The sociology of finance

Bruce G. Carruthers*, Jeong Chul Kim

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

69 Scopus citations

Abstract

The economic crisis of 20082010 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.

Original languageEnglish (US)
Pages (from-to)239-259
Number of pages21
JournalAnnual Review of Sociology
Volume37
DOIs
StatePublished - Aug 11 2011

Keywords

  • Banking
  • Credit
  • Disintermediation
  • Financialization
  • Performativity
  • Trust

ASJC Scopus subject areas

  • Sociology and Political Science

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