Financial socialism: The role of financial economics in economic disorganization

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• 作者：Michael Ehret
• 关键词：Financial crisis ; Financial economics ; Austrian school of economics ; Securitization
• 刊名：Journal of Business Research
• 出版年：2014
• 出版时间：January, 2014
• 年：2014
• 卷：67
• 期：1
• 页码：2686-2692
• 全文大小：197 K

文摘

A growing body of research shows evidence that financial economics played a significant role in recent financial crises, such as the subprime mortgage crisis, Enron and Long-Term Capital Management. This track record is a wake-up call for managers and investors who employ financial economic models. This paper demonstrates how financial economics decouples market prices from the valuation by customers and resource owners in a systematic way. As an organization principle, financial economics replaces value-driven investment by a theory-driven ruling of anonymous financial markets - a scenario warranting the title ¡°financial socialism¡±. Implications for customer valuation, financial accounting, and a maxim for the sound application of financial economic models are presented.