Resource title

Shareholder value orientation, distribution and growth - short- and medium-run effects in a Kaleckian model

Resource image

image for OpenScout resource :: Shareholder value orientation, distribution and growth - short- and medium-run effects in a Kaleckian model

Resource description

We discuss the effects of rising shareholder power on distribution and capital accumulation in a Kaleckian model. Increasing shareholder power is associated with decreasing managements' animal spirits, on the one hand, and increasing dividends distributed to shareholders, on the other hand. In the short run, increasing shareholder power may either have positive ('finance-led'), negative ('normal') or intermediate ('profits without investment') effects on capacity utilisation, profits and capital accumulation. In the medium run, the positive ('finance-led') effects may be maintained in a stable environment under very special conditions, whereas the negative ('normal') and the intermediate ('profits without investment') effects turn into cumulative disequilibrium processes with falling rates of capacity utilisation, profits and capital accumulation and rising debt- and rentiers' equity-capital-ratios. (authorĀ“s abstract) ; Series: Department of Economics Working Paper Series

Resource author

Eckhard Hein

Resource publisher

Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://epub.wu.ac.at/930/1/document.pdf

Resource license

Adapt according to the license agreement. Always reference the original source and author.