Law, governance, and finance: introduction to the Theory and Society special issue

Carruthers, Bruce G.

doi:10.1007/s11186-020-09390-5

Cited by 10 publications

(5 citation statements)

References 41 publications

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“…This research contributes to our understanding and raises new questions about how states manage and enable credit markets. The role of the state in constructing and enabling credit markets is well established (Carruthers 2020; Krippner 2011; Quinn 2019), but consumer debt collection is not examined as a mechanism by which states shape markets. However, my findings suggest judges in foreclosure cases have at least an ex post facto role in regulating consumer credit markets: if the judiciary had aggressively intervened against “innovations” in foreclosure, the high-volume, high-risk PLS industry—recognized from its inception as requiring more frequent and more cost-effective foreclosure—may have been forced to internalize more risk, maintain stronger underwriting standards, and lend at lower volumes.…”

Section: Discussionmentioning

confidence: 99%

Safe as Houses: Financialization, Foreclosure, and Precarious Homeownership in the United States

Kahn

2024

Am Sociol Rev

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The financialization of the U.S. economy has had important implications for household well-being, but the mechanisms connecting financialization and precarity have not been fully identified. This research identifies mortgage foreclosure as a nexus connecting macro-level financialization to an array of downstream consequences for homeowners and asks (1) how mortgage securitization, a key technology of financialization, enabled new foreclosure practices; and (2) how these practices affect housing precarity among homeowners at risk of foreclosure. To answer these questions, I analyze court records, interviews with key participants, and primary source documents to examine the evolution of mortgage foreclosure in Cook County, Illinois, from 1992 to 2006. I find that as mortgage securitization transformed the social and economic relations between borrowers and lenders, foreclosure became actively managed as both a driver of costs and a source of profits, and loan administrators and their attorneys worked to reduce costly borrower protections. These changes increased housing precarity by making foreclosure more frequent and more rapid.

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Section: Discussionmentioning

confidence: 99%

Safe as Houses: Financialization, Foreclosure, and Precarious Homeownership in the United States

Kahn

2024

Am Sociol Rev

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“…First of all, the taxpayers are required to calculate the effective tax rate in the country of their location equal to at least 75% of the Russian average weighted income tax rate. At the same time, according to the findings of Carruthers (2020), there is a contradictory opinion in the practical activity of controlling persons. For example, if such a person located in Germany applies a basic tax rate of more than 20%, then, when calculating the weighted average, the excess of 75% of the 20% income tax rate in national jurisdiction will be 75% ≈ 15%.…”

Section: Discussionmentioning

confidence: 99%

Controlled foreign companies: influence on the sovereignty of the national tax base

Khoruzhy¹,

Karabasheva²,

Hajiyev³

et al. 2020

JESI

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World experience in economic development over recent periods indicates that, despite periodically occurring crisis situations, including globalization processes appearing all over specific countries, Such situations consistently develop on a more accelerated scale. Undoubtedly, the crisis situation that developed in the world market in the first half of 2020 under the influence of COVID-19 on all economies of countries without exception has had a great influence, and the nature of such an influence will certainly be felt over the next several years. In this vein, the establishment of the rules applicable in a particular jurisdiction regarding the activities of controlled foreign companies is one of the mechanisms for any state to protect its own national tax base. Using this approach, the modern rules of tax regulation of controlled foreign companies provide for the establishment of special rules for the shareholders, acting as controlling persons in terms of profits obtained from their foreign companies. At the same time, the application of tax exemptions to the profits of controlled foreign companies is undoubtedly one of the riskiest operations, despite the fact that a wide list of grounds for their application may be provided for within the specific state. As a result of a study of the activities of controlled foreign companies operating within the framework of national jurisdiction, when analyzing the degree of influence of tax bases, a strongly pronounced linear relationship with a correlation coefficient of -0.93 was revealed. This circumstance made it possible to identify the following important feature for controlled foreign companies: financial corporations are no longer attracted by the option of being in a specific national jurisdiction; moreover, they are more focused on other jurisdictions, including low-tax or offshore ones. The correlation analysis revealed a strongly pronounced linear relationship between the tax base and the tax rates; however, in terms of controlled foreign companies, which are primarily subject to national legislation, the correlation coefficient amounted to +0.89, which characterizes the economic tendency to reduce their financial investments, despite the reduction of the actual tax rate. In turn, for controlled foreign companies, whose activities are regulated to a greater extent by foreign legislation, the correlation coefficient amounted to -0.93, which is characterized by a reflection of the greater economic effect of actual tax rate reduction according to the following scenario: the tax rate reduction represents more financial injections for a particular national jurisdiction. At the same time, against the background of the quite consistent and successful in specific areas unification of EU tax rules, the problem of the incoherence of the rules concerning controlled foreign companies versus national jurisdictions of both ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES

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“…Our findings also indicate that the impact of recent economic transformations, including technological changes that reward non-routine skills and the financialization of banking, may be even broader than previously recognized. Research on skill-biased technological change has focused primarily on consequences for labor markets and wages (Autor et al 2006;Bound and Johnson 1992;Hout 2012), while research on the financialization of banking has centered on consequences for financial markets and their stability (Carruthers 2020;Krippner 2011;Pernell 2020). Yet these effects may stretch well beyond labor and financial markets.…”

Section: Implications For Stratification Research and Economic Sociologymentioning

confidence: 99%

The Dynamics of Privately Held Business Assets in the United States

Pernell¹,

Wodtke²

2022

Preprint

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Although privately held businesses are central to the American economy, little is known about how their assets are distributed among the population. In this study, we describe the household distribution of private business assets in the United States and examine how it has changed over time. Using data from the 1989-2019 Survey of Consumer Finances, we show that the relative number of business owners has remained stagnant at low levels and that assets in privately held firms have become increasingly concentrated among the wealthiest owners over time. At the most recent wave of data collection, the top 1% of households controlled nearly 80% of private business assets, up from about 70% in the late 1980s. We attempt to explain this trend by evaluating how technological change, the financialization of banking, and rising market power have influenced the distribution of private business assets in recent decades. Our findings suggest that all three factors contributed to increasing asset concentration in this sector.

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Law, governance, and finance: introduction to the Theory and Society special issue

Cited by 10 publications

References 41 publications

Safe as Houses: Financialization, Foreclosure, and Precarious Homeownership in the United States

Safe as Houses: Financialization, Foreclosure, and Precarious Homeownership in the United States

Controlled foreign companies: influence on the sovereignty of the national tax base

The Dynamics of Privately Held Business Assets in the United States

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