Book

Managed by the Markets: How Finance Re-Shaped America

Authors:

Abstract

The current economic crisis reveals just how central finance has become to American life. Problems with obscure securities created on Wall Street radiated outward to threaten the retirement security of pensioners in Florida and Arizona, the homes and college savings of families in Detroit and Southern California, and ultimately the global economy itself. The American government took on vast new debt to bail out the financial system, while the government-owned investment funds of Kuwait, Abu Dhabi, Malaysia, and China bought up much of what was left of Wall Street. How did we get into this mess, and what does it all mean? Managed by the Markets explains how finance replaced manufacturing at the center of the American economy and how its influence has seeped into daily life. From corporations operated to create shareholder value, to banks that became portals to financial markets, to governments seeking to regulate or profit from footloose capital, to households with savings, pensions, and mortgages that rise and fall with the market, life in post-industrial America is tied to finance to an unprecedented degree. Managed by the Markets provides a guide to how we got here and unpacks the consequences of linking the well-being of society too closely to financial markets.
... Similarly, Vogel (2005) argues that a key difference between earlier forms of CR and current practices is that managers used to pursue a variety of social goals and felt obligated to do so-but mainly as a matter of personal responsibility and social stewardship rather than in the name of profit. In early versions of responsibility, corporations engage in CR despite, not because of, their profit orientation (Frederick, 1960;Davis, 1973). 1 The older stewardship model contrasts 1 Historians suggest that initial versions of corporate responsibility grew particularly following the separation of ownership from management at the turn of the 20th century and before financialization in recent decades (Fligstein, 1993;Davis, 2009). It would be an injustice to think too romantically about these older firms in the pre-civil rights and pre-women's movement era, but some did provide job with contemporary depictions of social activities as contributing to financial gain (see Carroll, 2008;Lee, 2008). ...
... Our findings were also robust to a battery of alternative and complementary accounts, as models reported in Table 3 show. As is well-documented, firms are increasingly subject to the judgment of financial markets, and focused on shareholder value and stock performance (Fligstein, 1993;Krippner, 2005;Davis, 2009). Many argue that financialization has created more aggressively capitalistic firms that do less social good (Davis, 2009), perhaps because investors prioritize social benefit less than consumers (cf. ...
... As is well-documented, firms are increasingly subject to the judgment of financial markets, and focused on shareholder value and stock performance (Fligstein, 1993;Krippner, 2005;Davis, 2009). Many argue that financialization has created more aggressively capitalistic firms that do less social good (Davis, 2009), perhaps because investors prioritize social benefit less than consumers (cf. Servaes and Tomayo, 2013) and so financialized firms are less susceptible to pressures from social movement groups (King and Soule, 2007). ...
Article
Full-text available
Despite conflicts between social and economic goals, contemporary US firms routinely depict such aims as synergistic. Analyzing 300 annual reports from a sample of 80 large US public firms between 1960 and 2010, we examine the rise of ‘win–win’ conceptions of corporate responsibility (CR), which include both the social benefits of economic activities and economic gains from social responsibility. Our findings support arguments that the rise of win–win ideology in large corporations is tied to the emergence of neoliberal governance in society. Indicators of firms’ changing institutional context include financialization, numbers of non-profit organizations and voluntary regulation schemes. However, the macroeffect is mediated by firm attention to these institutional changes; mentions of external evaluations in annual reports are associated with higher levels of win–win ideology. The study contributes to institutional theories of the historical development of CR and to understanding heterogeneous organizational responses to societal-level institutional change.
... Much like that demanded by neoconservatism, neoliberal ideology requires total belief in the ability of markets to efficiently allocate resources to where they are needed, even when this belief is not reinforced by reality (Davis 2009;Polanyi 1944;Stiglitz 2008). Brown argues that these shared characteristics make neoliberalism and neoconservatism well matched, as they permit cooperation in a variety of policy goals. ...
... The Glass-Steagall Act is the colloquial term for two pieces of legislation: the first Glass-Steagall Act of 1932 and the much more extensive Banking Act of 1933 (Bell 1978;Duménil and Levy 2011;Krippner 2011). Though the legislation was far-reaching, particular provisions of these acts prohibited companies from: engaging in both commercial and investment banking; (Davis 2009;Krippner 2011). During this period of deregulation, neoliberal ideology continued its spread into mainstream economic training and reasoning, giving rise to the Shareholder Value model of corporate governance (Callinicos 2003;Carruthers and Kim 2011;Davis 2009). ...
... Though the legislation was far-reaching, particular provisions of these acts prohibited companies from: engaging in both commercial and investment banking; (Davis 2009;Krippner 2011). During this period of deregulation, neoliberal ideology continued its spread into mainstream economic training and reasoning, giving rise to the Shareholder Value model of corporate governance (Callinicos 2003;Carruthers and Kim 2011;Davis 2009). This model meant that CEOs were expected to maximize profit and the value of company shares (stocks) for the benefit of shareholders who received dividends from those profits (many of whom are also elites) (Keister 2002;Keister 2005;Keister 2014). ...
Research
Full-text available
This project seeks to assess whether there are meaningful differences between the stability of the Credit Union and Consumer Banking industries before the 1980s, and how both industries’ stability had been affected by subsequent political-economic changes. I also sought to assess if deregulation would make credit union behave at risk levels similar to banks. I initially observed that there was a strong inverse correlation between credit union size and failures, which I argue could be explained by regulatory change. This claim was strengthened by the observation that credit unions had benefitted from certain key forms of deregulation, they were still deregulated to a lesser extent than banks and had still decreased their failure rates. After the early 1980s, credit unions suffered far lower rates of outright failure than banks during subsequent economic downturns. The project found that regulation works, but while credit unions can eventually come to resemble bank’ risk patterns, it has not happened yet. Time series analysis revealed that regulatory change had a greater effect on this than most other model variables, even if they were aggregated into categories of industry-level or economy-level variables. The most telling finding was that banks were able to leverage their market status and political power to deregulate in a way that primarily benefitted them and allowed them to maintain their market position. Conversely, they reduced the level of deregulation permitted to credit unions; credit unions did still gain substantial freedom compared to the postwar years, but still more often faced increases in regulation than banks did. This may have ended up benefitting credit unions the most, as a balanced approach to deregulation allowed them stable growth.
... It also reconceives the main purpose of the corporate form. Instead of serving the productive enterprise, its primary purpose is to manage contractual nexuses among stakeholders and serve as an investment 7 Neoliberal Conceptions of the Individual in Labour Law 119 portfolio, a 'portfolio of assets' (Davis 2009). Its primary goal is not necessarily to maximize profit through product market competition, but rather to appreciate the value of its portfolio (Fligstein 1990;Dore 2008). ...
... Its primary goal is not necessarily to maximize profit through product market competition, but rather to appreciate the value of its portfolio (Fligstein 1990;Dore 2008). To do so, it may prioritize financial activity (Davis 2009). It may engage in financial speculation, regulatory arbitrage, regulatory entrepreneurship (Pollman and Barry 2017), and rentier capitalism. ...
... Since the neoliberal firm is not an organization but a 'nexus', the 'boundary' metaphor is less apt. However, to define the limits of its business identity and legal responsibility, it looks to its formal legal relations, such as property rights, contracts, and equity (Davis 2009;Jensen and Meckling 1976). 3 This notion of the firm better accommodates new conceptions of corporate interests and valuation that do not give precedence to profitseeking through product market competition. ...
