Shareholder value and corporate governance: some tricky questions

Aglietta, Michel

doi:10.1080/030851400360596

Cited by 223 publications

(123 citation statements)

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“…This is explained by the emergence of a new design of corporate governance ("shareholder value orientation") (Crotty 1990;Aglietta 2000;Lazonick -O'Sullivan 2000;Stockhammer 2010;Dünhaupt 2011;Hein 2012;Kus 2012;and van der Zwan 2014). The "neoliberal paradox" means that shareholders force firms to remain competitive and profitable even in downturn environments (Crotty 2005).…”

Section: The Relationship Between Financialisation and Functional Incmentioning

confidence: 99%

Functional income distribution in portugal: The role of financialisation and other related determinants

Barradas

Lagoa

2017

Soc Ec

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This paper makes an empirical analysis of the relationship between the labour income share and both financialisation and other related variables in Portugal from 1978 to 2012. We estimate an equation for the labour share that includes standard variables (technological progress, globalisation, education and business cycle) and variables to capture the effect of financialisation. We formulate the hypothesis that the financialisation process may lead to a rise in the inequality of functional income distribution through three channels: the change in the sectorial composition of the economy (due to both the increase in the weight of the financial activity and the decrease in government activity), the diffusion of shareholder value governance practices and the weakening of trade unions. Our results show that the financialisation process as an indirect long-term effect on the labour share through its impact on government activity and trade union density. The paper also finds evidence supporting the traditional explanations for functional income distribution, namely globalisation, education and business cycle. FUNCTIONAL INCOME DISTRIBUTION IN PORTUGAL: THE ROLE OF FINANCIALISATION AND OTHER RELATED DETERMINANTS ABSTRACTThis paper makes an empirical analysis of the relationship between the labour income share and both financialisation and other related variables in Portugal from 1978 to 2012. We estimate an equation for the labour share that includes standard variables (technological progress, globalisation, education and business cycle) and variables to capture the effect of financialisation. We formulate the hypothesis that the financialisation process may lead to a rise in the inequality of functional income distribution through three channels: the change in the sectorial composition of the economy (due to both the increase in the weight of the financial activity and the decrease in government activity), the diffusion of shareholder value governance practices and the weakening of trade unions. Our results show that the financialisation process as an indirect long-term effect on the labour share through its impact on government activity and trade union density. The paper also finds evidence supporting the traditional explanations for functional income distribution, namely globalisation, education and business cycle.

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Section: The Relationship Between Financialisation and Functional Incmentioning

confidence: 99%

Functional income distribution in portugal: The role of financialisation and other related determinants

Barradas

Lagoa

2017

Soc Ec

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“…This corporate orientation encourages a cut in labour costs (Crotty, 1990;Aglietta, 2000;Lazonick and O'Sullivan, 2000;Stockhammer, 2010;Dünhaupt, 2011b;Hein, 2012;Kus, 2012;van der Zwan, 2014;Hein and Dodig, 2015). The reduction in wages is also related with the "neoliberal paradox", according to which shareholders force firms to remain competitive and profitable even in downturn environments (Crotty, 2005).…”

Section: Weakening Of Trade Unionsmentioning

confidence: 99%

Functional income distribution in a small European country: The role of financialisation and other determinants

Barradas¹,

Lagoa²

2015

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“…Aglietta (2000) and van der Zwan (2014) notes that this has become "the norm of the transformation of capitalism" and is responsible for the dissemination of policies and practices that tend to favour shareholders over the other constituents of corporations. Lazonick and O'Sullivan (2000) suggest there has been a shift from "retain and reinvest" to a "downsize and distribute" strategy, namely a transfer from a strategy oriented to profit retention and reinvestment in corporations' growth to one of F Fi in na an nc ci ia al li is sa at ti io on n a an nd d r re ea al l i in nv ve es st tm me en nt t i in n t th he e E Eu ur ro op pe ea an n U Un ni io on n u us si in ng g a a c co ou un nt tr ry y--l le ev ve el l a an na al ly ys si is s: : b be en ne ef fi ic ci ia al l o or r p pr re ej ju ud di ic ci ia al l e ef ff fe ec ct ts s downsizing of corporate labour forces and the distribution of profits to shareholders.…”

Section: Lower Retention Ratios (More Financial Payments)mentioning

confidence: 99%

Financialisation and real investment in the European Union using a country-level analysis: beneficial or prejudicial effects?

Barradas¹

2015

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Shareholder value and corporate governance: some tricky questions

Cited by 223 publications

References 0 publications

Functional income distribution in portugal: The role of financialisation and other related determinants

Functional income distribution in portugal: The role of financialisation and other related determinants

Functional income distribution in a small European country: The role of financialisation and other determinants

Financialisation and real investment in the European Union using a country-level analysis: beneficial or prejudicial effects?

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