The corporation in the 21st century
The value flows from corporations to households through eight different pathways. If you take a dollar of revenue that the average corporation generates, 25 cents of that flows through as labor income: wages, salaries, and other benefits to employees. Seven cents of that dollar goes to capital income, meaning dividends, share buybacks, and interest payments to debtholders. Six cents goes to investment—earnings that are retained … [ Read more ]
Authors: Clarisse Magnin-Mallez, Michael Birshan, Sean Brown | Source: McKinsey Quarterly (November 12, 2021) | Subjects: Business, Economics | Economy, Excerpts