Department of Finance at BIZ Homecoming Day

Hannes Gebhard Professor in Finance and Insurance Markku Kaustia gave a presentation about the beliefs and blind spots of finance professionals and Professor of Practice Antti Suhonen led discussion on “Who anticipates the next financial crisis?” at the first School of Business Homecoming Day on Friday 22nd of August at the Töölö Campus.

The first School of Business Homecoming Day was held on Friday 22nd of August at the Töölö Campus. The event gathered over 500 alumni and a variety of guest speakers and panelists to discuss competitiveness from a national perspective. The event started off with the main seminar, including a panel discussion and speeches.  Thereafter, related topics were discussed in parallel sessions around the main building.

Department of Finance led the discussion “Who anticipates the next financial crisis?”  Professor of Practice Antti Suhonen opened the session, and a panel discussion followed with panelists Timo Löyttyniemi, the CEO of the State Pension Fund, Petri Tuutti, the CIO of VISIO Varainhoito, and Professor Vesa Puttonen. The discussion ranged over the causes of the crisis, the role of central banks and the current threats on financial stability. The panelists stated that anticipating a crisis is difficult, and that the parties who can freely participate in the public discussion are scarce. Moreover, the discussion brought up that central banks have become increasingly important and influential regarding the financial markets.

In a following session Professor Markku Kaustia from the Department of Finance gave insight on the beliefs and blind spots of finance professionals. The session explained behavioral finance research and Professor Kaustia provided examples of false beliefs and irrationality in financial decision making. Overconfidence in own information, essentiality of growth and reliance on simplistic explanations of complex problems were among the subjects.