Some financial metrics resist financialization by ignoring time and capital logic
Evidence
Financial activities have always used metrics and valuations, but in the past they were less dependent on the three principles presented above. Historical cost-based calculations which do not assign a value to time and simply use it for deferral and spreading techniques (depreciation, full costing), risk assessments that do not seek to relate risks to a continuum of probabilities, and valuations that do not reason in terms of capital are all examples of non-financialised quantifications used in financial activities. — Ève Chiapello, Financialisation of Valuation, 44
Categorization
- DEFINE: Defines what counts as non-financialised quantification: historical-cost, non-probabilistic risk, non-capital valuations.
- XREF: Connects to the reader’s finance/financialization work contrasting financialized with historical/material modes of accounting. — connects to: Financialization treats risk as probabilisable, displacing close knowledge of the object valued — Ève Chiapello, Financialisation of Valuation, 35; Accounting’s fair-value shift substitutes financial models for actual market prices — Ève Chiapello, Financialisation of Valuation, 48
Related
- Financialised reasoning can colonise non-monetary measures like scores and percentages. (similarity 0.85)
- Financialised valuation draws on financial economics and mathematical finance. (similarity 0.83)
- Accounting’s fair-value shift substitutes financial models for actual market prices (similarity 0.83)
- Financialization treats risk as probabilisable, displacing close knowledge of the object valued (similarity 0.82)
- Finance derives prices for new objects from unrelated market prices (similarity 0.80)
- Financialisation also colonizes non-economic spheres via valuation techniques. (similarity 0.80)
- Financialized valuation imposes short-termism and disconnects decisions from material production. (similarity 0.80)
Broader Connections
- Financialization treats risk as probabilisable, displacing close knowledge of the object valued
#complicates(0.72) — Ève Chiapello, Financialisation of Valuation, 35