Edward Podolski

Professor Edward Podolski

Head of Department, Finance

Details

  • College: Economics Finance & Marketing
  • Department: Economics Finance & Marketing
  • Campus: City Campus Australia
  • edward.podolski@rmit.edu.au

About

Edward is a Professor of Finance at RMIT whose research focuses on organisational factors enhancing firm value.

I serve as a Professor of Finance at the RMIT School of Economics, Finance, and Marketing and am the appointed Head of the Finance Department, a role I will assume in June 2024. Additionally, I contribute as an Associate Editor to the finance division of the Australian Journal of Management. My academic journey previously led me to Deakin Business School, where I held the position of Associate Professor. During my tenure, I was entrusted with the roles of Director of Research within the finance discipline and HDR Director for the Faculty of Business and Law.

My research focuses on identifying organizational factors that enhance firm value, particularly through the lens of how shareholders guide and impact executive strategic decisions. A significant area of interest for me is the influence of managerial behavioral biases on firm value and the identification of optimal organizational mechanisms to leverage these biases for maximizing organizational value. I am deeply invested in exploring the dynamics of corporate innovation and its critical role in bolstering firm performance. Moreover, my curiosity extends to the broader implications of organizational structures on various forms of entities that are pivotal to a thriving civil society, including voluntary associations.

My contributions to academia are recognized through publications in prestigious international journals, such as The Accounting Review, Journal of Financial and Quantitative Analysis, Journal of Corporate Finance, Journal of Banking and Finance, Journal of Financial Markets, Journal of Empirical Finance, and Critical Finance Review. My work has also garnered attention in leading media outlets, including Bloomberg, Forbes, Harvard Business Review, and ABC Radio National, highlighting its relevance and impact beyond the academic sphere.

Personal website: https://sites.google.com/site/edwardpodolskij/

Academic positions

  • Associate Professor
  • Deakin University
  • Finance
  • Melbourne, Australia
  • 15 Feb 2016 – 29 Feb 2024
  • Lecturer
  • La Trobe University
  • Finance
  • Melbourne, Australia
  • 1 Jul 2013 – 31 Jan 2016

Teaching interests

I firmly believe that finance graduates must possess the ability to understand the nuanced dynamics of a complex and rapidly evolving financial landscape. To achieve this, it is crucial for students to gain a deep and robust comprehension of the trade-offs inherent in the challenges faced by firms and organizations. They must also value the conceptual frameworks that guide them through these challenges. Central to my teaching philosophy is the idea that the true value of a finance degree lies not merely in acquiring specific knowledge and skills, but in the ability to approach complex problems rigorously, utilizing these frameworks to make sense of a chaotic and unclear environment. Thus, the most critical skill for students is adaptability—their education should prepare them to 'learn how to learn.' My experiences have underscored that learning is a lifelong journey.

 

In this context, I see my role as not merely providing a set of instructions for solving problems, but rather as facilitating the development of a theoretical framework that students can use to filter and interpret new information on economic and financial issues.

Operationally, my teaching methodology is highly intuitive. I prioritize contextualizing theoretical frameworks by elucidating the specific problems they address. This approach not only engages students but also helps them understand the rationale behind abstract concepts. Similarly, when introducing theoretical models, I focus on conveying the underlying intuition and the significance of each assumption. For instance, in explaining options pricing theory, I discuss the intuitive underpinnings of the Black-Scholes model, encouraging students to consider the impact of modifying certain assumptions. This method deepens their appreciation for the model, showing that its core conclusions remain robust despite the relaxation of some unrealistic assumptions. My aim is to foster an intuitive understanding of materials, believing that the thought processes developed in my courses will extend beyond the classroom.

 

Moreover, while it's vital for students to construct a theoretical framework for analyzing real-world problems, I also encourage them to maintain a healthy skepticism towards these theories. By integrating discussions on empirical research that tests the validity of theoretical models, I help students recognize the limitations of both specific models and the broader body of knowledge. My ultimate goal is for students to not only grasp the fundamental issues they may encounter but to approach these challenges systematically and logically, with a clear understanding of the strengths and weaknesses of existing theories.

 

This philosophy underpins my commitment to developing finance professionals who are not only technically proficient but also versatile thinkers capable of navigating the complexities of the financial world with insight and adaptability.

Research interests

Organizations are intricate entities characterized by a multitude of stakeholders, each harboring distinct, and often conflicting, interests. For example, corporate executives, tasked with wealth generation, navigate a landscape shaped not only by their quest for personal financial gain but also by a variety of behavioral preferences. The management of these divergent interests, with the aim of maximizing wealth creation, presents a complex challenge. This complexity is further compounded by the ways in which the incentives of different organizational stakeholders are aligned, which significantly impacts a firm's capacity for wealth generation. For instance, organizational structures that prioritize efficiency and the reduction of waste may inadvertently hinder innovation—a critical component of organizational success, yet notoriously difficult to foster.

 

The exploration of optimal organizational structures, incentive alignment among various organizational actors, and the management of interactions with external capital markets to drive success captivates my research interest. These intricate dynamics pose questions and challenges that intersect with multiple disciplines, including finance, accounting, and management. My research is deeply influenced by these fields, striving to offer insights and hopefully at least modestly contributes to our understanding of them.

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Acknowledgement of Country

RMIT University acknowledges the people of the Woi wurrung and Boon wurrung language groups of the eastern Kulin Nation on whose unceded lands we conduct the business of the University. RMIT University respectfully acknowledges their Ancestors and Elders, past and present. RMIT also acknowledges the Traditional Custodians and their Ancestors of the lands and waters across Australia where we conduct our business - Artwork 'Sentient' by Hollie Johnson, Gunaikurnai and Monero Ngarigo.