Security Analysts as Frame-Makers

Beunza, Daniel; Garud, Raghu

doi:10.2139/ssrn.563314

Cited by 16 publications

(15 citation statements)

References 44 publications

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“…Beunza and Garud (2007), for instance, highlight the challenges of securities analysts, who had to search for metrics to value new business models before the '.com bubble'; MacKenzie and Millo (2003) have documented the major role played by calculative devices embedded in the 'Black-Sholes formula' in the constitution of a market for financial derivatives in Chicago; and Callon (2009) andMacKenzie (2009) show how calculability issues underlie the building of a market for 'carbon trading'.…”

Section: Politics and Calculability In The Construction Of Marketsmentioning

confidence: 99%

Calculability as Politics in the Construction of Markets: The Case of Socially Responsible Investment in France

Giamporcaro

Gond

2016

Organization Studies

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This is the accepted version of the paper.This version of the publication may differ from the final published version. Permanent repository link AcknowledgementsWe thank our Organization Studies acting editor on this paper, Professor David Courpasson, for his guidance and help through the review process, as well as two anonymous reviewers for their valuable insights. Earlier drafts of this paper benefitted of useful comments from Liliana Doganova, Peter Karnøe and the other attendees of the panel on 'Calculability and Performativity' at the conference of the Society for the Social Studies of Sciences (SSS) held in 2013 (San Diego), as well as from two presentations of our research at Principle for Responsible Investing (PRI) academic conference in 2013 (Paris) and 2010 (Copenhagen). We also acknowledged the useful comments from Dianela Laurel-Fois and the other participants of the sub-theme 51 at the 2015 EGOS Conference (Athens) as well as helpful informal discussions with Peter Fleming and Emilio Marti. 2 Authors' biographiesStéphanie Giamporcaro is Associate Professor and Research Director at the University of Cape Town Graduate School Of Business. Her theoretical roots are in sociology of markets and consumption, social studies of finance, economic sociology and French pragmatic sociology. She has published a book on political consumption and various peer reviewed academic articles. Her research focuses particularly on how sustainable and responsible investment (SRI) and impact investing practices are currently be implemented in the developed and emerging economies. Prior to that, she was the head of SRI research for the French think-tank Novethic, a subsidiary of the French Public Investment Group Caisse des Dépots.Jean-Pascal Gond is Professor of Corporate Social Responsibility at Cass Business School, City University London (UK). His research mobilizes organization theory and economic sociology to investigate corporate social responsibility (CSR). His research in economic sociology is concerned with the influence of theory on managerial practice (performativity), the governance of self-regulation, and the interplay of society's commodification and markets' socialization. AbstractThis paper examines some of the processes by which power constitutes calculability and, in so doing, shapes the construction of markets. We combine insights from performativity studies about calculability with Lukes' 'radical view of power' to investigate how multiple facets of power are mobilized to influence the creation and activities of calculative agencies in the process of market construction. An in-depth longitudinal study of the French socially responsible investment market shows how organizations acting as calculative agencies become sites of power through calculability. We identify how power is exercised over, through and against these calculative agencies by a variety of actors in order to build their position in the socially responsible investment market. Our results complement the broader question of the 'government...

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Section: Politics and Calculability In The Construction Of Marketsmentioning

confidence: 99%

Calculability as Politics in the Construction of Markets: The Case of Socially Responsible Investment in France

Giamporcaro

Gond

2016

Organization Studies

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“…In sociolog ical reasoning, preferences are not considered to be the expression of individual tastes, but are rather seen as reflecting culturally infused meanings that products have for ac tors in the concrete historical space in which the exchange takes place. In this sense, products are intersubjectively framed (Beunza/Garud 2005;Fiss/Kennedy 2007), and it is from these frames and their changes that actors establish "what is valuable" (Stark 2009). To trace preferences to social macrostructures instead of viewing them as ran dom individual tastes does not contradict economic price theory per se, because it does 8 An additional critical point is made by FourcadeGourinchas when she describes a selffulfilling logic emerging from the practice of pricing the "priceless": measuring the environment eco nomically actually helps to commodify it "by creating an implicit, virtual market for it" (Four cade 2004: 33).…”

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“…A further social influence on the valuation of products whose qualities are primar ily aesthetic is exercised through the assessments of experts who act as intermediaries in the market (Beunza/Garud 2005;Podolny 2005). This has been observed in both the wine market and the art market.…”

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confidence: 99%

Where do prices come from? Sociological approaches to price formation

Beckert

2011

Socio-Economic Review

120

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The article provides an overview of the state of the art of sociological research on price formation. The dominant trait of the sociological approach to prices is to understand price formation not as the outcome of individual preferences but as the result of the social and political forces operating within the market field. The article proceeds from the concept of market fields and is organized around the three dominant approaches in economic sociology: the network approach, the institutional approach, and the cultural approach.

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“…We argue that coverage builds up in anticipation of profitable investment banking transactions and trading activity that could create an investor bias for high coverage stocks. Furthermore, to the extent that investors categorize stocks based on certain attributes (Barberis and Shleifer, 2003), it is possible that excessive analyst coverage could also serve as a framing mechanism (see also Beunza and Garud, 2004). If investors rely on analyst coverage to classify stocks with excessively high (low) analyst coverage as high (low) growth stocks, then excessively high (low) analyst coverage could cause an upward (downward) demand shift.…”

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The Two Faces of Analyst Coverage

Doukas

Kim

Pantzalis

2005

Financial Management

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We find that positive excess (strong) analyst coverage is associated with overvaluation and low future returns. This finding is consistent with the view that excessive analyst coverage, driven by investment banking incentives and analyst self‐interests, raises investor optimism causing share prices to trade above fundamental value. However, weak analyst coverage causes stocks to trade below fundamental values. This finding indicates that investors tend to believe that these firms are more likely to be plagued by information asymmetries and agency problems. The results remain robust after controlling for the possible endogenous nature of analyst coverage and analysts' self‐selection bias.

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Security Analysts as Frame-Makers

Cited by 16 publications

References 44 publications

Calculability as Politics in the Construction of Markets: The Case of Socially Responsible Investment in France

Calculability as Politics in the Construction of Markets: The Case of Socially Responsible Investment in France

Where do prices come from? Sociological approaches to price formation

The Two Faces of Analyst Coverage

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