Firm Valuation Research Papers - Academia.edu (original) (raw)

Biblioteca de la Universidad Complutense de Madrid, Base de datos de artículos de revistas, ...

- by
- •
- Family Business, Investment analysis and valuation, Rate of return, Firm Valuation

Relationship banking has emerged as an important mechanism through which banks, especially the smaller ones, overcome problems associated with information asymmetry. Relationship banking also creates value for the borrowing firm through a number of channels such as more chances of loan
availability, lower interest rate, and less collateral requirements. In this paper, we provide an overview
of the recent literature on relationship banking and its impact on firm value. We also discuss different
dimensions of relationship banking to highlight how the role of relationship banking changes in information generation process under different circumstances. Finally, we identify potential areas for future research in this area.

- by Alfonso A Rojo-Ramírez and +1
- •
- Family Business, Family Firms, Investment analysis and valuation, Rate of return

New evidence from acquisition decisions suggests that antitakeover provisions (ATPs) may increase firm value when internal corporate governance is sufficiently strong. We document that, in Germany, firms with stronger ATPs, and particularly supermajority provisions, are better ac-quirers. Managers of high-ATP firms create value in acquisitions by making governance-improving deals. They are more likely to engage in acquisitions that reduce their own entrenchment level and less likely to invest in declining industries. The empirical evidence is consistent with a short-termist interpretation. Takeover threats can induce myopic investment decisions, which ATPs can mitigate. They lead managers to engage more often in value-creating long-term and innovative investing, and increase a firm's sensitivity to investment opportunities. Our findings contribute to a growing literature challenging conventional wisdom that the agency-increasing effect of ATPs empirically dominates the myopia-eliminating effect, suggesting that a more contextual view of the value implications of ATPs is necessary.

This study comparatively assesses the influence of board busyness (i.e., multiple directorships of outside directors) on stock market valuations of both Islamic and conventional banks. For a sample of listed banks from 11 countries for the period 2010-2015, results show that board busyness is differentially priced by investors depending on the bank type. In conventional banks, board busyness is significantly and positively valued by the stock market. This result suggests that investors perceive some reputational benefits arising from a busy board (e.g., extended industry knowledge, established external networks or facilitation of external market sources). In contrast, we find no supporting evidence on the market valuations of board busy-ness in Islamic banks. This result might be attributed to, both, the complex governance structure and the uniqueness of the business model which require additional effective monitoring, relative to that employed in conventional banking. Our results also show that investors provide significantly low market valuations for busy Shari'ah advisory board which acts as an additional layer of governance in Islamic banks. Findings in this study offer important policy implications to international banking studies and regulations governing countries with dual-banking systems.

- by Dr Vu Trinh
- •
- Firm Valuation, Board busyness

This paper deals with conceptual aspects of the family business (FB) and its impact on research. Its aim to give guidance on the development of empirical research dissociating FB and non family business (nFB) through the use of databases, particularly accounting data and, more specifically, in the Spanish case, the SABI database.
It highlights the importance, in the empirical field, to seek a mechanism that allows us to identify the FB efficiently, as well as the difficulties in using SABI database. Working with different selection criteria and the use of surnames allows us to propose a typology of FB.

Purpose – The purpose of this Master thesis is to investigate whether Financial Companies’ Social Responsible Supply Chain activities are associated with their financial performance Design/Methodology/Approach – Three approaches have been followed: Literature review on Corporate Social Responsibility (CSR), Firm Value and Supply Chain Management (SCM). Development of an industry-focused survey with qualitative aims Sample: 47 companies. Development of a quantitative model to test our hypotheses Sample: 156 companies.
Findings – A definition of Sustainable Supply Chain for the financial industry has been given, finding more appropriate the concept of Sustainable procurement given that for this particular industry the most common Supply Chain approach is the dyadic one. Lack of measurement tools, especially from the point of view of Corporate Financial Performance (CFP) related to CSR and sustainable procurement practices are commonly spread in the industry and can represent a barrier to the development of social responsible solutions among these firms. The quantitative approach results in a positive relation between the four Financial Indicators (ROA/ROE/ROIC/TOBIN’S Q RATIO) and the Sustainable Supply Chain Management Score resulting from the ESG Score developed by Thomson Reuters.
Research limitations: While the study is the first to examine the relationship between ESG data related to Procurement in the Financial Industry and Firm Value with the ASSET4 Thomson-Reuter’s Database, the authors call for more research into this issue examining other possible databases and a deeper focus on the delayed effect.
Practical implications: Lack of measurement about sustainable practices outcomes may represents a barrier for the implementation of those practices, suggesting the need of a more focused development of proper metrics and evaluation tools, to help managers to improve more efficient and sustainable solutions regarding the supply chain and the procurement, even in sectors as the financial one where the procurement, at least at a first glance, can be seen as something marginal and without any direct impact on the firm’s performance.
Originality/value: This study is the first to study the impact on ESG Supply Chain Score on Firm Value related to this specific industry and using this database. It partially traces the approach of other papers not industry focused.
Keywords: Firm Value, CSR, ESG, Procurement, Financial Industry, Supply Chain.

