Normal Science and Paradigmatic Shifts: Political and Regulatory Strategies to Develop Investor Protection in the Aftermath of Crisis

15 Pages Posted: 6 Oct 2012

See all articles by Justin O’Brien

Justin O’Brien

Harvard University - Edmond J. Safra Center for Ethics; University of New South Wales (UNSW)

Date Written: October 2012

Abstract

The scale of the Global Financial Crisis prompted initial systematic reflection by leading politicians from Anglo‐Saxon countries. One commonality linked the analyses put forward by Gordon Brown (UK), Barack Obama (USA) and Kevin Rudd (Australia): the crisis had roots in ethical failure. The interlinked failure of structure and agency necessitated fundamental change in the theory and practice of the regulation of capital markets. The international regulatory reform agenda has, however, focused on the technical requirements of the former and largely ignored the latter. The paper argues that this is not only a mistake. It reflects the ongoing strength of the financial services industry to determine the ideational, ideological and institutional battleground.

Keywords: Financial regulation, Institutional theory, Corporate governance, Ethics

JEL Classification: K22

Suggested Citation

O’Brien, Justin, Normal Science and Paradigmatic Shifts: Political and Regulatory Strategies to Develop Investor Protection in the Aftermath of Crisis (October 2012). Accounting & Finance, Vol. 52, pp. 217-231, 2012. Available at SSRN: https://ssrn.com/abstract=2157871 or http://dx.doi.org/10.1111/j.1467-629X.2012.00483.x

Justin O’Brien (Contact Author)

Harvard University - Edmond J. Safra Center for Ethics ( email )

124 Mount Auburn Street
Suite 520N
Cambridge, MA 02138
United States

University of New South Wales (UNSW) ( email )

Kensington
High St
Sydney, NSW 2052
Australia

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