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The Shareholder Era and the Changing Nature of the Corporation. A Comment on "Managed by the Markets: How Finance Re-Shaped America" by G. Davis (OUP, 2009)

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  • Chabrak Nihel

    (Institut Télécom - TEM Research)

Abstract

The book under review presents a valuable, timely and gripping analysis by Gerald F. Davis. The author purports that finance has shaped the transition from industrial to post-industrial society in the United States [U.S.] over the past three decades. He claims that the U.S. society that orbited around large corporations is increasingly shaped today by financial markets. Due to a Copernican revolution, finance became the new American religion with many adherents willing to accept it on faith. The author quotes Shakespeare who wrote: “all the world’s a stage, and all the men and women merely players.” He explains that the world today seems like a stock market, and all people are merely day traders, buying and selling various species of “capital” and hoping for the big score (p. vii). Davis’s book should be required reading for anyone, whether academic, practitioner, or policy maker, who needs to think critically about finance which, rather than a mechanistic set of transactions, is presented in the book as a social phenomenon that is invading our lives.

Suggested Citation

  • Chabrak Nihel, 2011. "The Shareholder Era and the Changing Nature of the Corporation. A Comment on "Managed by the Markets: How Finance Re-Shaped America" by G. Davis (OUP, 2009)," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 1(2), pages 1-16, August.
    • Handle: RePEc:bpj:aelcon:v:1:y:2011:i:2:n:4
    DOI: 10.2202/2152-2820.1032
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    References listed on IDEAS

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    1. Anthony B. Atkinson & Thomas Piketty & Emmanuel Saez, 2011. "Top Incomes in the Long Run of History," Journal of Economic Literature, American Economic Association, vol. 49(1), pages 3-71, March.
    2. Thomas Piketty & Emmanuel Saez, 2003. "Income Inequality in the United States, 1913–1998," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 1-41.
    3. Prem Sikka & Mark P. Hampton, 2005. "The role of accountancy firms in tax avoidance: Some evidence and issues," Accounting Forum, Taylor & Francis Journals, vol. 29(3), pages 325-343, September.
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    Cited by:

    1. Nihel Chabrak & Russell Craig & Nabyla Daidj, 2016. "Financialization and the Employee Suicide Crisis at France Telecom," Journal of Business Ethics, Springer, vol. 139(3), pages 501-515, December.

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