International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Conceptualizing the Decentralized Finance Model within the Risk Management Framework: An Application of Grounded Theory

Document Type : Original Article

Authors
Hamidreza Tayeranirad
Najmeh Kargar Kamvar
Hoda Hemmati
Alireza Mirarab Baygi
Department of Management, Ro.C., Islamic Azad University, Roudehen, Iran
10.22034/ijfma.2026.78934.2332
Abstract
The purpose of current research is to identify and analyze core phenomena, causal, contextual, and intervening conditions and mechanisms shaping decentralized finance structure in Iran. Qualitative research approach was deployed based on Grounded Theory, and data was collected trough semi-structured interviews with 17 experts in financial management, fintech, accounting and economics The results of this study show that much of the opportunity to build trust, and thereby increase transparency and legitimacy goes through risk management and financing. In addition, the trust structure has shifted from an institutional level to a technology level. Financial control mechanism operates in a self-organized and participatory way. The main reason for the change of the trust structure included institutional pressures, market volatility, block-chain infrastructure developments, and managers' digital financial literacy. Core mechanisms included smart contracts with risk management characteristics, self-regulatory mechanisms, and decentralized insurance funds, which brought down costs and system risks while improving sustainability.
Keywords
Decentralized Finance
Integration of Risk and Financing
DeFi
Financial Transparency
Technological Trust
Smart Contracts
Financial Sustainability
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