Resumo

Most of the research in finance is based on mathematical modeling, belonging almost exclusively to the positivist paradigm. But this is not the only source of knowledge. The way to broaden the scope of research is to combine the positivist paradigm with others to gain a better understanding of the multifaceted nature of finance (Sultana, 2020). An analysis was made of the paradigmatic approach of articles on behavioral finance and cryptocurrencies whose market has drawn the attention of the media and the academic world due to high volatility and growth (Al-Mansour, 2020).

This study seeks to answer the following question: what is the paradigm predominantly used in the study of the behavior of investors in crypto-assets? The aim of the study is to analyze the paradigmatic approach of fifty-nine selected articles on the topic of behavioral finance and crypto-assets, more specifically cryptocurrencies. Subsequently, we intend to discuss what would be the advantages and disadvantages of using another approach to study the behavior of investors in crypto-assets.

Research paradigms are generated from different ontological and epistemological views. Although different paradigms can be adopted in Administration, research in Finance belongs almost exclusively to the positivist functionalist paradigm that considers that the world is made up of tangible and stable entities and that financial institutions and behavior exist independently of representations of the social world (Lagoarde- Segot, 2015). As the insights generated by any paradigm are partial and incomplete, different approaches can be useful (Ardalan, 2003).

In the 59 articles analyzed, the herd effect (42%) and sentiment (20%) themes were predominant. The herd effect shows that crypto-asset investors are strongly influenced by the market movement. The sentiment theme seeks to understand investor sentiments as a predictor of cryptocurrency returns. Unlike the herd effect, which is heavily based on calculations, sentiment can be used to understand how investors, with their multiple realities, see and deal with the challenges of a volatile market such as cryptocurrencies, through interpretivism.

The topics dealt with in behavioral finance are related to human beings and as such must be studied by the cultural sphere that needs analytical methods to understand human beings, their minds, their feelings, and the way they express themselves in their external actions. Thus, it is understood that the application of another paradigm, for example, interpretivism, would enrich the research. However, it is not proposed that this eventual paradigm replaces positivism, but that it complements it.

Al-Mansour, B. Y. (2020). Cryptocurrency market: Behavioral finance perspective. The Journal of Asian Finance, Economics, and Business, 7(12), 159-168. Ardalan, K. (2003). Money and academic finance: the role of paradigms. International Journal of Social Economics. Lagoarde-Segot, T. (2015). Diversifying finance research: From financialization to sustainability. International Review of Financial Analysis, 39, 1-6. Sultana, F. (2020). Paradigm shift and diversity in finance. Journal of Finance and Accounting Research, 2(1), 94-113.