How to Become a Finance Professor (Investing in Intellect)
If you’ve ever been intrigued by the idea of shaping the financial landscape or considered what it requires to become a finance professor, you’ve come to the right place.
In this guide, we’ll delve into the PRECISE steps you need to take to embark on your journey as a finance professor. We’ll discuss:
- The competencies you need.
- The education that can pave your way.
- How to secure a position as a finance professor.
So, whether you’re a finance novice or an experienced individual aiming to enhance your knowledge, stay tuned.
We’re about to disclose the roadmap to becoming a finance professor.
Let’s embark on this journey!
Steps to Become a Finance Professor
Step 1: Obtain a Bachelor’s Degree in Finance or Related Field
To start your journey towards becoming a Finance Professor, you will need to first complete a Bachelor’s degree in Finance, Economics, or a related field.
This degree will serve as a foundation, providing you with basic knowledge of business principles and financial management.
During your undergraduate studies, consider courses in corporate finance, investment banking, financial planning, and risk management, among others.
These courses will offer an in-depth understanding of financial theories, financial statement analysis, and how these principles are applied in a real-world context.
In addition to your coursework, it is recommended to gain some practical experience.
You can accomplish this through internships, part-time jobs, or cooperative education programs in financial institutions or corporates.
This experience can be valuable for understanding the practical implications of theoretical knowledge and can make your transition to advanced studies smoother.
Remember to maintain good grades throughout your undergraduate studies.
Admission to postgraduate programs is competitive, and strong academic performance can increase your chances of acceptance.
Step 2: Gain Work Experience in Finance
Before pursuing a career as a Finance Professor, it’s crucial to gain hands-on experience in the finance industry.
Working in a finance-related role such as an investment banker, financial analyst, or financial consultant can provide you with practical insights and understanding of the finance world, which you can later impart to your students.
This experience will not only enhance your credibility as a professor but will also help you understand the challenges and real-world scenarios faced by finance professionals.
This practical exposure can help you teach from a place of experience and not just theory, making your lectures more engaging and insightful.
During your stint in the industry, try to take on diverse roles or projects that can help broaden your knowledge base.
Any experience in a leadership role would also be beneficial, as it can help you manage a classroom setting more effectively.
Many universities require their professors to have a certain number of years of work experience in the relevant industry.
So, ensuring that you gain this experience early on will make you a more eligible candidate when you’re ready to transition into academia.
Remember, your goal during this phase should be to gather as much experience and knowledge as possible, which will be pivotal in shaping your career as a Finance Professor.
Step 3: Pursue a Master’s Degree in Finance or a Related Field
After earning your bachelor’s degree, the next step is to pursue a master’s degree in finance or a related field, such as economics or business administration.
This degree will provide you with advanced knowledge and skills required to understand complex financial theories, economic frameworks, and financial models.
During your master’s program, you should focus on topics like corporate finance, investments, financial markets, economics, and quantitative analysis.
These subjects will be incredibly beneficial once you start teaching as a finance professor.
Often, a master’s program will also require you to complete a thesis or research project, which will not only enhance your understanding of the subject but also develop your research skills.
These research skills will be invaluable when you eventually pursue a Ph.D.
At the master’s level, you should also consider attending financial workshops, seminars, and conferences.
This will not only increase your knowledge but also help you network with industry professionals, which can lead to research and job opportunities.
Remember, the purpose of pursuing a master’s degree is not just to get a higher qualification, but to develop a deep understanding of finance that can be shared with your future students.
Step 4: Conduct Independent Research or Internship
While pursuing your postgraduate or doctorate degree, it’s crucial that you engage in independent research or internships related to finance.
This will not only enhance your understanding of the subject but also provide practical experience and an opportunity to apply theoretical concepts in real-world scenarios.
Research is an integral part of being a finance professor.
It allows you to explore areas of interest, contribute to the existing body of knowledge, and stay updated with the latest trends in finance.
You could start by assisting your professors in their research and eventually conduct your own.
The research topics could be as diverse as corporate finance, behavioral finance, risk management, or financial markets.
Internships in financial institutions or research firms can also prove to be beneficial.
They provide you with industry exposure and an understanding of the practical aspects of finance.
