Jump to content
Urch Forums

Difference between Finance & Econ Ph.D.


IvyBoy

Recommended Posts

I was just wondering...do you guys think that it matters whether your Ph.D. is in economics or finance if you are aiming a job in industry? I mean "difference" as measured by marketability, earning potential and etc...Some might say that you don't need the Ph.D. in the first place, but let's just say that one is aiming at research oriented jobs.

 

IVYBOY!!!

Link to comment
Share on other sites

I think that if you are aiming for the private sector afterwards, a phd in applied math or stats would be fine. It seems to me that most phd finance programs expect you to take an academic position, this is not always the case with AMAT or stats. Plus if quant work is what you want to do then the science route is better, just add in a couple of finance related courses along the way.
Link to comment
Share on other sites

Why is the science degree better? I don't get it. Why waste the time on courses you won't really need for quant work? Maybe that was the way to go 10 years ago but today you can just study Masters in financial engineering at one of the numerous institutions that offer it. Unless you're already in a science program, just apply to a quant-oriented graduate degree program such as masters in financial engineering or Ph.D. in Finance or Economics (if they offer the financial economics field).
Link to comment
Share on other sites

As I stated above, PhD in Finance and or Financial Economics expect you to enter the academic market, for the other programs this is not always the case. And the courses you take in a science degree are not a waste, trust me you will need them to do phd level quant work, that is why the job postings ask for that knowledge. The posting usually ask for a highly quantitative phd background (Math, Eng, Stats or Phys) with some knowledge of finance, not the other way around. A masters program in Fin. Eng. is a good way to enter the market as well, but competetion is fierce...
Link to comment
Share on other sites

And if science courses would be a waste to learn for this business, how does it come that RenTEc is one of the most profitable investment firms out there? And what are their application criterias (that's what I have read several times on forums like wilmott.com,...): They want their applicants to have suceeded in research, and every new employee has to do a presenation of his PhD before he gets a final offer. They don't want MBA's or finance grad's, they want rocket scientists.

 

BTW, here's a bio of RenTec'S boss:

 

http://en.wikipedia.org/wiki/James_Harris_Simons

 

Top earner in 2005 if I remember right ( I think it was an FT article), btw he earned, according to them, about 1,5 billion bucks that year. yes BIllION, I have written it right.

 

Maybe there are positions for Finance grads (there are if u look at the grad placements), but I think it's easier to get a job with a science PhD.

Link to comment
Share on other sites

BTW, here's a bio of RenTec'S boss:

http://en.wikipedia.org/wiki/James_Harris_Simons

 

Wow, this guy has a really impressive career record. Apparently he doesn't believe in the random walk theory as an investor, yet his fund has survived for a pretty long time. I wonder if he actually has some supernatural investment strategy, or he's merely lucky.

Link to comment
Share on other sites

As I stated above, PhD in Finance and or Financial Economics expect you to enter the academic market, for the other programs this is not always the case.

 

I am not really sure what you mean by that. First, the academic departments can't prevent you from taking a job in the finance industry. Second, if you look at the placement records of many of the finance programs, you will see some placements in the industry. If you see finance program where all or most graduates take a job in the academia, that probably implies that the academic job market in finance is very hot and not that they can't get a job in the business. Of course, if you write in your SoP that once you finish a Ph.D., you want to go make money on the Wall Street rather than do research, the adcoms probably will not be too excited about your application.

Link to comment
Share on other sites

I am well aware that some graduates enter the private sector. That is why I said that the schools expect you to enter the academic market (not demand)... And yes you are right about them not being able to stop you from entering the private sector. I just think (I am actually almost certain) that it is discouraged more then say Math or Stats. And I would assume that you would feel some pressure from both your supervisor and university to get an academic career post graduation from a finance PhD, this pressure may not be present in the other programs. This is of course just my opinion though.
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...