The current post-workerist analyses of the crisis of financial capitalism are rooted in the declaration of inconvertibility of the Dollar in 1971 and the consequent collapse of the Bretton Woods monetary system. The experience of ‘Primo Maggio’, the magazine on militant history directed by Sergio Bologna, was determinant in developing a consistent explanation of the relationship between ‘money as capital’ and working class struggles. The transition from Fordism to Post-fordism, which begun in those years, coincides on the one (...) hand with the crisis of the labour value theory and, on the other, with the emergence of the financialization of capital. The advent of the debt economy, which led to the present crisis, reflects the destruction of the wage relationship and the de-substantialization of money. Beyond any objective measure of value, what is necessary is something that points to the subjectivity of struggles and to the forms of life that give them substance. (shrink)

Antonio Negri’s article explores the relationship between the juridical categories of ‘public’ and ‘private’ and the political concept of the common through the theme of the ‘material constitution’ defining actual relations of power which defy the crystallization of ‘formal constitutions’. The financial convention shaping the material constitution of contemporary capitalism refers to the rise of what Foucault called biopower, where value is no longer the expression of a mere quantity of commodities but of a set of activities and services, (...) which are immediately cooperative. In this context, any form of measure cannot but be political and hence it must be established through new forms of economic governance. The social relation of capital becomes immediately political once money displaces labour as rule, norm and measure of value. As a result, processes of political subjectivation within the Eurocrisis combine de-stituent and con-stituent movements: requests for insolvencies, social occupations, commoning and mutualization are the means through which social struggles formulate the multitudes’ demands for ‘equality as a condition of freedom’. (shrink)

A decline in public sector extension services in developing countries has led to an increasing emphasis on alternative extension approaches that are participatory, demand-driven, client-oriented, and farmer centered. One such approach is the volunteer farmer-trainer approach, a form of farmer-to-farmer extension where VFTs host demonstration plots and share information on improved agricultural practices within their community. VFTs are trained by extension staff and they in turn train other farmers. A study was conducted to understand the rationale behind the decisions of (...) smallholder farmers to volunteer their time and resources to train other farmers without pay and to continue volunteering. Data were gathered through focus group discussions and individual interviews involving 99 VFTs. Findings of the study showed that VFTs were motivated by a combination of personal and community interests that were influenced by religious beliefs, cultural norms, and social and economic incentives. Altruism, gaining knowledge and skills, and social benefits were the most frequently mentioned motivating factors for becoming VFTs.3 years after starting, the income earned from selling associated inputs and services was also a main motivating factor. There were no significant differences between motivating factors for men and women VFTs. The findings point to the fact that VFTs work effectively without being paid, but investments in human, social, and financial capital are crucial to keeping them motivated. These factors are key to ensuring the sustainability of farmer-to-farmer extension programs beyond the projects’ lifespan. (shrink)

This chapter contains sections titled: Primary Goods, Self‐Respect, and Capabilities Primary Goods: The Empirical Evidence What is the Role of the State in Redistributing PrimaryGoods? Conclusion References.

A person’s financial well-being is the complete contentment gained from one’s present financial condition. This has a powerful impact on the entire achievement of an employee’s “well-being.” Researchers, financial analysts, financial planners, educationists, and economists have explored the “enablers” to improve employees’ living standards by investigating the possible “FWB” resources for decades. There is no literature available to show the connection between social capital theory, social exchange theory, social cognitive theory, financial literacy and FWB, (...) and employees’ financial knowledge sharing a moderator to expand the complete FWB. (shrink)

I examine social capital’s impact on financial reports. Based on the social capital literature, I predict that the quality of the financial reports is higher when a firm is headquartered in a region with high social capital. Consistent with this prediction, I find that the firms that are headquartered in this type of region in the USA have a lower probability of committing fraud by misrepresenting financial information. Further, I find that the firms in (...) regions with high social capital have lower levels of discretionary accruals and much more readable annual reports. (shrink)

