November 03, 2022
Faculty Scholar: Arati Kale, Ph.D., assistant professor of finance
By Maeve Hickey ’21, ’22G
EDUCATION: Ph.D., finance, University of Texas at Arlington; master’s degree, finance, University of Illinois at Urbana-Champaign; master’s degree, management, University of Mumbai; bachelor’s degree, accounting, University of Mumbai
BEGAN TEACHING AT PC: January 2021
EXPERTISE: Investment banking, behavioral finance, market efficiency, risk management, structured derivatives, macro-market portfolios
NEWSWORTHY: An article by Arati Kale and co-researchers was published in 2021 in the Journal of Behavioral and Experimental Finance. “Is Beauty Skin Deep?” investigated the connection between the attractiveness of mutual fund managers and mutual fund flows. Using machine learning algorithms and controlling for other variables, the research found that “attractive” mutual fund managers received higher fund flows. The attractiveness bias was most common within the retail industry and did not necessarily indicate higher fund performance. A second article by Kale, about the connection between CEO’s names and class-action lawsuits, is in the review stage prior to publication.
QUOTABLE: “The investment world is made up of emotional people who attempt to make rational decisions. Behavioral finance studies this dichotomy. People are incredibly interesting, and I love to study whether their emotions play a role in their decisions and to what extent.”
ORIGINALLY FROM: Mumbai, India
HOBBIES: Swimming, salsa dancing, painting, reading Marvel Comics, watching football
