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Take the Money and Run: The Business Enterprise in the Age of Money Manager Capitalism

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  • Jo, Tae-Hee
  • Henry, John F.

Abstract

Most heterodox theories of the business enterprise base themselves on the Veblenian going concern in which managers pursue the long-run survival and growth of the enterprise, whereas absentee owners are occupied with short-run financial interests. Since Veblen’s era, the capitalist social provisioning process has evolved toward money manager capitalism in a dialectical fashion. At the heart of the transformation are changes in the business enterprise. In this paper, we make a threefold argument. First, while the Veblenian account of a going concern still holds true for many enterprises, more and more of the economy is being directed toward financial concerns. Second, as a consequence, the social provisioning process becomes more unstable and people’s welfare becomes more vulnerable. Third, the concept of a going concern is therefore to be modified in order to put the business enterprise in the context of money manager capitalism.

Suggested Citation

  • Jo, Tae-Hee & Henry, John F., 2013. "Take the Money and Run: The Business Enterprise in the Age of Money Manager Capitalism," MPRA Paper 48782, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:48782
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    References listed on IDEAS

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    4. Killian J. McCarthy, 2013. "The Business Environment," Palgrave Macmillan Books, in: Understanding Mergers and Acquisitions in the 21st Century, chapter 2, pages 11-36, Palgrave Macmillan.
    5. Veblen, Thorstein, 1904. "Theory of Business Enterprise," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1904.
    6. Charles J. Whalen, 2002. "Money Manager Capitalism: Still Here, but Not Quite as Expected," Journal of Economic Issues, Taylor & Francis Journals, vol. 36(2), pages 401-406, June.
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    11. F. Hayden & Alyx Garner & Jerry Hoffman, 2013. "Corporate, Social, and Political Networks of Koch Industries Inc. and TD Ameritrade Holding Corporation: Extension to the State of Nebraska," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(1), pages 63-94.
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    Cited by:

    1. Jo, Tae-Hee, 2013. "Uncertainty, Instability, and the Control of Markets," MPRA Paper 47936, University Library of Munich, Germany.
    2. Tae-Hee Jo, 2019. "The Institutionalist Theory of the Business Enterprise: Past, Present, and Future," Journal of Economic Issues, Taylor & Francis Journals, vol. 53(3), pages 597-611, July.

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    More about this item

    Keywords

    Thorstein B. Veblen; Hyman P. Minsky; Going Concern; Money Manager Capitalism; Mergers and Acquisitions; Social Provisioning Process;
    All these keywords.

    JEL classification:

    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • D20 - Microeconomics - - Production and Organizations - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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