advanced degree. Realistically, your best shot is to network your way in. Success depends on how good you are at networking, MBAs , CFAs , all that stuff is a waste of time.

What are my odds going from PhD into these business schools? ( Originally Posted: 05/02/2014 )

I am looking to apply to a MBA program this coming fall and switching away from R&D into management and consulting roles within the life science and biotech industry. I will be 28 when I enroll, this is a little on the older side I believe. Anyways, I would appreciate you guys' opinions on my chances.

Undergrad (top 2 Canada): Economics (3.4/4.0) Graduate (semi-target U.S) : Biochemistry PhD GMAT : 730

Work experience: Boutique consulting (co-op, life science biotech industry): 7 months IT consulting and implementation (current, healthcare and life science industry) : 6 months Software Start up (current, health care and life science industry): COO , 8 months.

I am interested in the following schools and programs:

Cornell (Johnson): 1 year MBA program for scientists Fuqua (healthcare management program) Haas UCLA USC Marshall (I am not sure how Marshall is doing, from the latest statistics it would seem that 25% of graduates are without job placement; I would like some thoughts on this as well)

Thanks again.

28 is the average age, so you're definitely not on the old side. Your work experience is a bit on the light side, and it's going to be a red flag that you were at two firms for less than a year unless you explain it well. That said, a dual Biochem Ph.D and MBA will make you highly employable, so I think you can certainly get into the schools you are aiming for (although, you might come off as unfocused since your career isnt based on your Ph.D...make sure you can build a coherent story). You MIGHT have to re-apply once before you get in, to show more experience, but you'll definitely get in eventually. You might have more trouble in the Top 10/ MBA business schools "> M7 schools though if you decide to reach, but your target schools are fine (Haas will be a reach though).

Your work experience is a HUGE red flag. Three jobs under a year each?! Most people hold on to a position for at least 2 years. Maybe you should look into patent law. There are alot of top firms that will pay you to goto law school and give you a six figure paycheck.

Thank you for the input guys. I realize that my work experience will be a glaring weakness on my application that I would need to address in some capacity. To qualify, I was not laid off, nor was I job hopping. My 7 months work experience at the boutique consulting firm was a work study (co-op) program. The work focused on management consulting for the life science and biotech industry. I am still currently employed at the start-up and the IT consulting firm. Both firms are involved in software development for the healthcare and life science sector. By the time I matriculate into any MBA program I would have been at these two companies for 2 years.

I am also not sure how MBA programs take into consideration the PhD experience. As part of the PhD program, I essentially served as a research assistant for 4 years. Since I am legally a paid employee of the University, should this not count as work experience in some capacity?

Yes, your work experience as a research assistant in the university does count. Your combination on-going experiences look consistent with what I have seen in other students who are applying from an academic setting. I don't see any red flags. But like any other candidate, you want to present your purpose as having something bigger than simply wanting to switch functions. Get your story clear, I mean really clear, and of course, figure out ways that your experiences will add to a class.

Tell us more about this Cornell program for scientists (!) I thought it was just a tech program in NY . -- sorry to be ignorant, especially in public. I will be visiting the Cornell Tech Center in NY in a few weeks, so give me good questions to ask.

I do know of a number of PhDs that have gone to MBA business schools "> M7 schools more or less straight out of grad school. Doable, but not that common. If you can justify an MBA (having a good story) and also have demonstrated excellence out of academics (ECs, leadership roles, etc...), I believe you would be competitive at your schools of interest.

PhD looking for job at BB bank ( Originally Posted: 09/20/2012 )

i'm looking for a job at a BB . i'm generally clueless about finance but i am pretty sure i will like it if i get into it. i'm doing a phd in engineering from a good school and i expect to graduate in may or august next year.

few questions...

do Citi , jp, GS , etc have specific programs to hire people with my background? would my background (PhD plus a couple internships ) be sufficient to pass a resume screen?

given that i want to graduate next summer, when should i look to apply? is it rolling? is there a deadline for phds?

are phds hired differently from ba's? would i be interviewing for an associate role as opposed to analyst?

what divisions are there, and how is the prestige associated with each of them?

how do i best prepare for interviews?

any languages?

There's literally book guides printed out to answer those general questions. Search the forum or read them. also go to the wilmott forum instead. More PhDs there and they would be more knowledgeable of the opportunities. This forum is mostly populated with Investment Bankind Division aspirants. You'd be in Sales and Trading .

The most important and first filter for you is going to be- how good is your C++?

And yes, you'd be an associate. And full-time recruiting is going on right now. But for the jobs where they specifically look for quant PhDs- that recruiting isn't as structured. (of course some PhDs go into non-PhD required/recommended jobs too). For the quant PhD jobs you're looking at 3 main things:

risk management. especially market risk. considered middle office . nobody's top choice. mostly statistics skills. filled with many non-PhDs too. Some people kind it interesting though. little to no programming.
Quantitative Developer. This is almost all programming work. Yet filled with math/physics/engineerg, etc PhDs.
model validation. almost all quant PhDs. will require programming but not as much as QD. Generally MFE-type maths, but they prefer a PhD to get it right. Considered a typical springboard to front office trading /structuring.
trading. what everyone wants. the background highly depend on the asset you trade- PhDs will go to the exotic products or the more automated products (automated is obviously programming work).

thanks a lot.

i know a bit of C and am gonna work on developing that. i think i will be fine after studying it for a month...

is there any other skill theyre gonna look for? for instance, say my phd is in engineering. are they gonna ask me technical questions related to my prior cousework? or is it just going to be basic probability questions and brainteasers that i've seen on the internet?

finally, assuming im an industrial engineering phd from columbia, have working C skills, and can talk about my research, what's the chance i can get hired as a phd, in any div at GS ?

bajamrock9: what's the chance i can get hired as a phd, in any div at GS ?

GS is the first company that always comes to mind because they reached out to me. i'll consider any bb firm though. i was just picking out one as an example.

is there any other skill theyre gonna look for? for instance, say my phd is in engineering. are they gonna ask me technical questions related to my prior cousework? or is it just going to be basic probability questions and brainteasers that i've seen on the internet? finally, assuming im an industrial engineering phd from columbia, have working C skills, and can talk about my research, what's the chance i can get hired as a phd, in any div at GS ?

An interview is not going to be advanced technical stuff. But in the past it was common to have some people take a test and decide interviews based on that. That's another reason you'd want to apply sooner or later. Credit Suisse used to have a in-house test for applicants to their "quantitative associate" program- which basically encompassed 99% of the jobs a PhD would go into. Several times a year they'd have a 100+ people come in and take a test- mostly higher-level undergrad level questions in math areas useful for finance. And another common thing is an online test that supposedly measures your programming ability through multiple choice questions. There's a company that does it that several banks use- can't remember the name now.

But how they interview PhDs can change over the years depending on the bank, the department and sometimes even whoever is currently in charge in that area. Don't know how GS does it. As for your chances of getting into ANY division at GS? That's not an illuminating question. And in fact depends more on their current staffing needs in particular areas than it does on you (unless you're an expert in some in vogue area like signal processing?). But assuming you work at it- e.g. contacting HR and headhunters- I'd say pretty good.

GS is actually the largest employer of PhD's after I believe the federal government. BB love PhDs and they are much harder to fire too, due to their expertise.

Consider finding a recruiting firm.

You will most likely find a position as a quant or as GS likes to call them, strategists. Put simply, you will a traders bitch.

I don't think that's true. At the end of the day its a bank not a technology/science company. And quantitative finance is just a subset of a broader industry. Besides Google is almost 2x as big. IBM is 10x as big (in employees).

I'm sure they have a higher attrition rate though- just because there's a higher learning curve in their job.

thanks so much for the insights, everyone. very helpful.

so all in all, you'd say that there is a good chance that I can land a job at a BB , provided I prepare. that's pretty much what I wanted to gauge.

given that, what would you say is the best way I should approach preparing for interviews? is the interview process as cutthroat as it is for undergrads? is there a book or a program i can subscribe to that will prepare me for interviews? i'm just reading wilmott's FAQs in quantitative finance as of now.

Heard on the Street....but its kinda old now. But everyone uses this. And they expect almost everyone to have seen it. Review your probability, calculus, ode/pde. Prepare for C++ brainteasers . The interview process is a lot more variable then undergrad. It's not nearly as structured. Typically not as many stages.

They'll look at your CV and ask you questions from it. So be prepared for that obviously. If you display some quant finance knowledge they might ask you further questions. Otherwise just read Hull . If you have time- then go into more finance reading like Shreve- but better to be strong on the basics than weak and broad. The finance questions will be secondary. If you fuck up the prob/calc/ode question- then that's instant death.

Next, a lot of PhD hires are interviewed specifically by a certain desk/group for a specific position. So once you hear about the interview- you're going to want to learn more about their work, the financial instrument, etc. And pay extra attention on that group's most relevant quant skill. e.g. for an interview with market risk you might want to add stats/econometrics to your reviewing. for model validation pde's. for quant developer- c++ brainteasers .

doing phd while networking into ib ( Originally Posted: 02/07/2013 )

With a PHD you'd be overqualified

Your communication skills will be a huge roadblock, regardless of what you decide to do.

The Kid: Your communication skills will be a huge roadblock, regardless of what you decide to do.

'I am an international student who is about to graduate this semester from a non-target school in US, have not yet networked enough and secured a job in IB due to time manners. I am thinking of pursuing a PHD degree here in US after my undergraduate probably at schools around New York area so that it would be easy for me to travel there and make connections. If success in securing a job, then I would leave the PHD program. I dont want to pursue a MSF or a MFE due to budgetary issue. Do you think it is feasible? Will I have a shot in getting into BBs? By the way I am majoring in economics, had an internship with a boutique in the M&A advisory, but currently only targeting the BBs'

'have not yet networked enough' 'due to time manners.' 'if success in securing a job' 'due to budgetary issue,' etc.

Iunno. your point gets across, but it's not 'good' english persay.

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Why a Doctorate in Business Administration Is Becoming More Valuable

Sponsor content from upGrad.

At the turn of the 20th century, the world was industrializing at a rapid pace. Businesses were growing larger and more complex, with more employees working in more diversified divisions spread across more geographical boundaries.

As a result, demand grew for people who had special training in managing the general operations of a business, which led to the creation and proliferation of the Master of Business Administration (MBA) degree.

More than 100 years later, MBAs have become a commodity that no longer serve organizations’ core needs.

