Financial Regulation and Social Welfare: The Critical Contribution of Management Theory

Academy of Management Review Vol. 41 (2016) No. 2, pp. 298-323, Special Topic Forum on 'Management Theory and Social Welfare'

67 Pages Posted: 1 Nov 2013 Last revised: 17 Mar 2016

See all articles by Emilio Marti

Emilio Marti

City University London - Faculty of Management

Andreas Georg Scherer

University of Zurich - IBW Department of Business Administration

Date Written: May 28, 2015

Abstract

While many studies explain how social science theories shape social reality, few reflect critically on how such theories should shape social reality. Drawing on a new conception of social welfare and focusing on financial regulation, we assess the performative effects of theories on public policy. We delineate how research that focuses narrowly on questions of efficiency and stability reinforces today’s technocratic financial regulation that undermines social welfare. As a remedy, we outline how future management research can tackle questions of social justice and thereby promote an inclusive approach to financial regulation that better serves social welfare.

Note: For correct citations or quotations please see the original publication at the Academy of Management Review.

Keywords: critical management studies, deliberation, financial innovations, Habermas, high-frequency trading, income inequality, performativity, social welfare

Suggested Citation

Marti, Emilio and Scherer, Andreas Georg, Financial Regulation and Social Welfare: The Critical Contribution of Management Theory (May 28, 2015). Academy of Management Review Vol. 41 (2016) No. 2, pp. 298-323, Special Topic Forum on 'Management Theory and Social Welfare'. Available at SSRN: https://ssrn.com/abstract=2348602 or http://dx.doi.org/10.2139/ssrn.2348602

Emilio Marti (Contact Author)

City University London - Faculty of Management ( email )

London
United Kingdom

Andreas Georg Scherer

University of Zurich - IBW Department of Business Administration ( email )

Universitätsstrasse 84
Zurich, 8006
Switzerland
+41 44-63 45302 (Phone)
+41 44-63 45301 (Fax)

HOME PAGE: http://www.business.uzh.ch/professorships/as.html

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