Tori, Daniele and Onaran, Ozlem
(2018).
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(Accepted Manuscript)
Due to publisher licensing restrictions, this file is not available for public download until 24 January 2020 |
| DOI (Digital Object Identifier) Link: | https://doi.org/10.1093/cje/bex085 |
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| Google Scholar: | Look up in Google Scholar |
Abstract
This paper estimates the effects of financialization on physical investment in the UK using panel data based on balance-sheets of publicly listed non-financial companies supplied by Worldscope for the period 1985-2013. We find robust evidence of an adverse effect of not only financial payments (interests and dividends) but also financial incomes on the rate of accumulation. The negative impacts of financial incomes from interests and dividends are particularly strong for the pre-crisis period. Our findings support the ‘financialization thesis’ that the increasing orientation of the non-financial sector towards financial activities is ultimately leading to lower physical investment, hence to stagnant or fragile growth, as well as long term concerns for productivity.
| Item Type: | Journal Item |
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| Copyright Holders: | 2018 The Authors |
| ISSN: | 1464-3545 |
| Keywords: | Financialization; Investment; Non-financial sector; Firm data; United Kingdom |
| Academic Unit/School: | Faculty of Business and Law (FBL) > Business > Department for Accounting and Finance Faculty of Business and Law (FBL) > Business Faculty of Business and Law (FBL) |
| Item ID: | 52367 |
| Depositing User: | Daniele Tori |
| Date Deposited: | 17 Nov 2017 15:42 |
| Last Modified: | 04 Jun 2019 15:13 |
| URI: | http://oro.open.ac.uk/id/eprint/52367 |
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