You can get hands-on experience in financial analysis, forecasting, financial planning, and so on.
Internships also help in building a professional network which could assist in your future career.
While embarking on independent research or internships, you might consider publishing your findings in reputed journals.
It not only establishes your expertise in the subject but is also often a prerequisite for a career in academia.
Remember, your ability to conduct research and your experience in the industry can significantly enhance your credibility as a finance professor.
Step 5: Pursue a Ph.D. in Finance
To become a finance professor, an essential step is to pursue a Ph.D. in Finance.
This degree focuses on the advanced concepts of financial management, market analysis, and economic theories.
In addition to coursework, most Ph.D. programs require a dissertation, which allows you to conduct in-depth research on a finance topic of your choice under the guidance of a faculty advisor.
This research project not only enhances your understanding of your chosen topic but also contributes new knowledge to the field of finance.
While pursuing a Ph.D., you can also gain teaching experience as a graduate assistant, which will equip you with the necessary skills to manage a classroom and develop your teaching style.
This experience could be incredibly useful when you apply for professor positions at universities and colleges.
Keep in mind, a Ph.D. program can take 4-6 years to complete, depending on the institution and the nature of your research.
Therefore, persistence, dedication, and a deep interest in finance are crucial for success in this step.
After obtaining a Ph.D., many finance professionals choose to further refine their expertise by focusing on a particular subfield in finance, such as corporate finance, behavioral finance, or financial economics.
This specialization can set you apart in the academic job market and pave the way for a successful career as a finance professor.
Step 6: Publish Research in Peer-Reviewed Journals
As an aspiring Finance Professor, it’s essential that you actively contribute to the finance field by publishing original research in reputable, peer-reviewed journals.
This step not only helps you to expand and refine your expertise, but it also significantly enhances your academic reputation and credibility.
Start by identifying a unique topic or question in finance that you’re passionate about and which has not been extensively explored.
You can then conduct rigorous research, using appropriate methodologies and data analysis techniques, to answer that question.
Once your research is complete, you need to prepare a manuscript detailing your study, its methodology, the results you obtained, and how these results contribute to the overall understanding of the finance field.
You should make your research findings understandable and relevant to both academicians and practitioners in the finance industry.
Submitting your manuscript to a peer-reviewed journal involves a meticulous process of proofreading, formatting, and referencing according to the journal’s guidelines.
Once submitted, your manuscript will be reviewed by experts in your field who will evaluate its validity and significance.
This can be a long process, often involving multiple revisions based on the reviewers’ feedback before final acceptance.
Remember, publishing research is not just a one-time activity but a continuous process throughout your academic career.
Regularly publishing in high-impact journals demonstrates your ongoing commitment to advancing knowledge in finance and can greatly increase your chances of securing a tenure-track position or achieving tenure as a Finance Professor.
Step 7: Gain Teaching Experience
To increase your chances of becoming a successful Finance Professor, it is critical to gain real-world teaching experience.
This can be achieved by starting as a teaching assistant while pursuing your post-graduate studies.
As a teaching assistant, you will gain firsthand experience in preparing lesson plans, delivering lectures, grading assignments, and interacting with students.
Another way to gain teaching experience is to take adjunct teaching positions in local community colleges or universities after completing your PhD.
This will allow you to develop your teaching style and gain experience in handling a classroom of students independently.
During this time, you can also attend workshops and conferences focused on teaching methodologies to continuously improve your skills.
This real-world experience will be invaluable when you start to apply for full-time positions as a Finance Professor.
Keep in mind that colleges and universities often look for candidates who not only have a strong knowledge of finance but also have demonstrated the ability to effectively convey this knowledge to students.
Therefore, your teaching experience can make you stand out from other candidates when applying for a full-time professorial position.
Step 8: Apply for Finance Professor Positions
After you’ve completed your doctorate and have a substantial amount of academic research and teaching experience, the next step is to start applying for finance professor positions.
These are usually posted on job search websites, university websites, and academic job boards.
When you are applying, make sure that you have a strong academic CV that highlights your teaching experience, research projects, publications, and any awards or honors you have received.
In addition to your CV, most applications will require a cover letter, in which you should explain your interest in the position, your teaching philosophy, and how your research aligns with the university’s objectives.