AbstractWe show that social capital has a strong mitigating effect on financial adviser misconduct in the United States. Moreover, advisers who have committed misconduct are also more likely to relocate to counties with a relatively lower level of social capital than that of his previously residing county. These findings provide support for both the deterrence and displacement effects of social capital on financial adviser misconduct, and are robust to tests that address potential endogeneity concerns. Our (...) results shed new light on social capital as an informal governing and monitoring mechanism against individual unethical behavior. (shrink)

This study investigates the impacts of intellectual capital through Value-Added Intellectual Capital (VAIC) and its components: human capital efficiency (HCE) and structural capital efficiency (SCE) on financial performance in terms of return on assets (ROA) and return on equity (ROE). In addition, this study compares the effects between firms from financial and pharmaceutical industries. A total of 149 Vietnamese firms comprising of 108 financial firms and 41 pharmaceutical firms were examined. Based on the (...) findings, VAIC and HCE show beneficial impacts on both financial performance measures, ROA, and ROE. However, SCE shows adverse and beneficial implications on ROA and ROE, respectively. In terms of industry comparison, VAIC has positive effects on ROA and ROE among the firms from financial industry, whereas it has no effect in the firms from pharmaceutical industry. The effect of HCE on ROA is stronger in the firms from financial industry than firms from pharmaceutical industry while the effect of HCE on ROE is stronger in the firms from pharmaceutical industry than firms from financial industry. The effect of SCE on ROA is stronger in the pharmaceutical firms than financial firms while the effect of SCE on ROE is stronger in the financial firms than pharmaceutical firms. Lastly, the implications of the importance of knowledge-based resources on value creation were elaborated. (shrink)

Since the late 1980s, social scientists have argued that advanced economies have undergone a process of financial concentration that is resulting in a growing unevenness of the accessibility of capital. Households, small and medium-sized businesses as well as non-standard economic activities have increasing difficulties in finding funds. There are both sound economic and compelling moral reasons to address this issue. In order to ensure a more equal accessibility of capital, the author proposes a mandatory levy on the (...) surpluses of mainstream pension funds to fund an alternative financial infrastructure as a first step to redressing unevenness. The underlying rationale is that “financial pluralism” is the key to a more even accessibility of capital. (shrink)

Intellectual Capital is a driving force behind the financial performance of non-financial firms. Investing in intellectual and physical capital allows companies to optimize their financial performance by maximizing resource utilization. This study aims to determine whether IC efficiency impacts the financial performance of listed Pakistani and Indian companies between 2010 and 2020. Return on Assets and Return on Equity are used to calculate financial performance, and IC is calculated using the modified Value-Added Intellectual (...) Coefficient model. Regression analysis is performed using the STATA software developed by the South Texas Art Therapy Association. Human Capital, Structural Capital, and Capital Employed have a significant impact on Pakistani and Indian firms’ financial performance. Resource-based theory supports these findings. The findings should provide management with a prompt to improve financial performance and emphasize the importance of IC. A rare study has addressed the impact of IC on firm financial performance using the MVAIC model, rather than the VAIC model, in Pakistan and India. (shrink)

AbstractForeign direct investment (FDI) in offshore financial centers (OFCs) is gaining increased attention in business ethics research. Much of this research tends to focus on OFCs as locations where firms can avoid taxes, considering such behavior as unethical. Yet, there is dearth of studies on capital round-tripping by emerging market firms, which is an integral part of this phenomenon. Such round-tripping involves firms sending capital into OFCs only to invest it back in the home country under the (...) guise of “foreign” investment. Presently there is little discussion of the ethical implications of such round-trip FDI activities. In this paper, we conceptualize round-tripping as institutional arbitrage and look at the determinants and ethical implications of such investments into OFCs. Exploring Russian round-tripping we note that firms tend to invest more funds in OFCs that offer a combination of tax and secrecy, or secrecy and property rights protection arbitrage opportunities. In either case firms exploit the opportunities provided by institutional differences between the OFC and Russia while investing back into Russia. Our results tend to indicate that equating OFC investment to tax avoidance and thus deeming it as unethical behavior is too narrow an explanation in the case of emerging economy round-tripping. This is because such investments are often motivated by the unethical behavior of home country stakeholders and may in fact provide benefits to society. (shrink)

