Knafo Dutta - Patient capital in an age of financialised managerialism - submitted version.pdf (380.19 kB)
Patient capital in the age of financialized managerialism
journal contribution
posted on 2023-06-09, 02:46 authored by Samuel KnafoSamuel Knafo, Sahil Jai DuttaThis article focuses on the history of financialized management and its connections to shareholder value, which is often viewed as undermining patient strategies of investments. We argue that the rise of financialized management has in fact a long history that goes back to the conglomerate movement in 1960s America. As we show, the conglomerates pioneered the use of financial markets as a baseline for strategy, and the emphasis on financial transactions as an engine for growth. They developed key techniques—high leverage, share-price maximization and accounting manipulation—that later came to be associated with managerial strategies of the shareholder value era. This legacy has important implications for how we think about patient capital. It challenges the idea that patient capital consists foremost in shielding non-financial companies from capital markets and highlights the central role of management too often neglected in these debates.
History
Publication status
- Published
File Version
- Accepted version
Journal
Socio-Economic ReviewISSN
1475-1461Publisher
Oxford University PressExternal DOI
Issue
4Volume
14Page range
771-788Department affiliated with
- International Relations Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2017-01-26First Open Access (FOA) Date
2018-09-12First Compliant Deposit (FCD) Date
2017-01-26Usage metrics
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