![]() Some researchers claim that the misuse or abuse of financial innovations were factors leading to the 2008 financial crisis (Boz and Mendoza, 2014 Hausman and Johnston, 2014). Despite the wide acceptance in the literature of the benefits of financial innovations to the real economy (e.g., Finnerty, 2001 Levine, 1997 Merton, 1992 Shiller, 2012, 2013 Van Horne, 1985, 1986, 1992), the crisis of 2008 made financial innovation a focus at a time of re-evaluation and re-conceptualization (Engelen et al., 2010, Greenwood and Scharfstein, 2013). Increasing attention has been paid to the subject of financial innovation since the last financial crisis of 2008. (3) A meta-theory that identifies, classifies, and connects theories of development for financial innovations is better suited to explaining the complexity of financial innovation processes. (2) The current state of research on financial innovation theories is limited and requires additional input. (1) Financial innovations present diversities and complexities that make it infeasible to build a unifying general theory to explain their development. The paper proposes a framework based on a meta-theory of financial innovation as a better approach to understanding the inherent complexities and diversities affecting financial innovations. A conceptual analysis is presented that evaluates current approaches to the study of the financial innovation process and the difficulties inherent in constructing a single general theory. Additionally, the paper reviews the existing literature on the main objects of study in financial innovation and groups the findings under four main concepts. The paper begins with an overview of the definitions, the features, and the classification schemes of financial innovation. This paper examines the hypothesis of a general theory that encompasses increasing complexities in the financial innovation process. However, little has been done to evaluate the current state of research considering the increasing complexity of financial innovation. ![]() Since the financial crisis of 2008, the theory of financial innovation has been a focus at a time of re-evaluation and re-conceptualization.
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