Internationally trained finance researcher joins Alberta School of Business

After studying economics and business administration in her home city of Seoul, and then pursuing finance studies in Amsterdam, New York City and Los Angeles, Robin Lee brings to the University of Alberta a broad international perspective on several of the finance world’s emerging fields.

During two undergrad degrees at Yonsei University, Lee “began to realize how closely financial matters can be connected to real life issues and everyday life.”

Her current research investigates the impact of social and behavioral finance on asset management and corporate finance. Behavioral finance examines how psychological elements influence decision-making that may not always be rational. Social finance, within the broader context of behavioral finance, highlights the role of social factors.

Her research interests also encompass corporate innovations; environmental, social and governance investing (ESG); and the use of unstructured data (information that isn’t stored in a predefined format, such as audio/video files or open-ended survey answers).

Lee joined the Alberta School of Business as an assistant professor in its department of finance on July 1, after completing a master’s in statistics at Columbia University and a PhD in finance at the University of Southern California. She expanded on her background and her goals in a recent interview.

How did you become interested in finance?

In 2013, I visited Columbia University as a visiting student, about five years after the financial crisis. In one finance class, I had the opportunity to learn about the real stories behind subprime mortgages and listen to the first-hand experiences of individual and institutional investors.

My interest in finance developed as I realized its importance not only for the economy and corporations but also for individual lives. The questions in the field of finance extend beyond numbers; they seek to better understand today’s world and people’s decision-making, which was particularly interesting to me.

Later, in 2015, I visited the University of Amsterdam as an exchange student, where I first encountered the field of behavioral economics. I was intrigued by the area because it challenges traditional finance by recognizing that humans are not always perfectly rational. The idea of incorporating elements from psychology to better understand financial decision-making has been fascinating to me.

Which current research are you excited by and why is it important?

In one of my research projects, I study the importance of face-to-face social interactions in generating local informational advantages for mutual fund managers. I show that value-relevant information transmission in face-to-face settings cannot be fully replaced by other forms of social interactions. This is both interesting and somewhat surprising. It remains important for investors to meet face-to-face — Zoom may not be enough.

This finding is important because we live in an era of advanced communication technology, where people have diverse means of social interaction. The results highlight the importance of unique features of face-to-face meetings, including cues that arise in physical or informal interactions. It suggests that it is still valuable for investors to stay physically close to the source of information to gain informational advantages.

What are your other research interests?

In my other projects, I examine the role of team management in mutual funds in reducing investment errors caused by cognitive constraints [the amount and quality of information we have, our ability to understand and use it, the time we have, etc.] This is intriguing to me because even professional money managers make errors which are value-destroying. Considering the human aspect allows us to better understand their decision-making processes and the financial products they create, and helps us identify and mitigate such limitations.

I am also passionate about non-behavioral topics. Beyond my interest in mutual funds, my current research explores how corporations innovate and finance their innovative projects. I am also interested in the emerging topic of ESG, including how environmentally conscious investors make decisions and how corporations incorporate these ideologies into their operations. Ultimately, I am interested in exploring new ideas in the field, including the use of novel technologies and data.

What will you be teaching at the U of A?

I will be teaching FIN312 – Investment Principles, which examines securities and securities markets with an emphasis on stocks and bonds. I am looking forward to teaching students who are relatively new to the field of finance. Encountering finance concepts for the first time may seem very abstract, and I think it is important to help students grasp the intuition behind the calculations and understand practical implications. I have greatly benefited from mentors who helped me develop my interests in the field and I look forward to passing on this experience to my future students.

What else are you passionate about besides your research?

I have two other passions. One is my love for music, particularly the piano. I have been playing the piano since I was a kid and enjoy various genres, including classical, jazz and new age. Another passion is running. I’ve been running marathons since my undergraduate years. I have run several half marathons in Seoul and have enjoyed running trails in other cities. I am looking forward to exploring the running paths here in Edmonton, too!