Financialisation and the slowdown of accumulation
Abstract
Over the past decades, the financial investment of non-financial businesses has been rising, and the accumulation of capital goods has been declining. The first part of the paper offers a novel theory to explain this phenomenon. Financialisation, the shareholder revolution and the development of a market for corporate control have shifted power to shareholders and thus changed management priorities, leading to a reduction in the desired growth rate. In the second part, the link between accumulation and financialisation is tested econometrically by means of a time series analysis of aggregate business investment for the USA, the UK, France and Germany. Extensive tests of robustness are performed. For the first three countries, evidence supporting the negative effect of financialisation on accumulation is found.
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Rising financial commitments for non-financial firms are associated with the decline of real investment in both advanced and developing economies over the last 30 years.
“First, rising financial commitments for non-financial firms are associated with the decline of real investment in both advanced and developing economies over the last 30 years”
From Mapping modern economic rents: the good, the bad, and the grey areas (2023) · cites this paper as Stockhammer, 2004
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Mapping modern economic rents: the good, the bad, and the grey areas
Mazzucato, M., Ryan-Collins, J., & Gouzoulis, G. (2023) · Cambridge Journal of Economics · doi:10.1093/cje/bead013 · Cited by 54 · see citing works
Commodity traders in a storm: Financialization, corporate power and ecological crisis
Baines, J., & Hager, S. B. (2022) · Review of International Political Economy · doi:10.1080/09692290.2021.1872039 · Cited by 29 · see citing works
Financialization and the Labor Share of Income
Özdemir, O. (2019) · Review of Economic Perspectives · doi:10.2478/revecp-2019-0015 · Cited by 7 · see citing works
“…(2009); Glyn (2006); Hilferding ([1981] 2006); Kindleberger and Aliber (2005); Krippner (2011); Lapavitsas (2010); Martin (2002); Polanyi (2001); Stockhammer (2004, 2009, 2010). bution, there may be other channels in which the distribution of total income is negatively affected through the…”
Background
- Authors
- Stockhammer, E.
- Affiliations
- Vienna University of Economics and Business (AT)
- Corresponding author
- Stockhammer, E.
- ORCID
- Stockhammer, E.
- Venue
- Cambridge Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 2004-09-01
- Volume
- 28
- Issue
- 5
- Pages
- 719-741
- ISSN
- 0309-166X (ISSN-L)
- 1464-3545
- OpenAlex
- W2155106011
- Cited by
- 1,103
- References
- 0
- Citations by year
- 2026: 84 · 2025: 71 · 2024: 60 · 2023: 69 · 2022: 87 · 2021: 61 · 2020: 56 · 2019: 81 · 2018: 57 · 2017: 64 · 2016: 45 · 2015: 45 · 2014: 46 · 2013: 67 · 2012: 49
- FWCI
- 13.87
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Cambridge Journal of Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Research Repository (Kingston University London) (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Finance › Housing, Finance, and Neoliberalism
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Economic Theory and Policy
- Social Sciences › Sociology and Political Science › Political Economy and Marxism
- Keywords
- financialization, capital accumulation, corporate investment, market for corporate control, non-financial firms, growth slowdown, corporate governance, management priorities
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