Financial markets have often been seen by economists as efficient mechanisms that fulfill vital functions within economies. But do financial markets really operate in such a straightforward manner? The Sociology of Financial Markets approaches financial markets from a sociological perspective. It seeks to provide an adequate sociological coneptualization of financial markets, and examines who the actors within them are, how they operate, within which networks, and how these networks are structured. Patterns of trading, trading room coordination, and global interaction are studied to help us better understand how markets work and the types of reasoning behind these trends. Financial markets also have a structural impact on the governance of social and economic institutions. Until now, sociologists have examined issues of governance mostly with respect to the legal framework of financial transactions. Contributions in this book highlight the ways in which financial markets shape the inner working and structure of corporations and their governance. Finally the book seeks to investigate the symbolic aspects of financial markets. Financial markets affect not only economic and social structures but also societal cultural images and frameworks of meaning. Barbara Czarniawska demonstrates how representations of gender relationships are a case in point. Arguing that financial markets are not simply neutral with respect to questions of gender but enhance certain images and interpretations of men and women. Addressing many important topics from a sociological perspective for the first time, this book will be key reading for academics, researchers, and advanced students of financial markets in Business, Management, Economics, Finance, and Sociology.
Introduction by Karin Knorr Cetina and Alex Preda 1
1 The embeddedness of electronic markets : the case of global capital markets by Saskia Sassen 17
2 How are global markets global? : the architecture of a flow world by Karin Knorr Cetina 38
3 How a superportfolio emerges : long-term capital management and the sociology of arbitrage by Donald MacKenzie 62
4 How to recognize opportunities : heterarchical search in a trading room by Daniel Beunza and David Stark 84
5 Emotions on the trading floor : social and symbolic expressions by Jean-Pierre Hassoun 102
6 Women in financial services : fiction and more fiction by Barbara Czarniawska 121
7 The investor as a cultural figure of global capitalism by Alex Preda 141
8 The values and beliefs of European investors by Werner De Bondt 163
9 Conflicts of interests in the US brokerage industry by Richard Swedberg 187
10 Interpretive politics at the Federal Reserve by Mitchel Y. Abolafia 207
11 The return of bureaucracy : managing dispersed knowledge in global finance by Gordon L. Clark and Nigel Thrift 229
12 Enterprise risk management and the organization of uncertainty in financial institutions by Michael Power 250
13 Managing investors : how financial markets reshaped the American firm by Dirk Zorn and Frank Dobbin and Julian Dierkes and Man-shan Kwok 269
14 Nothing but net? : networks and status in corporate governance by Gerald Davis and Gregory Robbins