Financial wellbeing is an emerging variable in business psychology that is expected to measure overall financial status and future financial trajectories. Financial intelligence and wellbeing have been key determining factors for the financial performance of entrepreneurs. The present study aimed to examine the crucial financial determinants and social capital factors for the entrepreneurial intentions and their financial performances among the 326 entrepreneurs in China. The study's findings showed that the key financial (...) indicators and social capital are significantly related to entrepreneurial intentions, which considerably predict the entrepreneurial financial performance. The mediating relationships also reported that entrepreneurial intentions and financial intelligence significantly mediate the relationship among social capital, financial wellbeing, and entrepreneurial financial performance. The present study has highlighted the implications for potential entrepreneurs for improving their financial performance through sustainable social capital, financial wellbeing, and financial intelligence. This study will also help the strategists in screening the individuals registering as entrepreneurs based on their financial intelligence quotient. The present study enriches the literature by offering an integrated model on financial wellbeing and entrepreneurial financial performance. (shrink)

Eichengreen gives an overview of the connections between financial globalization, domestic autonomy, and social justice.

Using a unique dataset provided by the international rating agency GES®, we investigate the effects of corporate sustainability and industry-related exposure to environmental and social risks on the market value of MSCI World firms. The results show a negative relationship in the earlier years of our sample period. However, the analysis reveals that the capital market perception of sustainability has changed owing to the financial crisis. Looking at the height of the crisis in September 2008, the month in (...) which Lehman Brothers shocked the world’s capital markets by filing for Chapter 11 bankruptcy protection, we find that the previously negative perception of corporate sustainability across its various dimensions was positively affected and offset. In addition, as a moderated regression analysis shows, the crisis led to a positive perception of corporate sustainability in industries that are exposed to higher environmental and social risks. Our study has the practical implication that executives, in particular in industries with high environmental and social risks, should increase their commitment to corporate sustainability due to the changes in the institutional setting triggered by the financial crisis. (shrink)

In his text, the author develops the notion of trust as a condition for the possibility of any relational anthropology. Referring to the root associated with trust as the foundation of the relationship, he takes a position in the dispute about the primal nature of trust or perfidy; believes that in the abusive practices of credit and debt there is a reversal of the meaning of what is a necessary element of human life, relationships based on trust. Perfidy is possible (...) precisely because there is trust. On the basis of such concepts, he develops an analysis of events in the global economy at the turn of the 20th and 21th century, especially the financialization, based on the ideas of such authors as Arrighi, Bourdieu, Eichegreen, Pobłocki and Stiegler but also Lacan. (shrink)

The basic purpose of this study is to analyze the impact of intellectual capital on corporate financial performance. This study is conducted on pharmaceutical sector listed in Pakistan Stock Exchange. Data for this study was collected from audited annual financial statements of selected business organizations over period of ten year i.e. from 2005-2014. Value Added Intellectual Coefficient methodology is employed, in order to measure IC and its different components. The firm’s financial performance is measured by using (...) profitability measures including ROE and ROA, market to book value and asset turnover. In order to analyze the collected data, the Partial Least Square, a SEM technique. These approaches are used to assess the measurement and structural models. The results of analysis have supported the proposed hypothesis i.e. there is significant positive impact of intellectual capital on firm’s financial performance among pharmaceutical industries of Pakistan. (shrink)

Adding to contemporary debates about the relationship between financialization and neoliberalism, this article investigates their entanglement at the level of subjectivity. Primarily, the article argues that financialization and neoliberalism are converging to produce a new form of subjectivity, post-profit homo œconomicus, an always indebted but credit-seeking enterprise. The value of this approach, the article demonstrates, is that it provides theoretical tools capable of grasping the differential production of subjectivity across the uneven and unequal striations of contemporary neoliberal society, from precarious (...) workers of the gig economy to financial sector elites. The article examines two figures who have become central to public and academic debates about neoliberalism and financialization – the low-waged, precarious worker and the indebted student – to consider how neoliberal subjectivity is produced and distributed unevenly. It concludes that within these fragmentary socioeconomic positions are different instantiations of always indebted but credit-seeking human capital. (shrink)

