Honored With the Best Paper Award at the Korean Securities Association’s Summer Finance Roundtable 2023

Professor Sohn Sung-bin from the College of Economics was presented with the Best Paper Award for his work titled 'Interest rate risk, inflation, and the cross section of stock returns' at the Korean Securities Association’s Summer Finance Roundtable 2023.

The Korean Securities Association hosts the Summer Finance Roundtable (SFR) each year. The SFR is an event specifically designed to gather young scholars poised to shape the future of finance and financial academia, enabling a high caliber of academic discourse. Diverging from conventional conferences, the SFR stands out for its dedicated focus on upcoming researchers and in-depth presentations and discussion, providing a generous 50-minute allocation per paper. Among the papers showcased during this event, the Best Paper Award is bestowed to one noted for its remarkable academic creativity and contribution.

Though interest rate risk is a critical pricing factor impacting the P/E ratio, previous studies have struggled to robustly estimate the impact of this risk on stock prices. Professor Sohn’s award-winning paper demonstrates the importance of controlling inflation when assessing the risk premium associated with fluctuations in interest rates. It does so by explaining the intricate mechanisms by which the impact of interest rate risk on stock prices depends on the inflation level.

In accepting the award, Professor Sohn extended his gratitude towards his colleagues and students emphasizing how the constructive feedback they provided during the brown bag seminar at the College of Economics played a pivotal role in developing his initial ideas into a full-fledged paper.