Will globalization change the way businesses manage their finances?

How will it change? Will it be for the better? I am not so sure

Public Comments

1. Yes it will have consequences on the finances. Every culture has his own preferred way of financing business. This is based on cultural preferences (risk minded or not), tax law (capital gains on risk bearing capital is sometimes not taxes) and the local capital market (some local capital markets don't like highly leveraged companies, other gives a premium for doing so). Also note that in some countries the preferences is for locally owned small companies. I personally expect that the "strongest" will prevail, here it seems to be the British/American (Anglo-Saxon). This would result in more emphasis on shareholder value, more public companies with lots of small shareholders and more pressure on the management to increase the profit (at the cost of the environment, employees, ...). The consequences will be primarly in continental europe ("old europe"). Note that the pressure from China will push to less attention to human rights, the environment, ... Note that these are only the impact of the globalization, other tendencies will (partially) offset these, also note that globalization has a much broader impact than only finances.