In today’s age of data and information, knowledge has become the most valuable resource. Companies don’t necessarily need more general managers who can assess broad patterns across multiple industries—they need people with deep expertise in specific domains who can analyze data and generate unique insights that lead to better business decisions.

That’s why Doctorate in Business Administration (DBA) holders are becoming increasingly valuable in the modern workplace.

DBA is a professional degree representing the highest level of qualification in management. In contrast to an MBA, it takes students on a different path toward acquiring and using business knowledge.

For an MBA, students spend two years taking a broad range of practical courses to learn about several pillars of business—such as accounting, finance, marketing, leadership, operations, strategy, and ethics—to help them become effective leaders across many industries.

By contrast, DBAs spend up to two years studying academic literature across several domains and up to two additional years designing and executing an original research project: a dissertation focused on one domain. The primary goal of a DBA is to produce scholarly individuals who have deep expertise in a field of management.

When seeking executive-level positions, DBAs’ “Dr.” titles are likely to help them stand out from their peers. DBAs can also pursue high-level positions in areas such as consulting by becoming subject-matter experts—or maintain ties with academia as full-time or adjunct professors.

DBAs’ training gives them diverse career options. The academic literature they read gives them expertise in understanding management theories that can help them analyze real-world situations and differentiate the signal from the noise. A DBA specializing in innovation can assess whether newcomers to a market pose a credible threat as a disruptive innovation to an existing company.

Students then learn advanced scientific techniques in quantitative and/or qualitative methodologies, which trains them in analyzing data to generate valid inferences that their organizations can use for decision-making purposes. Rather than relying on gut feel and graphs, DBAs can use powerful techniques such as sampling data to reduce bias, using statistical regressions to identify the strongest factors that influence an outcome, or designing an experiment to gain 100% certainty over the causal relationship between variables.

Finally, DBAs combine their business knowledge with analytical skills to design and execute original research studies, making them the world’s leading experts in particular domains.

DBAs also stand out because they represent only 2% of all people who hold higher degrees in business. In 2021, more than 250,000 students graduated with MBAs or specialist degrees in business; only 5,000 graduated with doctorates.

While a DBA may represent an attractive option that can be highly valuable to organizations today, they are not necessarily recommended for everyone.

To help you determine whether a DBA is right for you, the most important question to ask yourself centers on whether you’re satisfied with the tools and frameworks you use to analyze data and information to make important business decisions. If you’ve ever found yourself wondering where these frameworks come from—or whether there might be a better way to make decisions—consider applying to a DBA program. These programs are designed to channel deep intellectual interests and passions toward producing business knowledge that’s both theoretically novel and practically relevant.

DBA training may help you develop deeper knowledge than an MBA program will while opening doors to more ambitious careers in industry or academia. While MBA degrees are designed to meet the needs of 20th-century businesses, DBAs can help meet the needs of organizations today—and well into the future.

Learn more about how earning a DBA can help you step up your career.

2024 Best Online PhD in Finance Programs [Doctorate Guide]

An online PhD in Finance offers the opportunity to study finance and economics at the highest level.

You can learn how to use financial models and theories to develop a deeper understanding of economic systems and solve business problems. Finance PhD degrees also teach students to conduct quantitative research on financial networks and policies.

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Graduates can use their knowledge and skills to pursue careers in a variety of areas, including academia, business consulting, data science, finance, and the public sector.

PhD in Finance Programs Online

A Ph.D. in Finance is designed for people who want to immerse themselves in academic research and theory. This degree focuses on advanced financial models and concepts used to explain and forecast the performance of the economy, financial institutions, investments, and other aspects of modern finance.

Doctoral students in this field also study approaches and techniques for conducting empirical research. Students practice collecting and interpreting data from a variety of sources, such as consumer surveys and income statements. They also use econometrics to statistically analyze financial data and trends.

Other topics commonly taught in finance doctoral programs include:

Asset pricing
Banking systems
Corporate finance and capital markets
Empirical analysis
Financial decision-making
Financial markets
International financial topics
Macroeconomics
Market design
Microeconomics
Time series analysis

Additionally, students can develop many technical skills related to financial research. For instance, finance PhD programs often encourage students to use programming languages like Python and R to extract and analyze data. Students may also learn to use the latest digital tools to interpret data and create financial models, such as MATLAB and Stata.

Graduates can use their finance PhD degrees to pursue a broad range of careers. Many students enroll in these programs because they want to work in higher education. They may use their specialized knowledge to become professors and academic researchers.

The private sector also provides many employment opportunities for PhD holders. All organizations need business-savvy professionals who can manage financial resources, make predictions, and formulate financial strategies. As a result, there are numerous finance-related jobs in all industries.

Graduates may also secure jobs with nonprofit organizations. Some work as grant writers, while others become policy analysts. Other potential careers in this sector include development officer and program manager. These roles all focus on helping nonprofit organizations generate more income and solve economic or social issues.

Finally, this degree can be beneficial for people who want to become consultants or entrepreneurs. You can learn business tactics and skills that you can use to help clients perform better or to launch your own company.

Finance Careers & Salaries

A doctoral degree in finance can pave the way for many career paths. Many graduates pursue careers as college professors in business, economics, and finance departments. These professionals teach students and publish research in their area of specialty.

Additionally, many graduates secure employment with private corporations and financial institutions, including banks, credit unions, and investment firms. They can become actuaries, cost estimators, financial analysts, and other finance professionals.

These specialists use the advanced knowledge and research skills they gained during their PhD programs to analyze financial data and help corporations make data-driven business decisions.

According to the Bureau of Labor Statistics , here are careers associated with finance and their median salaries.

Some graduates become financial analysts and researchers for government agencies and think tanks. They often help their employers develop and explore the implications of economic policies, political strategies, and social policies. Graduates can also work for or start consulting firms.

Business and management consultants examine their clients’ financial records and operations. They use their findings to identify inefficient workflows and other issues and make recommendations to help businesses improve their performance.

Online Finance PhD Curriculum & Courses

Finance PhD programs teach advanced finance concepts and research skills. The specific curricula vary by program but may include courses similar to these:

Empirical Methodology in Finance : You’ll learn how to use popular empirical research methods to investigate and solve issues in the finance industry.
Financial Economics : This course analyzes foundational theories and applications of modern financial economics, such as arbitrage pricing theory, mean variance theory, and stochastic dominance.
Financial and Economic Networks : You’ll use empirical and theoretical research methodologies to deepen your understanding of financial modeling and networks.
Household Finance : You’ll explore recent empirical research projects in household finance and learn strategies to gather and analyze data.
International Finance : This class traces the history of academic research on international finance and covers techniques students can use to conduct research in this field.
Introduction to Asset Pricing : You’ll investigate how finance institutions use asset pricing models to predict the expected rate of return for investments.
Introduction to Corporate Finance : You’ll learn how to create, interpret, and conduct quantitative research with corporate finance models.
Macro-Finance : You’ll examine fundamental areas and methods in macro-finance, such as asset pricing, fiscal policy, and household finance.
Microeconomics : This course overviews applications and theories of microeconomics, including aggregated demand and general equilibrium analysis.
Theories of Finance : You’ll study contemporary financial theories and their relationship to asset pricing, corporate finance, and financial markets.

Additionally, many programs require finance PhD students to take courses in statistics and probability.

How to Choose an Online PhD in Finance Program

Co-workers checking on PhD in Finance Program online

All finance PhD programs have different educational opportunities, learning environments, and resources. As a result, there are many factors to consider as you compare finance degree online programs, such as:

Program reputation . Employers often look more favorably at job candidates who graduated from high-ranking institutions with excellent reputations. Additionally, attending a top program could provide more opportunities to develop a robust professional network in your chosen area.
Research areas . Doctoral students typically research and write about specific topics or subfields that align with their personal and professional interests. It’s beneficial to look for a program with well-known faculty specializing in your chosen areas, such as corporate governance or behavioral finance. These professors can guide your research and connect you with resources.
Funding opportunities . Some PhD programs in finance offer full or partial funding for qualifying students. You might qualify to receive a tuition waiver, a stipend to cover conference travel, and other financial assistance. You can also inquire about additional funding opportunities, such as grants and scholarships from the college.
Course format . The specific mode of delivery for online courses varies. Some programs offer synchronous online classes, which allow you to interact with professors and peers over video chat. Others have asynchronous courses that you complete on your own schedule.

Additionally, you can ask a program’s staff if they have current students or recent alumni willing to speak with you. These informal conversations can help you get a better sense of the program’s culture and strengths and weaknesses.

Admissions Requirements

Man preparing requirements for PhD in Finance

Many PhD programs in finance only admit a limited number of students each year, so the admissions process can be competitive.

Every institution has its own admissions criteria, but here are a few typical requirements:

Bachelor’s or master’s degree in related field
Statement of purpose describing your interests, goals, and reasons for applying
CV listing education, work experience, applicable skills, and volunteer activities
Confidential letters of recommendation
Official transcripts

Some colleges and universities also request GMAT or GRE scores, but many programs are phasing out this requirement.

Online PhD in Finance Programs Accreditation

University offering Online PhD in Finance

Accreditation is an essential factor to consider as you compare finance doctoral programs, much like when considering an MBA in Finance online or on campus programs. Colleges and universities can earn regional accreditation if an external regional accreditor assesses their programs and faculty and verifies that they meet agreed-upon educational standards.

Accredited programs offer professional and academic benefits. Employers often prefer to hire graduates from accredited schools because they know these candidates have received a quality education. Accredited doctoral programs typically provide access to student support services, such as online library databases and career centers.

Plus, many government agencies and private organizations only distribute financial assistance to students enrolled at accredited institutions.

Financial Aid and Scholarships

As you investigate finance PhD programs, you can also search for financial aid opportunities to help pay for your degree.

Many doctoral programs offer full funding for qualified students. These funding packages could include a stipend, tuition waiver, and health insurance. Students may need to work as a teaching or research assistant in exchange for this funding. Also, they are typically required to maintain a certain GPA and meet program milestones.

The federal government also offers several types of financial assistance for graduate students. You may be eligible for federal grants, student loans, or a part-time work-study program. You can learn more about these opportunities by visiting the Federal Student Aid website.

In addition, many employer offer financial support for workers who want to further their education. You can ask your supervisor about any tuition assistance or reimbursement opportunities.

What Can You Do with a PhD in Finance?

