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School of Business and Management

Accounting for Panic Runs: The Case of Covid-19

When: Friday, December 11, 2020, 12:00 PM - 1:00 PM
Where: Online

Speaker: Arman Eshraghi and Gulnur Muradoglu

This event is part of the Behavioural Finance Seminars on Corona Crisis: Online series by Professor Yaz Gulnur Muradoglu. Against the Covid-19 backdrop, this paper argues that mainstream models of accounting and finance tend to miss panic runs and associated shocks by not fully incorporating market agents in relation to their networks. 

Authors: Arman Eshraghi (Cardiff University) and Gulnur Muradoglu (Queen Mary University of London)

Abstract: Drawing on Callon (1998) framework whereby the assumption of atomised behaviour of economic agents is replaced by their dependence on the natural environment in which they operate, we caution against labelling the recent pandemic shocks as ‘externalities’ and ‘black swans’. Our paper shows that such Callonian overflows are common to both bank runs and supermarket runs associated with the Covid-19 pandemic.

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