Chapter
This chapter examines how neoliberal conceptions of the individual as an economic agent enter legal evaluations of the employment status of platform workers. I focus on SuperShuttle DFW, a recent decision denying labour rights to airport shuttle drivers. My analysis shows how platform companies, through the design of work practices and discursive techniques, can cue neoliberal conceptions of what it means to be in business for oneself as an ‘entrepreneur’. For example, like many other platforms, SuperShuttle permitted—required—its workers to select their working times. It convinced the tribunal that an individual’s choice to work longer hours was an entrepreneurial strategy. The platform depicts time management as entrepreneurship by modelling the individual subject on the neoliberal corporation. This rendering displaces the liberal notion of the individual as the owner of labour with its neoliberal counterpart, the individual as the manager of a human capital portfolio. Working longer hours reflects a discretionary investment of a human capital asset—time. It is therefore entrepreneurial. The analysis suggests that the practices and discourse of platform companies bear a relation of ‘elective affinity’ (Weber 1946, p. 42) to neoliberal rationality in legal argument. It also shows how neoliberal rationality conflates worker discretion with autonomy.
... It also reconceives the main purpose of the corporate form. Instead of serving the productive enterprise, its primary purpose is to manage contractual nexuses among stakeholders and serve as an investment 7 Neoliberal Conceptions of the Individual in Labour Law 119 portfolio, a 'portfolio of assets' (Davis 2009). Its primary goal is not necessarily to maximize profit through product market competition, but rather to appreciate the value of its portfolio (Fligstein 1990;Dore 2008). ...
... Its primary goal is not necessarily to maximize profit through product market competition, but rather to appreciate the value of its portfolio (Fligstein 1990;Dore 2008). To do so, it may prioritize financial activity (Davis 2009). It may engage in financial speculation, regulatory arbitrage, regulatory entrepreneurship (Pollman and Barry 2017), and rentier capitalism. ...
... Since the neoliberal firm is not an organization but a 'nexus', the 'boundary' metaphor is less apt. However, to define the limits of its business identity and legal responsibility, it looks to its formal legal relations, such as property rights, contracts, and equity (Davis 2009;Jensen and Meckling 1976). 3 This notion of the firm better accommodates new conceptions of corporate interests and valuation that do not give precedence to profitseeking through product market competition. ...
Chapter
The paper compares the situation of platform workers engaged in ride-hailing and food delivery service in Russia and China. These countries share communist experience, similar trajectory of trade unionism development and have witnessed rapid growth of platform work in the last two decades. The lack of labor rights and benefits for gig workers is a global issue. It is complicated by the diversity of gig workers who generally vary from self-employed, independent contractors, part-timers, irregular workers, etc. However, the facts are becoming clear that platform entrepreneurialism is a business model designed to cut costs by shifting labor costs to the workers. It is particularly true for workers who work for one employer upon whom they are dependent on for their livelihood. Some countries have protected this group of “dependent employees.” Stirrings in China and Russia are beginning to call for that recognition. The problem of granting them the status of “employee” thus entitling these workers to an employment contract and eligibility for labor rights and benefits and the right to become members of unions has gained increasing attention both in China and in Russia albeit to a different extent and with different success. In the meantime, the frustrations of these workers sometimes result in public protests. The paper focuses on the experience of Russia and China in relation to ride-hailing and food delivery services. After an overview of the general trends of the development of gig work in these countries, the paper briefly analyzes the approaches toward the problem of the legal classification of these workers and trade unions’ responses.
... In contrast, a second set of 'external' explanations emphasize factors related to the potential influence of the financial industry on the political agency of NFCs. Here we draw on a range of literature that has emphasized the ways in which the financial industry might be able to exert external influence on NFCs, either through ownership or through management ties (Hadani 2012;Davis 2009;Fligstein and Shin 2007). ...
... Upper management of NFCs have found themselves under greater pressure from institutional investors to implement a number of changes in the structure of corporations designed to improve the financial results of the firm and maximize shareholder value at the expense of other constituencies such as employees and other stakeholders (G. Davis 2009;Fligstein and Shin 2007;Lazonick and O'Sullivan 2000). For instance, scholars have detailed the increased use of capital by NFCs to boost their own stock performance, through stock buy-backs (Palladino 2020;Palladino 2021;Davis 2013;Milberg 2009;Dobbin and Jung 2010;Orhangazi 2008). ...
Article
Full-text available
Non-financial corporations (NFCs) have acted as vocal and important allies with the financial industry when it comes to advocacy over regulatory policy. Why? We explore this question in the context of the lobbying activity surrounding the financial policy reforms in the USA following the global financial crisis. We propose a range of explanations for why some NFCs might become 'financial activists' in support of the financial industry, while others remain passive. We find a wide range of indicators of firm-level financialization to be unreliable predictors of NFC financial activism, in addition to indicators of potential external control by financial firms through ownership or subsidiarization. NFC financial activism appears to be related to how a given firm is embedded in broader structures of corporate networks, relational political action and ideology.
... Since the late 1970s, deregulation of the U.S. financial sector has allowed finance to expand in leaps and bounds-and become increasingly risky, opaque, and complex (G. Davis, 2009;Krippner, 2005;Philippon & Reshef, 2013). Finance's share of corporate profits tripled over the past 60 years, averaging 15% in the postwar era then peaking at 45% before the 2008 financial crisis (Krippner, 2005;Tomaskovic-Devey & Lin, 2011). ...
... The expansion of financial services has increased the income and bargaining power of executives and investors at the middle and working class's expense (G. Davis, 2009;Lin & Neely, 2020). At the forefront of this transformation has been private equity, which often reduces workers' wages and benefits to extract economic value from the businesses they own (Appelbaum & Batt, 2014;Souleles, 2019). ...
Article
Full-text available
A once-in-a-century pandemic has sparked an unprecedented health and economic crisis. Less examined is how predatory financial investors have shaped the crisis and profited from it. We examine how U.S. shadow banks, such as private equity, venture capital, and hedge fund firms, have affected hardship and inequality during the crisis. First, we identify how these investors helped to hollow out the health care industry and disenfranchise the low-wage service sector, putting frontline workers at risk. We then outline how, as the downturn unfolds, shadow banks are shifting their investments in ways that profit on the misfortunes of frontline workers, vulnerable populations, and distressed industries. After the pandemic subsides and governments withdraw stimulus support, employment will likely remain insecure, many renters will face evictions, and entire economic sectors will need to rebuild. Shadow banks are planning accordingly to profit from the fallout of the crisis. We argue that this case reveals how financial investors accumulate capital through private and speculative investments that exploit vulnerabilities in the economic system during a time of crisis. To conclude, we consider the prospects for change and inequality over time.
... Regulators constantly define new laws and rules for the financial markets, which occupy a liminal space between relative stability and instability. The entanglement of the financial markets is a feature of the complex networks of relationships between institutions and organizations (Davis, 2009;Fligstein, 1990;Podolny, 2001). Our theorization of field entanglement within the global financial industry offers more clarity about the effects and processes of fieldlevel change (Smets et al., 2012), not as isolated events or a linear process, but as conflicted and unpredictable social spaces (Bourdieu, 1977). ...
... Economic policies for free market financial services contribute to increased market fragmentation (Davis, 2009). Regulatory regimes simultaneously exert isomorphic pressures on institutions and organizations to reinforce best practice in compliance, while also routinely imposing new and potentially disruptive rules and mandates in highly differentiated, multi-jurisdictional regulatory environments. ...
