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

被引:2
作者
Entrop, Oliver [1 ]
Merkel, Matthias F. [1 ]
机构
[1] Univ Passau, Chair Finance & Banking, Innstr 27, D-94032 Passau, Germany
关键词
FX derivatives; Risk management; Speculation; Overconfidence; PhD; Doctorate; FOREIGN-CURRENCY DERIVATIVES; RISK-MANAGEMENT; UPPER ECHELONS; RATE EXPOSURE; FIRM; PHD; DETERMINANTS; CAREER; OVERCONFIDENCE; DOCTORATE;
D O I
10.1007/s11846-018-0314-z
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
In contrast to the U.S., many executive managers of firms in German-speaking countries have a PhD. In this paper we analyze if a research-oriented background in the form of a PhD is linked to the corporate decision-making of CFOs in the use of foreign exchange (FX) derivatives in Germany. After controlling for fundamental firm characteristics, compensation schemes and personal characteristics of managers, we find some evidence that CFOs with a PhD in a business-related area tend to use FX derivatives less, while CFOs with a general business education do so more. Analyzing their behavior with regard to speculation, we find strong evidence that CFOs with a PhD speculate less on the FX market compared to CFOs with another (business) education. A possible reason may be that a research-oriented education is more associated with critical awareness and long-term orientation in corporate decision-making that persuades managers to avoid overconfident behavior.
引用
收藏
页码:869 / 901
页数:33
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