Financial Risk Specialist & Economists discussing

A doctoral degree in finance can help you qualify for many lucrative careers. Many graduates use their expertise and research skills to secure positions as postsecondary teachers.

The Bureau of Labor Statistics predicts that the demand for this career will increase by 12% over the next decade. Additionally, a PhD in Finance can help prepare you for numerous jobs in business and finance. Some graduates become financial managers and oversee their organization’s investments and revenue.

Finance is a good career path for many students. Other potential career paths in the finance industry include financial examiner, chief financial officer (CFO), management analyst, and operations research analyst. These positions focus on data analytics and strategic decision-making.

Should I Get a PhD in Finance?

Financial Manager discussing with Financial Analysts

Finance PhD degrees tend to be rigorous and involve extensive research and writing.

Here are a few signs that this degree could be the right fit:

Your preferred career requires a terminal degree in the field.
You enjoy studying economics, mathematics, and statistics.
You want to become an expert in financial systems and theories.
You’re passionate about researching topics in business and finance.
You want to publish your research for academic audiences.
You’re interested in teaching students.

If some of these criteria apply to you, a doctoral degree in finance could be a strategic next step.

How Long Does It Take to Get a PhD in Finance Online?

Most PhD programs in finance take 3 to 5 years to complete if you enroll full-time. But several factors can affect how long it takes you to graduate.

Programs that require a dissertation typically take longer. Many students spend a total of 5 years—including 3 years completing coursework and 2 years writing their dissertation. Some students take longer, though, to finish their dissertations, extending the length of their program.

Doctorate programs that don’t require a dissertation may be completed in 3 to 4 years if students are enrolled full-time.

What’s the Difference Between a DBA vs. PhD in Finance?

A Doctor of Business Administration (DBA) and a Doctor of Philosophy (PhD) are both terminal degrees in finance, but they have a few crucial differences.

A PhD could be a strategic choice if you’re passionate about research and teaching.

Is a PhD in Finance Worth It?

Financial Risk Specialist in a meeting with finance team

Yes, a PhD in Finance is worth it for many students. This degree allows you to develop a deeper understanding of economics, financial markets, and investment techniques. You’ll also learn how to identify business problems and mitigate risk.

In addition, a doctorate in finance enables you to develop expertise in specific areas of finance. For instance, you could specialize in behavioral finance, econometrics, or financial technologies. Expertise in these fields could lead to career paths in academic institutions, corporations, tech startups, and other organizations.

The Bureau of Labor Statistics predicts that overall employment of business and finance professionals will increase by 7% over the next ten years, and 12% job growth is projected for postsecondary teachers.

Universities Offering Online Doctorate in Finance Degree Programs

Methodology: The following school list is in alphabetical order. To be included, a college or university must be regionally accredited and offer degree programs online or in a hybrid format.

A Doctorate in Personal Financial Planning is available through Kansas State University. The program is 1 of only 4 in the country recognized by the Certified Financial Planner Board of Standards. Coursework is completed online during the fall and spring. There are three summer residencies, lasting 10 days each. The final residency is abroad. Kansas State University is accredited by the Higher Learning Commission.

National University offers a PhD in Business Administration with a concentration in Financial Management. The program may be completed entirely online. On average, the required 60 credits may be completed in 73 months. Courses are 4 to 8 weeks long. The school offers weekly start dates. National University is accredited by the WASC Senior College and University Commission.

A Doctorate of Professional Studies with a concentration in Finance may be earned through Pace University. Coursework is completed online with Friday sessions on campus once per month. Courses follow a semester schedule. Typically, the 19 required courses may be completed in 3 years. Pace University is accredited by the Middle States Commission on Higher Education.

Texas Tech University offers a PhD in Personal Financial Planning. The program is available fully online or on campus. The program requires 72 credits. Courses follow a semester schedule with 3 start dates. Upon completion, graduates may be eligible to take the CFP Certification exam. Texas Tech University is accredited by the Southern Association of Colleges and Schools Commission on Colleges.

A PhD in Business with a specialization in Finance through the University of the Cumberlands. Coursework is online with fieldwork or an internship required. The program requires 66 credits including 24 hours in professional research and 24 hours in Finance. Courses are in half- or full-terms. The University of the Cumberlands is accredited by the Southern Association of Colleges and Schools Commission on Colleges.

Walden University offers a PhD in Management with a specialization in 21st Century Finance. The program is fully online and requires 4 brief academic residencies. The program is course-based with weekly assignments. Most courses are asynchronous in format. Courses are in an accelerated format with several start dates each year. Walden is accredited by the Higher Learning Commission.

Getting Your Doctorate in Finance Online

student getting Doctorate in Finance Online

If you want to study and help solve complex business and financial problems, you might consider earning an online PhD in Finance.

Finance doctoral programs teach students about asset planning, financial models, regulations, and other topics. They also cover empirical research skills, such as creating surveys and managing datasets. Graduates apply their knowledge in many positions. Some become college professors, while others pursue roles as financial managers, consultants, and marketing analysts.

You can kickstart your doctoral journey by exploring online finance PhD programs from accredited schools today.

Is Doing a PhD Worth It?
Finding a PhD

Undertaking a PhD shouldn’t be a light decision. In fact, it’s one of the most challenging academic journeys you could embark on. This begs the question: Is a PhD worth it?

A PhD is the highest globally recognised postgraduate degree that higher education institutions can award. The degree, which is awarded to candidates who demonstrate original and extensive research in a particular field of study, is not only invaluable in itself, but can lead to improves job prospects, a higher salary on average, and sets you up for invaluable skills and traits. If you are a graduate student considering undertaking doctoral studies, read our guidance to help you make an informed decision.

Career Prospects

Although a full time PhD takes on average three to five years to complete, that doesn’t mean you shouldn’t have a long-term goal, especially with the possibilities that come with it. It’s a common misunderstanding that PhDs only open the door for educational based roles such as university lecturers and training providers. Although obtaining a PhD does lend itself to an academic career, the opportunities extend far beyond the traditional academic job. In fact, recent data from the UK’s Higher Education Statistics Agency (HESA) indicates only 23% of PhD graduates take a position in educational roles. This low percentage is primarily because PhD graduates have a wide range of skills that make them suitable for a broad spectrum of roles. This is being seen first hand by the increasing number of PhD graduates who are entering alternative roles such as research, writing, law and investment banking.

Percentages aside, one of the most desirable post-doctoral fields is working within independent Research and Development (R&D) labs and new emerging companies. Both industries, especially R&D labs, have dedicated groups of PhD graduates who lead research activities, design new products and take part in crucial strategic meetings. Not only is this a stimulating line of work, but the average salaries in R&D labs and emerging start-ups are incredibly lucrative. In comparison, an undergraduate with five years of experience within their given field will, on average, likely earn less than a new PhD graduate taking on an R&D position. Completing an advanced degree programme demonstrates that you have developed a knowledge base in your research area which gives you a head start over other candidates who many only have an undergraduate degree or masters degree.

Pursuing your Interests

One factor to consider when asking ‘is a PhD worth it?’ is what your interests are. A doctoral degree is a fantastic opportunity to spend time learning about something that appeals to you. Having an interest in your research area as a PhD student is a massive advantage as you will always be motivated to push the boundaries of your research. Possessing an advanced degree in a field your are genuinely interested in can also help shape your career path and help you land your dream job.

Transferable Skills

PhD students are widely in demand for their wide range of skills they develop during their studies. Not only do these skills extend beyond that obtained by an undergraduate counterpart, but the transferability of the skills is what makes them stand out amongst employers.

Professional Networking

To successfully undertake a PhD, it’s paramount to have a good working relationship with your PhD supervisor and other students in your laboratory, workshop, or department. This relationship will also extend to undertaking short-term collaborative projects, delivering joint conferences and co-authoring research papers. The modern doctorate needs to demonstrate effective team working, collaboration and networking to be successful in their chosen field. This skill is highly sought by all employers, as open and effective communication is key to any project.

Publication

Although publishing isn’t a requirement of all PhD projects, all students will have the opportunity to produce technical or informative texts, regardless of whether it’s in the form of reports or academic journal articles.

The preparation, research, writing, and editing of such texts demonstrate your ability to amalgamate information and communicate complex ideas. Regardless of an employer’s field, the ability to record and summarise essential information is a fundamental skill they look for. Demonstrating you’re capable of delivering factual documents will help set you apart from colleagues, which will help make strides in your career.

Research Skills

One of the most valued skills you’ll gain during your PhD study is the ability to undertake original research. Not only does this demonstrate you are able to think independently, but also that you are prepared to take on responsibility and can contribute original ideas to the workplace. In undertaking a PhD, you will prove yourself as a professional expert in this area, making you a suitable candidate for research jobs.

Data analysis

A PhD programme, in particular a STEM PhD project, is likely to involve identifying, managing and analysing large amounts of complex information. In addition to this, you could be required to assimilate this information in an appropriate and understandable format. Because of this a data driven doctorate degree is highly desirable in numerical industries such as banking and engineering.

Public Speaking

In today’s industries, excellent oral communication skills are becoming more and more essential. Although many individuals struggle with this skill, as a PhD graduate, you’re more likely to excel in this area. This is because of the many public speaking opportunities you’ll be exposed to during your course. Through conference talks, presentations, and posters, you’ll learn to become confident and engaging when speaking to a broad audience. You’ll also showcase to future employers that you know how to present complex ideas and defend them.

Project management

Even if your career goal isn’t to become a project manager, all jobs require some project management. Fortunately, PhDs are a project management exercise. To complete your thesis, you must design a project, establish a realistic timetable, manage stakeholders and overcome failures. While attempting to achieve the long-term goal set out by the PhD, you must also set, manage, and achieve short-term goals to make progress.

This scenario accurately represents any modern workplace. You’ll be given the autonomy to manage your projects and workload and be expected to do so at a competent level. With this in mind, PhD holders can show they are more than capable of managing a team, and in doing so broaden their career options when entering the job market.

Critical Thinking

Every doctoral student will gain unparalleled skills in exercising critical thinking. This is due to having been trained to address problems, identify connections and analyse information to come to sensible conclusions. A critical thinker is exceptionally beneficial for any industry.

Co-operation

Nearly all careers place a strong emphasis on team working and interpersonal skills. Although producing a PhD thesis is an individual task, to complete your doctoral degree you’ll need to collaborate with others, whether it be to conduct experiments, collect data, operate as part of a larger research group or co-write manuscripts. To complete these tasks, you must know how to divide the task, share with others, communicate effectively, and resolve conflicts. All these skills carry over to any workplace, not just those in an academic position. By demonstrating that you can work as part of a team, you’ll significantly increase your desirability for any role.