- by Elvis Zavatti
- •
- Finance, Financial Economics, Banking, Corporate Finance
- by Pilar Belmonte
- •
- Investment analysis and valuation, NIIF, Rate of return, Firm Valuation
- by Hasan CABAR
- •
- Intellectual Capital, Firm Valuation

This paper provides empirical evidence of how a firm’s growth opportunities shape the diversification–value relationship on a sample of U.S. companies between 1998 and 2010. Our findings
suggest that the negative relationship between diversification and a firm’s value may reverse at high
levels of diversification, and that such a U-form diversification–value relation is partly mediated by a firm’s growth opportunities. Results are robust to various model specifications and after controlling for endogenous self-selection of the diversification decision.

- by Pablo de Andres and +1
- •
- Real Options, Diversification, Firm Valuation, Self selection

Influence of Corporate Social Responsibility on Market Capitalisation of Consumer Goods Firms in Nigeria 1.1. The Problem Corporate social responsibility is the principal locus in examining the relationship between organizations and society. Duru and Morah (2017, p.275) highlight that CSR should be part of 'what every community gain from companies, industries and business establishments locate in communities. 'Social service expectations from corporate firms have become very high in Nigeria, especially in the consumer goods sector, which has thrown up some opposing challenges such

- by Elvis Zavatti
- •
- Finance, Financial Economics, Banking, Corporate Finance

Oil and gas exploration companies (E&Ps) exhibit large variations in earnings due to volatile oil and gas prices. Furthermore, their primary asset, oil and gas reserves, is accumulated through highly risky exploration activities. In contrast, integrated oil and gas companies display lower variability in their earnings due a more diversified asset base. The literature suggests that companies with higher earnings volatility and higher levels of intangibles among their assets should have lower value relevance of accounting information than companies with higher levels of tangible assets on their balance sheets. For that reason, E&P companies should have lower value relevance than integrated companies. Contrary to expectations, we do not find lower value relevance for E&Ps earnings than integrated oil and gas companies. In fact, the results suggest that the presence of supplementary estimates for oil and gas reserves values mitigate the potential problem associated with the presence of intangible assets experienced in other industries.

- by Bard Misund
- •
- Financial Economics, Energy Economics, Petroleum, Energy

Current debates in science and technology studies emphasize that the bio-economy—or, the articulation of capitalism and biotechnology—is built on notions of commodity production, commodification, and materiality, emphasizing that it is possible to derive value from body parts, molecular and cellular tissues, biological processes, and so on. What is missing from these perspectives, however, is consideration of the political-economic actors, knowledges, and practices involved in the creation and management of value. As part of a rethinking of value in the bio-economy, this article analyzes three key political-economic processes: financialization, capitalization, and asseti-zation. In doing so, it argues that value is managed as part of a series of valuation practices, it is not inherent in biological materialities.

- by Kean Birch
- •
- Business, Entrepreneurship, Management, Business Administration

La valoración de empresas, tradicionalmente, no ha recibido una atención prioritaria en el campo de la investigación empírica. En la actualidad se aprecia un importante desarrollo profesional que demanda información sobre la aplicación práctica de los fundamentos metodológicos de la valoración de empresas. En general los estudios empíricos a nivel internacional revelan divergencias entre la teoría y la práctica en diferentes aspectos del proceso valorativo. El trabajo que aquí se expone aborda esta problemática en España, analizando el grado de adecuación del marco teórico de la valoración de empresas y la práctica profesional. Para ello se efectúa una encuesta dirigida a expertos en valoración de empresas de diferentes ámbitos. Los resultados muestran que los expertos se rigen, mayoritariamente, por el cuerpo teórico generalmente aceptado. No obstante, si consideramos las características específicas del valorador, se aprecian divergencias en diferentes aspectos del proceso de valoración. Estas divergencias se producen fundamentalmente en el grado de utilización de los métodos de valoración, en la operativa de cálculo de los flujos libres de tesorería y de la tasa de actualización. Finalmente, el análisis de los resultados nos ha permitido efectuar algunas sugerencias de futuro que deben ir acompañadas de nuevos trabajos empíricos que profundicen en la mejora del proceso de valoración de empresas

The work analyze the logical elements founding the firm's theory of development in a evolutionary context and provides a possible reconciliation with the “principle of sustainable development”, given that any production activities involve the use of environmental resources.
The work end up with the examination of a case study: the GAIA Consortium GAIA.
Note: the downloadable paper is in Italian

- by Luca Barchetti
- •
- Economics, Political Economy, Firm Performance, Firm Valuation

ABSTRACT We find that the value-leverage relation varies considerably in magnitude across countries. We argue that this difference in value impact of leverage is affected by a country's institutional settings. Indeed, we find that the value impact of leverage is less negative in bank-oriented countries and more negative in countries with highly developed stock markets. Further, leverage-value relation seems to be more sensitive to institutional settings among high-growth firms than among low-growth firms.

