The Impact of Financial Globalization and Financialization on the Economy in the Current Crisis through Banking Corporate Governance

Contemporary Economics, Vol. 7, No. 3, pp. 79-94, 2013

16 Pages Posted: 7 Dec 2013

See all articles by Juan Antonio Azkunaga

Juan Antonio Azkunaga

University of Coruña - Facultad de Ciencias Economicas y Empresariales

Leire San-Jose

University of Huddersfield; University of the Basque Country - Department of Financial Economics II

Sara Urionabarrenetxea

University of the Basque Country

Date Written: December 2, 2013

Abstract

This work analyzes the role of governance of financial entities in the current crisis. Neoliberal economic policies, deregulation and liberalization have characterized financial globalization, giving rise to the financialization of the economy. This paper, using the analysis-synthesis method, shows that the corporate governance of entities has adapted to the new social environment under the influence of the interests of the investors. The results of this paper suggest the need to monitor the over-emphasis on the maximization of short-term shareholder value without relativizing the risk taken to achieve it, as such, the emphasis on short-term shareholder value is considered a crucial contributing factor to the present crisis.

Keywords: corporate governance, banks, globalization, financial crisis, institutional investors

JEL Classification: F30, G01, G21, G34

Suggested Citation

Azkunaga, Juan Antonio and San-Jose, Leire and Urionabarrenetxea, Sara, The Impact of Financial Globalization and Financialization on the Economy in the Current Crisis through Banking Corporate Governance (December 2, 2013). Contemporary Economics, Vol. 7, No. 3, pp. 79-94, 2013 , Available at SSRN: https://ssrn.com/abstract=2362276

Juan Antonio Azkunaga

University of Coruña - Facultad de Ciencias Economicas y Empresariales ( email )

Facultad de Economía y Empresa
Campus de Elviña s/n
A Coruña, A Coruña 15071
Spain

Leire San-Jose (Contact Author)

University of Huddersfield ( email )

Queensgate
Huddersfield HD1 3DH, West Yorkshire HD1 3DH
United Kingdom

HOME PAGE: http://www2.hud.ac.uk/uhbs/staff/staff_profiles/leire_san-jose.php

University of the Basque Country - Department of Financial Economics II ( email )

Avenida del Lehendakari Agirre 83
48015 Bilbao
Spain

Sara Urionabarrenetxea

University of the Basque Country ( email )

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

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