Article
Full-text available
The literature on the sociology of financial markets and institutional theory promotes concepts of field, networks, performativity, agencement and financial entropy. This study builds a conceptual model of technological instantiation of regulatory practices in financial markets. We observe how asset management firms instantiate technology as a material and social artefact to regulate the actions and behaviour of human agents. The structural-agency divide reveals the coercive role of regulators who impose stringent compliance practices on financial organizations by embedding formal rules and regulations in the software. Socio-technical conditions show how human agents interpret and apply these rules to circumvent formal regulatory policies and practices. Context-specific analysis shows technological performativity and agencement co-exist in financial fields that are becoming more entangled and fragmented. Regulators respond with more complex mandates to reduce entropy in financial markets characterized by extreme volatility and instability.
... In a similar vein, Stout (2012) has argued that focusing on shareholder value incentivizes managers to engage in socially irresponsible behavior. Davis (2009) suggested that in the case of multinational corporations the pressure to maximize shareholder value leads to cost cutting demands that are linked to environmental pollution in global supply chains. Similarly, Wright and Nyberg (2017) argued that these pressures and the resulting costs make more sustainable business activities almost impossible. ...
... This implies that to reform the profit-maximizing corporation, it is necessary to reform simultaneously its purpose and its participation structures (Davis, 2021) as well as ownership patterns (Martin, 2021). Moreover, the profit-maximizing corporation is similarly interlinked with prevailing economic and political ideology (neoliberalism and a "market ontology" more generally, see Fisher, 2009) and material conditions (the societal dominance of financial markets, see Davis, 2009). As a result, alternatives (and their specific ways of doing things differently with respect to purpose, participation, and ownership) run the risk of lacking legitimacy due to misalignment with these ideological and material conditions. ...
Chapter
The currently dominant version of the corporate form – the profit-maximizing corporation – is one of the most influential organizational forms in contemporary society. It is also one of the most criticized organizational forms, especially with respect to questions of purpose, participation, and ownership. The corporation’s strong focus on profit maximization and its non-democratic nature, as it excludes non-shareholding stakeholders from participating in how the corporation is run, have all attracted significant criticism. There are, however, several debates over alternative ways of organizing besides the corporation. In this chapter, we review the most influential of these: Co-operatives, state-owned enterprises, democratically organized firms, social enterprises, stakeholder firms, and firms based on the sharing economy business model. We first analyze how these alternative ways of organizing do things differently with respect to questions of purpose, participation, and ownership and then we discuss how these different approaches can inspire efforts to reform the corporation. © 2022 by Emerald Publishing Limited All rights of reproduction in any form reserved.
... Harvey, 2007;Krippner, 2011;Engelen et al, 2011;Lazonick, 2014), deprives management scholarship of key resources for studying what it means to organize and manage in the contemporary context. Exclusion of theory capable of illuminating the "social and organizational changes" (Clegg, 2015: 16) propelled inter alia by the dynamics of financialization (Davis, 2009;Lounsbury and Hirsch, 2010) is symptomatic of a scholarly culture that has become narrowly focused in rigorously superficial ways upon amenable but comparatively trivial topics. Technically competent and politically inoffensive, much of what is published in AMR has the dubious virtue of being as unobjectionably anodyne to its readers as it is unfathomably harmless to the corporate sponsors of business schools and recruiters of faculty. ...
Article
Full-text available
This is an appendix for the article Not "from the editors" published in Organization. The Appendix is also available on the Organization website.
... As the operating and financial decisions of managers form the basis of the reported accounting figures, it is important to study the links among managerial personality, fraudulent accounting practices, and, ultimately, reporting quality. Today, almost all large companies use financial incentives based on earnings per share, stock prices, or shareholder returns to determine their executives' compensation and incentive plans (Davis, 2009;Schmidt & Reda, 2017). Thus, managers have both the ability and the incentive to influence reported earnings and performance figures. ...
Article
Full-text available
We investigate the relationship between the dark triad personality traits (Machiavellianism, narcissism, and psychopathy) of managers and the practice of reporting manipulation using a primary survey of 837 professionals working in accounting and finance departments. We find that (a) managers who exhibit dark personality traits are associated with a higher prevalence of fraudulent accounting practices in their accounting and finance departments and (b) traditional risk management mechanisms are only partially effective in mitigating this effect. Internal audits are effective in curtailing the negative behavior of managers with dark triad traits only if these internal audits are outsourced and performed by independent external personnel but not if they are conducted by internal personnel. This suggests that managers with dark triad traits are able to manipulate other employees quite effectively. Consequently, having external personnel perform the auditing task provides a safeguard against such unethical practices and manipulation. This finding has strong practical implications, as it provides support for outsourcing internal audits rather than keeping them in-house.
... The large hierarchical organizations that dominated the 20 th century economy are becoming fewer and leaner (Davis, 2009;. Organizations are moving toward the use of short-term work arrangements organized through an external labor market (Cappelli, 1999;Kuhn, 2006). ...
Article
Full-text available
This paper reviews the individual and organizational implications of gig work using the emerging psychological contract between gig workers and employing organizations as a lens. We first examine extant definitions of gig work and provide a conceptually clear definition. We then outline why both organizations and individuals may prefer gig work, offer an in-depth analysis of the ways in which the traditional psychological contract has been altered for both organizations and gig workers, and detail the impact of that new contract on gig workers. Specifically, organizations deconstruct jobs into standardized tasks and gig workers adapt by engaging in job crafting and work identity management. Second, organizational recruitment of gig workers alters the level and type of commitment gig workers feel towards an employing organization. Third, organizations use a variety of non-traditional practices to manage gig workers (e.g., including by digital algorithms) and gig workers adapt by balancing autonomy and dependence. Fourth, compensation tends to be project-based and typically lacks benefits, causing gig workers to learn to be a “jack-of-all trades” and learn to deal with pay volatility. Fifth, organizational training of gig workers is limited and they adapt by engaging in self-development. Sixth, gig workers develop alternative professional and social relationships to work in blended teams assembled by organizations and/or adapt to social isolation. Challenges associated with these practices and possible solutions are discussed and we develop propositions for testing in future research. Finally, we highlight specific areas for further exploration in future research.
... Indeed, Culter (2018) rightly argues that the quest for scale above all else is fundamental to the working of venture capital and what makes it different from other forms of finance. Importantly, unlike the fickle, short-term focus of shareholders in the 1980s and 1990s (Davis, 2009), investors in public and private firms now privilege the longer term goal of market dominance through aggressive scaling over quarterly profits (Rahman and Thelen 2019). ...
Article
Full-text available
There has been an explosion of scholarship on platform capitalism, with scholars identifying emergent labor practices, organizational forms, and business models. There is broad agreement that successful platform companies quickly dominate their markets, and winner-takes-all scenarios are common. However, market domination should not only be viewed as a condition but also as a process that is defined by specific drivers and practices. With regard to rapid expansion, much is said about network effects and data-intensive business models that are fueled by speculative logics as well as weak regulatory mechanisms. 1 advance the discussion on expansion and hyper-scalability by focusing on the transformation in underlying computing arrangements that shape the growth of platform-based companies. This article establishes cloud computing arrangements as setting the foundational sociotechnical infrastructure that drives rapid expansion.
... Since the 1980s, the shareholder-value paradigm of the firm has gained strong momentum and influence in the United States (Davis 2009, Fligstein 2001. The paradigm refers to the notion that "the only legitimate goal of the corporation is to maximize shareholder wealth" (Jung 2015(Jung , p. 1335. ...