It is also beneficial to have letters of recommendation from mentors, supervisors, or colleagues who can attest to your teaching abilities, research skills, and academic achievements.
These letters will provide additional insight into your qualifications and make your application more competitive.
Remember, the application process can be competitive and lengthy, often involving multiple interviews and demonstrations of your teaching and research abilities.
Patience and perseverance are key during this process.
After applying, it’s important to prepare for potential interviews by reviewing common interview questions and practicing your responses.
You might also be asked to give a guest lecture or seminar, so it’s a good idea to have a few prepared on topics within your area of expertise.
Even after securing a position, a finance professor’s journey of learning and development never stops.
You will be expected to continue your research, publish findings, attend academic conferences, and contribute to the advancement of knowledge in your field.
Step 9: Participate in Continued Professional Development
In the ever-evolving field of finance, it’s essential for a Finance Professor to remain current with the latest trends, theories, and technologies.
This can be achieved through participation in continued professional development activities.
You can accomplish this by attending relevant finance or academic conferences, workshops, and seminars, where you can gain insights into the latest research and methodologies, and also network with other professionals in your field.
Also, subscribing to professional finance journals and periodicals can help you to stay up-to-date with the latest advancements in finance theory and practice.
Another avenue for professional development is to engage in continuous research and publish your findings in reputable academic journals.
This not only enhances your knowledge and credibility, but also contributes to your portfolio, which is essential for career advancement.
You can also enroll in advanced courses or certification programs related to your field.
For instance, you could pursue a Chartered Financial Analyst (CFA) certification or Certified Financial Planner (CFP) certification.
These professional certifications can demonstrate your commitment to learning and can further bolster your reputation as a Finance Professor.
Remember, professional development is an ongoing process and will require your active participation throughout your career as a Finance Professor.
By staying informed about changes in the field and continuously improving your skills and knowledge, you will be better equipped to educate your students and contribute significantly to the field of finance.
Step 10: Stay Updated with Latest Financial Trends and Theories
In the ever-evolving field of finance, it’s crucial for a finance professor to keep up to date with the latest financial trends, theories, and practices.
This involves regular reading of industry-specific publications and academic journals, attending relevant finance conferences, webinars, and workshops.
This continuous learning process will provide you with the latest insights and advancements in financial theories and practices, allowing you to provide the most up-to-date information to your students.
In addition, staying updated in the field will also enable you to identify new research opportunities and contribute to the field through scholarly articles, research papers, or even your own books.
This not only helps in establishing your expertise in the field but also opens up opportunities for professional growth and collaboration with other financial experts.
You may also consider joining professional finance organizations or associations.
These platforms can help you network with other professionals in the field, stay informed about the latest research and developments, and even provide opportunities for speaking engagements and presentations.
Overall, staying updated with the latest in finance is not a one-time task, but a continuous process that will help you grow as a finance professor and provide the best possible education to your students.
Step 11: Network with Other Finance Professionals
Networking is a crucial aspect of becoming a successful Finance Professor.
This is because networking provides you with opportunities to learn from peers, get exposed to diverse perspectives, stay updated with latest finance trends, and may also lead to collaboration opportunities for research and publication.
One way to network is by attending finance-related conferences, webinars, or workshops.
These platforms not only allow you to learn about latest developments in the field of finance but also offer an opportunity to interact with established finance professors, scholars, and industry professionals.
You can also join professional finance associations such as the American Finance Association or the Financial Management Association International.
These organizations often provide resources for professional development and networking opportunities.
Social media platforms such as LinkedIn can also be effective for networking.
You can join finance groups, participate in discussions, and connect with other finance professionals.
Remember, networking is a two-way street.
While you learn from others, be sure to also share your own insights and knowledge.
This can help you establish your credibility in the field and may lead to opportunities such as guest lectureships, co-authoring papers, or even job offers.
Lastly, don’t forget to network within your own institution.
Interact with fellow professors, participate in institutional seminars, and collaborate with other departments.
This will not only enrich your knowledge but also increase your visibility within the institution.
Step 12: Pursue Tenure and Higher Positions in Academia.
After securing a position as a finance professor, your next goal should be to achieve tenure.
