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

Author

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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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    File URL: https://mpra.ub.uni-muenchen.de/48782/1/MPRA_paper_48782.pdf
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    References listed on IDEAS

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    1. Stefania Vitali & James B. Glattfelder & Stefano Battiston, 2011. "The network of global corporate control," Papers 1107.5728, arXiv.org, revised Sep 2011.
    2. L. Randall Wray, 2009. "The rise and fall of money manager capitalism: a Minskian approach," Cambridge Journal of Economics, Oxford University Press, vol. 33(4), pages 807-828, July.
    3. William Lazonick, 2010. "The Chandlerian corporation and the theory of innovative enterprise," Industrial and Corporate Change, Oxford University Press, vol. 19(2), pages 317-349, April.
    4. repec:mes:jeciss:v:36:y:2002:i:2:p:401-406 is not listed on IDEAS
    5. Engelbert Stockhammer, 2004. "Financialisation and the slowdown of accumulation," Cambridge Journal of Economics, Oxford University Press, vol. 28(5), pages 719-741, September.
    6. 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.
    7. Thomas Dallery, 2009. "Post-Keynesian Theories of the Firm under Financialization," Review of Radical Political Economics, Union for Radical Political Economics, vol. 41(4), pages 492-515, December.
    8. Paddy Ireland, 2010. "Limited liability, shareholder rights and the problem of corporate irresponsibility," Cambridge Journal of Economics, Oxford University Press, vol. 34(5), pages 837-856.
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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.

    More about this item

    Keywords

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

    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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