The Need for Policy Focused Finance Research
5 Pages Posted: 27 Nov 2018
Date Written: November 1, 2018
A shift in the focus of finance research is needed so that it can benefit society. Practitioner-oriented journals should take the lead by proactively asking academics and practitioners to identify topics that address nascent challenges facing the financial system and invite them and policy-makers to submit articles that shed light on the issues and recommend solutions. A proposal worth considering is to tie senior management compensation to the need for financial infusions by taxpayers in the event of systemic failures induced by excessive and fraudulent risk-taking. In such cases, the penalties imposed on management would involve a clawback of past and present compensation.
Keywords: Policy research, finance
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