The Impact of Financial Education of Executives on Financial Practices of Medium and Large Enterprises
85 Pages Posted: 18 Sep 2019 Last revised: 2 Nov 2022
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: October 31, 2022
Abstract
We study the impact of an MBA-style executive education course in finance for top managers of medium and large enterprises on firm policies and performance through a randomized controlled trial (RCT) in Mozambique. We find that executives change firm financial policies in response to the treatment. A reduction in working capital generates an increase in cash that is used to finance long-term investments. Those changes improve the performance of the treated firms. Our experimental evidence shows that individual managers and their skills matter for firm behavior and economic performance.
Keywords: Financial Literacy, Financial Education, RCT, Financing Constraints, CEOs, Executives
JEL Classification: D4, G30, J24, L25, M41, O16
Suggested Citation: Suggested Citation