Las Primeras 500 Empresas En America Latina

Author : Augusto Luis Alcorta
Publisher :
ISBN 13 :
Total Pages : 378 pages
Book Rating : 4.:/5 (318 download)

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Download or read book New Finance Capital written by Augusto Luis Alcorta and published by . This book was released on 1990 with total page 378 pages. Available in PDF, EPUB and Kindle. Book excerpt: The thesis develops the concept of New Finance Capital (NFC) and defines it as system of related industrial, commercial and banking capital. Affiliates or 'parts' operate in the interest of the 'whole' and as a result obtain 'systemic gains' or 'synergies' unavailable to individual capitals. The achievement of monopoly power in individual industries and the strengthening of overall financial capacity of affiliates are both key elements in the New Finance Capital's strategy.The research then proceeds to operationalise the NFC into that of financial groups and identifies 27 such groupings in the Peruvian economy. These business groupings are mostly controlled by single families and have as members 40% of the largest private domestic firms and all private financial institutions. They account for around 13% of GDP. Although they invest in all sectors, they have a significant share of their capital in the manufacturing industry.In addressing the issue of the 'systemic gains' of these groupings the thesis identifies the increase in the capacity of finance, a reduction in the capital required to control companies, and a saving in the amount of taxes paid as the three most important financial 'synergies' they obtain. Member-banks and insurance companies are crucial to the achievement of these 'synergies'. They allocate a significant proportion of loans to member-firms and they are prepared to take considerable risks for affiliates.The study shows that financial groups locate some member-firms in concentrated and vertically integrated industries which allow for the appropriation of monopoly profits. Monopoly profits provide the additional financing required by members to invest and diversify into other sectors. One important effect of 'systemic' management of finance and the obtention of monopoly profits is that the financial structure of members has a larger proportion of debt relative to equity than non-group firms.The thesis concludes with the observation that Peruvian financial groups have not performed the developmental role of similar organisational forms in countries like Japan or Korea. Although having the financial knowledge and power to diversify into high technology industries Peruvian groups remain in the less dynamic and traditional sectors. Some of the reasons for such impact are then discussed.