The impacts of economy’s financialization on corporate governance, executive management and human relationships in French small and middle-sized companies[Research paper] by Yazid Arifi

2013-09-29

The author was part of the "Alternative Management" third year specialization program in HEC in 2012-2013. After having worked in the phosphate industry, in market finance and in a consulting firm, Yazid Arifi is interested in the work of heterodox economists and intellectuals, so as to feed his reflection on the legitimacy of capitalism. He now plans to work in the third sector or in a NGO.

This work aims at exploring and understanding the impacts of economy’s financialization on small and middle sized French companies in terms of governance, management and human relationships. To be more precise, the thesis focuses on one specific financial mechanism named LBO, which stands for Leveraged Buy Out. It consists of buying the shares of a given corporation resorting to massive indebtedness and relying on the firm’s cash flows to pay back the debt. This analysis of LBO gives the opportunity to learn more global and structural lessons about the consequences of financialization on the way economies work and on the unbalances it introduced in the relationship between capital and labor. The last part of the research is meant to suggest a series of institutional shifts that might pave the way for an alternative to LBO and, broadly speaking, to financial hegemony.

Quote article  Yazid Arifi, « The impacts of economy’s financialization on corporate governance, executive management and human relationships in French small and middle-sized companies », 29 september 2013, Alternative Management Observatory (AMO), [Research paper]
http://appli6.hec.fr/amo/Articles/Entry/Item/317.sls

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