University of Hertfordshire

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Original languageEnglish
Number of pages24
Pages (from-to)413-436
JournalCompetition and Change
Journal publication date1 Aug 2018
Volume22
Issue4
Early online date25 Jun 2018
DOIs
Publication statusPublished - 1 Aug 2018

Abstract

This article reveals the processes of financialization in the South African economy by tracing the sources and destinations of non-financial corporations’ liquidity. The paper argues that rather than the volume of non-financial corporations’ financial investment, the composition of financial assets is crucial to assess corporate financialization 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 companies’ financial operations – fuelled by foreign capital inflows – are linked 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