Many prospective PhD students see a future in academia. Strong communication skills are essential in this line of work as in addition to giving lectures you may be involved in the supervision of graduate students during their final year projects.

As a graduate student you will have spent the last few years in university and likely have some student debt. A doctorate programme is a further large financial commitment, in particular if you self-fund your studies which can take 3-5 years to complete as a full time PhD student. Even if you secure a funded PhD, the available living stipend will comparatively be less than you would potentially earn if you had gone into employment instead. Part time PhD programmes also worth looking at for PhD candidates, as they allow researchers to work during their PhD course who can then spend their earnings towards their living costs and tuition fees.

In analysing the career prospects and transferable skills gained in undertaking a PhD degree, it is clear that pursuing a PhD is an extremely worthwhile venture.

You will develop deep knowledge in your research area which gives you an advantage when applying to academic jobs (for example a professor or research advisor/PostDoc). During your doctoral years you’ll also gain many skills valued in any career path, from problem solving, to managing tasks and communicating complex ideas. Possessing a PhD correlates to higher median salaries, and can aid career progression as a PhD holder can use their specialist skills to seek out unique opportunities in industry. These skills, combined with the new roles that open up for doctorate holders, such as working within innovative Research and Development teams, presents an exciting and prosperous future.

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Why doing a PhD is often a waste of time

The disposable academic.

The Economist

This article originally appeared in the 2010 Christmas double issue of The Economist.

On the evening before All Saints’ Day in 1517, Martin Luther nailed 95 theses to the door of a church in Wittenberg. In those days a thesis was simply a position one wanted to argue. Luther, an Augustinian friar, asserted that Christians could not buy their way to heaven. Today a doctoral thesis is both an idea and an account of a period of original research. Writing one is the aim of the hundreds of thousands of students who embark on a doctorate of philosophy (PhD) every year.

In most countries a PhD is a basic requirement for a career in academia. It is an introduction to the world of independent research — a kind of intellectual masterpiece, created by an apprentice in close collaboration with a supervisor. The requirements to complete one vary enormously between countries, universities and even subjects. Some students will first have to spend two years working on a master’s degree or diploma. Some will receive a stipend; others will pay their own way. Some PhDs involve only research, some require classes and examinations and some require the student to teach undergraduates. A thesis can be dozens of pages in mathematics, or many hundreds in history. As a result, newly minted PhDs can be as young as their early 20s or world-weary forty-somethings.

One thing many PhD students have in common is dissatisfaction. Some describe their work as “slave labour”. Seven-day weeks, ten-hour days, low pay and uncertain prospects are widespread. You know you are a graduate student, goes one quip, when your office is better decorated than your home and you have a favourite flavour of instant noodle. “It isn’t graduate school itself that is discouraging,” says one student, who confesses to rather enjoying the hunt for free pizza. “What’s discouraging is realising the end point has been yanked out of reach.”

Whining PhD students are nothing new, but there seem to be genuine problems with the system that produces research doctorates (the practical “professional doctorates” in fields such as law, business and medicine have a more obvious value). There is an oversupply of PhDs. Although a doctorate is designed as training for a job in academia, the number of PhD positions is unrelated to the number of job openings. Meanwhile, business leaders complain about shortages of high-level skills, suggesting PhDs are not teaching the right things. The fiercest critics compare research doctorates to Ponzi or pyramid schemes.

Rich pickings

For most of history even a first degree at a university was the privilege of a rich few, and many academic staff did not hold doctorates. But as higher education expanded after the second world war, so did the expectation that lecturers would hold advanced degrees. American universities geared up first: by 1970 America was producing just under a third of the world’s university students and half of its science and technology PhDs (at that time it had only 6% of the global population). Since then America’s annual output of PhDs has doubled, to 64,000.

Other countries are catching up. Between 1998 and 2006 the number of doctorates handed out in all OECD countries grew by 40%, compared with 22% for America. PhD production sped up most dramatically in Mexico, Portugal, Italy and Slovakia. Even Japan, where the number of young people is shrinking, churned out about 46% more PhDs. Part of that growth reflects the expansion of university education outside America. Richard Freeman, a labour economist at Harvard University, says that by 2006 America was enrolling just 12% of the world’s students.

But universities have discovered that PhD students are cheap, highly motivated and disposable labour. With more PhD students they can do more research, and in some countries more teaching, with less money. A graduate assistant at Yale might earn $20,000 a year for nine months of teaching. The average pay of full professors in America was $109,000 in 2009 — higher than the average for judges and magistrates.

Indeed, the production of PhDs has far outstripped demand for university lecturers. In a recent book, Andrew Hacker and Claudia Dreifus, an academic and a journalist, report that America produced more than 100,000 doctoral degrees between 2005 and 2009. In the same period there were just 16,000 new professorships. Using PhD students to do much of the undergraduate teaching cuts the number of full-time jobs. Even in Canada, where the output of PhD graduates has grown relatively modestly, universities conferred 4,800 doctorate degrees in 2007 but hired just 2,616 new full-time professors. Only a few fast-developing countries, such as Brazil and China, now seem short of PhDs.

A short course in supply and demand

In research the story is similar. PhD students and contract staff known as “postdocs”, described by one student as “the ugly underbelly of academia”, do much of the research these days. There is a glut of postdocs too. Dr Freeman concluded from pre-2000 data that if American faculty jobs in the life sciences were increasing at 5% a year, just 20% of students would land one. In Canada 80% of postdocs earn $38,600 or less per year before tax — the average salary of a construction worker. The rise of the postdoc has created another obstacle on the way to an academic post. In some areas five years as a postdoc is now a prerequisite for landing a secure full-time job.

These armies of low-paid PhD researchers and postdocs boost universities’, and therefore countries’, research capacity. Yet that is not always a good thing. Brilliant, well-trained minds can go to waste when fashions change. The post-Sputnik era drove the rapid growth in PhD physicists that came to an abrupt halt as the Vietnam war drained the science budget. Brian Schwartz, a professor of physics at the City University of New York, says that in the 1970s as many as 5,000 physicists had to find jobs in other areas.

In America the rise of PhD teachers’ unions reflects the breakdown of an implicit contract between universities and PhD students: crummy pay now for a good academic job later. Student teachers in public universities such as the University of Wisconsin-Madison formed unions as early as the 1960s, but the pace of unionisation has increased recently. Unions are now spreading to private universities; though Yale and Cornell, where university administrators and some faculty argue that PhD students who teach are not workers but apprentices, have resisted union drives. In 2002 New York University was the first private university to recognise a PhD teachers’ union, but stopped negotiating with it three years later.

In some countries, such as Britain and America, poor pay and job prospects are reflected in the number of foreign-born PhD students. Dr Freeman estimates that in 1966 only 23% of science and engineering PhDs in America were awarded to students born outside the country. By 2006 that proportion had increased to 48%. Foreign students tend to tolerate poorer working conditions, and the supply of cheap, brilliant, foreign labour also keeps wages down.

A PhD may offer no financial benefit over a master’s degree. It can even reduce earnings

Proponents of the PhD argue that it is worthwhile even if it does not lead to permanent academic employment. Not every student embarks on a PhD wanting a university career and many move successfully into private-sector jobs in, for instance, industrial research. That is true; but drop-out rates suggest that many students become dispirited. In America only 57% of doctoral students will have a PhD ten years after their first date of enrolment. In the humanities, where most students pay for their own PhDs, the figure is 49%. Worse still, whereas in other subject areas students tend to jump ship in the early years, in the humanities they cling like limpets before eventually falling off. And these students started out as the academic cream of the nation. Research at one American university found that those who finish are no cleverer than those who do not. Poor supervision, bad job prospects or lack of money cause them to run out of steam.

Even graduates who find work outside universities may not fare all that well. PhD courses are so specialised that university careers offices struggle to assist graduates looking for jobs, and supervisors tend to have little interest in students who are leaving academia. One OECD study shows that five years after receiving their degrees, more than 60% of PhDs in Slovakia and more than 45% in Belgium, the Czech Republic, Germany and Spain were still on temporary contracts. Many were postdocs. About one-third of Austria’s PhD graduates take jobs unrelated to their degrees. In Germany 13% of all PhD graduates end up in lowly occupations. In the Netherlands the proportion is 21%.

A very slim premium

PhD graduates do at least earn more than those with a bachelor’s degree. A study in the Journal of Higher Education Policy and Management by Bernard Casey shows that British men with a bachelor’s degree earn 14% more than those who could have gone to university but chose not to. The earnings premium for a PhD is 26%. But the premium for a master’s degree, which can be accomplished in as little as one year, is almost as high, at 23%. In some subjects the premium for a PhD vanishes entirely. PhDs in maths and computing, social sciences and languages earn no more than those with master’s degrees. The premium for a PhD is actually smaller than for a master’s degree in engineering and technology, architecture and education. Only in medicine, other sciences, and business and financial studies is it high enough to be worthwhile. Over all subjects, a PhD commands only a 3% premium over a master’s degree.

Dr Schwartz, the New York physicist, says the skills learned in the course of a PhD can be readily acquired through much shorter courses. Thirty years ago, he says, Wall Street firms realised that some physicists could work out differential equations and recruited them to become “quants”, analysts and traders. Today several short courses offer the advanced maths useful for finance. “A PhD physicist with one course on differential equations is not competitive,” says Dr Schwartz.

Many students say they are pursuing their subject out of love, and that education is an end in itself. Some give little thought to where the qualification might lead. In one study of British PhD graduates, about a third admitted that they were doing their doctorate partly to go on being a student, or put off job hunting. Nearly half of engineering students admitted to this. Scientists can easily get stipends, and therefore drift into doing a PhD. But there are penalties, as well as benefits, to staying at university. Workers with “surplus schooling” — more education than a job requires — are likely to be less satisfied, less productive and more likely to say they are going to leave their jobs.

Academics tend to regard asking whether a PhD is worthwhile as analogous to wondering whether there is too much art or culture in the world. They believe that knowledge spills from universities into society, making it more productive and healthier. That may well be true; but doing a PhD may still be a bad choice for an individual.