Article
Full-text available
While prior research on shareholder activism has highlighted how such activism can economically benefit the shareholders of targeted firms, recent studies also suggest that shareholder activism can economically disadvantage non-shareholder stakeholders, notably employees. Our study extends this research by exploring whether shareholder activism by institutional investors (i.e., institutional investor activism) can adversely affect employee health and safety through increased workplace injury and illness. Further, deviating from the assumption that financially-motivated institutional investor activists are homogeneous in their goals and preferences, we investigate whether the influence of institutional investor activism on employee health and safety hinges on the political ideology of the shareholder activist and of the board of the targeted firm. Using establishment-level data, we find that institutional investor activism adversely influences workplace injury and illness at targeted firms, and that this influence is stronger for non-liberal shareholder activists and for firms with a non-liberal board. Our study contributes to shareholder activism research by highlighting how the political ideology of shareholder activists and boards affects the impact of shareholder activism on stakeholders, and how shareholder activism can adversely affect the health and safety of employees. Further, our paper also contributes to research on workplace safety and the management of employee relations and human capital resources by highlighting the detrimental effect of a firm's ownership by investor activists on its employees, and how the board's political ideology may enable a firm to reduce this risk.
... On the one hand, in informational capitalism the production and exchange of material commodities tends to be replaced by the production and circulation of financial instruments that have a purely symbolic ontology, so that profit is made not through the sale of commodities but through a rise in the price of those instruments (Knorr Cetina 2007). On the other hand, the expansion of the financial sector made possible by the extension of computerized and real-time communication technologies increasingly dominates the profit logic of the economy at large, so that the industrial rationality of profit maximization (optimization of the relationship between capital input and commodity output) is supplanted by the said principle of profit maximization by driving up the value of financial assets (Davis 2009). This shift in the politico-economic dynamics of capitalist economies has been taken as a point of departure for various diagnoses that term financial capitalism "casino capitalism" (Strange 1986), observe a 'desubstantialization' (Entstofflichung, Albert et al. 1999) of global economic dynamics, or depict the emergence of a complete parallel universe of financial capitalism cutting all ties with the production-based economy (Baudrillard 1992). ...
... Housing is shown to be one of the most important contributors to the changing nature of what assets and debts households hold and why. The combined effect of which Davis (2009) has been to fundamentally reshape the relation between financial markets and American society as a whole. ...
Thesis
This Thesis presents a sociology of the development of land registration in England and examines its relationship to understandings of the housing market, statistics, and elites. Through approaching land registration as an information infrastructure, this research prioritizes the previously overlooked foundations of the housing market, that underpin how it operates and through which it becomes known. To do so, this Thesis combines historical methodologies with computational methods utilising contemporary big data. It seeks to track how land registration in England from its 19th century origins, solidified into an information infrastructure and by utilising this understanding to ask questions of the modern land registration, highlighting these ongoing legacies of elite power, through an analysis of its transactional data. This Thesis is split into three cases. Firstly, an examination of the early land registry, its legal and socio-material organization and standardization, addressing the context of elite aristocratic power in which the system arose. Secondly, an analysis of housing market statistics in the UK, addresses how their relationship to the information infrastructure of land registration has allowed for the exclusion of elite housing practices from official statistics. The third case study, through utilising computational methods, paints a different picture of the UK housing market by adding back in the ‘missing’ houses of contemporary elites, which are owned through offshore shell companies. This research therefore contributes to the study of inequality in the UK through revealing the extent of elite housing wealth held in offshore jurisdictions. Arguing that in order to better identify the relationship between the housing market and elite power the importance of understanding land registration as an information infrastructure underpinning it, cannot be understated.
... Rather, a comprehensive review of these simply lies beyond the aim and scope of this paper. Some of the larger trends underlying the process of corporate financialization include the rise of institutional shareholders and the proliferation of the shareholder value conception (Davis, 2009;Froud, Haslam, Johal, & Williams, 2000), the globalization of both production and finance (Durand, 2017), and the crisis-ridden economic development of the past decades (Chesnais, 2017). This is to say that the benefit of the term of 'financialization' lies in its capacity to integrate empirical phenomenaspanning related processes of globalization, neoliberalization, and monopolization-rather than in its superior explanatory power as the exclusive driver of change. ...
Article
Full-text available
In this paper, we review the burgeoning literature on the study of corporate financialization, distinguishing three strands of empirical, quantitative studies: (1) national-level and macro-comparative analysis, (2) sector- and firm-level analysis, and (3) econometric studies. We argue that corporations should be studied in their spatial organization. The spatial organization of the firm can be used to obscure corporate activity. Geography is not simply one of the many features of corporate structure but is key to it and therefore fundamental to shaping corporate financialization, although this is insufficiently expressed in accounting principles that provide consolidated accounts. Finally, we suggest four avenues for future studies: (1) to expand the geographical and temporal scope of research; (2) to pay close attention to how indicators are constructed; (3) to deconstruct large categories of analysis, such as ‘financial assets’; (4) to systematically include liabilities in the analysis of non-financial corporations, especially in the face of the abundance of credit.
... Since the 2000s, conglomerates have largely converted to holding company forms, a corporate structure promoted by the government as a proper vessel of financial transparency into subsidiary management for outside viewers. In this way, they came to be partially "managed by the market" in Gerald Davis's term, at least in terms of their organizational structures (Davis 2009). ...
Thesis
This dissertation analyzes changing practices of hierarchy and authority within South Korean business conglomerates. Corporations are often imagined as persons or brands driven by a basic economic goal of profit-seeking. Internally, however, managerial corporations are complex sites of competing modes of control. This is a salient issue among the leviathan-like conglomerates of South Korea where their economic clout pervades social and political life but is elusive to pin down internally. South Korean business conglomerates, commonly referred to as chaebol, are depicted as pyramids of control mediated by military-like hierarchies. This dissertation gathers empirical evidence from the headquarters of one conglomerate, the Sangdo Group (a pseudonym), to understand how hierarchy and authority within top-level management operate, through salient political symbols, genres of management, documents, and other office technologies. Taking an ethnographic perspective on managerial practices reveals that ideas about corporate control are changing in contemporary South Korea. Old political symbols of top-down authority from strong leaders are being devalued, new management techniques implemented, and friendlier work places promoted. These changes do not signal the absence of corporate control, however, but changing sites and modalities through which it operates. The dissertation depicts how within one conglomerate, centralized management was not a given state of affairs but something that had to be created. This was done by creating new forms of expertise in human resources, strategy, public relations, and other departments. The dissertation traces how managers sought to establish their own authorities via their professional knowledge while navigating complex political terrains internally. Expert managers attempted to embed this authority in scientific analyses, friendly office policies, modern branding, common values, and standardized processes, efforts that redirected authority from other actors or politely concealed their own intents. Key to these efforts was the need to manage how projects themselves were read as authoritative or not. At the same time, new projects generated unexpected outcomes, subjecting expert managers to their own forms of control, creating awkward office interactions, and inadvertently re-instantiating forms of hierarchy old and new. In the broader landscape of South Korean conglomerates, this study suggests that we see corporate management projects as embedded within complex internal encounters often not visible to outsiders. Ultimately, conglomerate reform remains an elusive goal for regulators, shareholders, owners, employees, and citizens, in South Korea and abroad. Reform is difficult even for managers themselves who often find themselves negotiating their authority within a stream of ongoing discursive activities, from reporting to PowerPointing. Rather than reducing conglomerates to fixed ownership links, organizational structures, or cultural dispositions, this dissertation suggests that manager-based corporations are always marked by concerns over competing sites and modes of control.
... Three shifts in the practices of firms were central to the construction of a new growth regime. The first was a reorientation, pressed on firms by increasingly assertive actors in financial markets and rationalized by new managerial ideologies, away from commitments to stakeholders and long-term growth towards the provision of immediate value to shareholders (for an overview, see Davis 2009). Firms increased the proportion of their profits distributed to shareholders and became much more attentive to the value of their shares. ...
