Regime theory and the development of the securities industry

The role of governance systems is a critical factor in understanding how industries grow and change. This paper proposes that by using regime theory, a theory commonly used in political science, researchers can better understand the mechanisms of change. Specifically, it utilizes the norms, principles, rules and decision-making procedures that occur in an industry as the critical variables. This argument is supported through a historical examination of events in the US brokerage house industry, focusing on events from the 1960s through to the mid-1990s. This historical case study shows how different regimes lead to different types of change in the industry. © The Author(s) 2012