The Sociology of Finance

The economic crisis of 2008-2010 stimulated an already growing sociological interest in finance. Before the crisis, disintermediation and securitization changed how the U.S. financial system operated, as bank operations shifted from the traditional originate-and-hold model to originate-and-distribut...

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Bibliographic Details
Published in:Annual review of sociology 2011-01, Vol.37 (1), p.239-259
Main Authors: Carruthers, Bruce G., Kim, Jeong-Chul
Format: Article
Language:English
Subjects:
Bank loans
Banking
Bankruptcy Code
Capital market
Credit
Deregulation
Economic crisis
Economic Development
Economic sociology
Finance
Financial markets
Financial services
Financial systems
Governance
Households
Informal Sector
Investment banking
Investors
Loans
Market
Market economy
Markets
Mortgage loans
Political and Economic Sociology
Politics
Profitability
Securities markets
Social Inequality
Socioeconomic factors
Sociological research
Sociology
Sociology of economy and development
Stock markets
Trust
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Summary:The economic crisis of 2008-2010 stimulated an already growing sociological interest in finance. Before the crisis, disintermediation and securitization changed how the U.S. financial system operated, as bank operations shifted from the traditional originate-and-hold model to originate-and-distribute. During the 1980s and 1990s, the overall size and profitability of the financial system grew as deregulation unleashed financial innovation and reorganization. Global shifts toward capital market integration and liberalization created greater global interdependence. Households in the years before the crisis also altered their relationship to the financial system, increasing debt loads and overall exposure to the stock market. Research reveals the importance of politics for many financial market developments, various implications for corporate governance, the continuing significance of social factors within finance, and the role of theoretical and material devices in shaping financial practices. Key directions for future research focus on finance in relation to social inequality, informal sectors, valuation, and social networks.
ISSN:0360-0572
1545-2115
DOI:10.1146/annurev-soc-081309-150129