Social theory can usefully be conceived in terms of four key
paradigms: functionalist, interpretive, radical humanist and
radical structuralist. The four paradigms are founded upon
different assumptions about the nature of society and each
generates distinctive theories, concepts and analytical tools.
Finance theory is based on the functionalist paradigm and for the
most part finance theorists are unaware of the philosophical
tradition to which they belong. By relating finance to the four
paradigms, Ardalan's work offers a concise understanding of the
multifaceted nature of finance. He recommends theorists adopt a
diversity of paradigms and discusses its benefits by application to
the following phenomena: the development of academic finance, the
mathematical language of academic finance, the mathematics of
academic finance, money, corporate governance, markets, technology
and education.
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