The interests of academics and universities on the one hand and PhD students on the other are not well aligned. The more bright students stay at universities, the better it is for academics. Postgraduate students bring in grants and beef up their supervisors’ publication records. Academics pick bright undergraduate students and groom them as potential graduate students. It isn’t in their interests to turn the smart kids away, at least at the beginning. One female student spoke of being told of glowing opportunities at the outset, but after seven years of hard slog she was fobbed off with a joke about finding a rich husband.

Monica Harris, a professor of psychology at the University of Kentucky, is a rare exception. She believes that too many PhDs are being produced, and has stopped admitting them. But such unilateral academic birth control is rare. One Ivy-League president, asked recently about PhD oversupply, said that if the top universities cut back others will step in to offer them instead.

Noble pursuits

Many of the drawbacks of doing a PhD are well known. Your correspondent was aware of them over a decade ago while she slogged through a largely pointless PhD in theoretical ecology. As Europeans try to harmonise higher education, some institutions are pushing the more structured learning that comes with an American PhD.

The organisations that pay for research have realised that many PhDs find it tough to transfer their skills into the job market. Writing lab reports, giving academic presentations and conducting six-month literature reviews can be surprisingly unhelpful in a world where technical knowledge has to be assimilated quickly and presented simply to a wide audience. Some universities are now offering their PhD students training in soft skills such as communication and teamwork that may be useful in the labour market. In Britain a four-year NewRoutePhD claims to develop just such skills in graduates.

The interests of universities and tenured academics are misaligned with those of PhD students

Measurements and incentives might be changed, too. Some university departments and academics regard numbers of PhD graduates as an indicator of success and compete to produce more. For the students, a measure of how quickly those students get a permanent job, and what they earn, would be more useful. Where penalties are levied on academics who allow PhDs to overrun, the number of students who complete rises abruptly, suggesting that students were previously allowed to fester.

Many of those who embark on a PhD are the smartest in their class and will have been the best at everything they have done. They will have amassed awards and prizes. As this year’s new crop of graduate students bounce into their research, few will be willing to accept that the system they are entering could be designed for the benefit of others, that even hard work and brilliance may well not be enough to succeed, and that they would be better off doing something else. They might use their research skills to look harder at the lot of the disposable academic. Someone should write a thesis about that.

Written by The Economist

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Finance Degrees: Worth it or Useless for Getting a Job?

Finance degrees can be your foot in the door for a career in management consulting, trading, banking, and investments. For people seeking one of these careers, a finance degree is probably worth it.

However, most entry level positions in finance provide average salaries that fall below the pay rate on some other industries like engineering and law. The pay then often rises quickly.

On balance, finance degrees are certainly not useless as they are niched-down enough to prepare you for a specific set of in-demand jobs.

What Is a Finance Degree?

Finance degrees explore financial systems, investments, loans, banking, savings, and monetary policy.

Finance is a discipline that can open the door to a well-paid job in the lucrative financial sector.

However, degrees in this area rarely focus on a single area of finance. Usually, graduates explore a wide range of topics like taxation, statistics, management, and financial analysis.

It is certainly not the hardest major out there, but it still requires a good amount of work to achieve good results. You’ll need strong logical and mathematical skills.

What Jobs Can you get with a Finance Degree?

There are myriad careers you can pursue with a degree in finance. In this field, there are three primary categories. These are: corporate, public, and personal. The first step to unlocking that career potential is to get a bachelor’s. But, to further broaden the prospects, additional education is often necessary.

Pros and Cons of a Finance Degree

Compared to other quantitative fields like engineering, finance is considered easier to master. It is a good job that can prepare you for a stable long-term job.

But, before you jump all in, take a look at its pros and cons.

1. Benefits of a Finance Degree

All majors have something unique to offer. Finance is a popular choice for those eager to develop financial literacy. With that in mind, here are some of the benefits a degree in finance can offer.

It is a degree that provides job-ready skills rather than vague skillsets that you sometimes get with a liberal arts style degree.
What you learn will be applicable both to your professional and personal life.
It’s a good investment. A bachelor’s degree is enough for a typical entry-level job.
It provides flexibility to work in a range of the top companies in the world.
There are a range of possible careers within finance that you can consider, so you’re not locking yourself into any one career just yet.
It’s generally easier to complete than degrees like law and engineering, although it can pay less.

2. Negatives of a Finance Degree

People who study finance can find themselves in a good career. But, it is important to take a look at the big picture and explore the possible disadvantages as well.

Here are the cons of having a finance degree.

There’s a lot of math. If you’re not a math minded person, this might not be the career for you.
There is limited employment growth rate. According to these statistics , the job outlook for personal financial advisors is estimated to grow 5% in the next decade. This is a much slower rate than most other job types.
Expect long working hours. Depending on where you work, sometimes you have to work a lot more than you planned to. With investment banking, for example, workers usually have to put in extra hours. This can turn into a tedious experience.
Expect a conservative dress code in your office. This is a suit-and-tie sort of industry. If you are not a fan of conservative clothing, then you may not feel comfortable working in the field.
It’s behind a computer. While you work with clients, you will also spend a lot of time on computers and no time at all doing physical activities.

Read Also: 42 US Colleges With Bear Mascots

What are the Requirements for Finance Degrees?

The requirements for finance degrees vary depending upon where you apply. But, if you score under a 3.0 GPA then you’ll find it difficult to land a job in the top-most paid firms in the industry. A good GPA for a major in finance is 3.7. If you score anywhere from 3.0 to 3.5, you may have trouble finding a well-paid job in the field of finance.

What is the Average Salary for Finance Graduates?

The average person with a bachelor’s in finance takes about $73,000 annually. When you take all recipients of a bachelor’s degree into account, then the median pay is a bit lower, reaching roughly $61,000.

Better paid professionals in the field get higher salaries when working with renowned and larger companies. They can make $100,000 within a few years.

Overall, the pay can be good, but it varies a lot depending on what you end up doing. Venture capitalists, stockbrokers, and investment bankers will make the most, but will also be the highest-risk and most stressful.

Nevertheless, this is definitely an industry where you can land a long-term and stable job.

What Finance Majors Are There?

Students can pick different majors based on their personal interests. Choose the option that you feel comfortable with. These are some of the paths you can take.

Skills Learned In A Finance Degree

1. soft skills.

Interpersonal skills
Networking capabilities
Communication
Analytical ability
Problem-solving capability

2. Hard Skills

Knowledge of digital tools and financial systems
Financial reporting

Do Further Research on your Degree Choices:

Is a Liberal Arts Degree Worth It?
Is a Chemistry Degree Worth It?
Is an Engineering Degree Worth It?
Is a Business Degree Worth It?
Is a Finance Degree Worth It?
The 6 Types of Degrees
15 Jobs you can Get with a Teaching Degree
Is a Computer Science Degree Worth It?
Is an Economics Degree Worth It?
17 Types of Bachelor Degrees

Final Verdict: Are Finance Degree Worth It Or Worthless?

If you can’t handle the number crunching and you are not passionate about finance, then you might want to look into a different option to major.

But, if you want a finance degree because you enjoy thinking through money matters, then a finance degree might be worth it for you.

Overall, a finance degree is not worthless, as it will provide the foot in the door for a wide range of potentially high-paying jobs. The main thing to keep in mind is that this is a highly mathematical degree with high-stakes and stressful (but also highly paid) jobs out the other end.

Chris Drew (PhD)

Dr. Chris Drew is the founder of the Helpful Professor. He holds a PhD in education and has published over 20 articles in scholarly journals. He is the former editor of the Journal of Learning Development in Higher Education. [Image Descriptor: Photo of Chris]

Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 5 Top Tips for Succeeding at University
Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 50 Durable Goods Examples
Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 100 Consumer Goods Examples
Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 30 Globalization Pros and Cons

The Economic Times daily newspaper is available online now.

Unlock financial insights: guide to pursuing a phd in finance management.

Several prestigious institutions in India offer a PhD in Finance program, which is a research-oriented course that provides a deeper understanding of financial concepts. To pursue this program, candidates must pass entrance exams and have a minimum overall score of 55% in their relevant master's degree.

Top professional courses on Leadership

About phd in finance management.

A PhD in Finance is a research-focused programme that prepares students for advanced academic and research careers in economics and finance.
Those who want to apply for admission to the programme must have managerial, leadership, logical, and analytical abilities.
Accounting, economics, financial management, and other related topics are all studied in finance.
Students pursuing a PhD in finance receive training in subjects such as corporate finance theory, investments, and statistics.
In their course curriculum, the students also have the opportunity to investigate various financial markets and products.
A PhD in Finance is a research-based programme designed specifically for academic or research-based careers.
While the majority of institutions demand that applicants have a Master's in business administration, some of them admit students to PhD in finance programmes after they have already earned their bachelor's degrees.

Why do a PhD In Finance?

High income - A PhD in Finance graduate may expect to make between INR 4 LPA and INR 8 LPA in income on average. According to the website Pay Scale, the average pay of a PhD in Finance graduate is roughly INR 12,50,000 PA, and it rises with experience. In addition to this, the candidates receive perks and additional benefits including DA, Provident Funds, Travel Expenses, and health insurance.
Careers: After completing the course, students have the option of pursuing a career in academia or industry. Both professional paths have equal financial success. They have the choice to pursue a career as a professor, lecturer, or associate professor in academia. They can choose to work as market research analysts, investment bankers, etc. in the industrial sector.
Job Stability: The majority of PhD finance graduates choose to work in academia because it offers job security. In industrial employment, they are typically hired in top-level roles, primarily as consultants, which are thought to be more stable and have a lower attrition rate.

PhD Finance Management Admission Process

Step 1: registration. Candidates must go to the entrance examination authorities' website, register using an email address or phone number, and create a login ID.
Step 2: Complete the application form - Students who wish to pursue a PhD in finance must complete the applications for the relevant institutions. Online application forms are available for filling out. Candidates must offer information about the cities where they prefer to take the entrance exams as well as essential academic information.
Step 3: Upload the different documents. Candidates must upload the different documents in their desired size and format. Then, the applicants must pay the application fees and print a receipt for their records.
Step 4: Candidates must appear for the admission exam, which is compulsory for all applicants. Each university administers its own admissions tests. The students are invited for the interview based on how well they did on the entrance exam.
Step 5: Attend the interview - Following the announcement of the admission test results, the chosen students are contacted for an interview. The interview may include several rounds. The candidates must present their theses as well as the research areas they will focus on throughout their PhD studies.
Step 6: Admission to the College - Students who pass the interview will be contacted for the rest of the admissions process and given permission to enrol in the relevant university.

