Rabinovich, J orcid.org/0000-0002-9175-0848 (2019) The financialization of the non‐financial corporation. A critique to the financial turn of accumulation hypothesis. Metroeconomica, 70 (4). pp. 738-775. ISSN 0026-1386
Abstract
One aspect in which non‐financial corporations (NFCs) are said to be financialized is that they have been increasingly engaged in financial accumulation from which they derive a growing proportion of financial income. This is what we call the financial turn of accumulation hypothesis. In this article, we show that the evidence used to sustain it, in the U.S. setting, has to be reconsidered. Our findings show that, contrary to the financial turn of accumulation hypothesis, financial income averages 2.5% of NFCs’ total income since the 1980s, oscillating since the beginnings of the 1990s until 2005 and then declining. In terms of assets, some of the alleged financial assets might actually reflect other activities in which NFCs have been increasingly engaged, such as tax avoidance, internationalization of production, activities refocusing and M&As.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2019 John Wiley & Sons Ltd. This is the peer reviewed version of the following article: Rabinovich, J (2019) The financialization of the non‐financial corporation. A critique to the financial turn of accumulation hypothesis. Metroeconomica, 70 (4). pp. 738-775, which has been published in final form at: https://doi.org/10.1111/meca.12251. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. |
Keywords: | financialization of the non‐financial corporation; firm strategy; corporate governance; USA |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 26 Jun 2020 11:23 |
Last Modified: | 24 Mar 2021 01:39 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/meca.12251 |
Related URLs: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:162314 |