Tenure is a permanent job contract in academia that provides job security and academic freedom.
It is typically granted after a probationary period of six years, but this can vary depending on the institution.
During your tenure-track period, you will be evaluated based on your teaching performance, research publications, and service to the institution.
It is essential to excel in all these areas.
You should aim to maintain a high student satisfaction rating, regularly publish research in reputable finance journals, and actively participate in departmental and institutional activities.
Once you have achieved tenure, you can then aim for higher positions in academia.
You can take on roles such as department chair, dean, provost, or even university president.
Each of these roles comes with its own set of responsibilities and requires a different set of skills.
For example, as a department chair, you would be responsible for administrative tasks like budgeting, hiring, and curriculum development.
Throughout your career, it’s important to continue learning and stay updated with the latest finance research and trends.
This not only helps you maintain your expertise but also ensures that you provide your students with the most current and relevant information.
Remember that pursuing tenure and higher positions in academia is a long-term commitment that requires dedication, hard work, and passion for teaching and research.
Finance Professor Roles and Responsibilities
Finance Professors provide education to students in the areas of finance, business, and economics.
They use their expertise and knowledge to prepare students for careers in finance and related fields.
They have the following roles and responsibilities:
Teaching
- Teach finance courses at undergraduate and graduate levels.
- Develop course syllabus, lesson plans, and instructional materials.
- Employ a variety of teaching methods to accommodate different learning styles.
Research
- Conduct original research in the field of finance.
- Publish research findings in scholarly journals.
- Stay updated with the latest developments in finance.
Advising
- Provide academic and career advice to students.
- Supervise students’ research projects and dissertations.
- Mentor students and provide guidance on their career path.
Service
- Participate in department and university committees.
- Contribute to the development of the finance program.
- Engage in community service related to finance.
Professional Development
- Attend professional conferences and workshops.
- Continuously improve teaching skills and knowledge in finance.
- Participate in training sessions and faculty development programs.
Collaboration
- Collaborate with other faculty members on research projects.
- Work with colleagues to develop and improve curriculum.
Administration
- Participate in department planning and decision-making.
- Assist in the accreditation process and program reviews.
- Contribute to the development and implementation of departmental policies.
Grading and Evaluation
- Grade student assignments and exams.
- Evaluate student progress and provide feedback.
- Conduct student assessments and maintain records.
Communication
- Communicate effectively with students, colleagues, and administrative staff.
- Present research findings at professional conferences.
Outreach
- Participate in recruitment and retention efforts.
- Engage with alumni and prospective students.
Ethics
- Adhere to the university’s academic and professional ethics.
- Promote a culture of integrity and honesty among students.
Mentoring and Knowledge Sharing
- Guide and mentor junior faculty members.
- Share knowledge and expertise with colleagues and students.
What Does a Finance Professor Do?
Finance Professors work primarily in universities and colleges where they teach finance courses to undergraduate and postgraduate students.
Their primary responsibility is to develop and deliver lectures on various finance topics such as financial management, investment analysis, corporate finance, financial markets, risk management, and more.
They design course curriculums, prepare and grade exams, and guide students through complex financial concepts and methodologies.
In addition to teaching, Finance Professors are often engaged in academic research where they examine financial systems and theories, analyze financial trends and strategies, and publish their findings in academic journals.
They also advise and mentor students on their career paths, internships, research projects and dissertations.
Some Finance Professors may also engage in consulting work for businesses, financial institutions or government agencies, providing expertise on financial management and strategy.
Finance Professors also participate in faculty meetings, serve on academic or administrative committees, and contribute to the overall betterment of the institution’s academic environment.
They stay updated on the latest trends and developments in the field of finance and integrate this knowledge into their teaching and research.
Essential Finance Professor Skills
- Financial Knowledge: A finance professor should have a deep understanding of finance, including concepts such as corporate finance, investment, accounting, risk management, and financial analysis.
- Teaching: Excellent teaching skills are a must. They should be capable of explaining complex financial concepts and theories in a way that is easily understandable to students.
- Research: Finance professors need strong research skills to stay updated with the latest developments in the field of finance, and to conduct their own research, contributing to the body of knowledge in their field.