Eligibility Criteria for PhD Finance

The student must complete his or her post-graduate studies at an accredited university in subjects like accounting, economics, or mathematics. The PhD in Finance Course accepts applications from candidates from the MBA Finance Stream as well.
Additionally, the student must have earned at least a 55% in their post-graduation course. Candidates who are SC/ST/OBC/PwD receive a 5% mark reduction.
There is no maximum age for admission to the PhD programme.

Entrance Exams For PhD In Finance

NET UGC Exam
PET SIU Exam
JNU PhD Admission Test
GTU PhD Admission Test

PhD Finance Top Colleges

Ahmedabad University
Alliance School of Business
Amity University
Department of Management Studies-IIT Madras
Gitam University of Management
Indian Institute of Foreign Trade
Kalinga Institute of Technology
National Institute of Technology
Shailesh J. Mehta School of Management
Sharda University

PhD Finance Career Options

Frequently asked questions, read more news on.

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Is it Worth Getting a Ph.D. in Finance?

A Ph.D. in finance opens up students to many potential job opportunities, but there are some serious drawbacks to getting a Ph.D. in finance. The decision to acquire a Ph.D. in finance is something very personal, and it may not be the right fit for all individuals.

Not for Love of Making Money

Many people believe that if they get a Ph.D. they will make more money than they otherwise could with an MBA or similar graduate degree. The first thing to keep in mind is that getting a Ph.D. does not entitle you to a job that an MBA or similar finance or business degree does not. You can still become a high-ranking executive, with a six-figure salary, whether you have a Ph.D. or a master’s.

Remember that the term Ph.D. literally means “Doctor of Philosophy.” Philosophy is the act of thinking, theorizing and researching. That is what a Ph.D. especially prepares candidates to do, according to an online article . There are, therefore positions within companies that are suited to a Ph.D. because they involve research surrounding how money flows and works. However, from a money-making standpoint, there is little that a Ph.D. can do that an MBA cannot.

Those considering a Ph.D., therefore, should do so not for a love of making more money or a higher wage, but for the love of acquiring knowledge, doing research and sharing that information with others. The work done by those with a Ph.D. is valuable to business executives and economics experts, but that doesn’t mean that they will offer you substantially more money or a better position for it. The fact is that many Ph.D. graduates work in academia, not business. That said, there are many options for graduates to explore, as detailed in this article .

The Cost of a Ph.D.

There are two significant costs of a Ph.D. that must be considered. The first is obviously money. College is an expensive endeavor, and many people do not do paid work while acquiring advanced degrees. Some Ph.D. candidates get their schooling paid for by various institutions because the work they do getting the Ph.D. will then be provided to these organizations for free, and they consider that information worth the cost of tuition. Without such sponsoring, gaining a Ph.D. can be a financially daunting affair for those not already of comfortable wealth.

The second, no less significant cost of a Ph.D. is time. Gaining a Ph.D. requires, on average, an additional four or more years of study after a graduate degree. This means that at grand total, a Ph.D. graduate has invested four years of undergraduate tuition, another two or three years of graduate education and another four or more years of doctoral education. Unless they took a break to get work experience in-between, they will be at least six or more years behind the average graduate in job experience. While getting advanced degrees does generally mean higher pay, it often lags behind someone who has been climbing the career ladder for the last six years while the Ph.D. graduate was toiling away in school.

The decision to pursue a Ph.D. in finance, or any other field, should not be taken lightly. A Ph.D. candidate must have a clear vision of what they want to do for the rest of their life. They will be sinking over a decade of life and hundreds of thousands of dollars into education, and they will need to be sure it is worth it to them.

Is a PhD worth it now in 2023? [the data]

Deciding to pursue a PhD is a decision not to be taken lightly. Whether or not it is worth it for you depends on a number of circumstances such as your career goals, financial stability, stage in life, support networks, interest in the subject, ability to self-motivate and so much more.

Arguably, for most people, a PhD is not worth it. If you want to enter academia you have no other option than to do a PhD. However, there is often a much better return on investment from other educational pathways such as master’s, professional degrees and work experience.

For some people, the act of getting a PhD is more than for financial return or reward. They have a deep connection with the subject and want to research it. They are willing to put up with the sacrifices required to do a PhD because of their drive for a particular research field.

These types of researchers are relatively rare.

This article will go through everything you need to know about whether or not PhD is worth it in 2023 and the most important things you should consider before launching into your PhD application process.

Should I Get A PhD?

Deciding whether or not to pursue a doctoral degree is a huge life decision. It can easily take up to 7 years to get a PhD in some countries.

This is a time when others are laying the foundations of their life and have a job starting to build up experience in their professional field.

Doing a PhD delays adult life for most young PhD students.

PhD regret is a real thing and in my youtube video, I share all of the things you need to be aware of when making the decision to do a PhD.

Study referenced in the video: click here.

A doctorate requires an immense amount of work and dedication. And therefore you need to be absolutely certain it is the right decision for you.

If you have a passion for:

teaching at a university,
public service,
or your job has pay scales that can only be reached with a PhD

then getting a PhD may be a perfect choice.

On the other hand, if you are looking for career advancement opportunities or increased earning potential, then it might not be right for you.

There are other options such as a Masters, graduate diploma, or work experience that could potentially open more career advancement opportunities.

If you want to know more about PhDs check out my other articles:

How long does it take to get a PhD? Complete a PhD quickly
How long does it take to get a PhD part time? Complete a PhD on your own time.
How difficult is it to get a PhD? The real doctorate struggles.

Is getting your PhD worth it for your career?

A PhD is certainly worth it for many careers, especially those in academia, research and education.

A PhD provides you with the skills to:

perform academic research independently,
write for peer-reviewed publications,
present findings to peers
manage a multi-year project with multiple stakeholders
teach undergraduate classes
and much more

These skills are incredibly valuable and well compensated in some careers .

It is also important to consider that a PhD can also help you develop specialized skills and knowledge that are highly valued in certain industries, such as data science and analytics.

A PhD can open up doors to new opportunities that undergraduate and masters degrees do not.

However, a PhD doesn’t necessarily mean that you are going to be compensated better in the workplace with a higher salary.

Let’s take a look at whether or not a PhD is worth it for your finances.

Is a PhD worth it for your finances? Whether a PhD will boost your bank balance.

Whether or not a PhD is worth it for your finances highly depends on what you’re using your PhD for.

In my experience, a PhD does not guarantee higher wages upon graduation. In fact, it is often a better return on your investment to get a master’s degree and a couple of years of experience in a career to maximise your earning potential.

This is backed up with data.

You can see in the graph below that, on average, the maximum earnings someone can make is with a Masters or professional degree.

IS a PhD worth it? The data of earnings with different levels of education across fields.

Across all of the different subject areas, it is often better to get a professional degree that is directly related to your career rather than pursue a PhD.

It takes many more years to get a PhD and quite bluntly – it does not make financial sense to do a PhD.

For many, the stipend associated with being a PhD student can help to pay for grad school and other expenses during their studies but there is a huge shortfall compared to the wage if you had started a job.

Even if you don’t go into academia, many companies recognize the value of having a PhD but may not offer a financial benefit.

Why is a PhD a bad idea for most people?

Arguably, a PhD is a bad idea for most people because it requires a tremendous amount of time, effort and money to complete, and there are very few job opportunities in academia available.

Also, as we have seen above, it is quite often not financially sensible to pursue a PhD.

Many students embark on a PhD program with the expectation that they will get an academic job upon completion of their studies, but this is not guaranteed. And, is in fact, the exception.

The competition for postdocs and other academic jobs is high and there is no guarantee of job security once you get one.

Having an undergraduate degree already makes you eligible for many jobs outside academia so getting a PhD may not be the best use of your time or resources.

For all these reasons, many people opt out of getting a PhD and pursue alternative career pathways.

What are the Risks of Getting a PhD?

Earning a PhD can be costly both in terms of time and money, and it may take several years to complete a successful doctoral program.

Also, there are many other risks and costs associated with getting a PhD that are not talked about.

These include:

return on investment
opportunity cost
reduced earning potential in early years
reduce networking with professionals
and many more.

In my YouTube video below I talk about whether or not get a PhD is worth the effort:

Furthermore, there are risks associated with getting a PhD. One risk is that the long timeframe of earning a PhD may lead to burnout or fatigue for the PhD student.

Another risk is the fact that the value of a particular Ph.D may fluctuate over time, so it’s important to consider whether or not the Ph.D will be worth it in the long run.

There’s always a risk that humanity’s understanding of certain fields could change suddenly, rendering an individual’s doctoral degree obsolete or less valuable than anticipated.

For these reasons and more, individuals considering getting a PhD should evaluate their options carefully before making such an important commitment.

Have you thought realistically about your job prospects?

Some people can get very excited thought of doing a PhD. However, this excitement is incredibly short-lived once they realize that there are no job prospects upon graduation.

When considering job prospects, it is important to think realistically about the opportunities available for when you graduate.

For many PhD students, the dream is to secure a tenure-track position in academia. However, this can be difficult with so many PhDs vying for limited positions in universities and colleges.

Therefore, it is important to consider other options outside of academia as well. This isn’t something that many young PhD students want to hear – but it is where most of them will end up.

Many PhDs have found success in fields such as healthcare, finance, and technology.

Additionally, some PhDs have even gone into non-traditional fields such as teaching English abroad or starting their own business.

I chose the pack of starting my own business and have had a much more fulfilling life and satisfaction from that than I ever did during my years in academia.

No matter what path you choose after completing your PhD, it’s important to remember that there are many opportunities out there for PhD students – both inside and outside of academia.

They may not be obvious at the beginning – just keep searching into you find one that excites you.

PhD Degree Alternatives

There are many alternatives to getting a PhD that can still lead to successful career paths in different fields.

Sure, they may not be as prestigious. They may not even be particularly exciting – but for your career, they offer a much better return on your investment both in terms of time and money.

We have seen, above, that it is actually much better to settle into a career with a Masters and then upskill with various professional degrees until you reach your desired earning potential.

It PhD is not a guaranteed ticket to a higher-paying job – building up credibility and experience in a particular role is.

There are many other degree alternatives including:

graduate diplomas
professional degrees
vocational courses
a much more

that can help boost your earning potential.

However, there truly is no alternative to a PhD if you want hard-core research experience and to open up the career pathway to lecturing and research.

