Getting a PhD in finance

In recent years there has been a growth in the number of people who are seeking a PhD in finance. In part this is because of competitive pressures in workplace and in part it is because of the growth of quantitative finance. A PhD can be very useful provided that you are pursuing it for the right reasons and that you understand what is involved.

The first thing that you are going to have to think about if you are considering getting a PhD in finance is whether or not you really need one. In recent years credential inflation has sent a lot of people in search of one in the hopes of standing out from the competition. That being said a PhD will do little to help you with your job. It may impress your boss and may actually get you promoted but what you will actually learn will be more useful to a university professor than to somebody working in the world of finance. The reason for this is simple, the PhD was intended for people who want to work in academia.

Another thing that you are going to have to think about before you study for a PhD in finance is whether or not you are capable of doing it. Many people assume that a PhD is just an advanced version of the MBA, this is not the case. In fact in most cases an MBA is not really adequate preparation. A PhD in finance is very theoretical and uses a great deal of high level math. Most successful candidates have degrees in economics or math rather than in business because of this.

It is important to understand that when you are studying for a PhD it is done in a different way than other studies you will have done. While there will be seminars to attend there are no classes like you had with other degrees. The bulk of your work will be on your thesis which will require you to work on your own. There will be a supervisor to help you but largely you will be on your own. The reason for this is that the whole point of a PhD is to prove that you can do original research.

If you have decided that you are going to pursue a PhD in finance you are going to have to choose a school. This is also a little bit different than it would be for other degrees, at this level you are really selecting a thesis adviser more than a school. You will need to find a thesis adviser who has research interests that are related to the topic that you want to write your thesis on and who is willing to supervise you. This may mean that you are better off at a different school than the one that you planned to attend originally.