Investor-style valuation techniques now shape public policy with coercive force

Evidence

The aim of this article was to draw attention to what I have called financialisation of valuation. Forms of reasoning and calculating combined with an investors’ viewpoint, and techniques from investing which originally developed in several spaces, are currently being used in public policy formulation and are therefore loaded with coercive force. I have sought to show that this process has an embedded potential to redefine human activities and public action. — Ève Chiapello, Financialisation of Valuation, 108

Categorization

• DEFINE: Defines ‘financialisation of valuation’ as investor-viewpoint reasoning and calculation entering public policy.
• XREF: Connects to the reader’s work on how financialized valuation colonizes non-financial activity; also echoes current debates on impact investing, ESG measurement, and cost-benefit analysis in government. — connects to: Financialised valuations override prior forms of valuation and reshape how people act and identify — Ève Chiapello, Financialisation of Valuation, 16; Financial valuation theory legitimizes financiers’ power by claiming they optimize resource allocation. — Ève Chiapello, Financialisation of Valuation, 36; Standardized impact metrics are becoming an investor benchmark — Ève Chiapello, Financialisation of Valuation, 72 (+13 more)

Related

• Financial valuation theory legitimizes financiers’ power by claiming they optimize resource allocation. (similarity 0.85)
• Financial language now reshapes public policy domains historically governed by other values. (similarity 0.84)
• Accounting standards prioritize investor needs over other users, spreading financialized valuation broadly. (similarity 0.82)
• Financialised valuations override prior forms of valuation and reshape how people act and identify (similarity 0.81)
• Financialisation also colonizes non-economic spheres via valuation techniques. (similarity 0.80)
• Finance methods have been used to craft environmental public policy since the mid-1990s (similarity 0.79)
• Finance creates intangible commodities that exist only through valuation techniques (similarity 0.78)

Broader Connections

• Finance theory’s investor-centric view shaped American corporate governance toward value maximization #expands (0.85) — Donald MacKenzie, An Engine, Not a Camera, 1173
• Discounted cash flow valuation spread from bonds to all goods via neoclassical utility theory. #expands (0.78) — Ève Chiapello, Financialisation of Valuation, 30
• Shareholder value policies spread unevenly, aided by institutional preconditions and safety-in-numbers timing #complicates (0.75) — Natascha van der Zwan, Making Sense of Financialization, 60
• Finance creates intangible commodities that exist only through valuation techniques #expands (0.75) — Ève Chiapello, Financialisation of Valuation, 104
• Institutional investors’ cross-ownership creates anticompetitive power needing limits #expands (0.72) — Andrew deWaard, Derivative Media, 1384
• Treasury abandoned market-designed asset auctions for direct capital injections #qualifies (0.72) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 860