The Impact of Financialization on Management and Employment Outcomes
AbstractThis paper examines three questions: 1) How and why have financial models of doing business emerged in the last three decades? 2) What new forms of financial capitalism have become important in the current period? 3) How do new financial intermediaries, such as private equity, and the financial strategies of nonfinancial corporations affect the management of companies and employment outcomes? The paper describes how deregulation and institutional change created the conditions for a new, more powerful role for finance capital in the governance of U.S. companies, and it synthesizes the empirical evidence on the process and outcomes of financialization in large publicly traded corporations, as well as those taken over by private equity. Areas for future research are identified to examine how financialization affects management and employment relations in the postcrisis period.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoPaper provided by W.E. Upjohn Institute for Employment Research in its series Upjohn Working Papers and Journal Articles with number 13-191.
Date of creation: Feb 2013
Date of revision:
United States; financialization; market deregulation; institutional change; private equity; institutional investors; management and labor relations;
Find related papers by JEL classification:
- D2 - Microeconomics - - Production and Organizations
- G3 - Financial Economics - - Corporate Finance and Governance
- J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
- N2 - Economic History - - Financial Markets and Institutions
- P1 - Economic Systems - - Capitalist Systems
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brian J. Hall & Jeffrey B. Liebman, 1998.
"Are CEOs Really Paid Like Bureaucrats?,"
The Quarterly Journal of Economics,
MIT Press, vol. 113(3), pages 653-691, August.
- Thomas I. Palley, 2007.
"Financialization: What It Is and Why It Matters,"
wp153, Political Economy Research Institute, University of Massachusetts at Amherst.
- Thomas I. Palley, 2008. "Financialization: What it is and Why it Matters," IMK Working Paper 04-2008, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
- Thomas I. Palley, 2007. "Financialization: What It Is and Why It Matters," Economics Working Paper Archive wp_525, Levy Economics Institute, The.
- Paul A. Gompers & Andrew Metrick, .
"Institutional Investors and Equity Prices,"
Rodney L. White Center for Financial Research Working Papers
20-99, Wharton School Rodney L. White Center for Financial Research.
- Oliver, Gottschalg & Ludovic, Phalippou, 2006.
"The performance of private equity funds,"
Les Cahiers de Recherche
852, HEC Paris.
- Steven N. Kaplan & Per Stromberg, 2009.
"Leveraged Buyouts and Private Equity,"
Journal of Economic Perspectives,
American Economic Association, vol. 23(1), pages 121-46, Winter.
- Ulf Axelson & Tim Jenkinson, 2008.
"Leverage and Pricing in Buyouts: An Empirical Analysis,"
Economics Series Working Papers
2008fe20, University of Oxford, Department of Economics.
- Ulf Axelson & Tim Jenkinson & Per StrÃ¶mberg & Michael S. Weisbach, 2008. "Leverage and Pricing in Buyouts: An Empirical Analysis," OFRC Working Papers Series 2008fe20, Oxford Financial Research Centre.
- Weisbach, Michael & Axelson, Ulf & Jenkinson, Tim & Stromberg, Per, 2008. "Leverage and Pricing in Buyouts: An Empirical Analysis," Working Papers 08-1, University of Pennsylvania, Wharton School, Weiss Center.
- Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70, pages 538.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.