Financialization comprises both finance-sector dominance and nonfinance firms’ financial investing.

Evidence

Financialization can be broadly defined as two interdependent processes, both of which accelerated after the late 1970s. One is the rising dominance of the finance sector and its conception of control in the U.S. economy; the other is the increasing participation of nonfinance firms in the financial services and investment markets. — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 16

Categorization

• DEFINE: Clean two-part operational definition distinguishing the paper’s focus (process two) from the better-studied process one.
• XREF: connects to: Financialization can be measured by comparing non-financial firms’ portfolio income to their cash flow. — Greta R. Krippner, The Financialization of the American…, 47; Financialization means accumulation through financial channels rather than production — Greta R. Krippner, The Financialization of the American…, 11; Nonfinance firms increasingly derived income from financial markets — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 18 (+5 more)

Related

• Nonfinance firms increasingly derived income from financial markets (similarity 0.91)
• Financialization marks a decisive shift from production-based to finance-driven accumulation. (similarity 0.89)
• Financialization can be measured by comparing non-financial firms’ portfolio income to their cash flow. (similarity 0.89)
• Financialization is a pattern of accumulation dominated by financial channels over trade and production (similarity 0.87)
• Stagnating growth plus deregulation pushed firms from production into financial investment (similarity 0.87)
• Financialization does not measurably raise firm profits or financial-asset productivity. (similarity 0.86)
• Financialization must be measured by profit generation, not employment or output (similarity 0.86)
• Financialization theory rejects bank dominance in favor of integrated finance-industrial capital (similarity 0.86)
• Nearly 40% of S&P 500 earnings came from financial activities by 2000 (similarity 0.86)
• Financialization means accumulation through financial channels rather than production (similarity 0.85)
• Financialization is measured as the ratio of financial receipts to business receipts. (similarity 0.85)
• Nonfinance-firm financialization has received little research attention. (similarity 0.85)
• Financialization both derives profits from finance and drains capital from productive investment (similarity 0.85)
• The US economy became increasingly financialized in the post-1970s period. (similarity 0.85)
• Financialization ultimately represents markets displacing social institutions as society’s organizing principle. (similarity 0.84)

Broader Connections

• Financialization can be measured by comparing non-financial firms’ portfolio income to their cash flow. #expands (0.85) — Greta R. Krippner, The Financialization of the American…, 47
• Nonfinance firms increasingly derived income from financial markets #exemplifies (0.85) — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 18
• Financialization both derives profits from finance and drains capital from productive investment #expands (0.85) — Natascha van der Zwan, Making Sense of Financialization, 29
• Financialization marks a decisive shift from production-based to finance-driven accumulation. #expands (0.85) — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 19
• Financialization means accumulation through financial channels rather than production #qualifies (0.80) — Greta R. Krippner, The Financialization of the American…, 11
• Financialization is a pattern of accumulation dominated by financial channels over trade and production #expands (0.80) — Greta R. Krippner, The Financialization of the American…, 42
• Non-financial firms increasingly resemble financial corporations through revenue reliance #expands (0.78) — Greta R. Krippner, The Financialization of the American…, 136
• Finance and industry form interdependent but distinct fractions of capital #qualifies (0.75)