Financialised Capitalism and Inequality: shareholder value-driven firms, marketised household balance sheets and bubbly financial markets

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This chapter covers the relationship between financialisation and inequality by first providing a theoretical understanding of financialised capitalism and then discussing how the behaviour of shareholder value-driven firms and financialised households shape the dynamics of inequality in present day capitalism. Through data on financialised economies and households in ten high income countries we discuss financialisation’s quantitative properties. And then financialised firm behaviour is discussed by tracing the rise of neo-liberal agency theories that justify shareholder value maximisation strategies by managers and consequently legitimises the growth of the gap between CEO compensation and average wage which is the main driver of inequality in financialised capitalism.

Bibliographical metadata

Original languageEnglish
Title of host publicationInequality and Uneven Development in the Post-Crisis World
EditorsSebastiano Fadda, Pasquale Tridico
PublisherRoutledge
Pages127-144
Number of pages17
ISBN (Electronic)9781315388823
ISBN (Print)9781138229563
Publication statusPublished - 2018

Publication series

NameRoutledge Advances in Heterodox Economics
PublisherRoutledge