Article
This article argues that the relationship between capitalism and democracy is not immutable but subject to changes over time best understood as movements across distinctive growth and representation regimes. Growth regimes are the institutionalized practices central to how a country secures economic prosperity based on complementary sets of firm strategies and government policies. Representation regimes reflect conditions in the arenas of electoral and producer group politics that confer influence on specific segments of the population. The emphasis is on how economic experiences and changes in the structure of electoral cleavages alter the terms of political contestation, thereby giving voice to specific sets of interests and altering the balance of influence between capitalism and democracy. The analysis examines how the growth and representation regimes of the developed democracies have changed through three post-war eras to yield distinctive distributive outcomes in each era.
... Others link hyper-management to functional advancements in technology or other aspects of globalization such as international mobility (Acedo & Jones, 2007). Still others point to environmental complexity in a realist vein, as reflections of "actual" relationships of economic and political power and global interdependencies (e.g., Davis, 2009). These discussions make a good deal of sense, often emphasizing the pressures produced by inconsistent, conflicting, and multiple environments. ...
Article
Full-text available
Recent decades have witnessed a discursive expansion of calls for abstract and charismatic management beyond the systematic administration of concrete settings—hyper-management. A first dimension of hyper-management is the lionization of individuals and organizations as empowered purposive actors, embodied in celebrations of vision, innovation, and entrepreneurship. A second dimension is the intended unification of empowered internal and external actors and their diverse purposes, manifest in calls for leadership qualities beyond formal authority such as communication, collaboration, and inspiration. The changes are broad and cultural, cutting across countries and social sectors, and are often decoupled from realistic practice. Thus they are better accounted for by a neo-institutional perspective than by theories emphasizing particular functions and interests. Hyper-management is generated by a culture of global neoliberalism and the ideologies of empowered individual and organizational actorhood that flow from it. During the global hegemony of neoliberal culture, hyper-management has become institutionalized in contemporary education programs, consulting arrangements, and exaggerated managerial status and income. But, given its cultural bases, current and future resistance to neoliberal globalization may undercut it.
... Third, this mutual entanglement of finance and household-related payments in terms of membership-based claims contributes to complicating critiques of neoliberalism: How shall we gauge a practice (taking over an enterprise through achieving ownership of its shares) that, as Davis (2009) points out, belongs to the core aspects of financialisation, and still might be beneficial for a hitherto subordinated community? How do such accounts redirect analyses, like those cited above (Section 2), that see financialisation as a one-directional process that leaves households mostly as passive receivers of financial treatment? ...
... Shareholder primacy contributes to widening economic inequality, as labor's share of income has stagnated while shareholder payments (increasingly in the form of stock buybacks) drive up the incomes of the wealthiest households (Barradas 2019;Lazonick 2014;Lin 2016;Lin and Tomaskovic-Devey 2013;Palladino 2020a;Piketty 2020). The focus on increasing share prices has been widely recognized as one of the factors driving the squeezing of labor costs, as activist investors threaten to discipline management when shareholder returns are not their sole focus (Crotty 2003;Davis 2009;Wartzman 2017). Empirical evidence has found a strong relationship between shareholder primacy and negative financial impacts on labor, mainly at the aggregate level (Barradas 2019;Fligstein and Shin 2007;Palladino 2020a). ...
... Thus, an alternative approach to financialization examines the rise of "shareholder value" as a guiding principle of corporate practices (Davis 2009;van der Zwan 2014). Two main characteristics may define this approach. ...
Article
Full-text available
This article weaves together the ascendancy of financial markets and the field of critical criminology. It argues that critical perspectives such as crimes of the powerful and crimes of globalization may benefit from analyzing financialization as a key economic and cultural transformation in today’s capitalism. The analysis of financialization is made through the literature that addresses the economic transformations of capitalist accumulation, thus framing finance capital in the post-Fordist regime of production. By using this perspective, this article develops the argument that the cyclical speculative waves of finance are not a congenital pathology of capitalism but its very mode of governmentality. Overall, this article claims the analytic potential of financialization studies to deepen our understanding of the social and environmental harms produced by powerful corporations and financial institutions.
... For example, Jung and Dobbin (2012) observe that institutional investors push firms to adopt new compensation schemes based on stock options-an approach beneficial to top corporate management, investment bankers, hedge fund managers, private equity chiefs and institutional investors, but not to the workers and pensioners who comprise the majority of shareholders. Scholars further argue that investment behavior favoring the self-interest of financial organizations derives from a shareholder-value orientation, a guiding principle first developed in the US market-based system, which since the late 1970s has spread to diverse financial systems, contributing to the expansion of financialization (Davis, 2009;Apkarian, 2018). ...
Article
Institutional investors are key actors in the financial markets of diverse developed economies. Their tendency toward diversification and risk-taking behavior is well documented, yet insufficient attention has been paid to the sources of this behavior. Based on the case of emerging financial markets in Israel, this paper argues that in adopting various neoliberal reforms, state agencies induced institutional investors to change their investment behavior toward diversification and greater risk-taking. Until the early 2000s, Israel’s institutional investors were marginal actors in a financial system designed to support state-building, primarily investing in government bonds and bank deposits. As changing state financial interests induced market changes, institutional investors emerged as autonomous actors, diversifying their investments to also include corporate bonds, stocks and investments in foreign financial markets. With individuals’ growing dependency on institutional investors for their financial security, greater insight into the role of state agencies in financial markets could help identify factors affecting their functioning in financial capitalism.
... The mechanism of social partitioning aligned luxury with the distinctive tastes and habits of a new idealized class of elite travelers: corporate executives. Bolstered by the expansion of corporatism and financial capitalism through the mid-20 th century, business executives, professionals, and financial investors became more mobile, wealthy and numerous in CHP (Davis, 2009), reviving investment in, and demand for, luxury hotels. Especially with the rise of jet passenger service beginning in the 1950s, these well-heeled travelers appreciated, and paid handsomely for, predictability and excellence in business-and leisure-related hotel experiences across the globe (TM: SP3, SP4). ...
... This idea underpins the "agency theoretic" view that shareholders -as "principals" -enter into an exclusive contractual relation with managers -as "agents." The invocation of this social ontology has reoriented the "purpose" of the corporation and its associated strategizing toward serving the interests of transient (short-term) shareholders (Aglietta & Rebérioux, 2005;Davis, 2009;Yosifon, 2014). ...
... Moreover, the number of publicly traded firms is shrinking as well. In the US, there are now less than half the number of publicly traded firms than existing in the 1990s and fewer than existed in the mid-1970s (Davis, 2009;The World Bank, 2016). That is, while much of the research is focused on public firms, the share of the economy of developed nations made up by these firms is somewhat small and shrinking (CFA Institute, 2018). ...
Article
Full-text available
Scholars have long debated the effect CEOs have on firm performance, including a focus on how their effect shifts across industries, national settings, and time. Unexplored, however, is the possibility that the CEO effect might differ in publicly traded versus privately held firms. Drawing on a unique longitudinal sample of both publicly traded and large, privately held Swedish firms from 1997–2013, we replicate and build upon prior CEO effects studies and find that private firm CEOs have a greater effect on firm performance, for good or for ill, than do their public firm counterparts. Our results are strengthened after controlling for industry, firm profitability, and size in a matched-pair sample. We discuss the implications and potential future research stemming from these findings.
