Take the Money and Run: The Business Enterprise in the Age of Money Manager Capitalism
AbstractMost 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 48782.
Date of creation: 01 Aug 2013
Date of revision:
Thorstein B. Veblen; Hyman P. Minsky; Going Concern; Money Manager Capitalism; Mergers and Acquisitions; Social Provisioning Process;
Find related papers by 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-10 (All new papers)
- NEP-BEC-2013-08-10 (Business Economics)
- NEP-HME-2013-08-10 (Heterodox Microeconomics)
- NEP-HPE-2013-08-10 (History & Philosophy of Economics)
- NEP-PKE-2013-08-10 (Post Keynesian Economics)
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