Evolution in Finance Research: Epistemology, Paradigm and Critics

Revista O&S: Organizações & Sociedade, Vol. 16, No. 49, pp. 351-370, 2009

19 Pages Posted: 18 Apr 2009 Last revised: 19 Oct 2009

See all articles by Robert Aldo Iquiapaza

Robert Aldo Iquiapaza

Federal University of Minas Gerais (UFMG) - Center for Post Graduation and Research in Administration (CEPEAD)

AMARAL, H. F.

CEPEAD - UFMG

Aureliano A. Bressan

Federal University of Minas Gerais (UFMG) - Center for Post Graduation and Research in Administration (CEPEAD)

Date Written: January 30, 2009

Abstract

The objective of this article was to analyze the theoretical-methodological evolution in the finance area, emphasizing the important stages, marking their contributions and contradictions, with special emphasis in the dominant paradigm and the post-modern critics. It is a theoretical reflection with an ad hoc revision of the literature. It is observed that around the fifties and sixties of the twentieth century there was a methodological and theoretical revolution in finance research that, due to the adoption of the foundations of the positivist functionalism, took this to be more normative, quantitative and close to the natural sciences, losing their classic characteristics of being positive, and the recognition of its capacity of affecting the research object, the individuals and companies' financial behavior. Only in the last two decades there seems to be some alternative proposals, among them behavioral finance studies. That approach had shown important contributions to finance studies, even though is being hardly challenged by the dominant paradigm.

Note: Downloadable document is in Portuguese.

Keywords: Finance research, Epistemology, Paradigm, Modern finances, Behavioral finance

JEL Classification: G1, G3, M2, B4

Suggested Citation

Iquiapaza, Robert Aldo and Amaral, Hudson Fernandes and Bressan, Aureliano Angel, Evolution in Finance Research: Epistemology, Paradigm and Critics (January 30, 2009). Revista O&S: Organizações & Sociedade, Vol. 16, No. 49, pp. 351-370, 2009, Available at SSRN: https://ssrn.com/abstract=1389863

Robert Aldo Iquiapaza (Contact Author)

Federal University of Minas Gerais (UFMG) - Center for Post Graduation and Research in Administration (CEPEAD) ( email )

Av. Antônio Carlos 6627 - Pampulha
Faculdade de Ciências Econômicas
Belo Horizonte, MG 31270-901
Brazil

HOME PAGE: http://www.cepead.face.ufmg.br

Hudson Fernandes Amaral

CEPEAD - UFMG ( email )

Rua Curitiba 832 11º And Centro
Belo Horizonte, MG 30120170
Brazil

Aureliano Angel Bressan

Federal University of Minas Gerais (UFMG) - Center for Post Graduation and Research in Administration (CEPEAD) ( email )

Av. Antonio Carlos, 6627
MG30170-120 Belo Horizonte, 31270-901
Brazil

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