Are Corporations’ Financial Investments Slowing Growth?

Leila Davis, an assistant professor at Middlebury College, discusses the impact of financialization on non-financial corporations. She highlights changes in corporate governance, firm financial practices, and investment behaviors. The video explores how non-financial firms are increasingly holding financial assets and the implications of these changes on investment and growth. Davis challenges the assumption that financial assets crowd out capital investment, suggesting a positive correlation between financial profitability and fixed investment. The video concludes by unpacking the broad structural changes associated with financialization.

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