Policy as Myth and Ceremony? The Global Spread of Stock Exchanges, 1980-2005

Academy of Management Journal, 2009, Vol. 52, No. 6, 1319–1347

University of Alberta School of Business Research Paper No. 2013-35

Posted: 20 May 2013 Last revised: 23 May 2013

See all articles by Klaus Weber

Klaus Weber

Northwestern University

Gerald F. Davis

University of Michigan, Stephen M. Ross School of Business

Michael Lounsbury

University of Alberta - Department of Strategic Management and Organization

Date Written: November 17, 2008

Abstract

We examine the antecedents and consequences in developing countries of creating a national stock exchange, a core technology of financial globalization. We study local conditions and global institutional pressures in the rapid spread of exchanges since the 1980s and examine how conditions at the point of adoption affected exchanges’ subsequent vibrancy. Little prior research connects the process of diffusion with the operational performance of adopted policies. We find that international coercion was associated with more ceremonial adoption but that, contrary to expectations common in institutional research, contagion processes via peer groups and normative emulation of prestigious actors enhanced vibrancy.

Suggested Citation

Weber, Klaus and Davis, Gerald F. and Lounsbury, Michael, Policy as Myth and Ceremony? The Global Spread of Stock Exchanges, 1980-2005 (November 17, 2008). Academy of Management Journal, 2009, Vol. 52, No. 6, 1319–1347; University of Alberta School of Business Research Paper No. 2013-35. Available at SSRN: https://ssrn.com/abstract=2266669

Klaus Weber (Contact Author)

Northwestern University ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

Gerald F. Davis

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI 48109-1234
United States
734-647-4737 (Phone)
734-936-0282 (Fax)

Michael Lounsbury

University of Alberta - Department of Strategic Management and Organization ( email )

Edmonton, Alberta T6G 2R6
Canada

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