Behavioral and Social Finance & Accounting
Individuals are not always fully rational in their economic decision-making. This affects the markets and organizations where these individual economic decisions accumulate. While these insights have inspired many new research areas, starting with Behavioral Finance and Behavioral Economics, they have not yet reached all areas of business research. Moreover, as there is no unique “workhorse” model, the theory itself is still evolving – both with respect to methods and applications. In recent years, a second trend has enriched the behavioral paradigm: the social paradigm. It is not only the individual self that may deviate from rational decisions but it is also the social surrounding, be this culture, religion, ethics, language, neighborhood, or other social networks that one feels associated with, that may affect these decisions. The aim of the research cluster is to bring together the methodical essence of the behavioral and social research paradigm and apply the insights to different topics in the area of finance and accounting.