DePaul University in Chicago has received a $3.45 million gift from alumnus and investment fund manager Richard H. Driehaus to endow a chair and establish a center in behavioral finance at the school's College of Commerce.
The gift is the second-largest donation ever made to the college and the fourth-largest gift ever received by the university. Driehaus, a Chicago native and a member of the school's board of trustees, earned both his undergraduate business degree and his MBA from DePaul. Werner F.M. De Bondt, a professor of finance at the University of Wisconsin-Madison, has been selected as chair of the new Richard H. Driehaus Center in Behavioral Finance, which will focus on research and teaching in the innovative field of behavioral finance and the psychology of investing and financial markets.
"The stock market is not science," said Driehaus. "I tend to approach the market from a social studies perspective as opposed to a heavily analytical one. That doesn't mean we don't look at the facts and the numbers, but we tend to look more at the context of what's happening now within the marketplace — what is the current psychology toward a specific sector or market group....Very few schools are teaching behavioral finance. That's what makes this so interesting."