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Institutionalization of Academic Finance Mian Muhammad Atif Presentation for Confirmation of Registration  Massey University (Palmerston North) 9th July, 2009 9th July, 2009 1
How Academic Finance has been institutionalized in terms of  unity of its discipline, what is seeable and what is sayable within its  boundaries how it demarcates itself from other “knowledges” 9th July, 2009 2
Study This study sees finance as “object”. What factors contributed towards its creation? What theoretical coherence has worked out is boundaries? Where our attention has been directed to and where it has been averted from? How the discourse of finance is shaping managerial practices (if any)? What implications does it have for our understanding of organizing practices? 9th July, 2009 3
Methodolgy History as data. Approaches to History Evolutionary Historicism Narrative 9th July, 2009 4
History of Finance Emergence and initial organization as independent field in early 1900 till 1940 (Traditional Finance). The transformative phase (1940s to 1970s), where traditional and emerging finance practices were competing for its claim towards the discipline  New Finance 1970s till date 9th July, 2009 5
Methodology -cntd Considering the following approaches towards studying the historicity of Academic Finance Foucauldian Analysis Historical Narrative 9th July, 2009 6
Foucauldian Analysis of History Widely used by Social Scientists Foucauldian analysis  Deconstruct what we take-for-granted as self evident It traces how particular structure or practices are accepted as natural at certain point of time Knowledge is not detached neither independent nor neutral (Power/knowledge) Governmentality 9th July, 2009 7
Historical Narrative narrative constructs time as a linear flowfrom ‘the before’ to ‘the after’. causal explanation for the chain of eventsitportrays description of sequences of events which reveal underlying forces and relationships at work in the process of change over time Answers questions of  who, what, when, why, where, and how 9th July, 2009 8
Questions and Suggestions 9th July, 2009 9

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Research Presentation

  • 1. Institutionalization of Academic Finance Mian Muhammad Atif Presentation for Confirmation of Registration Massey University (Palmerston North) 9th July, 2009 9th July, 2009 1
  • 2. How Academic Finance has been institutionalized in terms of unity of its discipline, what is seeable and what is sayable within its boundaries how it demarcates itself from other “knowledges” 9th July, 2009 2
  • 3. Study This study sees finance as “object”. What factors contributed towards its creation? What theoretical coherence has worked out is boundaries? Where our attention has been directed to and where it has been averted from? How the discourse of finance is shaping managerial practices (if any)? What implications does it have for our understanding of organizing practices? 9th July, 2009 3
  • 4. Methodolgy History as data. Approaches to History Evolutionary Historicism Narrative 9th July, 2009 4
  • 5. History of Finance Emergence and initial organization as independent field in early 1900 till 1940 (Traditional Finance). The transformative phase (1940s to 1970s), where traditional and emerging finance practices were competing for its claim towards the discipline New Finance 1970s till date 9th July, 2009 5
  • 6. Methodology -cntd Considering the following approaches towards studying the historicity of Academic Finance Foucauldian Analysis Historical Narrative 9th July, 2009 6
  • 7. Foucauldian Analysis of History Widely used by Social Scientists Foucauldian analysis Deconstruct what we take-for-granted as self evident It traces how particular structure or practices are accepted as natural at certain point of time Knowledge is not detached neither independent nor neutral (Power/knowledge) Governmentality 9th July, 2009 7
  • 8. Historical Narrative narrative constructs time as a linear flowfrom ‘the before’ to ‘the after’. causal explanation for the chain of eventsitportrays description of sequences of events which reveal underlying forces and relationships at work in the process of change over time Answers questions of who, what, when, why, where, and how 9th July, 2009 8
  • 9. Questions and Suggestions 9th July, 2009 9