The global financial crisis, triggered by the subprime mortgage crisis in the USA, raises an important issue—namely, private production without the control of private property. The credit system has concentrated increasingly large social assets into the hands of financial institutions governed by a few people. This paper argues that the use of social capital for private production has played a key role in causing the subprime mortgage crisis. The credit and banking systems have abolished the private nature (...) of capital and have instead provided a basis for organizing and implementing social production. However, these systems have not “overcome the antithesis between the character of wealth as social and as private.” Therefore, it behooves us to explore what we can learn from the US financial crisis concerning how best to protect social interests, i.e., how to make the social capital produce for society. (shrink)

Resumen. El siguiente artículo muestra el estado actual de la Responsabilidad Empresarial enMéxico y su efecto en el Riesgo medido a través del Costo de Capital. Para ello, revisamos lasprincipales teorías que muestran que el uso de prácticas sociales en Estados Unidos provocandisminución del riesgo y por ende del Costo de Capital, Aras y Crowther, Richardson yWelker y Diamond y Verrechia. Con el fin de contrastar que las empresas SocialmenteResponsables tienen costos de capital menores consideramos como variable (...) de desempeño social eldistintivo que otorga el Centro Mexicano de Filantropía y por otra parte para calcular elriesgo consideramos el costo de capital a través de la metodología del Capital Asset Price Modelo. Encontramos que las empresas que son socialmente responsables tienen costos de capitalsuperiores que las que no son responsables y que el rendimiento de acciones es superior en lasempresas no responsables, por lo que el diferencial de riesgo vs rendimiento es superior en lasempresas no socialmente responsables. Lo anterior rechaza la hipótesis y contrasta con la realidadempírica de otros estudios.Palabras claves. Distintivo de ESR, CEMEFI, costo de capital, riesgo, rentabilidad de acciones,Bolsa de Valores. The following article shows the current status of the corporate responsibility inMexico and their effect on risk measured by the cost of capital. To do this, we review the maintheories that show that social practices in the United States leads to decrease risk and hence the costof Capital Aras and Crowther, Richardson and Welker and Diamond y Verrechia. In order to contrast that socially responsible companies have lower capital costs we considersocial performance variable the distinction conferred by the Mexican Center for Philanthropy and the cost of capital it estimate on the methodology of the Capital Asset Price model. We find that companies that are socially responsible have capital costs higher than thosethat are not responsible. It rejects the hypothesis and contrasts with the empirical reality of otherstudies.Keywords. CSR distintive, CEMEFI, cost of capital, risk, return in shares, Capital Market Securities. (shrink)

The description of how individual models in families of models are related to each other is crucial for the general philosophical understanding of model-based scientific practice. We focus on the Capital Asset Pricing Models (CAPM) family, a cornerstone in financial economics, to provide a descriptive analysis of model relations within a family. We introduce the concepts of theoretical and empirical complementarity to characterise model relations. Our complementarity analysis of model relations has two types of payoff. Specifically regarding the (...) CAPM, our analysis reveals why this model family, which has been empirically contested, has yet remained popular and important: the different models that have been added over time have made new empirically and theoretically complementary contributions to the model family. More generally, our analysis reveals the dynamic character of model-based scientific practice. Characterising relations between models as theoretically and/or empirically complementary yields three hitherto underappreciated lessons: (i) actual modelling purposes are not always primarily epistemic, (ii) a model's individual import is relative, not absolute, and (iii) there is an important interplay between theory and data models. Faithfully characterising scientific modelling in this way facilitates subsequent analysis of models' epistemic import. (shrink)

