The Impact of Financial Education of Executives on Financial Practices of Medium and Large Enterprises
98 Pages Posted: 18 Sep 2019 Last revised: 27 Mar 2024
There are 2 versions of this paper
The Impact of Financial Education of Executives on Financial Practices of Medium and Large Enterprises
The Impact of Financial Education of Managers on Medium and Large Enterprises - a Randomized Controlled Trial in Mozambique
Date Written: March 26, 2024
Abstract
We study the impact of an MBA-style executive education course in finance on corporate policies and firm performance. The course targeted top managers of medium and large enterprises in Mozambique. Using a randomized controlled trial (RCT), we find that executives change firm financial policies in response to the educational treatment. A reduction in working capital generates an increase in cash that is used to finance longterm investments. Those changes improve the performance of the treated firms. Our experimental evidence shows that targeted educational interventions can help building relevant managerial capital.
Keywords: Financial Literacy, Financial Education, RCT, Financing Constraints, CEOs, Executives
JEL Classification: D4, G30, J24, L25, M41, O16
Suggested Citation: Suggested Citation