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Abstract
The increase in direct personal investment in capital market assets by Australians over the past two decades represents an unprecedented engagement with that sector of Australian economic life. This dissertation critically investigates claims that this engagement heralds a shareholder democracy. Increased economic participation based on private direct ownership of corporate securities could be interpreted as a weak form of democratisation. Using a class-theoretical framework, the dissertation conceptualises the private shareholder phenomenon as a process of embourgeoisement and argues that the development of a macro-level mass consumer financial products market is the result of capitalist class development and expansion. A thesis of strong democratisation proffers the notion that the private shareholder, as an ascendant class of financial actor, engages with real democratic processes in addition to simply owning securities. To test this thesis the dissertation measures the extent to which small shareholders control the objective conditions under which they accumulate greater wealth by seeking evidence of potential or actual engagement with macro-market and meso-corporate level social processes. The dissertation assesses macro-level practice by drawing on the work of Bourdieu and on notions of the social field. It considers the entry of the new class of financial actor to the financial field and analyses their capacity to accumulate and deploy informational capital, and compares their ability to influence a state-sponsored economic reform process (CLERP) with that of other actors. The dissertation analyses longitudinal ownership and shareholder voting data from a set of over 30 major Australian companies. It finds that the new class of economic actor is most prevalent in privatised state-owned enterprises and mutuals. In the context of an ideal Habermasian public sphere, the study considers the potential for small shareholders to participate in meso-level, corporate agenda-setting and deliberation. Using the ideal political space of Arendt, it searches for methods of achieving democratic outcomes. The dissertation finds that while the personal ownership of tradable financial assets may constitute a weak form of economic democratisation, small shareholders’ inability to influence real outcomes, even in companies in which they constitute the majority, places substantial restrictions on the overall strength of the share ownership-as-democracy thesis.