The (Over)Cost of Capital: Financialization and Nonfinancial Corporations in France (1961–2011)

Laurent Cordonnier, Thomas Dallery, Vincent Duwicquet (), Jordan Melmies () and Franck van de Velde
Additional contact information
Laurent Cordonnier: CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique
Jordan Melmies: CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique
Franck van de Velde: CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: The term ‘financialization' is often used to describe the major changes that occurred in the macroeconomic regimes of most developed and, to a lesser extent, emerging economies since the beginning of the 1980s. In the present paper, we propose a reappraisal of the notion of the cost of capital and subsequently argue that financialization in France has increased the cost of capital for nonfinancial corporations with new standards of financial profitability. We introduce a measurement for what could be called the over-cost of capital and describe how the evolution of this additional financial burden may explain the slowdown in the pace of capital accumulation, and thus the drop in French macroeconomic performance observed for the past 30 years.

Keywords: Capital accumulation; cost of capital; theory of the firm; financialization (search for similar items in EconPapers)
Date: 2019-07-03
References: Add references at CitEc
Citations:

Published in Review of Political Economy, 2019, Review of Political Economy, 31 (3), pp.407-429. ⟨10.1080/09538259.2019.1706265⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02545950

DOI: 10.1080/09538259.2019.1706265

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().