2019/03/24 by Joel Rabinovich · 1 citation
Economics, Econometrics and Finance · #Banking stability, regulation, efficiency #Economic Theory and Policy #Housing, Finance, and Neoliberalism
paper · doi:10.1111/meca.12251
crossref issued 2019/03/24 · crossref published 2019/03/24 · crossref published-online 2019/03/24 · openalex publication_date 2019/03/24 · crossref created 2019/03/25 · crossref published-print 2019/11/01 · crossref deposited 2023/09/09 · openalex created_date 2025/10/10 · crossref indexed 2026/07/31 · openalex updated_date 2026/07/31
Abstract One aspect in which non‐financial corporations (NFCs) are said to be financialized is that they have been increasingly engaged in financial accumulation from which they derive a growing proportion of financial income. This is what we call the financial turn of accumulation hypothesis. In this article, we show that the evidence used to sustain it, in the U.S. setting, has to be reconsidered. Our findings show that, contrary to the financial turn of accumulation hypothesis, financial income averages 2.5% of NFCs’ total income since the 1980s, oscillating since the beginnings of the 1990s until 2005 and then declining. In terms of assets, some of the alleged financial assets might actually reflect other activities in which NFCs have been increasingly engaged, such as tax avoidance, internationalization of production, activities refocusing and M&As.