The Scientific Value of Finance after the Crisis: Evidence from Research Usage and Financial Innovation
57 Pages Posted: 17 Apr 2020 Last revised: 1 Sep 2021
Date Written: March 7, 2020
Understanding how users of research cope with episodes that potentially diminish trust in accepted knowledge such as the 2007-2009 financial crisis is important for financial economics. Utilizing citations in practitioner-oriented journals I investigate post-crisis changes in authors’ knowledge sources and compare the inert behaviors of academics and practitioners towards science. Rather than abandonment of finance research in the practitioner literature, the evidence shows increased interdisciplinarity. Unpublished, non-scholarly sources become markedly less popular. Engaging in finance scholarship is causally and positively related to leading institutions’ patenting activities, suggesting having a scholarly culture aids firms’ product market recovery after the crisis.
Keywords: financial crisis, scientific knowledge, paradigm shift, practitioner journals
JEL Classification: A11, G20, O30
Suggested Citation: Suggested Citation