The financial Logos: The framing of financial decision-making by mathematical modelling

Christian Walter ()

Research in International Business and Finance, 2016, vol. 37, issue C, 597-604

Abstract: This paper introduces the notion of “financial Logos”, defined as a structuring discourse embedded in management tools and beliefs of financial practices. I hypothesize that this discourse contains a specific representation of risk mathematically modelled by probability measures. Next I use a performativity based approach to describe the concrete action of the financial Logos on financial practices: the framing of financial decision-making by mathematical modelling. I argue that it is not possible to think of a given financial practice without epistemologically and sociologically thinking of the contribution of the mathematical modelling to this practice. I conclude with consequences for ethics of finance: extending ethics of action to epistemic ethics, I suggest that, in finance, any preference in mathematical modelling is also a preference in ethics.

Keywords: Performativity; Mathematisation; Mathematical modelling; Financialisation; Ethics; Finance (search for similar items in EconPapers)
JEL-codes: A1 B4 C4 G1 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:37:y:2016:i:c:p:597-604

DOI: 10.1016/j.ribaf.2016.01.022

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