For people that want to enter academia I often say that they should have a fallback plan so that when their ideas of becoming a researcher fall away they have a comfortable and realistic backup plan that they would enjoy.

You’ll be amazed how many people don’t know what they would do if they won’t in academia. In today’s highly competitive world that is not good enough.

It is important to explore all of one’s options before committing to pursuing a PhD degree so that they can make an informed decision about their future career path.

Wrapping up

This article has been through everything you need to know about whether or not a PhD is worth it now and all of the important questions you need to ask yourself.

You need to look at your career goals, the financial gains you expect to make with a PhD and what other opportunities open up upon graduation.

However, there are some extreme costs that come with letting a PhD including reduced earning potential for many years, stressing and anxiety, reduction in professional experience, and many others which will need to be addressed if you decide to go down the postgraduate PhD route.

Whatever you decide I hope that this article has provided you with enough formation to help make a decision one way or another.

Dr Andrew Stapleton has a Masters and PhD in Chemistry from the UK and Australia. He has many years of research experience and has worked as a Postdoctoral Fellow and Associate at a number of Universities. Although having secured funding for his own research, he left academia to help others with his YouTube channel all about the inner workings of academia and how to make it work for you.

Thank you for visiting Academia Insider.

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Report Helps Answer the Question: Is a College Degree Worth the Cost?

The analysis found that former students at most colleges had an annual income higher than high school graduates a decade after enrollment.

A diploma being swiped through a green device with a clock on it.

By Ann Carrns

Most people go to college to improve their financial prospects, though there are other benefits to attending a postsecondary institution. But as the average cost of a four-year degree has risen to six figures, even at public universities, it can be hard to know if the money is well spent .

A new analysis by HEA Group, a research and consulting firm focused on college access and success, may help answer the question for students and their families. The study compares the median earnings of former college students, 10 years after they enrolled, with basic income benchmarks.

The analysis found that a majority of colleges exceed minimum economic measures for their graduates, like having a typical annual income that is more than that of a high school graduate with no higher education ($32,000, per federal Scorecard data ).

Still, more than 1,000 schools fell short of that threshold, though many of them were for-profit colleges concentrating in short-term credentials rather than traditional four-year degrees.

Seeing whether a college’s former students are earning “reasonable” incomes, said Michael Itzkowitz, HEA Group’s founder and president, can help people weigh whether they want to cross some institutions off their list. Someone deciding between similar colleges, for example, can see the institution that has produced students with significantly higher incomes.

While income isn’t necessarily the only criterion to consider when comparing schools, Mr. Itzkowitz said, “it’s a very good starting point.”

The report used data from the Education Department’s College Scorecard to assess the earnings of about five million former students who had attended about 3,900 institutions of higher education, 10 years after they first enrolled. (The analysis includes data for people who didn’t complete their degree.) The report includes public colleges as well as private nonprofit and for-profit schools; the schools may offer nondegree certificates, associate degrees and bachelor’s degrees.

The analysis found that schools where students earned less than their peers who never attended college were generally those offering nondegree certificates, which can often be completed in 18 months or less, as well as for-profit institutions, although the list also includes some public and private nonprofit schools. At 71 percent of for-profit schools, a majority of students were earning less than high school graduates 10 years after enrolling, compared with 14 percent of public institutions and 9 percent of private nonprofit schools, Mr. Itzkowitz said.

“College is, indeed, worth it,” Mr. Itzkowitz said, but paying for it can be “substantially riskier” depending on the type of school you attend or the credential you seek.

(Another report found that former students of for-profit colleges tend to experience more financial risk than those who attended similarly selective public colleges. Those risks include having to take on more debt for higher education, a greater likelihood of defaulting on student loans and a lower likelihood of finding a job.)

Jason Altmire, president and chief executive of Career Education Colleges and Universities, a trade group representing for-profit career colleges, said lumping together schools offering mainly short-term certificate programs with colleges offering four-year degrees didn’t make sense. People who want to work in certain careers — hairdressing, for instance — generally can’t work in the field unless they earn a certificate, he said.

Mr. Altmire also said that income data from for-profit certificate schools might be skewed by “gender bias” because the programs had a higher proportion of women, who were more likely than men to work part time while raising families, lowering a school’s reported median income.

The HEA report also compared colleges’ performance with other benchmarks, like the federal poverty line ($15,000 annual income for an individual), which is used to determine eligibility for benefits for government programs like subsidized health insurance and Medicaid. Incomes at the “vast majority” of colleges exceeded this cutoff, the report found, although 18 — nearly all of them for-profit schools offering nondegree certificate programs in beauty or hairstyling — had students with median incomes below that threshold.

Majors also matter, since those in science, technology, engineering and nursing typically lead to significantly higher salaries than majors in the arts or humanities. (Last year, HEA published a separate analysis of the college majors that pay the most.)

When comparing the earnings after college, students and families shouldn’t look at the data in a vacuum, said Kristina Dooley, a certified educational planner in Hudson, Ohio. Many schools where former students go on to be top earners have programs focusing on health sciences, technology or business, but that may not be what you want to study.

“Use it as one piece of information,” Ms. Dooley said.

She said that students shouldn’t rule out a college just because it wasn’t at the pinnacle of the income list. Do ask questions, though — like whether its career services office helps with setting up internships and making alumni connections to assist you in finding a good-paying job.

Amy S. Jasper, an independent educational consultant in Richmond, Va., said postgraduate income might matter more to students and families who had to get a loan for college. “How much debt do they want to incur?” she said. “That is something that needs to be taken into consideration.”

But, she said, the benefits of college are not just financial. “I’d like to think that picking the right school is also about becoming a better person and contributing to the world.”

Here are some questions and answers about college costs:

What colleges had the highest median incomes?

Marquee names, like most Ivy League schools, Stanford and the Massachusetts Institute of Technology, are heavily represented at the top of HEA’s analysis. Their students had median incomes of at least $90,000 a decade after enrollment. (A handful of for-profit schools, focused on careers like nursing and digital production, can be found there as well.) But the highest-earning colleges on the list? Samuel Merritt University, a nursing and health sciences school in Oakland, Calif., and the University of Health Sciences and Pharmacy in St. Louis, each with incomes above $129,000. You can see the data on the HEA website .

How much does college cost?

The average estimated “sticker” price for college — the published cost for tuition, fees, housing, meals, books and supplies, transportation and personal items — ranges from about $19,000 a year at a two-year community college to about $28,000 for in-state students at a public four-year university to almost $58,000 at a four-year private college, according to 2022-23 data from the College Board . Some students, however, may pay much less because of financial aid.

Are some college programs required to meet income benchmarks?

A federal “gainful employment” rule , which aims to make career programs more accountable, is scheduled to take effect in July. The new rule, which mostly affects for-profit schools but also applies to certificate programs at all types of colleges, requires schools to show that at least half of their graduates earn more than a typical high school graduate in their state and that their graduates have affordable student loan payments. Colleges that miss either benchmark must alert students that the school could lose access to federal financial aid. Schools that fail the same standard twice in three years will become ineligible for federal aid programs.

A Guide to Making Better Financial Moves

Making sense of your finances can be complicated. the tips below can help..

Credit card debt is rising, and shopping for a card with a lower interest rate can help you save money. Here are some things to know .

Whether you’re looking to make your home more energy-efficient, install solar panels or buy an electric car, this guide can help you save money and fight climate change .

Starting this year, some of the money in 529 college savings accounts can be used for retirement if it’s not needed for education. Here is how it works .

Are you trying to improve your credit profile? You can now choose to have your on-time rent payments reported to the credit bureaus to enhance your score.

Americans’ credit card debt and late payments are rising, and card interest rates remain high, but many people lack a plan to pay down their debt. Here’s what you can do .

There are few challenges facing students more daunting than paying for college. This guide can help you make sense of it all .

Are Financial Advisors Worth It?

Beyond stock picking, today's advisors help clients plan for a wide range of financial and life goals.

Getty Images

Clients can develop a hand-tailored investment strategy with the help of a financial advisor.

Investors often wonder whether it's worth hiring a financial advisor , or whether they can go it alone.

Part of the dilemma is due to a misunderstanding of what advisors actually do. In the distant past, brokers picked single stocks for clients and didn't do much else.

Advisor's Corner

Advisor's Corner is a collection of columns written by certified financial planners, financial advisors and experts for everyday investors like you.

That's changed dramatically, though. Today's financial advisors and planners take a holistic view of client portfolios, aligning investments with client goals, time horizon and risk tolerance, rather than constantly trying to swing for the fences with stock picks.

Advisors also offer services such as planning for retirement, financial planning for divorce , education expenses, tax strategies, long-term care, charitable giving and more.

Value of an Advisor

In a 2022 white paper, "Putting a Value on Your Value: Quantifying Vanguard Advisor Alpha," asset manager Vanguard expanded upon a 2001 study that outlined how advisors could add value, or alpha, through relationship-oriented services rather than by trying to outperform the market.

Vanguard identified the seven areas where advisors following a set of best practices could add value for clients:

Asset allocation. Asset allocation refers to the percentages of a portfolio invested in asset classes such as stocks, bonds or cash.
Cost-effective implementation. This is the process of tracking an investor's gross return minus costs, such as fund expense ratios .
Rebalancing. Once an allocation is selected, it's important to maintain that allocation over time. As investments produce different returns, the portfolio likely drifts from its target allocation. The primary goal of rebalancing is to adhere to an investor's risk-return tolerance.
Behavioral coaching. Although many people believe investing is purely logical, advisors know that emotion plays a big role. Part of an advisor's job is to help his or her clients maintain a long-term perspective and a disciplined approach; this can add a large amount of potential value.
Withdrawal order for spending from portfolio. The order in which investors make withdrawals from their portfolios has tax implications and affects portfolio longevity. This is an area where financial planners and advisors can help an investor have a greater chance of a successful retirement outcome.
Asset location. Advisors can help clients place investments in taxable or tax-advantaged accounts strategically, minimizing tax liabilities and maximizing after-tax returns.
An eye on income investing. As interest rates eventually come down and yields on fixed-income portfolios trend lower, retirees counting on the traditional stock and bond portfolio may not be able to live off the proceeds from income-producing securities. Advisors routinely review client portfolios to be sure they're on track with the income they need, rather than simply making an assumption.

How Advisors Help Clients

Some investors who haven't worked with an advisor question whether it's worth paying a fee to have their assets managed, rather than simply doing it themselves.

