Can I do a finance PhD without a relevant degree?

This week’s problem

I live in the US and have five years’ experience in finance split between investment banking and corporate finance for a big tech company. However, I’ve always been most interested in teaching, and would like to explore becoming a finance professor. 

Unfortunately, my bachelors degree was in natural sciences, though I do have an MBA. Is it realistic for me to be accepted on to a US-based PhD programme with my background? Would my professional experience give me an edge or be a hindrance compared with someone who started this path straight out of undergrad? Male, 20s

Jonathan’s answer

After five years in industry, you are considering changing career to academia, driven by an interest in teaching. As a student in your bachelors and masters courses, you have experience of your professors’ teaching, but this role is only part of their jobs: they are also expected to conduct research, raise grants and be involved in general service issues of the institution. In many universities, research output and related grant funding are much more important performance measures than teaching ability.

Given the importance of research, studying for a PhD would show you whether this is something you can, and want, to do. To secure a place, you’ll need to describe a topic that you want to research, which would sustain you for the three or more years that this self-directed work will take. Any PhD programme will ask you for this proposal, and before applying, you’d be well advised to seek out an academic supervisor for the work; they’ll want to understand and discuss your research project before taking you on.

Your research defines what you want to bring to academia, and it’s also worth defining what you expect to get from academia. It may be that you seek more independence and the chance to work on longer projects than you have in your current role. While academia may look like an attractive option, it can be just as competitive to secure permanent jobs, and the salaries are generally lower than in industry.

On your specific question, you would be eligible to apply to New York’s Columbia Business School for a PhD in finance, for example. You need an undergraduate degree (no subject mentioned) while a masters (ie your MBA) is desirable. You will need to articulate “your educational goals, research interests and professional objectives”. You’ll also need two letters of recommendation.

Before making a big leap from industry to academia, you could explore a staged move. With teaching, you could offer to deliver a guest lecture at your local university, or to tutor or mentor undergraduates. On the research side, you could co-write a research paper with an academic, help develop a grant proposal, or participate in a research project. You could combine your current role with studying for a PhD part-time. All such experiences would not only help your PhD application but show you some aspects of a finance professor’s academic life.

If you do move, it does not have to be permanent: “practitioner-academics” can move along the continuum between industry and academia, with short-term roles in each.

Readers’ advice

There is always a strong demand for finance teaching based on real-world experience. Teaching finance at undergraduate level does not require a PhD. If teaching is your goal, just teach and try your hand at some research papers on the side. Alistair Milne

You will need a lot of statistics and maths knowledge. An MBA doesn’t really prepare you for the intensity of a PhD. You will need to have a good knowledge of real analysis, linear algebra and optimisation. Cambridge_Reader

Find a supervisor and all will be well. If you have a professor championing you, the path can be cleared, so start to set up some preliminary calls with members of the finance departments and the admissions offices to discuss your expectations and their expectations. George Horsington

Only do a PhD if you know it might be entertaining in some way. Otherwise, never do it. Carl Hodge

Jonathan Black is director of the Careers Service at the University of Oxford. Every fortnight he answers your questions on personal and career development and working life. Do you have a question for him? Email: dear.jonathan@ft.com