Notas do Editor

  1. Provide an introduction to myself and the presentation structure. (What, why, how).What are we looking for, (the research questions).Why we are looking for what we are looking for (significance of research).How would we look for, what we are looking for (Methodology).
  2. Before moving forward, I find it appropriate to define the terms that I am using, so that we can all be on the same page when discussing these terms.First term that I will be using is Institution “multifaceted, durable social structure, made up of symbolic elements, social activities and material resources”Example, University, then department, then phd confirmation structure.The second term is Institutionalization “the process through which institutional order is created, its practices assume the taken-for-granted status and become the reality of the practice”.Unity of Discipline, is the structure of the discipline that determines how we are allowed to study phenomena under the boundaries of the subject. It also determines what is the combining factor that joins together the seemingly different parts of the discipline. Like how we recognize, financial management, securities analysis such as derivates, options, stock exchange workings as the object of finance.
  3. I am focusing on “finance” as an object, working from outside the boundaries of academic finance. Thus the logic of finance is not guiding our analysis here but in fact our analysis is guided by what researchers refer to as Critical Management Studies. In this thesis we analyse the history of ideas of financial discourse. We focus upon analysing academic discourse from the time it was being established as an academic discipline in the early twentieth century to the present day.My argument is that finance presents us with an expertise which shapes our organizations and society. However, it should also be noted that finance is not the only expertise that guides our understandings so we are trying to analyse what affect does finance have if any on our understanding of the world around us.What can we learn from the study in terms of institutional practices, change stability and organizing..
  4. Explain what is the problem with history. (history been based on the belief system of the historian, rather than facts)Evolutionary - an institution has a clear direction towards its ultimate aim and overcomes any obstacles that come in the way and thus have a linear progress towards that end. An extreme example of this type of story telling is a children cartoon “Flinstone”. Which is based in the stone age but characters are acting as if they are facing the problems that we face today, e.g. Layoffs, partying, etc......Historicism - argues that in order to understand history, one should not use the current absolute knowledge of the outcomes but analyse history according to its context and time-bounded nature of the period under study. (Foucauldian, Marxist analysis). Narrative – story that is created in a constructive format (written, spoken, poetry, prose, images, song, theatre or dance) that describes a sequence of fictional or non-fictional events. Its analysis include answering questions such as who, what, when, why, where, and how
  5. When academic finance discourse is approached from a historical and managerial perspective, it is quite evident that major changes havetaken place in its articulation.In the emergence stage, the knowledge of finance was mostly descriptive, involving codifying of current practices related to external working of firms such as promotion, security offering, investment banking, acquisition etc, with major audience being lawyers and accountants (also referred to as traditional finance).The transformative phase is where we can see a play of competing rationalities among proponents of new and traditional finance. New finance was abstract, mathematical and economic in nature. Instead of studying firm its emphasis was on studying markets , and internal structures of firms financial practices such as working capital.The last phase that I have identified is the phase where the logic of old finance fades away and discipline is dominated fully by new finance. To date it has the sole claim towards mainstream finance though is challenged to some extent by behaviouralism or critical finance.
  6. It shows how objects of knowledge are not natural but are ordered or constructed by discourse, his works discipline and punish, Madness and civilization, The birth of Clinic and The Order of Things deals with how knowledge is created.Foucauldian analysis rejects the views that power can be held by groups, thus the agency relations that Weber and Marx identifies are not relevant to him, instead he argues that power is not associated with any particular institution, e.g. Foundation, government or university, instead power is employed at all levels, and through many dimensions.Foucauldian analysis uses terms Power/knowledge. These go together, one determines the other and power according to him lies in the knowledge. “The exercise of power perpetually creates knowledge and, conversely, knowledge constantly induces effects of power.”Another term frequently used in foucauldian analysis is “Governmentality” which according to Townley is a combination of word Government "the conduct of conduct: a form of activity aiming to shape, guide or affect the conduct of some person or persons whereas rationality implies that before controlling something you need to know what it is. People govern themselves and others towards what they believe to be the truth and the right way to be, that is, towards a particular subjectivity. A central quest for the analysis of government is to explicate these subject positions and the subjectivity-producing governmental rationality embedded but often hidden in discourse.Governmentalityinclude mechanisms for inscription, recording, and calculation: ways of observing; and ways of coding, (e.g., in balance sheets, audits, population tables, censuses). Governmentalityputs practices and associated technologies into the very object of analysis.
  7. Unlike focualdian approach, narrative sees time as linear progression between chronological events, with causal explanations between them.Is a rich resource for understanding practices and events.Narratives can be counter factual, i.e. what if…..Or can be approached as counter-narrative, which provides an explanation of why some stories were accepted and others rejected.