The Impact of Financialization on Management and Employment Outcomes

Upjohn Institute Working Paper No. 13-191

45 Pages Posted: 20 Mar 2013 Last revised: 16 Jun 2015

See all articles by Rosemary Batt

Rosemary Batt

Cornell University - School of Industrial and Labor Relations

Eileen Appelbaum

Center for Economic and Policy Research

Date Written: February 28, 2013

Abstract

This paper examines three questions: 1) How and why have financial models of doing business emerged in the last three decades? 2) What new forms of financial capitalism have become important in the current period? 3) How do new financial intermediaries, such as private equity, and the financial strategies of nonfinancial corporations affect the management of companies and employment outcomes? The paper describes how deregulation and institutional change created the conditions for a new, more powerful role for finance capital in the governance of U.S. companies, and it synthesizes the empirical evidence on the process and outcomes of financialization in large publicly traded corporations, as well as those taken over by private equity. Areas for future research are identified to examine how financialization affects management and employment relations in the postcrisis period.

Keywords: United States, financialization, market deregulation, institutional change, private equity, institutional investors, management and labor relations

JEL Classification: D2, G3, J5, N2, P1

Suggested Citation

Batt, Rosemary and Appelbaum, Eileen, The Impact of Financialization on Management and Employment Outcomes (February 28, 2013). Upjohn Institute Working Paper No. 13-191, Available at SSRN: https://ssrn.com/abstract=2235748 or http://dx.doi.org/10.2139/ssrn.2235748

Rosemary Batt (Contact Author)

Cornell University - School of Industrial and Labor Relations ( email )

Ithaca, NY 14853-3901
United States
607-254-4437 (Phone)
607-255-1836 (Fax)

Eileen Appelbaum

Center for Economic and Policy Research ( email )

1611 Connecticute Ave
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Washington, DC 20009
United States

HOME PAGE: http://www.cepr.net

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