Value Investing: From Perspective of Interpretivism

Abstract

Finance research is dominated by the positivist worldview. The current study attempts to illustrate the importance of finance research from the perspective of Interpretivism and to elaborate on the concept using the example of value investing. The work delves deeply into Interpretivism epistemology and methodology. The study mentions the corollaries of theoretical pluralism and cognitive pragmatism from Interpretivism epistemology. The paper's recommended framework outlines the lines for developing a critical (or reflective) investment decision-making mindset. This is an investment decision that can reflect on its own constructions and cognitive processes in order to improve investment processes with greater "constructivist awareness" and efficacy.