... Science and technology studies has had a decisive impact on the ways that the social sciences understand the economy, thereby especially the financial economy. In contrast to international political economy, which highlights the ways that financial markets are part of the entire economy and how they relate (or not) to the production-based economy (Strange 1986;Castells 1996;Davis 2009), SSF rather views the financial economy as a socio-technical arrangement, or set of arrangements, in which agency is complexly distributed over human actors, calculative devices, and socio-technical and legal units and infrastructures (Callon and Millo 2007;MacKenzie 2008). Like STS does with respect to (still mostly natural) science and technology, SSF claims to denaturalize the seemingly normal working of financial operations, placing the emphasis on the complicated and quite presuppositional interactions between human and non-human actors and infrastructures in attaining the seeming smoothness of financial processes (Knorr Cetina andBruegger 2000, 2002). ...
... In the organizational field of the coffee industry, two basic logics exist. One is the traditional financial logic, which regards profit maximization as an organizational principle and the foundation of appropriate individual and organizational behaviors (Davis, 2009). The other is community logic which is based on community identity, culture, relationships, networks and regional needs. ...
Article
Full-text available
Purpose Initiated by non-governmental organizations (NGOs) over half a century ago, fair trade has successfully evolved from a regional business discourse to a global social movement within international trade. In the matter of fair trade coffee, this global social movement has transformed the traditional coffee trade structure of inequality and unfairness into a conglomerate of international institutions that embrace equity and inclusivity – a metamorphosis that can be attributed to NGOs’ institutional entrepreneurship. Design/methodology/approach In this exploratory study, the authors examine the fair trade coffee industry and trace the actions of NGOs along with other stakeholders at the organizational field level, in moving toward an inclusive model of globalization. Findings Departing from exploitative globalization, fair trade practices advocate inclusive growth through the promotion and establishment of greater equity for all as well as higher environmental standards in global value chains. Research limitations/implications This study contributes to nascent research on inclusive growth by analyzing how fair trade promotes inclusive growth and trade in GVCs. This study also contributes to research on institutional entrepreneurship by examining two enabling conditions – the shift in institutional logics and the peripheral social position of NGOs – that enabled NGOs to serve as institutional entrepreneurs in the initiation phase of institutional entrepreneurship. Practical implications Policymakers may encourage collaboration between profit organizations and nonprofit organizations to provide entrepreneurial opportunities for trials, errors, and revisions. The evolution of fair trade coffee provides such an example. Social implications The coevolution of NGOs and MNEs has made the globalization of fair trade practices possible. The collaboration between NGOs as institutional entrepreneurs (operating on the community logic) and MNEs as institutional followers (operating on the financial logic) support inclusive globalization and sustain fair trade practices. Originality/value Drawing on the process model of institutional entrepreneurship, the authors seek to understand the role of NGOs as institutional entrepreneurs in the dynamics of initiating, diffusing and sustaining fair trade coffee practices.
... Narrative", or Standing (2011) the rise of the "precariat": the idea that security of employment has fallen substantially in recent decades. Putative causes include technological change (see Rifkin (1995) for an early expression of this view) and globalization (Kalleberg, 2009), with an associated decline of manufacturing employment and unionization, and the rise of "non-standard employment" i.e. temporary or part-time work, zero-hour contracts, out-sourcing, and other "flexible" work arrangements that are part of the "gig economy" (see, for example, Davis (2009) ;Fantasia and Voss (2004); or Weil (2014)). Academics have become increasingly interested in job security as a research topic, and the overwhelming consensus in those papers is that insecurity has risen or has been rising. ...
Article
There is a widespread belief that work is less secure than in the past, that an increasing share of workers are part of the “precariat”. It is hard to find much evidence for this in objective measures of job security, but perhaps subjective measures show different trends. This paper shows that in the US, UK, and Germany workers feel as secure as they ever have in the last thirty years. This is partly because job insecurity is very cyclical and (pre-COVID) unemployment rates very low, but there is also no clear underlying trend towards increased subjective measures of job insecurity. This conclusion seems robust to controlling for the changing mix of the labor force, and is true for specific sub-sets of workers.
... Although the early literature on financialization has mostly focused on activities of firms (Krippner 2005;Epstein 2005), more recent work pays attention to the financialization of everyday life (Martin 2002;Pellandini-Simányi, Hammar, and Vargha 2015), as well as the consequence of financialization for inequality (Lin and Neely 2020). Scholars argue that availability of financial instruments has increased financial product consumption and leveraged investment (Davis 2009). Individuals have more aggressively pursued financial strategies, which make up today's "finance culture" (Langley 2007;Fligstein and Goldstein 2015) and have become more tolerant of risktaking and debt-reliance (Lea, Webley, and Levine 1993). ...
Article
This article examines the link between wealth inequality and families’ financial investment, saving, and borrowing for the sake of children. Using the 1998–2016 Survey of Consumer Finances data, we show that American families have increasingly engaged in financially more intensive parenting but that there are substantial differences by wealth and race-ethnicity. Over time, White families above median wealth accumulate more financial assets and education savings as well as less education debt for children. In contrast, Black and Hispanic families across the wealth distribution have low financial assets and education savings for children. In addition, for Black families across the wealth distribution education debt has grown to substantial amounts. These findings suggest that the contemporary norm of intensive parenting has unequal financial manifestations, which have likely contributed to the widening of wealth and racial inequalities, especially between White and Black child households.
Article
Sociologists have been investigating financialization over the past two decades. Shareholder value orientation has been named as one of the central driving forces for financialization in the US. However, financialization also takes place in countries that do not have a strong shareholder value orientation. What drives financialization in these countries? In this article the authors analyze data for Korea, where the power of shareholders is particularly subdued, and present two findings. First, financialization is an unintended consequence of the state’s pressure on family-owned conglomerates to comply with the Western standard imposed by the IMF during the economic crisis. In the absence of strong shareholders, it was the interplay between the state’s demand to modernize corporate funding practices and the conglomerates’ apparent compliance while minimizing their financial liability. Second, the authors investigate the role powerful unions have in financialization. Previous studies have theorized that unions would have negative effects on financialization, only to come up with mixed results. Using Korean data, this article reveals that in a setting where the political and organizational power of unions is strong, unions have clear negative effects on financialization. The authors suggest that the standard story of financialization, according to which the mighty shareholders push firms to pursue short-term profit, is only one of many possible paths toward it.
Research
Full-text available
Digitale Plattformen, wie Uber oder Airbnb, läuten das Ende der Organisationsgesellschaft ein, die von bürokratischen Großorganisationen geprägt war. Das behaupten zumindest aktuelle Thesen zur Plattformökonomie. Tatsächlich finden sich in der Debatte um Digitalisierung jedoch erstaunlich wenige konzeptionelle Anhaltspunkte, wie genau sich mit Digitalisierung ein substanzieller Wandel ergibt. Diagnosen, wie „Plattformkapitalismus“, „Plattformgesellschaft“ oder „Plattformisierung“ fehlt bisher eine umfassende Fundierung. Der Beitrag führt vor diesem Hintergrund sechs Mechanismen der Digitalisierung ein, die veränderte Organisationsstrukturen ermöglichen. Auf dieser Grundlage, werden digitale Plattformen genauer als Plattformorganisationen bestimmt. Als soziale Form folgen digitale Plattformorganisationen einem Designmuster aus Kern, Rand und Schnittstellen, das mit Hilfe digitaler Technik spezifische soziale Ordnungen erzeugt und aufrechterhält. Plattformen etablieren dabei eine spezifische Form der Herrschaft, die mit sozialen Ungleichheiten und Effekten für die gesellschaftliche Integration einhergeht. Insofern verschieben sich die Eckpfeiler der klassischen Organisationsgesellschaft weg von Großorganisationen, hin zu Plattformorganisationen, die als Strukturprinzip zunehmend Arbeit, Wirtschaft und Gesellschaft prägen. Die Analyse digitaler Plattformen unterstreicht dabei die Bedeutung sozialer Formen und sozialer Ordnungen als zentrale Ankerpunkte für eine konzeptionelle Fundierung einer Soziologie der Digitalisierung.
