Research Center Financial Markets and Risk


Univ.-Prof. Dr. Michael Kirchler (Department of Banking and Finance)

Research Objectives

Financial markets are fascinating complex social systems and they play an important role in the well-functioning of modern economies and societies. Whether better developed markets and the innovation of ever more complex financial instruments contribute to a sustainable improvement of our economies and societies is certainly not a settled issue. While there is ample evidence that well-developed financial markets foster economic growth, there is also evidence - most notably seen during times of crises - that financial markets tend to be characterized by inherent instabilities. In light of our social responsibility, our research agenda aims at better understanding the well-functioning of financial markets and provide policy-relevant advice for improving the financial system. In particular we ask the following research questions (outlined as examples): What and where are the risks involved? Can financial engineering improve the financial system? How efficient are markets and what are drivers of bubbles? What is the interplay of morals and markets? How do bonus incentives and social competition influence risk taking in the finance industry? We use classical mathematical theory, simulation approaches, empirical finance and the experimental method to answer our research questions. With this broad portfolio of methods and related questions we have a unique standing in the international finance community.

 Interview with Michael Kirchler (Video)

Affiliated Organisational Units

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