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
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: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Taking Stock in Stock Markets: The Changing Governance of Exchanges
-
Demutualization and Public Offerings of Financial Exchanges
By Reena Aggarwal and Sandeep Dahiya
-
Seasoned Equity Offerings, Corporate Governance, and Investments
By E. Han Kim and Amiyatosh Purnanandam
-
Competition and Mergers Among Nonprofits
By Jens Prufer
-
Firms, Nonprofits, and Cooperatives: A Theory of Organizational Choice
By Patrick Herbst and Jens Prufer