By Olivia Robertson
Vanderbilt Business Professor Veronika Pool
For a professional whose work is often described as a forensic investigation into the “dark side of finance,” the recent appointment to an endowed chair marks a powerful recognition of a career dedicated to illuminating and improving the financial landscape. Professor Veronika Krepely Pool, a distinguished finance scholar at Vanderbilt University’s Owen Graduate School of Management, has been named the recipient of the Justin Potter Professorship, one of the university’s highest honors. This prestigious appointment celebrates her impact on academic research and her dedication as an educator.
A Career Defined by Impactful Research
Professor Veronika Krepely Pool has a deep commitment to impactful research. Her expertise in finance, particularly in the areas of retirement, mutual funds, and hedge funds, has earned her high praise within the academic community. Her research, often described as delving into the “dark side of finance,” seeks to uncover potential conflicts of interest and wrongdoing within the industry, ensuring that it operates in the best interest of individual investors.
“I feel like that’s one of those areas where there’s a large societal importance,” she notes, reflecting on her work. Her passion for research is evident in her continuous pursuit of projects that not only advance academic knowledge but also have real-world implications for policy and investor well-being.
The Significance of the Justin Potter Chair
The recent appointment of Professor Pool to the Justin Potter Chair is a testament to her contributions to the field. This endowed chair, established in memory of Tennessee businessman and Vanderbilt alumnus Justin Potter, is one of the highest honors a faculty member can receive. For Professor Pool, the appointment is a source of immense pride, though she admits to a sense of “imposter syndrome” when looking at the distinguished colleagues who have also held such positions.
“It is really a nice recognition,” she says, emphasizing that the honor serves as a powerful motivator. Rather than viewing it as a destination, she sees it as an encouragement to strive for even greater accomplishments, to “live up to that name” and the legacy of the chair. She notes that while the chair doesn’t come with additional research funding or open new doors in that sense, its symbolic value is immeasurable. It validates her work and aligns her professional success with the university’s values and long-standing tradition of excellence.
Retirement Finance
A significant part of Professor Pool’s research is dedicated to the pressing challenges in retirement finance. She believes that the shift from defined benefit to defined contribution plans has placed a heavy burden on individual workers, who are now responsible for their own investment decisions. Her work explores whether the current structure is adequate for people to accumulate enough wealth for retirement. She points to a growing concern among many that a “retirement crisis” is on the horizon, with the ability to retire at a traditional age becoming increasingly difficult.
One of her ongoing projects, which recently earned her recognition as a finalist for a research award from the International Centre for Pension Management in Canada, documents large differences in fees across 401(k) plans in the US and relates these differences to financial sophistication and the lack of provider competition in some geographic areas. This recognition highlights the industry’s appreciation for her work, which bridges the gap between academia and practice.
A Forensic Look at the Industry
Beyond retirement, Professor Pool is tackling another critical, and complex, topic: cross-trading within bond funds. Cross-trading allows funds within the same family to buy and sell securities from each other, which can potentially save on transaction costs. However, it also presents a significant conflict of interest due to a lack of transparency. Her research is a “forensic” investigation into this issue, particularly in the illiquid bond market.
The project is especially timely, given that the SEC has tightened regulations on cross-trading for illiquid securities, essentially making it more difficult. By analyzing the prevalence and economic consequences of cross-trading before the new regulation, Professor Pool and her colleagues hope to provide data that could inform future policy decisions.
The Educator’s Role: Nurturing Curiosity
As an educator, Professor Pool is a firm believer in making research accessible and exciting for her students. She recently developed a new course on hedge funds and will be teaching a new class on bond markets, which aligns with her current research. She has found that students at Vanderbilt Business, particularly at the Owen Graduate School of Management, are incredibly receptive to learning about research.
“They truly appreciate hearing about these research topics,” she says. She encourages her students to think like academics, challenging them to find alternative explanations for observed phenomena in her own research. This hands-on approach, she believes, prepares them to be critical thinkers and proactive professionals who are ready to engage with the complexities of the financial world.
A Special Relationship with Vanderbilt
For Professor Pool, Vanderbilt is more than just a workplace; it is her professional home. Having earned her Ph.D. from the university, she feels a special connection to the institution. “I always had a feeling that I need to give back,” she says, highlighting her commitment to the university’s continued excellence. She sees a symbiotic relationship between her success and the university’s, where each helps the other to thrive.
Beyond her academic and professional life, Professor Pool enjoys playing tennis. It’s a hobby her students are well aware of, providing a welcome outlet and a humanizing glimpse into the life of a dedicated scholar. Her story is a powerful reminder that an academic career is not just about papers and publications; it’s also about a deep sense of purpose, a commitment to education, and a desire to make a meaningful impact on both the academic community and the world at large.
A Legacy of Excellence, Honored in Perpetuity
Ultimately, the Justin Potter Professorship is not just an award for Professor Pool, but a reflection of the enduring values of Vanderbilt University. It signifies the institution’s commitment to supporting scholars who are not afraid to tackle complex, and often uncomfortable, questions in service of the public good. As a proud alumna, Professor Pool sees this honor as a call to continue pushing the boundaries of knowledge, inspiring the next generation of financial leaders to approach their work with the same curiosity and integrity that has defined her career. It is a moment of celebration, marking the confluence of personal achievement and institutional excellence.