IRRC Institute Research Award: Post-Modern Portfolio Theory: Uniting the Real Economy with Portfolio and Investment Theory

Uniting the Real Economy with Portfolio and Investment Theory

The Investor Responsibility Research Center Institute (IRRCi) is pleased to sponsor the third annual competition for research that examines the interaction of the real economy with investment theory.

Two papers – one academic and one practitioner – each will receive the “2014 IRRC Institute Research Award” along with a $10,000 award.1

Award submissions will be accepted online through Monday, March 31, 2014.

A blue-ribbon panel of renowned judges with broad finance and investment experience will carefully review submissions and select two winning papers.

The winners will be announced at the Columbia University Millstein Center for Global Markets and Corporate Governance Forum to be held in June 2014.

The winning research will be published by IRRCi and submitted to the Social Science Research Network for publication. The IRRCi will distribute the winning papers to more than 6,000 individuals interested in the organization’s research.

More information on the award process and calendar is available here.

Why the Award?

Modern Portfolio Theory (MPT) has dominated investment theory for a half century. This dominance has increased the focus on security selection, portfolio construction, and other financial issues rather than attention on the real economy and investing.

Simultaneously, the growing importance of the private sector relative to the public sector in the real economy has increased scrutiny of private sector behavior and economic activity, leading to the rise of a ‘responsible investing’ movement. Yet, a significant focus of that scrutiny is normative. That is, the private sector entity ‘should’ act in a certain manner with minimal attention on portfolio and investment theory.

Thus, the IRRC Institute Research Award encourages new research that integrates analysis of private sector behavior with investment theory. Because the judges seek to allow for a broad interpretation of this research goal, the award does not require specific areas such as specific asset classes or a requirement to study specific real economy issues.

1$10,000 is awarded for each winning paper. If there are multiple authors, the award will be divided evenly between each author. Each award recipient is fully responsible for all applicable taxes.