Is finance knowledge conducive to better running a business?

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2 min read

9 February 2017

Essential to improving the impact of Executive Education, is to understand the extent to which learning on programmes is being applied in the workplace. Measuring the impact of programmes is a key strategy of Imperial College Business School Executive Education and is being integrated into a new project which investigates the impact of financial education of corporate managers in emerging markets.

The project, based in Mozambique and lead by Cláudia Custodio, Professor of Finance at Imperial College Business School, will investigate:

1)     Financial expertise of the top executives of Mozambique´s largest firms and;

2)     Whether link exists between the financial expertise of top executives and the financial policies and performance of the firms.

The research aims to better understand the links between financial skills, financial education and firm performance in an emerging market and ultimately provide guidance on how to develop policies to improve the allocation of financial resources within firms and how to help firms accessing external financing. For instance, they may suggest that providing financial training to executives of SMEs and larger firms could make an important contribution to private sector development.

The first part of the project will involve a survey of 100 largest firms in Mozambique as listed in an annual survey of 1000 Mozambican firms by consulting company KPMG. Through face-to-face interviews, the survey aims to collect detailed data on the financial expertise of the top executives as well as on these firms´ financial policies and performance.

The second part will evaluate the impact of financial training for managers on firms’ outcomes. At this stage, managers will be taught an MBA style finance programme. This programme will be custom-made, specifically designed to address the topics that are most relevant for the economy and private sector in Mozambique.

The impact of programme will be measured in several ways. Firstly, conducting survey interviews similar to those conducted for the first stage. Secondly, and more importantly, measuring several financial outcomes directly based on accounting information of the firms. We will also look at potential spillover effects that may affect peer firms in the long-run.

We will continue to feature the progress and outcomes of this project and if you would like to learn more about impact studies.

Imperial College Business School Executive Education also provides a Foundations of Finance course for non-finance managers in London running from 13-17 March 2017.

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