In corporate finance, her research has revealed flaws in the popular trend of investing in environmentally conscious “green” firms — and divesting from so-called “brown” firms. She has found that divesting from brown firms, and thereby pushing them toward financial distress, actually makes it harder for these firms to find the financial resources to become greener.

In labor economics, Shue documented that measures of an individual’s personality extracted purely from a photo of their face can predict labor outcomes such as compensation and career advancement; that when selecting an employee for promotion, firms adhere to the “Peter Principle” by putting too much weight on the person’s performance in their current job, while underweighting other characteristics that better predict performance in the higher-level role; and that firms give female employees excessively low ratings of “future potential,” even if they have good current performance, reducing the likelihood of promotion and contributing significantly to a gender gap in both promotion and pay. 

And in behavioral economics, she has shown that investors often have a fundamental misunderstanding of short versus long-term interest rates, dollar-versus-percentage changes in stock values, and number-versus-value of option grants; and that a psychological bias, known as the “gambler’s fallacy,” affects important decisions such as whether to extend a loan or to approve an asylum application.

Shue also teaches popular courses at SOM and Yale Law School; is a valued mentor to Ph.D. students (in 2021, she won a university-wide graduate mentoring award); and has served on multiple committees for SOM.

She is a director of the American Finance Association, European Finance Association, and the Financial Research Association and is the co-principal investigator of the National Bureau of Economic Research Project on Executive Compensation. She also currently serves as an associate editor at the Journal of Finance, Journal of Financial Economics, and the Review of Corporate Finance Studies. She previously served as an editor at the Review of Finance and associate editor at Management Science. She is a co-author of the popular Ross et al. “Corporate Finance” textbook series.  

Shue, who was on the faculty at the University of Chicago’s Booth School of Business before joining the Yale faculty, holds a Ph.D. in economics from Harvard University and a B.A. in applied mathematics, also from Harvard.