The motivation of the study is to explore the nexus tourism-led sustainable human capital development in Brazil, Russia, India, China, and South Africa for the period 1984–2019. The study applied several econometrical techniques for exposing the empirical association between tourism and HCD, such as the conventional and structural break unit root test, the combined cointegration test, long-run and short-run coefficients detected through implementing the Augmented Autoregressive Distributed Lagged, and directional causality by following Toda-Yamamoto with Fourier function. The unit-roots test (...) established variables are integrated in mixed order, wherein variables are stationary at a level or after the first difference. The estimated test statistics from the combined cointegration test and AARDL confirmed the long-run association between tourism, gross capital formation, financial development, and HCD. Tourism revealed a positive and statistically significant tie with HCD in the long run. Moreover, the joint effects of interactive terms TOR*GCF and TOR*FD established a positive and statistically significant relationship with HCD. In addition, the causality test revealed the feedback hypothesis available between tourism and HCD in all sample countries except India. In conclusion, the role of tourism development is critically important for sustainable HCD in BRICS. Therefore, in case of a policymaking concern, it is inevitable to address the tourism issues with care for capitalizing on the benefits for tourism development. (shrink)

The paper investigates the distinctly Chinese intertwining of expertise and state & financial capital to enrich the current understanding of neoliberalism as a hegemonic governing rationale. Since the summer of 2015, China has been experiencing one of its most severe financial crises since the adoption of a ‘socialist market economy’ in 1978. However, globally circulating narratives have failed to look beyond a Western-centric corollary, rehashing a critique of the Chinese one-party system and its lack of a ‘genuine’ (...) free market. By exploring the specific genealogy of Chinese capitalism, and the distinctive Chinese financial-market structure, the article will show how the scientific authority of experts formulated amongst neoliberal thinkers never permeated the Chinese idea of knowledge. In the Chinese variety of financial capitalism, expertise is seen to lie not so much in the wisdom of individual experts as in their socio-political support, which legitimises their economic interventions. (shrink)

Throughout the history of capitalism, there have been tensions between financial institutions and the state, and between financial capital and the firms and households engaged in the production and consumption of physical goods and services. Periods of financial sector dominance have regularly ended in spectacular panics and crashes, often resulting in the liquidation of large numbers of financial institutions and the reimposition of regulatory controls previously dismissed as outmoded and unnecessary. The aim of this article (...) is to consider measures to restore financial markets to their proper role, as servants rather than masters of the market economy and the society within which it is embedded. (shrink)

Nitzan and Bichler’s Capital as Power suggests that conventional theories of capitalism, Marxist and liberal alike, are unable to answer the question: what is capital? They argue that the basic units of Marxist economics, abstract labour and value, are unobservable and immeasurable, and hence ‘non-existent’ and ‘fictitious’. Against Marxists, they argue that capital is not an ‘economic’ entity, but a symbolic quantification of power.This review contends that what Nitzan and Bichler present as a critique of Marxism as (...) such pivots on an incomprehension of dialectical thinking, and thus misses the mark. Furthermore, this absence in their readings of Marx is strictly correlative to the limits of their own theory-building. Capital as Power simply inverts the vulgar economism it finds in Marxist theories, presenting us with a theory in which capital is financial rather than productive, and symbolic rather than material. In doing so, it reproduces the one-sidedness it criticises, while discarding the possibility of analysing capitalism dialectically as a totality consisting of contradictory, but mutually presupposing, moments. (shrink)

This paper assesses the current world economic crisis in terms of crucial transformations in global capitalism throughout the neoliberal period. It argues that intense social and spatial restructuring after the crises of 1973–82 produced a new wave of capitalist expansion that began to exhaust itself in the late-1990s. Since that time, new problems of overaccumulation and declining profitability have plagued global capitalism. Interconnected with these problems are contradictions related to a mutation in the form of world-money, as a result of (...) its complete de-linking from gold after 1971, which stimulated a fantastic growth in financial instruments and transactions, and generated a proliferation of esoteric 'fictitious capitals' whose collapse is wreaking havoc across world financial markets. The intersection between general conditions of overaccumulation and a crisis in financial structures specific to neoliberalism has now produced a deep world-slump. Inherent in this crisis is a breakdown in forms of value-measurement that is throwing up intense struggles between the capitalist value-form and popular life-values, the latter of which comprise the grounds for any real renewal of the socialist Left. (shrink)