- Communication: Excellent written and verbal communication skills are essential for presenting ideas and conveying knowledge to students and peers, presenting research findings, and writing scholarly articles and textbooks.
- Expertise in Financial Software: Knowledge of financial software and tools such as Microsoft Excel, QuickBooks, and other finance-related software is beneficial to demonstrate practical applications.
- Problem-solving: The ability to identify and solve problems, including complex financial scenarios, is vital. This helps in conducting research and teaching students how to approach financial challenges.
- Critical Thinking: To analyze and interpret complex financial data and economic trends, critical thinking skills are necessary. This skill is also useful in guiding students in their problem-solving endeavors.
- Mentorship: Being able to guide and mentor students in their academic and career paths is an important skill for finance professors.
- Industry Relations: Strong connections with the finance industry can help in staying updated with the latest trends and providing students with practical insights.
- Academic Writing: Knowledge of academic writing style and ethics is crucial for publishing research papers, creating course materials, and grading student assignments.
- Curriculum Development: The ability to develop and update curriculum according to changing industry trends and academic standards is a crucial skill.
- Presentation: Professors need strong presentation skills to effectively deliver lectures, make complex topics understandable, and present research findings to peers and at conferences.
- Patience: Dealing with students requires patience, as different students have different learning speeds and styles. A good professor is patient and accommodating, ensuring all students understand the material.
- Leadership: Professors often need to lead teams of researchers or serve as department heads. Leadership skills are therefore essential.
- Continual Learning: The finance field constantly evolves with new theories, regulations, and market trends. Professors must be committed to lifelong learning to stay relevant and effective in teaching.
Finance Professor Career Path Progression
The Foundation: Assistant Finance Professor
Your journey generally begins as an Assistant Finance Professor.
This initial stage will be spent absorbing knowledge, gaining practical teaching experience, and conducting foundational research.
Your responsibilities at this level might encompass giving lectures, creating course materials, and beginning research projects.
Here are some suggestions for success in this role:
- Learn Continuously: Keep up with recent developments in finance theory and practice.
- Seek Mentorship: Utilize experienced colleagues as resources for teaching and research advice.
- Engage Actively: Show enthusiasm in teaching and contribute to academic discussions within your department.
The Ascent: Associate Finance Professor
With experience and accomplishment in research and teaching, you’ll progress to the Associate Finance Professor level.
At this stage, you’ll manage more complex research projects, potentially teach advanced courses, and might even start guiding PhD students.
To thrive at this stage:
- Research Excellence: Strive for impactful research and publications in high-quality academic journals.
- Teaching Improvement: Further develop your teaching methods and student engagement strategies.
- Collaboration: Collaborate with other scholars on research projects and participate actively in academic conferences.
Reaching New Heights: Full Finance Professor
The next step on the ladder is a Full Finance Professor position.
At this stage, you’re recognized for your expertise and leadership in both teaching and research.
You might lead major research projects, supervise PhD candidates, and have a substantial influence on your department’s direction.
To excel as a Full Finance Professor:
- Mentorship: Provide guidance and share your knowledge with younger academics.
- Thought Leadership: Be a thought leader in finance, influencing academia and potentially the finance industry.
- Leadership: Take on administrative roles in your department or university.
Beyond the Horizon: Distinguished Professor, Department Chair, and Beyond
As your career progresses further, you could become a Distinguished Professor, Department Chair, or even a Dean.
These positions involve greater administrative responsibilities, leadership, and strategic decision-making.
Here’s what to focus on:
- Academic Leadership: Shape the academic and strategic direction of your department or school.
- Management Skills: Develop strong leadership and communication skills to guide your academic team effectively.
- Innovation: Continue to innovate in your research and teaching methods, staying at the forefront of finance academia.
Pinnacle of Success: University President or Provost
At the highest level of the academic career ladder, you may reach roles like University President or Provost.
Here, you’ll be responsible for shaping the overall strategy of the university, making critical decisions, and managing larger teams.
Finance Professor Salary
Entry-Level Finance Professor
- Median Salary: $60,000 – $80,000 per year
- Entry-level finance professors generally have 0-2 years of experience in teaching or research roles. They typically hold a doctoral degree in finance or a related field.