Article
We examine Thomas Piketty's explanations for steady and rising inequality in the nineteenth and early twentieth centuries, the decline of inequality in the half-century after World War I, and the return of high levels of inequality since the 1970s. We specify empirical and conceptual problems with his analysis, which stem from his presentation of causality at a highly general and vague level. That leads him to confuse rather than clarify the causal relations among implacable economic forces, changes in technological innovation and population growth, ideology, and governmental policies and the outcomes that he seeks to explain. We identify social scientists and historians who are able to account for temporal and geographic variations in the political coalitions that propelled egalitarian reforms, and that in their absence cleared the terrain for reactionary anti-egalitarian policies that the rich incited for their narrow benefit. We explain why Piketty's limited conception of ideology is insufficient for explaining how mass opposition to inequality is mobilized. We show that if we want to combine the study of capital in the twenty-first century with that of politics, we need a broader conception of ideology than what Piketty offers, one that will allow us to specify how ideology affects parties, states, voters, and activists.
Article
This article recounts the backlash against the neoliberal constitutionalism that locked in free trade and capital rights through the multilateral treaty organizations of the 1990s. It argues that we can find important forces in the disruption of the status quo among the elite losers of the 1990s settlement. Undercut by competition from China, the US steel industry, in particular, became a vocal opponent of unconditional free trade and a red thread linking all of Trump’s primary advisers on matters of trade. Steel lobbyists themselves helped frame a critique of actually existing neoliberal globalism, which Trump both adopted and acted on as part of his trade war. By searching for the contemporary attack on neoliberal constitutionalism among the disgruntled corporate elite, we find that our current crisis must be framed as a backlash from above as well as one from below.
Chapter
Wenn es zutrifft, dass wir gegenwärtig im Zeitalter der Ökonomie leben und ein neues wirtschaftliches Masternarrativ das soziale Narrativ verdrängt, wie es z. B. in den Konfigurationen des konservativen oder sozialdemokratischen Wohlfahrtsstaatsmodels nach Esping-Andersen zum Ausdruck kommt, „then Finance is the master of this master narritive“ (S. 1). Mit seinem ersten Satz stellt Alex Preda die Bedeutung heraus, die er dem Finanzwesen heute zuweist: Es durchdringt zunehmend das tägliche Leben und erhebt sogar den Anspruch, selbst die soziale Sicherung im 21. Jahrhundert neu zu erfinden.
Article
Large corporations dominate economic and social life in the United States and around the globe. The mainstream corporate governance ideology of “shareholder primacy” claims that the exclusive purpose of a corporation is to generate returns for shareholders, which means that governance decisions should be exclusively in their hands. However, shareholder primacy lacks a theory of how companies innovate, and instead focuses solely on allocation of corporate profits, misunderstanding the relationship of shareholders to the twenty-first-century corporation. The theory of the corporation as an innovative enterprise—engaged in productive innovation by producing higher-quality goods and services for lower unit costs—is an accurate way to understand what makes corporations successful producers. Stakeholder theory from progressive legal scholarship illustrates specific corporate governance institutions that can assist innovation, including fiduciary duty, stakeholder participation in decision making, and equity ownership. This article contributes to the growing literature refuting shareholder primacy by utilizing the theories of the innovative enterprise and multi-stakeholder governance to propose reshaping US corporate governance to better to serve innovation in production and a balance of power in distributional decision making. JEL classification: B50, D21, G30, G35, K22
Article
This volume brings together leading political scientists to explore the distinctive features of the American political economy. The introductory chapter provides a comparatively informed framework for analyzing the interplay of markets and politics in the United States, focusing on three key factors: uniquely fragmented and decentralized political institutions; an interest group landscape characterized by weak labor organizations and powerful, parochial business groups; and an entrenched legacy of ethno-racial divisions embedded in both government and markets. Subsequent chapters look at the fundamental dynamics that result, including the place of the courts in multi-venue politics, the political economy of labor, sectional conflict within and across cities and regions, the consolidation of financial markets and corporate monopoly and monopsony power, and the ongoing rise of the knowledge economy. Together, the chapters provide a revealing new map of the politics of democratic capitalism in the United States.
Article
Zusammenfassung Mit der Covid-19-Pandemie und der Frage nach der Welt, in der wir nach der Pandemie leben wollen, stellen sich schuldenpolitische Fragen, die uns aus anderen Krisenzeiten vertraut sind. Was soll mit Haushalten und Unternehmen passieren, die aufgrund von Entwicklungen höherer Gewalt nun hoch verschuldet sind? Wer wird gerettet, wer nicht – und wer zahlt für die Krise? Ein Blick in das letzte Jahrzehnt zeigt eine Geschichte politischer Mobilisierung, die für andere Formen von Schuldenpolitik kämpfte, und in der daher alternative Zukünfte einer post-pandemischen Welt sichtbar werden. In diesem Text versuche ich diese Geschichte zu rekonstruieren, damit aus ihr Lektionen für die aktuelle Situation gezogen werden können. Der erste Teil erklärt zunächst das Konzept der „umkämpften Schuldenpolitik“ und geht auch kurz auf die Methodologie und Methoden meiner Forschung ein. Teil zwei rekonstruiert die jüngere Geschichte umkämpfter Schuldenpolitik von der südlichen Schuldenkrise seit den 1970ern bis zu den jüngeren Platzbesetzungen um 2011. Der dritte und finale Abschnitt diskutiert dann die Utopien dieser schuldenpolitischen Bewegungen, die für alternative Zukünfte kämpfen.
Article
Research Summary The post-Enron era is marked with growing discourse of stakeholders, sustainability, and corporate social responsibility (CSR). Yet, commentators debate whether U.S. corporations have indeed moved towards a stakeholder orientation, given the difficulties in measuring such a shift. We assess this shift by examining corporate governance practices, especially the prevalence of shareholder- and stakeholder-oriented practices in CEO dismissals. Using data on large firms in 1980–2015, we found that, before the 2000s, CEOs were less heavily penalized for poor firm performance when they demonstrated a shareholder orientation by downsizing and refocusing the corporation and more heavily penalized for CSR activity. This trend, however, reversed after the early 2000s. This paper provides evidence of the evolution of U.S. firms’ governance practices from a shareholder towards stakeholder orientation. Managerial Summary Many people are skeptical of the assertion that U.S. corporations have become more stakeholder-oriented over time. It's no wonder, as scant evidence exists for this claim. We tackle this claim head on by analyzing firm practices in 1980–2015 that contributed to CEO dismissal when the firm was performing poorly. Some practices, such as downsizing and firm refocusing, are associated with a shareholder orientation and others, such as CSR, are associated with a stakeholder orientation. We found strong evidence for a growing trend towards a stakeholder orientation. When the firm was performing poorly before the 2000s, CEOs were more likely to be dismissed for CSR activities and less likely to be dismissed for downsizing or refocusing the firm. This trend reversed in the early 2000s. This article is protected by copyright. All rights reserved.
