On the Financialisation of Business Strategies

Abstract The purpose of this chapter is to study corporate strategies and their evolution over the last few decades (1970–2020). The strategic issues are examined through the lens of the following activities: portfolio scope (diversification versus specialisation), structuring (integration versus ou...

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Bibliographic Details
Published inRethinking Finance in the Face of New Challenges Vol. 15; pp. 71 - 84
Main Author Pérez, Roland
Format Book Chapter
LanguageEnglish
Published Emerald Publishing Limited 25.10.2021
Subjects
Accounting & Finance
Financial Risk/Company Failure
Risk Management/Analysis
cost of capital
financialisation
leverage
share buybacks
outsourcing
Corporate strategy
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Summary:Abstract The purpose of this chapter is to study corporate strategies and their evolution over the last few decades (1970–2020). The strategic issues are examined through the lens of the following activities: portfolio scope (diversification versus specialisation), structuring (integration versus outsourcing) and financing, debt-related policies (leverage) and equity (dilution versus relution). The financialisation of corporate strategies is evident at various levels (specialisation, outsourcing, leverage, relution) to the detriment of the other stakeholders concerned. It weakens the latter and calls for stronger regulation of the financial markets (particularly share buyback operations).
ISBN:1801177899
9781801177894
ISSN:2043-9059
DOI:10.1108/S2043-905920210000015015