Luxury relying on banking and finance (19th-21st centuries)

Hubert Bonin

Cahiers du GREThA (2007-2019) from Groupe de Recherche en Economie Théorique et Appliquée (GREThA)

Abstract: Luxury-specific production systems have expanded through upstream-downstream integration, from commodities (silk, precious metals, etc.) to processing industries and luxury houses themselves. Banks financed companies, trade, foreign exchange and flows of means of payment. Starting in the 1980s, business bankers supported companies building a capitalism of luxury firms: they helped them to integrate the game of financial markets. For managers of companies in the luxury sector, the challenge has always been to create strong self-financing capacities in order to be able to distribute dividends ensuring the loyalty of family shareholders, finance investments (workshops, shop networks), and contain indebtedness. When tensions were encountered, the dependence on bankers and investors, in the event of a stock exchange listing, often led to the takeover of control by leading groups.

Keywords: Luxury; family business; Bernard Arnault; François Pinault; investment banking; cash-flow; capitalistic restructurings (search for similar items in EconPapers)
JEL-codes: N14 N24 N80 O16 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-his
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Persistent link: https://EconPapers.repec.org/RePEc:grt:wpegrt:2019-06

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