The article attempts to present a thorough analysis of intelectual property, as main property of a modern company, from the perspective of private law. The article anlyzes the essence of the intangible resources that form the intellectual capital and discusses whether the modern institutes of law allow the universal protection of companies‘ intellectual capital. The first part of the article analizes the conception of intangible resources and provides their qlassification. The second part of the article discusses the understanding (...) of intellectual capital and importance thereof to modern companies. In the third part of the article, the possibility to financially account all intellectual property of a company is analyzed. The forth and fifth parts of the article reveal the possibilities of legal protection of intellectual capital. The law on intelectual property is not sufficient to protect all intelectual capital because it protects only that part of intangibles, which become the onjects of the intelectual property. (shrink)

The place of money capital in the theory of the firm has remained a relatively neglected question in traditions of economic analysis. In this highly integrative work, issues in production, pricing, capital investment and financial theory are brought to new levels of interdependence. Developing a three-part argument, Money Capital in the Theory of the Firm deals successively with the theoretical issues and analytic motivation, the neoclassical tradition and postclassical perspectives. In doing so, it presents a self-contained (...) foundation in the basic structures of microeconomic analysis relating to optimize decision making in the firm and in the accounting concepts and statistical apparatus of probability theory relevant to the neoclassical aspects of the argument. Additionally, the book provides the essential mathematical development of such advanced topics as utility functions defined over stochastic arguments, the equilibrium theory of financial asset prices and yields, the cost of money capital, and investment decision criteria. This book makes an important contribution to the formation of new and analytically richer perspectives in the important area of economics it addresses. It will be of particular interest to those working in economic theory and microeconomics, and their advanced students. (shrink)

Starting from sociological perspectives on complexity, we show how the social capital of boards and owners networks affects the implied cost of capital of companies listed on Brazilian stock exchange. We specifically show arguments and evidence that the effect of the relational resources found in the direct, indirect, and heterogeneous board’s ties reduces the cost of capital while relational resources embedded in shareholder networks increase the cost of capital. Our results show that while the increase in (...) the relational resources of the board reduces the implied cost of capital, an increase in these shared resources in the ownership relationships of the firm increases the cost of financial capital. (shrink)

Operational and financial sustainability have, over time, remained as issues in the microfinance industry. The microfinance industry is struggling to gain self-sufficiency in Pakistan due to non-performing loans and operating costs. Simultaneously, deliberation on corporate social responsibility is also considered in academic literature and organizational practices. However, studies on CSR and financial performance in the microfinance sector are scarce, especially in Pakistan. CSR will develop customer attraction and loyalty, employee attraction, motivation and commitment, MFIs' reputation and access to (...) capital, and eventually build financial performance. Interviews were conducted with branch managers of microfinance institutions to test previous questionnaires. A self-administered survey was conducted to collect data from the managers of the microfinance banks operating in Punjab. Descriptive and inferential statistics were performed to answer research questions using Smart PLS. Most of the microfinance institutions believe in social responsibilities but lacks fund allocation and approval from higher management, and results are in line with prior studies. These empirical findings lead to the perception that CSR is not a barrier performance in microfinance banks as they have access to capital. The results indicated a strong positive correlation between CSR and the financial performance of the MFIs. CSR also positively correlates with customer retention, employees' motivation and attraction, and business reputation. CSR was associated with access to capital but was found to be weak. The research also narrated the limitation and practical implications of the study. The study also discusses further research directions. (shrink)

Contemporary general equilibrium theory is characteristically short-run, separated from monetary aspects of the economy, and as such does not deal with long-run problems such as capital accumulation, innovation, and the historical movement of the economy. These phenomena are discussed by growth theory, which assumes a given or shifting production function, and in turn cannot therefore deal with the fundamental problem of growth, namely how the production function is derived. Thus traditional theories have a common weakness in that they divorce (...) real economic growth from the activities of the financial sector. This book provides a much-needed synthesis of growth theory and monetary theory. Professor Morishima draws on the work of Schumpeter, Keynes and the pre-war neoclassical economists to formulate a capital-theoretic general equilibrium theory. (shrink)

