Industrial Transformation and Financialization

A collection of vocabulary flashcards related to the themes of corporate power, private equity, and financialization discussed in the lecture.

Shareholder Primacy

Corporations should prioritize maximizing shareholder value.

ICT-enabled Gatekeepers

Firms that control access to customers, labor, distribution, data, and capital through Information and Communication Technologies.

Nikefication

Outsourcing production while keeping branding and design in-house.

Uberization

Making workers task-based contractors rather than employees.

Private Equity (PE)

Investment firms that buy companies using heavy debt to increase returns for investors.

The '2 and 20' Model

Private equity makes money through a 2% management fee and 20% carried interest (share of profits).

Dividend Recapitalization

When a company takes on new debt not to invest but to pay dividends to private equity owners.

Value Extraction

The process of extracting value through methods like heavy debt and asset stripping, often at the expense of workers and communities.

The Innovative Enterprise

An alternative theory suggesting innovation requires strategy, organization, and finance, as opposed to mere shareholder value.

Democratic Accountability

The goal of ensuring stronger labor rights, worker voice, and public regulation within corporate governance.