Abstract:

This paper investigates the relationship between corporate strategies and income inequality. The goal of the paper is to investigate how corporate strategy affects inequality. In context of a developed financial market, corporate strategy of firms has changed and it influences inequality trough rent seeking activities such as overcompensation of executives, investment in buy back shares and mergers and acquisitions.  Based on the literature analyzed, it has been concluded that these activities can be categorized as rent seeking and exacerbate income inequality.