Apocalyptic thinking has a long religious and political tradition, but what place does it occupy within the temporal universe of contemporary capitalism? In this essay, we use the figure of the eschaton to draw out the loaded and ambiguous character of the future as it emerges through the condition of indebtedness. This entails a departure from political economy accounts of capitalist futurity, which stress the structural logic of financial speculation, in favour of an existential account that begins instead with (...) the cosmology of money and debt. We argue that finance capital’s fixation on the future has produced a very specific form of apocalyptic imagination, characteristic of financial society and built on a libidinal economy of leverage. Rather than offering an ecstatic end to the global process of financialization, financial eschatologies bind the contemporary subject to debt and indebtedness to the very end: an endless apocalypse, premised on the ends of finance itself. (shrink)

The current crisis is one outcome of the financialisation of contemporary capitalism. It arose in the USA because of the enormous expansion of mortgage-lending, including to the poorest layers of the working class. It became general because of the trading of debt by financial institutions. These phenomena are integral to financialisation. During the last three decades, large enterprises have turned to open markets to obtain finance, forcing banks to seek alternative sources of profit. One avenue has been provision of (...) financial services to individual workers. This trend has been facilitated by the retreat of public provision from housing, pensions, education, and so on. A further avenue has been to adopt investment-banking practices in open financial markets. The extraction of financial profits directly out of personal income constitutes financial expropriation. Combined with investment-banking, it has catalysed the current gigantic crisis. More broadly, financialisation has sustained the emergence of new layers of rentiers, defined primarily through their relation to the financial system rather than ownership of loanable capital. Finally, financialisation has posed important questions regarding finance-capital and imperialism. (shrink)

Systemic financial risk is one of the most significant collective action problems facing societies. The Great Recession brought attention to a tragedy of the commons in capital markets, in which market participants, from the first-time homebuyer to Wall Street financiers, acted in ways beneficial to themselves individually, but which together caused substantial collective harm. Two kinds of risk are at play in complex chains of transactions in financial markets: ordinary market risk and systemic risk. Two moral questions (...) are relevant in such cases. First, from the standpoint of interactional morality, does a person have a moral duty to avoid risk of harm to others if their financial transactions contribute in some way, however small, to the loss or harm? This article identifies the conditions in which persons are morally responsible in such cases. Second, from the standpoint of institutional morality, how should society distribute the risk of harm associated with massively complex financial markets? This question is considered in the context of the home mortgage credit market. Luck egalitarianism, in particular a Dworkinian insurance scheme to allocate risks and resources relating to mortgage credit and private home ownership, offers substantial promise. (shrink)

Entrepreneurship plays an important role in the development of national economy. The study aims to accelerate the construction of social and economic structure by improving the success rate of new entrepreneurs in the process of innovation and entrepreneurship. First, the related theories of financial risk prediction are introduced, and entrepreneurial psychological status and the psychological states on entrepreneurship are analyzed. Second, the current situation of entrepreneurial psychology of new entrepreneurs is analyzed through a questionnaire survey and model test. The (...) results show that private enterprises account for the largest proportion, with a percentage of 58.14% of 125. In total, 32 Chinese-foreign joint ventures rank second and account for 14.88% of the total, and the scale of each type of enterprises accounts for 25%, respectively. The operating years of enterprises are mainly between 10 and 20 years. Among the enterprises surveyed, the significant level of entrepreneurial psychology and entrepreneurial opportunity of entrepreneurs is p = 0.000–0.01. It indicates that males’ psychological adjustment ability and entrepreneurial ability in the entrepreneurial process are higher than females’, and their entrepreneurial psychological states and entrepreneurial ability will improve with the growth of age, education levels, and positions. It is concluded that entrepreneurial psychological capital and entrepreneurial opportunity are significantly positively correlated with financial risk expectation. The research results prove the impact of financial risks on the entrepreneurial psychology of new entrepreneurs, and provide a reference for new entrepreneurs in predicting financial risks. (shrink)

Richard A. Posner's two books on the financial crisis focus on possible macroeconomic (Keynesian) causes of it, neglecting legal causes that would have had only microeconomic effects, yet could have been responsible for the crisis. Specifically, Posner accepts too readily the conventional wisdom that banks? leverage levels, hence their capital cushions, were deregulated; this ignores Basel I, Basel II, and the Recourse rule, which internationally and (in the last case) in the United States minutely regulated not only leverage (...) levels but the composition of banks? assets. These regulations penalized banks for making business loans in comparison to mortgage loans, and it further penalized them for keeping mortgage loans rather than selling them for securitization and then buying back the ?senior? tranches of the resulting mortgage-backed securities. These regulations may explain the overconcentration of mortgage risk in the banks, and thus the financial crisis. (shrink)

