University of Hertfordshire

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From the same journal

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Original languageEnglish
JournalCompetition and Change
Journal publication date25 Jun 2018
Early online date25 Jun 2018
DOIs
Publication statusE-pub ahead of print - 25 Jun 2018

Abstract

This article reveals the processes of financialisation in the South African economy by tracing the sources and destinations of NFCs’ liquidity. The paper argues that rather than the volume of NFCs’ financial investment, the composition of financial assets is crucial to assess corporate financialisation in the country. Non-financial businesses in South Africa fundamentally transformed their investment behaviour during the 1990s, shifting from more productive uses such as trade credit towards highly liquid and potentially innovative (and therefore risky) financial investment. Following the direction of financial flows the article shows that – fuelled by foreign capital inflows – companies’ financial operations contributed to the price inflation in South African property markets.

Notes

This document is the Accepted Manuscript version. The final, definitive version of this paper has been published in Competition & Change, June 2018, published by SAGE Publishing.

ID: 12797992