Become Finance Professor

Becoming a finance professor is a challenging but rewarding career path. It combines a passion for finance with a love of teaching and research. The road requires dedication, significant academic achievements, and a commitment to contributing to the field of finance.

Education is Paramount: The foundation for a finance professorship is a doctoral degree (Ph.D.) in finance or a closely related field such as economics with a finance specialization. A strong undergraduate background in mathematics, statistics, economics, or finance is highly beneficial. The Ph.D. program is rigorous, typically lasting four to six years. It involves advanced coursework in financial theory, econometrics, and research methods. Crucially, it culminates in the completion of a dissertation, an original research project that makes a significant contribution to the body of finance knowledge. Securing admission to a top-tier Ph.D. program is highly competitive and requires excellent grades, high standardized test scores (GRE or GMAT), strong letters of recommendation, and a compelling statement of purpose.

Research and Publication: The primary responsibility of a finance professor, particularly at research-oriented universities, is conducting cutting-edge research. This involves identifying relevant research questions, developing rigorous methodologies, analyzing data, and disseminating findings through scholarly publications. Getting published in top-tier academic finance journals is crucial for career advancement. These journals include the Journal of Finance, the Journal of Financial Economics, and the Review of Financial Studies. The more publications in high-impact journals, the stronger the candidate's profile becomes for securing a tenure-track position.

Teaching Experience: While research is paramount, effective teaching is also essential. Many Ph.D. programs offer opportunities to gain teaching experience as teaching assistants or instructors. Demonstrating an ability to clearly explain complex financial concepts, engage students, and foster a positive learning environment is a valuable asset. Gathering positive teaching evaluations is vital for showcasing teaching effectiveness.

Networking and the Job Market: Attending academic conferences such as the American Finance Association (AFA) annual meeting is a great way to network with other researchers, present research findings, and learn about job openings. The academic job market is highly competitive, and a strong network can provide valuable insights and connections. The job search typically begins during the final year of the Ph.D. program and involves submitting applications to universities, attending interviews, and presenting a job market paper.

Tenure and Beyond: Securing a tenure-track position is just the beginning. Assistant professors are typically evaluated on their research, teaching, and service contributions over a period of several years (usually six to seven years) before being considered for tenure. Achieving tenure means demonstrating sustained excellence in all three areas. After tenure, finance professors continue to conduct research, teach, mentor students, and contribute to their department and the broader academic community.