Day+23-24+Emergence+of+Shareholder+Value+19-21+Oct+2011 (1)

Day+23-24+Emergence+of+Shareholder+Value+19-21+Oct+2011 (1)...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The Emergence of Shareholder Value October 19 th & 21 st , 2011 Understanding the Contemporary Capitalist Enterprise Marx: the capitalist enterprise operates on profit Thus, understanding the capitalist enterprise is understanding the way that it exploits labor in order to secure profit (Edwards) This is extremely useful. But, there are things that remain to be explained. Our approach in Soc 110 1. The capitalist enterprise is shaped by social institutions that emerge through intraorganizational struggle (DiMaggio & Powell, Fligstein) 2. Specifically, the contemporary capitalist enterprise is shaped by the dominance of THE FINANCIAL WORLD Two Venues of Financial Capitalism The Capitalist Enterprise: its orientation toward creating wealth on the stock market as opposed to revenue/profit Wall Street: the housing bubble and Credit Crisis in 2007-08 (this is mostly the bond market ) The Next Couple of Weeks Understanding the capitalist enterprise two parts Understanding the historical emergence of the shareholder value conception of the firm (today) Understanding the firm at the height of the shareholder value culture : Enron Understanding Wall Street and its role in the Credit Crisis (November 14 th-18 th ) Where were we on the eve of the 1980s? Fligstein: finance conception of control strategy: diversification across unrelated product markets to get around problems with Celler-Kefauver Act of 1951 emphasis shifts from marketing related products to divesting from wherever is cold Firms become bundles of assets to be deployed and redeployed by the buying and selling of firms favors FINANCE personnel The 1970s: external crisis Rising interest rates: make bonds more attractive to investors than stocks make it more expensive to borrow money, which further depresses the stock market since large investors often borrow to purchase stock Fewer buyers of stocks price of stocks go DOWN The problem of...
View Full Document

This note was uploaded on 02/21/2012 for the course SOC 110 taught by Professor Powers during the Spring '07 term at University of California, Berkeley.

Page1 / 25

Day+23-24+Emergence+of+Shareholder+Value+19-21+Oct+2011 (1)...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online