Richard A. Posner's two books on the financial crisis focus on possible macroeconomic (Keynesian) causes of it, neglecting legal causes that would have had only microeconomic effects, yet could have been responsible for the crisis. Specifically, Posner accepts too readily the conventional wisdom that banks’ leverage levels, hence their capital cushions, were deregulated; this ignores Basel I, Basel II, and the Recourse rule, which internationally and (in the last case) in the United States minutely regulated not only leverage (...) levels but the composition of banks’ assets. These regulations penalized banks for making business loans in comparison to mortgage loans, and it further penalized them for keeping mortgage loans rather than selling them for securitization and then buying back the “senior” tranches of the resulting mortgage-backed securities. These regulations may explain the overconcentration of mortgage risk in the banks, and thus the financial crisis. (shrink)

This article analyzes the Turkish central bank's “managed uncertainty” policy after the global financial crisis. During 2010–14, the central bank intentionally generated uncertainty around short-term interest rates, using the level of predictability faced by financiers as a tool to buffer the domestic economy from volatile capital flows. How did the central bank implement this unconventional policy? Building on interview data and public texts, the article argues that the surge in capital inflows after the crisis sourced a debt-led, (...) financialized economic growth model and deepened Turkey's reliance on external financing. The central bank could diverge from the financial sector's policy preferences despite Turkey's increased foreign capital dependence because the availability of low-cost, ample, private funding opportunities temporarily expanded policymakers’ room to maneuver. However, operating vis-à-vis an unsustainable growth regime, the central bank had to revert to orthodoxy in 2014 due to declining investor confidence and capital flight. This article contributes to the literature on the structural power of finance by demonstrating how finance derives its structural power from funding financialized growth, not productive investments. It also shows that financial structural power varies based on the source and cost of external financing beyond the degree of foreign capital dependence. (shrink)

We investigate how a broker firm’s initial public offering affects its analysts’ fiduciary duty of providing independent and objective recommendations. We find that the analysts of newly listed broker firms issue more positively biased recommendations in the first 2 to 3 years after their employers’ IPO than before the IPO. The increase in the recommendation bias is greater among analysts of affiliated brokers and brokers that raise additional capital after their IPO than among other analysts. Newly listed broker firms (...) experience significant increases in revenue and trading commission, and the increases are positively related to recommendation bias, after controlling for many other factors. More importantly, recommendation bias decreases as newly listed broker firms season and as the importance of trading commission declines. This suggests that public exposure through a broker firm’s IPO does not enhance the integrity and professional conduct of its financial analysts. Rather, economic incentives make financial analysts more accepting of unethical behavior. The overall results imply that the public trading of financial gatekeepers compromises the ethical relationship between financial service professionals and society in general. (shrink)

Resumo: Este artigo é uma análise marxista da crise econômica mundial e do modo como ela coloca em questão o sistema capitalista. Nele defendemos a tese de que não estamos diante de uma "crise financeira", mas de uma crise clássica de superprodução, determinada pelo caráter cada vez mais especulativo do capital e pela hipertrofia do capital financeiro diante do capital que produz diretamente a mais-valia. São analisadas as dimensões estruturais da crise, o papel do Estado, a natureza (...) do capital financeiro e as determinações estruturais que produzem a tendência histórica à queda da taxa de lucro.Palavras-chave: Capital - Crise de Super-Produção - Capital Financeiro - Taxa de Lucro - Mais-valia.: This article is a marxist analysis of the global economic crisis and the way it defies capitalism as a whole. We argue here that this crisis is not a "financial" one, but a classical overproduction crisis, determined by the speculative character of capital and the hypertrophy of the financial capital in relation to the capital that produces directly plus-value. We discuss the structural dimensions of the crisis, the nature of financial capital and the structural determinations that produce the historical tendency to the fall of the profit tax. (shrink)