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Finance and Industrial Dynamics (In French)

Author

Listed:
  • Claude DUPUY (GREThA UMR CNRS 5113)
  • Matthieu MONTALBAN (GREThA UMR CNRS 5113)
  • Sylvain MOURA (GREThA UMR CNRS 5113)

Abstract

The transformations of the finance sector linked to the emergence of new actors (pension funds, mutual funds, hedge funds…) and its globalization have changed the rules of corporate governance and the competitive context of industrial companies. The theme of the influence between finance and industry is not new in the economic literature. The first thesis of the influence of finance on industry born in the United States (with the Veblen thesis) and Europe (Hilferding, 1910) with the development of joint stock companies (corporations in the U.S.) and financial institutions. The recent transformations and crisis of capitalism show the relevance of the old theories of finance. In the first section of the paper we examines how arguments about the domination of finance on industry developed in the early 20th century are still relevant in modern capitalism with the debate of shareholder value. In a second part, we show that globalization is partly a myth because the shareholding structures are localized. Geography and institutions matter in finance for explaining the behaviors.

Suggested Citation

  • Claude DUPUY (GREThA UMR CNRS 5113) & Matthieu MONTALBAN (GREThA UMR CNRS 5113) & Sylvain MOURA (GREThA UMR CNRS 5113), 2009. "Finance and Industrial Dynamics (In French)," Cahiers du GREThA 2009-24, Groupe de Recherche en Economie Théorique et Appliquée.
  • Handle: RePEc:grt:wpegrt:2009-24
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    File URL: http://cahiersdugretha.u-bordeaux4.fr/2009/2009-24.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    finance; industry; parasitism; shareholder value; geography of finance;

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other

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