The Impact of Financialization on the Rate of Profit

Bucchianico, Stefano Di

doi:10.1080/09538259.2020.1835109

Cited by 13 publications

(9 citation statements)

References 48 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…More in details, Fig. 4 (a) and (b) show in-phase relationship (positive co-movement) at short (8)(9)(10)(11)(12)(13)(14)(15)(16) and long wavelet scales (16)(17)(18)(19)(20)(21)(22)(23)(24)(25)(26)(27)(28)(29)(30)(31)(32) with no clear lead/lag relationship during the period 2006-2009.…”

Section: Wavelet Coherence and Wavelet Phase Differencementioning

confidence: 99%

See 1 more Smart Citation

Wavelet analysis and energy-based measures for oil-food price relationship as a footprint of financialisation effect

Mastroeni¹,

Mazzoccoli²,

Quaresima³

et al. 2021

Preprint

View full text Add to dashboard Cite

In this article we analyse the oil-food price co-movement and its determinants in both time and frequency domains, using the wavelet analysis approach. Our results show that the significant local correlation between food and oil is only apparent. This is mainly due to the activity of commodity index investments and, to a lower extent, to the increasing demand from emerging economies. Furthermore, we employ the wavelet entropy to assess the predictability of the time series under consideration. We find that some variables share with both food and oil a similar predictability structure. These variables are those that mostly co-move with both oil and food. Some policy implications can be derived from our results, the most relevant being that the activity of commodity index investments is able to increase correlation between food and oil. This activity generates highly integrated markets and an increasing risk of joint price movements which is potentially dangerous in periods of economic downturn and financial stress. In our work we suggest that governments should also provide subsidy packages based on the commodity traded in commodity indices to protect producers and consumers from adverse price movements due to financial activity rather than lack of supply or demand.

show abstract

Section: Wavelet Coherence and Wavelet Phase Differencementioning

confidence: 99%

“…S&P GSCI and DJ-UBSCI, were significantly correlated with oil prices compared to off-index commodities. The impact of financialisation has also been addressed in the context of labour market institutions [26,27]. The importance of financialisation has also been shown by [28].…”

Section: Literature Reviewmentioning

confidence: 99%

Wavelet analysis and energy-based measures for oil-food price relationship as a footprint of financialisation effect

Mastroeni¹,

Mazzoccoli²,

Quaresima³

et al. 2021

Preprint

View full text Add to dashboard Cite

show abstract

“…The number of sales made by the company will certainly increase the company's profit. In addition, companies with large sizes can produce low cost products, where low cost levels are one element to achieve profit (Di Bucchianico, 2021). The increase in profit will cause profitability to increase as well.…”

Section: The Effect Of Size On Return On Assetsmentioning

confidence: 99%

Effect Of Firm Size, Debt Equity Ratio and Current Ratio to Return on Asset (Study on Hotel, Restaurant and Tourism Companies Listed on IDX)

Widyakto

Taruna

Sundoro

2022

Jurnal Riset Ekonomi dan Bisnis

View full text Add to dashboard Cite

This research aims to find out the influence of Firm Size, Debt Equity Ratio (DER), and Current Ratio (CR) on Return on Assets (ROA) on hotel, restaurant and tourism companies listed on Indonesia Stock Exchange (IDX). Research on profitability in companies engaged in the tourism sector is necessary because currently, the sector has a high opportunity to move the community's economy. This research will reveal variations in the role of company size, solvability, and liquidity to profitability in the tourism sector. The sample used in this study amounted to 10 of the 48 Hotel, Restaurant, and Tourism sub-sector companies listed on the IDX in the period 2018-2020. The selection of such samples using purposive sampling techniques, in which researchers set specific provisions tailored to the purpose of the study. The data analysis techniques used are multiple linear regression, classical assumption test, t-test, F test and coefficient of determination. Based on simultaneous tests, it was found that the variables Firm Size, Debt Equity Ratio (DER), and Current Ratio (CR) significantly affect the return on asset (ROA) in hotel, restaurant and tourism sub-sectors listed on the IDX. Penelitian ini bertujuan untuk mengetahui pengaruh Ukuran Perusahaan, Debt Equity Ratio (DER), Current Ratio (CR) terhadap Return on Assets (ROA) pada perusahaan hotel, restoran dan pariwisata yang terdaftar di Bursa Efek Indonesia (BEI). Penelitian tentang profitabilitas pada perusahaan yang bergerak disektor pariwisata sangat perlu dilakukan. Sektor ini memiliki peluang tinggi dalam menggerakkan perekonomian masyarakat. Penelitian ini akan mengungkap variasi peran ukuran perusahaan, sovabilitas, dan likuiditas terhadap profitabilitas dalam sector pariwisata. Sampel yang digunakan dalam penelitian ini berjumlah 10 dari 48 perusahaan subsektor Hotel, Restoran, dan Pariwisata yang terdaftar di BEI periode 2018-2020. Pemilihan sampel tersebut menggunakan teknik purposive sampling, dimana peneliti menetapkan ketentuan tertentu yang disesuaikan dengan tujuan penelitian. Teknik analisis data yang digunakan adalah regresi linier berganda, uji asumsi klasik, uji t, uji F dan koefisien determinasi. Berdasarkan pengujian simultan ditemukan bahwa variabel Firm Size, Debt Equity Ratio (DER), Current Ratio (CR) berpengaruh signifikan terhadap return on asset (ROA) pada subsektor hotel, restoran dan pariwisata yang terdaftar di BEI.

