The Profit-Investment Puzzle under Financialisation : An empirical enquiry on financial and productive accumulation by non-financial corporations.

Summary This thesis examines how listed non-financial companies have been able to remain profitable despite declining investment and increased distribution of funds to shareholders in the era of financialization. This weak link between profit and investment is commonly referred to as the problem of profit without investment. The first part of the thesis situates this problem historically and theoretically. While the literature on financialization merely shows the negative effects of the distribution of funds to shareholders on investment, this thesis shows that the coexistence of high levels of profits (and financial payments) with low levels of investment was made possible by the simultaneous engagement of non-financial corporations in other types of activities. The solution to the problem of profit without investment in this case involves a shift in the activities of non-financial corporations toward the accumulation of financial assets and profits. However, in this section we provide substantial empirical evidence that rejects this alternative. The third part of the thesis shifts the focus from the financial to the productive sphere, and focuses on the relocation of production and the accumulation of intangible assets. This part, unlike the previous one, provides convincing and promising results in explaining the problem of profit without investment.