Over the last two years, the Yale School of Management (SOM) has recruited four new finance faculty members, all accomplished researchers who previously worked at the University of Chicago Booth School of Business. These new hires were attracted to Yale SOM’s collaborative culture and rich legacy of research in service of real-world finance. Each professor brings a unique perspective to the school within the areas of empirical asset pricing, behavioral finance, and financial econometrics.
Professor Tobias J. Moskowitz was the first to join Yale SOM in 2016. He arrived after working as the leading empirical scholar of asset pricing at Chicago Booth. Moskowitz’s research interests have revolved around how data influences decision-making, as well as the evolution of prices. He is most excited about participating in Yale SOM’s research environment.
“I think one of the things that’s important to a good research environment is certainly collaboration, and that doesn’t mean necessarily writing papers together,” Moskowitz explained. “It means talking about ideas. It means criticizing each other’s ideas. It means giving feedback. It means encouraging people to try different things. When you’re in a good research environment, the whole is greater than the sum of its parts.”
Professor of Finance Kelly Shue also came to Yale from Chicago Booth, where she taught corporate finance. She is excited to be a part of the close-knit Yale SOM community, which she notes encourages dialogue and the open exchange of ideas. She hopes exposure to the range of Yale SOM researchers and their work will only help to strengthen her own expertise.
“I personally work on behavioral finance and the group is very strong in behavioral finance, but there are people here who work in history of finance,” Shue said. “They study art markets. They test theories of asset pricing and sports betting markets. So it’s just a very fun, broad group in terms of research interests.”
Professor Stefano Giglio also joined Yale SOM from Chicago Booth, where he was an associate professor of finance. His expertise is in asset pricing, macroeconomics, and real estate. A recent paper he co-authored surveys how investors respond to uncertainty as related to swings in market prices.
Giglio elaborated on his research. “We found they were insuring against periods of low volatility, which is completely at odds with theories about how investors should handle uncertainty,” he said. “Our results help policymakers figure out what needs to be stabilized versus what doesn’t.”
The newest hire, Bryan T. Kelly, joined the Yale SOM finance group from Chicago Booth after earning his Ph.D. at NYU Stern. His research interests involve volatility, tail, and correlation risk within financial markets. Kelly believes that his new position at Yale will facilitate more real-world connections with the investment community. He also feels that the overlapping perspectives of the Yale SOM faculty will help him tackle some major research questions.
“By putting these different pieces together in interesting ways, I think you’ll learn a lot of new things about economics,” Kelly explained. “To what extent are asset prices influenced by people’s behavior that doesn’t fall in the traditional, rational paradigm?… To what extent do those influence the way markets are intermediated? Then, what can we learn about the types of risks that emerge in intermediated markets?”
To learn more about Yale SOM’s four new faculty members and what they plan to bring to the finance group, read the original news story on the Yale SOM website.