The multiple worlds of equity analysts: valuation, volume, and volatility

ABSTRACT

This paper contributes to the increasing research on how experts within financial institutions co-produce and organize financial markets, and in particular how equity analysts enact stock markets characterized by high volume and volatility. The 20 equity analysts studied give qualitatively different accounts of what, from an outsider's perspective, appear to be very similar work. The analysts understand investment objects, equity markets, and what constitutes good analytical work in qualitatively different ways. This heterogeneity, or multiplicity, could be one source of the, unexplained by orthodox financial theory, ‘excess’ volatility and ‘excess’ trading volume on financial markets. Therefore, the paper complements accounts within heterodox finance theory and sociology-based studies of financial market activities.

KEYWORDS:

• Multiplicity
• excess trading
• securities
• investment banking
• organizing
• financial markets

Disclosure statement

No potential conflict of interest was reported by the author.

Notes on contributor

Jesper Blomberg is Associate Professor at the Stockholm School of Economics, Sweden. His current research includes project management, with both an instrumental and critical stance, as well as organizational analysis of the financial sector. Blomberg has published several books and articles covering organizational theory, project management, and organizational finance.

Notes

1. Due to comprehensive non-disclosure contracts, more detailed information about the interviewees and the banks in which they work cannot be disclosed.

Additional information

Funding

This work was funded by Ragnar Söderbergs Stiftelse [grant number E23/12].