A matter of definition: how defining financialization and its outcomes impacts perceived benefits, perceived risks, and support

Given the recent evolution of financialization from strictly shareholder-focused to multi-stakeholder-focused, this study explores how support for, and perceptions of, financialization differ based on its definition. Based on a U.S. sample of 609 respondents, participants were presented one of three definitions of financialization, including the historical shareholder definition, the neutral definition, or the modern multiple stakeholder-focused definition. The results show that framing and definitions impact the perceived benefits, perceived risks, and support for financialization. Specifically, respondents who were presented with the historical definition were less supportive, perceived greater risks, and perceived lower benefits, as compared to those seeing the neutral and modern definitions. In addition to these analyses, support and perceptions of financialization are also examined under political orientations and income levels. Overall, the findings underscore the importance of how financialization is defined and the outcomes of such definitions.