ProfessorDavid Johnstone

David’s research interests all concern statistical theory and economic logic applied to financial decision making and valuation. During his PhD, he published theoretical work on the logic and philosophy of statistical hypothesis testing and later he applied foundational knowledge in financial decision contexts, including probability forecast evaluation, asset pricing, information economics and corporate finance. His work is mostly based in prescriptive “rational” financial logic but he has also published work in behavioural finance. His most recent work has been largely on the theoretical determinants of the cost of capital in financial investment. Much of his work has involved a critical appraisal of existing theory and methods.