The Canadian Securities Institute Research Foundation Thursday announced the award winners of its academic funding program, granting $170,000 in post-graduate scholarships to a select group of recipients.

The Limited Term Professorship — $150,000 over three years — was awarded to Dr. Lisa Kramer, Associate Professor of Finance at the Rotman School of Management, University of Toronto, and the University of Toronto Mississauga. She works in the burgeoning field of behavioural finance, analyzing the psychological underpinnings of investors’ decisions. In collaboration with Canadian financial institutions and their clients, she plans to study the connections between investors’ personal characteristics and their financial decisions.

Kramer is developing concrete tools that will help investment advisors better measure their clients’ risk tolerance. She is working on helping advisors understand their clients’ likelihood of making financial decisions that are driven by psychological tendencies.

For example, her past research suggests that many investors are more risk averse during the fall and winter months, and this can influence investors’ choices and ultimate portfolio performance. Her research builds on such findings and aims to better equip advisors to counsel investors, an end that is especially important in these turbulent economic times.

The two academic awards — $35,000 each — were awarded. Dr. Artyom Durnev, Assistant professor of Finance, Desautels School of Management, McGill University was chosen for his proposal on is there evidence that good governance yields improved returns for shareholders. Dr. James Thompson, Assistant Professor of Finance, School of Accounting and Finance at the University of Waterloo was selected for his proposal investigating the effects of counterparty risk and liquidity on financial institutions and the markets in which they interact.

Two PhD scholarships — $25,000 each– were awarded. Rahaman Mohammad, a doctoral student at the Rotman School of Management, University of Toronto was selected for his proposed research on failing firms. Blake R. Phillips, who is a doctoral student at the School of Business, University of Alberta, was chosen to examine the effect of corporate risk management on firm value within the context of oil and gas producers.

“The Foundation strongly believes that the financial services marketplace benefits from a partnership with university researchers,” says Ross Sherwood, Chair, the Canadian Securities Research Foundation. “We support practical, grounded research that will advance the knowledge of the financial services industry and advisor community for the benefit and well being of the investor.”

The Canadian Securities Institute Research Foundation, formerly known as The Investor Learning Centre, is a charitable organization, established in 1996 by CSI Global Education Inc. The foundation’s objectives include supporting and encouraging research that is relevant to capital markets and Canadian investors.

IE