show abstract

“…The era of financialization has been marked by a huge increase in the size of the financial sector. To have an idea about this growth, it is sufficient to mention the tremendous rise of the ratio between financial and domestic corporate profits (Di Bucchianico 2020a , b ) or the flows into commodity investments, increased from $ 15 billion in 2003 to $ 250 billion in 2009 (Irwin and Sanders 2012 ). Financial institutions, insurance companies, pension funds, among others, can be considered the major causes of these vast inflows (Zhang et al 2017 ; Wang et al 2015 ; Mi et al 2017 ; Benedetto et al 2019 ).…”

Section: Rise and Reasons Of Financial Neoliberalismmentioning

confidence: 99%

“…On the other hand, the rise of financial neoliberalism has seen the increase in the indebtedness of households and businesses. See, e.g., the burgeoning household debt in percentage of GDP in the US (Di Bucchianico 2020a , b ); or the growing of subprime lending i.e., mortgages for customers not deserving of creditworthiness, in other words “poor people”, at high real interest rates from $160 billion to $600 billion (Lapavitsas 2009 ). This represent an unprecedented occurrence in the history of capitalism: in fact, from the above considerations, if a declining share of money flows to workers, and yet a growing part of profits is generated out of their mortgages and credit cards, the music will stop, in terms of liquidity, and the things will be complicated (paraphrasing the words of the former Citigroup CEO Chuck Prince).…”

Section: Socio-economic Implications Of Financial Neoliberalismmentioning

confidence: 99%

A critique of financial neoliberalism: a perspective combining multidisciplinary methods and commodity markets

Vellucci

2021

SN Bus Econ

View full text Add to dashboard Cite

The era of financialization bas been marked by a huge increase in the size of the financial sector. The economic justifications for this expansion arise from the prevailing neo-liberal ideology; they are based on arguments like leading role of markets, economic efficiency, reallocation and spreading of risk. Given these reasons, financialization can be viewed as a form of neoliberalism and then we can use the term financial neoliberalism (Palley in Financialization: the economics of finance capital domination. Springer, 2016) to denote it. This commentary paper hopes to complement this view by highlighting the usefulness of recent “multidisciplinary” methods (i.e., methods which do not fall within the usual economic discipline). We focus first on the definition of financialization process, second on its implications on the commodity markets, and third and finally on the importance of the role of multidisciplinary methods, applied to these markets, capable of highlighting the contradictions of the neoliberalism framework, in such a way, we hope, to promote further research.

show abstract

The Impact of Financialization on the Rate of Profit

Cited by 13 publications

References 48 publications

Wavelet analysis and energy-based measures for oil-food price relationship as a footprint of financialisation effect

Wavelet analysis and energy-based measures for oil-food price relationship as a footprint of financialisation effect

Effect Of Firm Size, Debt Equity Ratio and Current Ratio to Return on Asset (Study on Hotel, Restaurant and Tourism Companies Listed on IDX)

A critique of financial neoliberalism: a perspective combining multidisciplinary methods and commodity markets

Contact Info

Product

Resources

About