In a recent paper in vol. 37 (May 2016) of Research in International Business and Finance : “The financial Logos: The framing of financial decision-making by mathematical modelling”, I introduce the notion of “financial Logos” (IN FRENCH : HERE).
What is it ? I define the financial Logos 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.