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The Purpose of a Finance Professor

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  • Edmans, Alex

Abstract

The academic finance profession has the potential to be uniquely purposeful due to four characteristics – the freedom to take risks and work on what we’re passionate about, the loyalty to our profession rather than just our institution, the collaborative nature of the creation and dissemination of knowledge, and the magnitude of our potential impact. However, what the profession currently values, and its current social norms, are significant barriers to the fulfilment of this potential. This article highlights the special features of our profession that we often take for granted and ignore, and proposes ideas to make it not only more impactful and relevant, but also more collegial and fun.

Suggested Citation

  • Edmans, Alex, 2021. "The Purpose of a Finance Professor," CEPR Discussion Papers 16845, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16845
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    References listed on IDEAS

    as
    1. Edmans,Alex, 2021. "Grow the Pie," Cambridge Books, Cambridge University Press, number 9781009054676, January.
    2. Ulrike Malmendier & Geoffrey Tate, 2005. "CEO Overconfidence and Corporate Investment," Journal of Finance, American Finance Association, vol. 60(6), pages 2661-2700, December.
    3. David Hirshleifer & Tyler Shumway, 2003. "Good Day Sunshine: Stock Returns and the Weather," Journal of Finance, American Finance Association, vol. 58(3), pages 1009-1032, June.
    4. Edmans, Alex, 2011. "Short-term termination without deterring long-term investment: A theory of debt and buyouts," Journal of Financial Economics, Elsevier, vol. 102(1), pages 81-101, October.
    5. Alex Edmans, 2009. "Blockholder Trading, Market Efficiency, and Managerial Myopia," Journal of Finance, American Finance Association, vol. 64(6), pages 2481-2513, December.
    6. Edmans, Alex, 2011. "Does the stock market fully value intangibles? Employee satisfaction and equity prices," Journal of Financial Economics, Elsevier, vol. 101(3), pages 621-640, September.
    7. Matthew Spiegel, 2012. "Reviewing Less--Progressing More," The Review of Financial Studies, Society for Financial Studies, vol. 25(5), pages 1331-1338.
    8. repec:bla:jfinan:v:53:y:1998:i:6:p:1839-1885 is not listed on IDEAS
    9. Anat R. Admati & Paul Pfleiderer, 2009. "The "Wall Street Walk" and Shareholder Activism: Exit as a Form of Voice," The Review of Financial Studies, Society for Financial Studies, vol. 22(7), pages 2445-2485, July.
    10. Campbell R. Harvey, 2017. "Presidential Address: The Scientific Outlook in Financial Economics," Journal of Finance, American Finance Association, vol. 72(4), pages 1399-1440, August.
    11. Alex Edmans & Diego García & Øyvind Norli, 2007. "Sports Sentiment and Stock Returns," Journal of Finance, American Finance Association, vol. 62(4), pages 1967-1998, August.
    12. Rangarajan K. Sundaram & David L. Yermack, 2007. "Pay Me Later: Inside Debt and Its Role in Managerial Compensation," Journal of Finance, American Finance Association, vol. 62(4), pages 1551-1588, August.
    13. David Yermack, 2017. "Corporate Governance and Blockchains," Review of Finance, European Finance Association, vol. 21(1), pages 7-31.
    14. Paul Oyer, 2008. "The Making of an Investment Banker: Stock Market Shocks, Career Choice, and Lifetime Income," Journal of Finance, American Finance Association, vol. 63(6), pages 2601-2628, December.
    15. Clifford G. Holderness, 2009. "The Myth of Diffuse Ownership in the United States," The Review of Financial Studies, Society for Financial Studies, vol. 22(4), pages 1377-1408, April.
    16. David Hirshleifer, 2015. "Editor's Choice Editorial: Cosmetic Surgery in the Academic Review Process," The Review of Financial Studies, Society for Financial Studies, vol. 28(3), pages 637-649.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Duncan, Keith & Gepp, Adrian & Craig, Justin & O'Neill, Helen, 2023. "Research ideas matter: Guidance for research students and early career researchers," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    2. Alex Edmans, 2023. "The end of ESG," Financial Management, Financial Management Association International, vol. 52(1), pages 3-17, March.

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    More about this item

    Keywords

    Purpose; Citizenship; Collegiality; Research; Teaching; Impact; Innovation;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate
    • G00 - Financial Economics - - General - - - General

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