1. Radical Research R2 What makes research radical, revolutionary or innovative?

2. Innovation Improvement that leads to novelty Ideas that change thought process Research evidence that allows ideas to be successfully applied in practice Innovation is often critical to policymakers

3. Different Approaches to Research Behavioral finance is at the frontier of our discipline because non-monetary factors (social, cognitive and emotional) are non- traditional (markets aren’t efficient?) Behavioral finance questions basic principles in the literature (investors are not always rationale) Should finance researchers study psychology?

4. New Questions Psychology focuses on different questions such as how addiction affects market pricing. Becker has a theory on rationale addiction (smoking, alcohol, drugs) In some cases, there is not much difference between gambling and investing (i.e., day traders) Are noise being driven by psychological factors?

5. Different Methodologies Experimental design (observation) Qualitative surveys Quantitative methods

6. Challenge the Status Quo You have an up hill battle if you have counter intuitive results that may be politically incorrect (Golden Parachutes are good!) Most people protest when CEOs are paid millions to step aside after a takeover-it is simply unethical What happens when CEOs of similar firms are not given golden parachutes?

7. My Research Paper The paper looked at the question from a different perspective. Should we pay CEOs 20 million dollars when creditors and employees get hurt (glass half empty)? Or should we pay CEOs 20 million dollars to prevent bankruptcy or severe financial distress (glass half full)? The paper used theory from a totally different discipline-hypotheses tested ethically paradigms (ethics supersedes contracts)

8. Continued Are employees and retirees part of the agency contract for CEOs? Counterintuitive results-Golden Parachutes are ethical because they are given to new CEOs and reduce the probability of default

9. Additional Thoughts Analysis of new industry-current events New applications of existing methods in another field (engineering/math) New data-a new measure of consumption- garbage! Consumption produces waste.

10. High Risk/High Return Comments