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Wayward agents, dominant elite, or reflection of internal diversity? A critique of Folkman, Froud, Johal and Williams on financialisation and financial intermediaries

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  • Geoffrey Wood
  • Mike Wright

Abstract

Based on their earlier work on managerial capitalism and the literature on financialisation, P. Folkman, J. Froud, S. Johal, and K. Williams (2007, 'Working for themselves: Financial intermediaries and present day capitalism', Business History, 49(4), 552-572) argue that the rise of capital market intermediaries has both eroded traditional managerial power, and constitutes a powerful interest grouping with a distinct agenda that has a vested interest in permanent corporate restructuring and redistribution away from traditional stakeholders in the firm and, ultimately, shareholders as well. This paper critically evaluates these assumptions and conclusions. It specifically critiques the underlying assumptions of the Folkman et al. paper, and explores its relevance to understanding the changing relationship between stakeholders, and, indeed, the 2008 financial crisis.

Suggested Citation

  • Geoffrey Wood & Mike Wright, 2010. "Wayward agents, dominant elite, or reflection of internal diversity? A critique of Folkman, Froud, Johal and Williams on financialisation and financial intermediaries," Business History, Taylor & Francis Journals, vol. 52(7), pages 1048-1067.
    • Handle: RePEc:taf:bushst:v:52:y:2010:i:7:p:1048-1067
    DOI: 10.1080/00076791.2010.523458
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    References listed on IDEAS

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    1. Bob Jessop (ed.), 2001. "Regulation Theory and the Crisis of Capitalism," Books, Edward Elgar Publishing, volume 0, number 1064.
    2. Alexander Ljungqvist & Matthew Richardson, 2003. "The cash flow, return and risk characteristics of private equity," NBER Working Papers 9454, National Bureau of Economic Research, Inc.
    3. Kevin Amess & Mike Wright, 2012. "Leveraged buyouts, private equity and jobs," Small Business Economics, Springer, vol. 38(4), pages 419-430, May.
    4. Andrew Metrick, 2010. "The Economics of Private Equity Funds," The Review of Financial Studies, Society for Financial Studies, vol. 23(6), pages 2303-2341, June.
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