Article
Obtaining a good credit rating is an important financial goal for governments since good credit yields lower interest rates and signals fiscal responsibility. But what does a government’s quest for better credit mean for the wellbeing of its residents? Although good credit gives governments access to cheaper borrowing to invest in socially beneficial services and infrastructure, working to obtain good credit may lead governments to act in ways that appease bondholders but are unfavorable to its residents. Using the case of state government credit ratings from 1996 to 2012, we demonstrate that increases in state credit ratings are associated with higher economic insecurity for a state’s population, net of political and economic controls, as well as state and year fixed effects. We argue these findings illustrate that despite the economic rewards, good credit becomes detrimental once we consider the potential tradeoffs relative to other socially and economically meaningful relationships.
Article
The current study entitled "Study of Entrepreneurship and Employment in the Field of Knowledge-Based Businesses Based on Endowment Capacity" addresses one of the key issues in the field of business that can play an important role in resolving social, cultural and even political crises. The issue of employment has always been one of the biggest concerns of officials in various management levels of the country. The passage of various laws, and the formation of various working groups to solve the employment problem show the importance of the issue. One of the most important issues in job creation is the issue of investment. Limitations of government resources have always been a major challenge to resolving the employment crisis. In the meantime, some semi-governmental organizations and institutions, which have financial resources due to their duties and responsibilities, can help solve the problem. The Endowment and Charity Organization is one of these organizations. The research method in terms of purpose is of the type of applied research. Also, according to the research method, the present study is a mixed type (quantitative and qualitative). The statistical population in the qualitative section of the research is experts, specialists and pundits in various fields of management sciences, jurisprudence and Islamic economics and experts of the Endowment and Charity Organization in 1398 and 1399 in the country. The sampling method is purposeful and accessible. The statistical population will be in a small part to select the subjects by multi-stage cluster sampling method. The number of experts for polling in the Delphi method will be at least 20 experts, which will be done by purposeful sampling. The data collection method will be library and field using tools such as questionnaires and interviews with emphasis on the Delphi method. The technique of information analysis and modeling in this study will be Demitel, which has been used to identify the causal relationships between indicators in the subject of endowment investment in the fields of knowledge-based businesses and the production of a tangible structural model. The findings of this study show that in the test section of the model, the results show the effect of economic factors on knowledge-based businesses, especially the share and amount of non-cash income required by the business, the share and amount of cash income required by the business, the economic justification of the project, the amount of risk. The success of the project has the greatest impact on the organizational factors of knowledge-based businesses.
Thesis
La thèse interroge les transformations du capitalisme français à partir d’une technique d’acquisition de sociétés par endettement nommée Leveraged Buy­Out (LBO). Grâce au recueil de matériaux quantitatifs et qualitatifs, la thèse examine les conditions dans lesquelles les banquiers, les investisseurs et les dirigeants d’entreprise mobilisent cette « arme organisationnelle » et elle pénètre jusque dans l’entreprise pour en évaluer les effets. Le LBO révèle une transformation à la fois étendue et limitée du capitalisme français durant les dernières décennies. L’étendue du changement peut se mesurer à la croissance spectaculaire de ces opérations et à la diversité des acteurs qui participent au champ. Elles produisent de la valeur disponible qui permet aux investisseurs et aux dirigeants de constituer des fortunes considérables. Elles accélèrent le processus de destruction créatrice, le processus de rationalisation productive et recomposent le pouvoir dans l’entreprise. Mais l’arme organisationnelle a fait l’objet d’une traduction dans le langage du capitalisme français et a due être appropriée par les banquiers et les dirigeants. Le LBO est en quelque sorte auto­limité : sa mécanique comporte une fragilité intrinsèque qui peut déboucher sur des faillites d’entreprise et sur des bulles de crédit. Enfin, les plans de création de valeur peuvent manquer leur objectif car ils s’affrontent à la déstabilisation de l’ordre social d’entreprise due au changement de propriétaire et à l’incertitude sur son attitude future. Au final, le LBO tient son pouvoir paradoxal du fait qu’il contribue à faire bifurquer le capitalisme français loin du « compromis d’après­guerre » tout en conservant les aspects traditionnels de sa structure institutionnelle.
Preprint
Full-text available
This article presents new insights on the evolving contribution of different types of investments to the growth in sales of US nonfinancial listed firms during the 1979-2018 period. By means of quantile regressions it is observed an increasing contribution over time of intangible investment vis-à-vis a decline in capital expenditure both for high-growth and slow-growth firms. However, the impact of different types of intangible investment differs depending on the kind of firm. Whereas research and development (R&D) has a positive contribution for high-growth firms, only advertising has a positive effect for their slow-growth peers.
Article
Full-text available
We explore the significance of social ontology and its capacity to inform the specification of organizational status, architecture and capacities. We consider how different conceptions of social ontology are critical for explicating a range of epistemological and socio-economic questions concerning organizations and develop a research agenda oriented to studying these issues from the perspective of management and organization studies. © 2022 by Emerald Publishing Limited All rights of reproduction in any form reserved.
Article
Full-text available
Social movements challenge incumbents and drive institutional change by introducing market alternatives—new products and organizational forms that embody an alternative institutional logic. Research has shown that in response to market alternatives, incumbents resist through heterogeneous behaviors: incumbents maintain their commitment to the dominant logic, effectively marginalizing challengers, while also ostensibly endorsing the alternative logic and often successfully coopting challengers. Although incumbents’ strategic responses to pioneering market alternatives are well documented, we do not know how their heterogeneous behaviors affect new waves of challenger mobilization and how these mobilizations may differently address the hazards of cooptation and marginalization. We investigate the rise of the B Corp (Certified B Corporation) movement against the backdrop of both ongoing shareholder supremacy and rising corporate social responsibility (CSR) among incumbent corporations. Our multi-method, multi-stage investigation reveals that heterogeneous incumbent behaviors encourage new waves of challenger mobilization by seeding divergent mobilizing frames. This variety can lead to a paradoxical form of mobilization in which challengers dynamically balance the tension between their movements’ focus on expansion and purity, rather than prioritizing one over the other. The B Corp movement demonstrates how achieving this balance may help challengers avoid cooptation or marginalization, sustain their challenge against incumbents, and achieve more-transformative change. For incumbents, our findings show that both resistance to and the ostensible embrace of alternative logics may stave off immediate challenges but can also invigorate future challenges that pose substantive threats to the dominant logic.
Chapter
Wolfgang Streeck deutet in Gekaufte Zeit. Die vertagte Krise des demokratischen Kapitalismus (S. 225) die Finanz-, Wirtschafts- und Fiskalkrise der Jahre nach 2008 als „vorläufige[n] Endpunkt“ eines langen neoliberalen Wandels des Nachkriegskapitalismus in Nordamerika und Westeuropa. Der an die Arbeiten von Colin ( Crouch, C. 2004. Post-Democracy. Cambridge: Polity Press (dt.: Postdemokratie, Frankfurt/M.: Suhrkamp 2008).;Crouch,.British Journal of Politics and International Relations 11:382–399, 2009;)) und Gerda (Krippner,.Capitalizing on Crisis. The Political Origins of the Rise of Finance, Harvard University Press, Cambridge, 2011) anschließende Versuch, die neuere sozialwissenschaftliche Debatte zur „Finanzialisierung“ (vgl. Epstein,.Finacialization and the World Economy, Edward Elgar, Cheltenham, 2005) von Ökonomie und Gesellschaft vor dem Hintergrund der Abfolge von Krisen und Krisenbewältigungsstrategien des „demokratischen Kapitalismus“ in einen historisch übergreifenden Prozess gesellschaftlicher Transformationen einzuordnen, ist in mehrerlei Hinsicht bemerkenswert.
ResearchGate has not been able to resolve any references for this publication.