Financialization and its impact upon the developed economies
Financialization and its impact upon the developed economies

Summary/Abstract: Financialization is a multidimensional process that has originated in the developed economies at the beginning of the 1980s. In a broad sense, financialization is understood as a process of autonomization of the financial sphere or even obtaining the supremacy over the real economy. The emergence of an era of neo-liberalism, reflected in the processes of globalization and loosening of regulatory framework, contributed to the fast development of financialization. Finan-cialization has had an impact upon the governance systems in corporations. It resulted in marked change in the goals of managers who became primarily oriented on short-term profits and increase of stock price. Another consequence of this process has been growing interest of non-financial companies in developing financial activity that has started to provide increasingly high contribution to companies’ profits. The negative aspect of financialization of company activities has been, in many cases, inadequate investment in tangible assets.

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