Corporate financialization’s conservation and transformation: from Mark I to Mark II

Abstract This paper argues that, as far the investment behavior of non-financial corporations is concerned, apparent continuity over last four decades suggested by corporate financialization label misleading. Indeed, while disconnection between profitability and a robust stylized fact for most period, with cumulative detrimental consequences labor, we contend that underlying mechanisms changed meaningfully at turn millennium. contribution identifies—empirically theoretically—two distinct successive regimes (Mark I Mark II) explains their evolutionary articulation. Financialization characterized empowerment financial actors: in context high interest rates full-blown liberalization, diminishing retained earnings resulted dramatic slowdown investment. Contrastingly, II strongly established hegemony new forms intellectual monopoly. In this configuration, are low global value chains deeply seated. fuels rampant deflationary pressure, which changes overall dynamic profit-investment nexus. Then, II, contrary to what occurred during I, distributed profits consequence slow