Mid-Level Finance Professor
- Median Salary: $80,000 – $120,000 per year
- Mid-level finance professors have between 2-5 years of experience and often take on more responsibilities such as advising students, conducting independent research, and serving on committees.
Senior Finance Professor
- Median Salary: $120,000 – $160,000 per year
- Senior finance professors have 5+ years of experience and often hold leadership roles within their departments. They are generally expected to have a significant portfolio of published research.
Department Chair / Dean of Finance
- Median Salary: $150,000 – $200,000+ per year
- These positions require significant experience and often involve administrative and budgeting responsibilities, strategic planning, and faculty development.
Provost / Vice President of Academic Affairs
- Median Salary: $200,000 – $350,000+ per year
- These high-level positions require extensive experience, and deep expertise in academic administration. They often involve setting academic policies and strategies for a university or college.
Finance Professor Work Environment
Finance Professors are typically employed by universities or colleges, where they conduct lectures in large classrooms or auditoriums.
They may also work in smaller settings for seminars, workshops, or one-on-one tutoring sessions.
These professors often have office hours where they are available for students to ask questions or discuss the course material.
They might also spend time in administrative meetings, committee work, or in research activities.
The work schedule of a finance professor can be quite flexible, with the potential for breaks during the summer and holidays.
However, they may be expected to maintain research activities and participate in conferences or seminars during these periods.
With enough experience and reputation, a finance professor might also be invited to consult for corporations, government agencies, or financial institutions, which would further diversify their work environment.
FAQs About Becoming a Finance Professor
What is needed to become a finance professor?
To become a finance professor, you need to have a strong academic background in finance.
This generally involves obtaining a bachelor’s degree in finance or a related field, followed by a master’s degree, and then a Ph.D. in finance.
In addition to this, having relevant work experience in the finance industry can be advantageous.
Proficiency in research methods, quantitative skills, and a strong command of financial theories and models are also crucial.
Lastly, you should possess excellent communication skills, as a significant part of this role involves lecturing and mentoring students.
How long does it take to become a finance professor?
The time it takes to become a finance professor can vary greatly.
The first step, obtaining a bachelor’s degree, usually takes around four years.
After that, a master’s degree typically takes an additional two years, and a Ph.D. in finance can take anywhere from four to seven years.
Thus, the total process can take from 10 to 13 years, not including any time spent gaining relevant work experience or post-doctoral research experience.
Can I become a finance professor without a Ph.D.?
While it’s possible to teach at a community college or some universities with a master’s degree in finance, most higher-level institutions require their professors to hold a Ph.D. in the field.
A Ph.D. provides a deep level of expertise and research experience that is valuable in the classroom and for contributing to the university’s scholarly work.
However, in certain professional-focused programs, significant industry experience may be considered in lieu of a doctorate.
Is being a finance professor a stressful job?
Being a finance professor can be stressful due to the demands of balancing teaching, research, and service to the university.
Professors often face high expectations to publish their research in respected journals, secure funding, mentor students, and contribute to their academic community.
However, the level of stress can vary widely depending on the specifics of each position and the support provided by the institution.
Many finance professors find the job intellectually stimulating and rewarding, which can offset the stress.
What are the prospects for finance professors in the next decade?
The prospects for finance professors are generally positive.
While the academic job market can be competitive, the demand for finance education and expertise tends to be strong, given the crucial role finance plays in the global economy.
Prospects may be particularly promising in areas of finance that are experiencing rapid change or growth, such as fintech, sustainability finance, and financial risk management.
Conclusion
So there you have it.
Embarking on the journey to become a finance professor is no small undertaking, but it is undoubtedly fulfilling.
Equipped with the right knowledge, credentials, and perseverance, you’re on the right track to make a substantial impact in the world of finance education.
Remember, the journey may be tough, but the opportunities are boundless. Your unique insights could influence the next generation of financial leaders, changing the way we manage, invest, and understand money.
So, take that initial step. Immerse yourself in constant learning. Connect with industry professionals. And most importantly, never stop exploring the intricacies of finance.
Because the world is eager for the knowledge you can impart.
And if you’re seeking personalized assistance on starting or advancing your career as a finance professor, check out our AI Career Path Advisor.
This complimentary tool is designed to provide bespoke advice and resources to help you effectively navigate your career path.
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