However, other investors understand factors such as those identified by Vanguard and hire an advisor to help them stay on track.

Hiring an advisor can help investors develop a hand-tailored plan and investment strategy, rather than going it alone. While some do-it-yourselfers try to determine a "number" they will need to retire, that approach overlooks many other nuances of planning.

"Saving for retirement is daunting, but it's imperative to plan ahead," said Melissa Murphy Pavone, a certified financial planner and director of investments at Oppenheimer & Co.

"There is no one-size-fits-all answer for how much you need to save for retirement," Pavone said in an email. "There are many factors to consider: Desired retirement age, expected lifespan, lifestyle goals and anticipated expenses, just to name a few."

Pavone pointed out that the top concern for retirees is outliving their assets, particularly as medical technologies increase life expectancies. Advisors are acutely aware of this and pay close attention to how investment returns and other income sources balance out with spending and clients' lifestyles.

For example, Pavone says, "Retirees often overlook the impact of health care costs in retirement. This added expense, if not accounted for, can quickly deplete retirement savings."

Ask Yourself These Questions Before Hiring an Advisor

While there are plenty of checklists for investors interviewing advisors, introspection is also part of the process.

Chris Urban, founder of Discovery Wealth Planning in McLean, Virginia, says investors should ask themselves some questions if they are on the fence about hiring an advisor versus trying to do their own planning and investing.

Those include:

Do you have the time, confidence and interest to manage your own financial life?
If you have a spouse or partner, do they have the time, confidence and interest to manage their own financial life if something happens to you?
What, specifically, would you be looking for in an engagement with a professional financial advisor?
Can you afford to pay for the services of a professional?

"There are so many different engagement types and offerings these days for consumers to get help with their financial life," Urban said in an email. "Asking yourself the above few questions is a good first step to see if it's something you should consider for you and your family."

More Than Just Number Crunching

Many investors today understand that a financial planner doesn't have the same job as their grandparents' stock pickers, but they still balk at paying a fee.

A 2023 report from brokerage and asset manager Fidelity identified several advantages for investors who work with an advisor:

Investors who work with an advisor are generally more confident about reaching their goals.
Industry studies estimate that professional financial advice can add between 1.5% and 4% to portfolio returns over the long term.

That finding tracks with Vanguard's data, which shows that advisors can potentially add 3% or more in net return.

However, factors such as confidence and peace of mind from having an objective second opinion are often more valuable than a higher portfolio return.

"Financial advice is more than just numbers and investments. It's a process that can help you make a plan, chart your progress, and hopefully achieve your personal and financial goals, while feeling more confident along the way," according to the Fidelity report.

How to Become a Financial Advisor

Coryanne Hicks Sept. 14, 2022

Financial advisor meets with couple in their home.

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IMAGES

Is a Degree in Finance Worth It? [Career Opportunities Guide]
Is a Degree in Finance Worth It? [Career Opportunities Guide]
Is a PhD in Finance Right for You?
How Long Does It Take To Get A PhD In Finance
Is Degree in Finance Worth It? [Career Opportunities Guide]
Is a Finance Degree Still Worth it? (2021)

COMMENTS

Do PhD have any value in Finance ? : r/FinancialCareers
A PhD is a lot of money to hope you get 1 of maybe 3,000 jobs. The average quant doesn't have a PhD in economics, at least from my experience most quant colleagues I talk with have physics, maths or mathematical finance PhDs. Or some kind of financial engineering masters, or maths/phys masters. This is correct.
Is it worth doing a PhD to secure a job in finance?
It will help if you can narrow down the sort of job you seek as only some of these roles would benefit from advanced skills in specific areas such as quantitative analysis, modelling, and coding ...
The 10 Best PhD Programs in Finance
This is one of the best PhD in Finance programs you can do completely online. It aims to prepare students to address issues in business finance through research, best practices, and relevant literature. Courses: Managerial Finance, Investments & Derivatives, Business Valuation, etc. Credits: 60. Duration: 3 years average.
The Ins and Outs of a PhD in Finance
Is A PhD in Finance Worth It? The answer to this question depends on your individual career goals and ambitions.A PhD in finance can open doors to a variety of interesting and lucrative careers in the financial sector. It can also provide you with an opportunity to advance your research and teaching skills, and it may even lead to a higher salary.
The main benefits of having a PhD if you want a job in finance
A PhD in Finance is a HUGE committment, and not something that can be decided easially. ... The arguments you put forward only serve on point: landing a good first job; which is not worth spending 3 years in school. In my opinion, the only reason a PhD would serve you is if you already have experience in the industry, find a hard relevant ...
On doing a PhD in Finance after a few years in the industry
The limits of that system is that you have to do 95% like others do and 5% is left for your innovations. If you do a PhD in Finance, you have to start from scratch, you should not come in with a ...
Is a PhD Worth It? The Pros and Cons of Getting a Doctorate
3. You'll experience extreme stress and frustration. Pursuing a PhD may seem like a noble and interesting endeavor, and extended life as a student can appear more attractive than wading into the job market. You must be aware, however, that getting a doctorate can be a very stressful and frustrating experience.
Is It Worth It to Get a PHD in Financial Planning?
Costs. Getting a Ph.D. in financial planning requires a sizable investment of time and money. The cost varies depending on the program and the institution. Tuition alone can range from $30,000 to $120,000. Students may have to shell out additional sums for textbooks, research materials and travel expenses.
Is it worth doing a PhD when an academic career is not the goal?
Measuring worth in a purely financial and employment point of view, PhDs have better outcomes than masters or first-degree graduates. Across the UK, 95 per cent of PhDs 15 months after leaving ...
Finance
The Programs PhD Fields of Study Finance. Finance. The field of finance covers the economics of claims on resources. Financial economists study the valuation of these claims, the markets in which they are traded, and their use by individuals, corporations, and the society at large. At Stanford GSB, finance faculty and doctoral students study a ...
Is It Worth Getting A PhD In Financial Planning?
As the funding from the original CFP board grant indicates, one of the primary opportunities for getting a Ph.D. in financial planning is to teach personal financial planning, particularly in a higher education institution. And I think it's worth noting this is a really exciting time for the growth of financial planning as an educational ...
Why Do a Ph.D in Finance?
A Ph.D. in Finance will set you up for a position at a quantitive trading desk. They land fewer jobs with I-banks and more often work behind the scenes and are generally less involved directly with clients as their reputation tends to be that they are more academic and less business oriented.
Why a Doctorate in Business Administration Is Becoming More Valuable
DBAs also stand out because they represent only 2% of all people who hold higher degrees in business. In 2021, more than 250,000 students graduated with MBAs or specialist degrees in business ...
2024 Best Online PhD in Finance Programs [Doctorate Guide]
University of the Cumberlands. A PhD in Business with a specialization in Finance through the University of the Cumberlands. Coursework is online with fieldwork or an internship required. The program requires 66 credits including 24 hours in professional research and 24 hours in Finance. Courses are in half- or full-terms.
Doctorate of Business Administration (DBA) Overview
A Doctorate of Business Administration is a professional degree designed for individuals who want to expand or develop their business skills. Those who pursue this degree typically have experience owning, managing, or operating a business. This allows them to experiment with the theories they study in a real-world situation and seek solutions ...
Is Doing a PhD Worth It?
A doctoral degree is a fantastic opportunity to spend time learning about something that appeals to you. Having an interest in your research area as a PhD student is a massive advantage as you will always be motivated to push the boundaries of your research. Possessing an advanced degree in a field your are genuinely interested in can also help ...
Why doing a PhD is often a waste of time
A PhD may offer no financial benefit over a master's degree. It can even reduce earnings. Proponents of the PhD argue that it is worthwhile even if it does not lead to permanent academic employment. Not every student embarks on a PhD wanting a university career and many move successfully into private-sector jobs in, for instance, industrial ...
Finance Degrees: Worth it or Useless for Getting a Job?
Finance degrees can be your foot in the door for a career in management consulting, trading, banking, and investments. For people seeking one of these careers, a finance degree is probably worth it. However, most entry level positions in finance provide average salaries that fall below the pay rate on some other industries like engineering and law.
Unlock Financial Insights: Guide to Pursuing a PhD in Finance
A PhD in Finance program can open up a variety of employment options for you and pave the way for a successful future. The following are some of the key justifications for choosing to pursue a PhD in finance: High income - A PhD in Finance graduate may expect to make between INR 4 LPA and INR 8 LPA in income on average. According to the website ...
Is it Worth Getting a Ph.D. in Finance?
The first thing to keep in mind is that getting a Ph.D. does not entitle you to a job that an MBA or similar finance or business degree does not. You can still become a high-ranking executive, with a six-figure salary, whether you have a Ph.D. or a master's. Remember that the term Ph.D. literally means "Doctor of Philosophy.".
Why a PhD is Worth it!
So, why should anyone do a PhD? And is it worth the effort? Join the knowledge economy. To begin with, PhDs are an essential part of the knowledge economy. Completing a PhD is all about creating fresh knowledge, discovering new things and developing new skills. It is a degree meant for those who seek greater depth of knowledge in a specific area.
Is a PhD worth it now in 2023? [the data]
Published on: February 24, 2023. Deciding to pursue a PhD is a decision not to be taken lightly. Whether or not it is worth it for you depends on a number of circumstances such as your career goals, financial stability, stage in life, support networks, interest in the subject, ability to self-motivate and so much more.
Ben Shapiro and the conservative myth about Social Security
Conservative broadcaster and gadfly Ben Shapiro stopped by the peanut gallery this week, where he offered thoughts on retirement and Social Security and went...
Is an MD/PhD Worth It? Financial Breakdown
Not only is the financial pull of clinical medicine strong, but it is also inherently difficult for clinician-scientists to compete with PhDs who do research full-time. The other issue with MD-PhD programs is sequencing. After devoting 3-5 years on the PhD, most trainees take a long (4+ years) break from research for residency.
Where To Earn An Online Doctorate in Information Technology In 2024
Earning a Ph.D. in information technology can be worth it, depending on your experience, specialization and career goals. Typically, research-heavy jobs, leadership roles and positions in academia ...
Report Helps Answer the Question: Is a College Degree Worth the Cost
The analysis found that former students at most colleges had an annual income higher than high school graduates a decade after enrollment.
Are Financial Advisors Worth It?
Investors often wonder whether it's worth hiring a financial advisor, or whether they can go it alone. Part of the dilemma is due to a misunderstanding of what advisors actually do. In the distant ...