Publication series

Ondernemingsbeleid in een wereld van financialisering

Volume: 30 Topics in Corporate Finance

Author(s): D. Bezemer, K. Cools, A. Boot

Year: 2023

ISBN: 978-90-77859-19-3

Price: € 20.00

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With this new publication (in Dutch) Ondernemingsbeleid in een wereld van financialisering from Dirk Bezemer (Rijksuniversiteit Groningen), Kees Cools (Tilburg University) and Arnoud Boot (University of Amsterdam) the Amsterdam Center for Corporate Finance seeks to contribute to the current debate on the concept of financialization within society.

Our financial economies have experienced unprecedented growth in recent decades. This has not only manifested itself in a growing role for the financial sector over time, but also in a stronger focus on financial incentives. This is referred to as financialization. The often heated social debate focuses on questions such as: do we live in a world where finance rules, and financial standards and instruments dominate the economy? And is shareholder capitalism, aimed at financial gain, rampant, or do companies guarantee broader social interests?

In three contributions, respectively by Dirk Bezemer (University of Groningen), Kees Cools (Tilburg University) and Arnoud Boot (University of Amsterdam), this problem is analyzed in different ways and positions are taken. The authors are active participants in the current social debate about the role of the financial sector, shareholders and companies in society. All in all, the three contributions offer a rich variety of perspectives that focus on the relationship between the financial and real economy, and by extension how companies should act in a world in which they are expected to perform financially while at the same time fulfilling their social responsibility.

Dirk Bezemer examines the macroeconomic context of financialization. He shows that financial flows have gained importance. Debt levels are historically high and property income has become increasingly important. The conclusion from his analysis is that the importance of the financial economy has become too large. It is no longer that financial development contributes to economic growth, but rather that the tumultuous growth of finance skims the real economy and hinders it, and is therefore harmful.

            Kees Cools' contribution is also very critical and focuses on shareholder capitalism, which in his view has become very dominant, more or less as a symptom of financialisation. He calls for a paradigm shift to a more sustainable and inclusive model. Cools argues that the shareholder model has turned the management of companies into shareholders' bosses and – despite fine words that sometimes suggest a greater sense of social responsibility – bombards profit maximization as an exclusive objective. He is skeptical about the broader prosperity story propagated by entrepreneurs. He does not consider this possible within the current shareholder capitalism. He also formulates a number of thoughts on how to arrive at a more sustainable economic paradigm.

            In the last contribution, Arnoud Boot makes some nuances. He sees fewer contradictions, but does recognize that opportunistic financial gain at the expense of the public interest is a problem and can affect the social fabric of society. He places a much greater responsibility on directors. In his view, long-term value creation and related broader social interests can indeed be steered, but company boards are distracted far too much by short-term motives. He sees shareholders as ‘the source of evil’ as far too easy; their interests need not be at odds with long-term value creation.

Publications Topics in Corporate Finance

302023D. Bezemer, K. Cools, A. BootOndernemingsbeleid in een wereld van financialisering€ 20.00
292021A.J. Menkveld, G. Vuillemey, M.P. Schinkel, T. Klein and othersPerspectives on Central Clearing and Competition Policy€ 20.00
282020R. de Weijs, A. Jonkers & A. Boot et al.Perspectives on Leveraged Finance and Fintech€ 20.00
272019Dirk Schoenmaker, Rens van Tilburg, Elisa Achterberg and Max van SonSustainable Finance and Government Policy€ 20.00
262018Arnoud W.A. Boot, Jeroen E. Ligterink and Jens K. MartinUnderstanding Fintech and Private Equity€ 20.00
252017Jeroen E. Ligterink en Jens K. MartinPrivate equity: waardecreatie, herverdeling en excessen€ 20.00
242015Tanju YorulmazerUnderstanding the Crisis: Bank Funding Structures as Source of Instability€ 20.00
232014Anat R. AdmatiTowards a Better Understanding of the Capitalization of Banks€ 20.00
222013Arnoud W.A. BootTransactiemaatschappij en financiële markten: op zoek naar een nieuwe balans€ 20.00
212012Lans BovenbergMacro-oplossingen gezocht: naar integrale oplossingen voor de onevenwichtigheden in wonen, pensioen, ouderenzorg en het bancaire landschap€ 20.00
202011Paul De Grauwe and Arnoud W.A. BootTowards a Fundamental Resolution of the Eurocrisis€ 20.00
192010David T. LlewellynThe Global Banking Crisis and the Post-Crisis Banking and Regulatory Scenario€ 20.00
182010Ludovic PhalippouRegulating Private Equity€ 20.00
172009Frank Partnoy, Arnoud W.A. Boot and Anjan V. ThakorTowards a Fundamental Understanding of Financial Sector Developments€ 20.00
162008Arnoud W. A. BootCorporate finance theorie en financiële crisis in breder perspectief € 20.00
152007Arnoud W.A. Boot, meerdere auteursPrivate equity en aandeelhoudersactivisme€ 20.00
142007X. Vives and V. Strauss-KahnHeadquarters and innovation: does location matter? € 20.00
132006L. Bouchez, M. Knubben, J.A. McCahery and L. Timmerman (eds)The Quality of Corporate Law and the Role of Corporate Law € 20.00
122005J. McCahery and E. VermeulenUnderstanding (Un)incorporated Business Forms € 20.00
112005D. Cumming, G. Fleming and A. SchwienbacherRecent research on the investment behavior of private equity fund managers€ 20.00
102005M.J.G.C. Raaijmakers, G. van Solinge en P. Frentrop Corporate governance: een agenda voor de toekomst€ 20.00
92004Amar BhidéEntrepreneurship and Venture Capital€ 20.00
82004V. Maksimovic, D. Brounen, A. de Jong and K. KoedijkPerspectives on the Theory and Practice of Corporate Finance € 20.00
72003J.J.A. LeenaarsSecuritisatie: Economics en Europees Perspectief€ 20.00
62003U. BhattacharyaGlobal Corporate Governance and Accounting Transparency € 20.00
52002A. Saunders and A. SchmeitsThe Role of Bank Funding for the Corporate Sector: the Netherlands in an International Perspective € 20.00
42001Todd T. MilbournManagement Compensation in the Netherlands: Theory, Evidence, and Best Practice € 12.50
32000A.W.A. Boot and J.E. LigterinkDe Efficiëntie van de Nederlandse Faillissements€ 15.00
22000E.I. Altman and A. Saunders, and A.W.A. Boot, T. Milbourn, and S. DezelanPerspectives on the Regulation of the Financial Services Industry € 12.50
11999I. Walter and A.W.A. BootThe Future of Banking: Two Essays on the Consolidation in the Financial Sector€ 15.00