The impact of financial education of managers on medium and large enterprises - a randomized controlled trial in Mozambique
File(s)
Accepted version
Author(s)
Custodio, Claudia
Mendes, Diogo
Metzger, Daniel
Type
Journal Article
Abstract
We study the impact of an MBA-style executive education course in finance on corporate policies and firm performance, targeting top managers of medium and
large Mozambican enterprises. Using a randomized controlled trial, we find that the educational treatment induces changes in financial policies, improving firm per-
formance. Specifically, a reduction in working capital (0.4–0.5 standard deviations) increases cash flow, financing long-term investments. This effect operates primarily through a reduction in accounts receivable (0.4–1 standard deviations). Our findings show that targeted educational interventions can build managerial capital and enhance corporate performance by improving financial decision-making among executives.
large Mozambican enterprises. Using a randomized controlled trial, we find that the educational treatment induces changes in financial policies, improving firm per-
formance. Specifically, a reduction in working capital (0.4–0.5 standard deviations) increases cash flow, financing long-term investments. This effect operates primarily through a reduction in accounts receivable (0.4–1 standard deviations). Our findings show that targeted educational interventions can build managerial capital and enhance corporate performance by improving financial decision-making among executives.
Date Acceptance
2024-12-29
Citation
The Journal of Finance
ISSN
0022-1082
Publisher
Wiley
Journal / Book Title
The Journal of Finance
Copyright Statement
Subject to copyright. This paper is embargoed until publication. Once published the author’s accepted manuscript will be made available under a CC-BY License in accordance with Imperial’s Research Publications Open Access policy (www.imperial.ac.uk/oa-policy).
Publication Status
Accepted