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The Sociological Approach To Financial Markets

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  • Alex Preda

Abstract

As a part of the renaissance and growth of economic sociology during the past two decades, and in response to processes such as economic globalization, financial markets have been increasingly scrutinized by sociologists. Their investigation is seen as relevant with respect to understanding the structure and dynamics of advanced societies, the dynamics of social development, as well as fundamental aspects of human behaviour. This paper charts recent developments in the sociology of financial markets; its starting point is the treatment of the concept of information within three sociological orientations: the social‐structural approach, sociological neo‐institutionalism and the newer social studies of finance. By highlighting their different assumptions about information and market behaviour, I discuss how these approaches conceptualize financial markets, the methodological implications and the ways in which they contribute to the study of financial exchanges.

Suggested Citation

  • Alex Preda, 2007. "The Sociological Approach To Financial Markets," Journal of Economic Surveys, Wiley Blackwell, vol. 21(3), pages 506-533, July.
    • Handle: RePEc:bla:jecsur:v:21:y:2007:i:3:p:506-533
    DOI: 10.1111/j.1467-6419.2007.00512.x
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    2. Preunkert, Jenny, 2020. "Primary dealer systems in the European Union," MaxPo Discussion Paper Series 20/1, Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo).
    3. Roscoe, Philip & Howorth, Carole, 2009. "Identification through technical analysis: A study of charting and UK non-professional investors," Accounting, Organizations and Society, Elsevier, vol. 34(2), pages 206-221, February.
    4. Samitas, Aristeidis & Kampouris, Elias, 2018. "Empirical investigation of co-authorship in the field of finance: A network perspective," International Review of Financial Analysis, Elsevier, vol. 58(C), pages 235-246.
    5. Sheila C. Dow, 2013. "Framing finance: A methodological account," Working Papers PKWP1308, Post Keynesian Economics Society (PKES).
    6. Sheila C. Dow, 2012. "The methodology of finance," Chapters, in: Jan Toporowski & Jo Michell (ed.), Handbook of Critical Issues in Finance, chapter 30, pages i-ii, Edward Elgar Publishing.
    7. Fredrik Hansen, 2013. "The efficient-markets hypothesis after the crisis: a methodological analysis of the evidence," Chapters, in: Mats Benner (ed.), Before and Beyond the Global Economic Crisis, chapter 3, pages 55-71, Edward Elgar Publishing.
    8. Wendy Currie & Jonathan Jm Seddon, 2022. "Exploring technological instantiation of regulatory practices in entangled financial markets," Post-Print hal-03599145, HAL.
    9. Neil Fligstein, 2021. "Innovation and the theory of fields," AMS Review, Springer;Academy of Marketing Science, vol. 11(3), pages 272-289, December.
    10. Goldstein, Adam & Fligstein, Neil, 2010. "The Rise and Fall of the Nonconventional Mortgage Industry," Institute for Research on Labor and Employment, Working Paper Series qt1dm808j6, Institute of Industrial Relations, UC Berkeley.
    11. Andrikopoulos, Andreas & Economou, Labriana, 2016. "Coauthorship and subauthorship patterns in financial economics," International Review of Financial Analysis, Elsevier, vol. 46(C), pages 12-19.
    12. Jackson, William A., 2024. "The Ethics of Price Variation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 53(2), pages 201-215.
    13. Roberto Casarin & Flaminio Squazzoni, 2013. "Being on the Field When the Game Is Still Under Way. The Financial Press and Stock Markets in Times of Crisis," PLOS ONE, Public Library of Science, vol. 8(7), pages 1-14, July.
    14. Jackson, William A., 2024. "Markets as Dualistic, Semi-Decentralized Organizations," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 5(1), pages 153-172.
    15. Fligstein, Neil & Goldstein, Adam, 2012. "The Transformation of Mortgage Finance and the Industrial Roots of the Mortgage Meltdown," Institute for Research on Labor and Employment, Working Paper Series qt2zx8r7fb, Institute of Industrial Relations, UC Berkeley.
    16. Seddon, Jonathan J.J.M. & Currie, Wendy L., 2017. "A model for unpacking big data analytics in high-frequency trading," Journal of Business Research, Elsevier, vol. 70(C), pages 300-307.
    17. Johannes M. Lehner & David McMillan, 2015. "Making sense in asset markets: Strategies for Implicit Organizations," Cogent Economics & Finance, Taylor & Francis Journals, vol. 3(1), pages 1024022-102, December.
    18. Jalan, Akanksha & Matkovskyy, Roman & Urquhart, Andrew & Yarovaya, Larisa, 2023. "The role of interpersonal trust in cryptocurrency adoption," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 83(C).
    19. Williams, James W., 2013. "Regulatory technologies, risky subjects, and financial boundaries: Governing ‘fraud’ in the financial markets," Accounting, Organizations and Society, Elsevier, vol. 38(6), pages 544-558.
    20. Norberg, Peter, 2009. "Trading Trust - Post-Aristocratic Finance in the City of Stockholm," SSE/EFI Working Paper Series in Business Administration 2009:8, Stockholm School of Economics.

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