Management Seminars: Emilio Marti
Dr Emilio Marti (Cass Business School)
G.15, 15-19 Tyndalls Park Road
Title: Institutional maintenance by filling the space of critique: How critics stabilize financial regulation
Existing research assumes that supporters of an institution engage in maintenance work, while critics engage in disruptive work. Yet, cases where institutions remain very stable despite virulent critics—such as financial regulation in the United States—suggest that some critiques may end up supporting the status quo. In this paper we thus explore the role of critics and critique in institutional maintenance. Specifically, we analyze the arguments that critics use in the public discourse around a recent financial innovation. We find that inherent tensions in financial regulation create reoccurring financial crises and that during these crises, non-disruptive critique crowds out disruptive critique. Put differently, financial regulation gets maintained through reoccurring crises in which non-disruptive critique fills the space of critique.