Toronto - An University of Toronto's finance professor's study of the psychological underpinnings behind investment decisions and a PhD student's proposal to research failing firms have received funding support from the Canadian Securities Institute Research Foundation.

Lisa Kramer, an associate professor of finance at the Rotman School and the University of Toronto Mississauga, is the recipient of a $150,000 limited term professorship for three years. 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. Prof. Kramer is developing concrete tools that will help investment advisors better measure their clients' risk tolerance. She is also 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.

Prof. Kramer has authored papers for many outlets including the American Economic Review, the Journal of Empirical Finance, the Journal of Banking and Finance, and the Encyclopedia of Complexity and System Science. She has given seminars on her research at universities around the world and is a regular presenter at conferences including the annual meetings of the American Finance Association, the Western Finance Association, and the European Finance Association.

Rahaman Mohammad, a doctoral candidate in Economics and Finance in the Department of Economics and the Rotman School, received a $25,000 scholarship for his proposed research on failing firms.

The Canadian Securities Institute Research Foundation (CSI Research Foundation), formerly known as The Investor Learning Centre, is a charitable organization, established in 1996 by CSI Global Education Inc. The foundation's main objectives include supporting and encouraging research that is relevant to capital markets and Canadian investors. The Foundation sponsors financial market research by partnering with Canadian university researchers and PhD students. The purpose of the award program is to encourage pragmatic studies that will make capital markets a better place for investors.

The Rotman School of Management at the University of Toronto is redesigning business education for the 21st century with a curriculum based on Integrative Thinking. Located in the world's most diverse city, the Rotman School fosters a new way to think that enables the design of creative business solutions. The School is currently raising $200 million to ensure Canada has the world-class business school it deserves. For more information, visit www.rotman.utoronto.ca.