Financialised valuation draws on financial economics and mathematical finance.

Evidence

Financialised valuation will be defined as valuation processes equipped by models, instruments, and representations belonging to the explicit knowledge underpinning the approach and practices of finance professionals. This knowledge is taught and may be accessible in finance textbooks for example. It draws on two sources: financial economics (as a branch of research in economics and economic theory that has seen huge development since the 1960s) and mathematical finance (practical calculative tools, techniques, and formulas that have been developed over the years). — Ève Chiapello, Financialisation of Valuation, 27

Categorization

• DEFINE: Provides a precise definition of financialised valuation as equipped by finance professionals’ explicit knowledge.
• XREF: Connects to the reader’s reading purpose on financialization colonizing non-financial activity — this is the conceptual pivot defining how finance logic gets carried into other domains. — connects to: Economic models are deliberately simplified representations enabling mathematical reasoning. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 40

Related

• Financialisation also colonizes non-economic spheres via valuation techniques. (similarity 0.87)
• Finance derives prices for new objects from unrelated market prices (similarity 0.86)
• Financialised reasoning can colonise non-monetary measures like scores and percentages. (similarity 0.85)
• Some financial metrics resist financialization by ignoring time and capital logic (similarity 0.83)
• Financial economics, not finance, introduced mathematical theory in the 1960s (similarity 0.83)
• Finance creates intangible commodities that exist only through valuation techniques (similarity 0.83)
• Financialization treats risk as probabilisable, displacing close knowledge of the object valued (similarity 0.82)
• Accounting’s fair-value shift substitutes financial models for actual market prices (similarity 0.82)
• Financialized valuation imposes short-termism and disconnects decisions from material production. (similarity 0.81)
• Financial models construct the markets they purport only to describe. (similarity 0.81)
• Financial economics emerged as a mathematical discipline only from the 1960s (similarity 0.80)
• Financialization marks a decisive shift from production-based to finance-driven accumulation. (similarity 0.80)
• Accounting standards prioritize investor needs over other users, spreading financialized valuation broadly. (similarity 0.80)
• Financialization means accumulation through financial channels rather than production (similarity 0.80)
• Financial valuation theory legitimizes financiers’ power by claiming they optimize resource allocation. (similarity 0.80)

Broader Connections

• Economic models are deliberately simplified representations enabling mathematical reasoning. #corroborates (0.72) — Donald MacKenzie, An Engine, Not a Camera, 40