- by Raj Aggarwal
- •
- Corporate Finance, Engineering Economy, Capital Investment Analysis, Rate of return

Este libro aborda la valoración de empresas no cotizadas desde una perspectiva práctica, pero dentro del contexto de los fundamentos de la valoración y tomando en consideración los desarrollos más actuales existentes en el mercado y la investigación, aunque buscando siempre la sencillez y facilidad de comprensión. Su objetivo es acercar la valoración de empresas al usuario, particularmente la basada en la actualización de flujos de tesorería, cualquiera que sea la formación del lector, ofreciéndole una obra con la que poder comprender el proceso que se desarrolla en esta actividad cada día más común y útil, de manera que le ayude en sus valoraciones o a comprender e interpretar un informe de valoración.

- by Elvis Zavatti
- •
- Finance, Financial Economics, Banking, Corporate Finance
- by Jimmy A. Saravia
- •
- Business, Organizational Behavior, Microeconomics, Corporate Governance

The study determined the effect of International Financial Reporting standards on inventory valuation of consumer goods manufacturing firms in Nigeria. The specific objectives were to: examine the effect of asset turnover on weighted average cost of inventory of consumer goods manufacturing firms in Nigeria and ascertain the effect of debt ratio on weighted average cost of inventory of consumer goods manufacturing firms in Nigeria. The data collected for the study were analyzed with statistical methods. Tables were used to display data gathered. The data is further analyzed using descriptive statistics which describes the Mean, Median, Std. Dev., Skewness, Kurtosis and Jarque-Bera statistics. Graphical representation was also used to display data overtime. The hypotheses were tested using inferential statistics which include regression analysis. A multiple regression analysis which is estimated with the Ordinary Least Square (OLS) was used to find out if there is significant effect among variables used. The result of the analysis showed that Asset Return have non-significant effect on Weighted Average the selected Consumer Goods Firms in Nigeria; this is shown with the T-Test of TA(-0.542249) with p-value of 0.5906. Debt Ratio have non-significant effect on Weighted Average the selected Consumer Goods Firms in Nigeria; this is shown with the T-Test of DR(-0.368485) with p-value of 0.7144. The study concluded that International Financial Reporting Standard has non-significant effect on Inventory Valuation of Consumer goods firms in Nigeria. Based on the analyses of data and the findings of this research, the study recommended that The study recommended that firms should adopt the use of Weighted Average Methods as prescribed by IASB and the others permitted by IFRS. This will make their financials comparable under the IFRS while firms should embark on intensive training of their accounting staff to get them to becoming IFRS compliant.

- by CHIDUBEM T I M O T H Y UGWU
- •
- Firm Valuation, Firm Survival, Cash Flow Management

Las técnicas de valoración de empresas se centran en aspectos económico-financieros, que no resultan suficientes para las entidades no lucrativas, cuyas prioridades se asocian a la consecución de un interés general. Hasta ahora, diversas técnicas de contabilidad social como el Valor Social Integrado (VSI) han servido para reflejar estas inquietudes en las entidades no lucrativas. En este artículo, utilizando un museo como caso ilustrativo, se va a demostrar cómo es posible la valoración de las entidades no lucrativas utilizando la contabilidad social, y aprovechando al tiempo (de forma adaptada) las bases de las técnicas de valoración de empresas. Los principales resultados demuestran, en primer lugar, que el Valor Social Integrado es una variable monetizable, y por tanto útil y sencilla para realizar valoraciones de entidades. Aunque esta variable puede ser utilizada para todo tipo de organizaciones, para las no lucrativas es esencial ya que permite la comparación de su dimensión social, más acorde con su propósito como entidades. La principal contribución consiste en demostrar que es posible calcular el Valor Social Esperado (VSE, mediante la proyección y actualización de VSI) para valorar entidades de todo tipo. Esto tiene también implicaciones en las teorías relacionadas con la valoración de empresas, que podrán tener en cuenta variables más allá de las meramente económicas o transaccionales, y adaptarse a las situaciones actuales donde lo social es una variable más a valorar por parte de los decisores, tanto estratégicos, institucionales, como inversionistas.

- by Iratxe Amiano Bonatxea and +1
- •
- Accountability, Non-profit Management, Social Accounting, Firm Valuation
- by Pilar Belmonte
- •
- Investment analysis and valuation, NIIF, Rate of return, Firm Valuation

Información del artículo Valoración, gestión de valor y nuevas necesidades de información.

Información del artículo El papel del Valor Residual en el Valor de la empresa.

espanolLas metodologias basadas en los flujos de caja descontados para valorar activos reales, negocios en marcha y proyectos de inversion se basan en proyecciones de los flujos de caja (FC) soportadas por los fundamentos del negocio y en la apropiada tasa de descuento que se estima considerando la relacion riesgo-retorno. La incertidumbre que envuelve la estimacion de los FC, particularmente en economias volatiles, hacen que los procesos de valoracion sean muy complejos. Estimar una tasa de descuento apropiada en Mercados Emergentes (EEm) agrega un reto adicional debido al hecho de que las hipotesis de los modelos dificilmente se cumplen en esos mercados. Tipicamente, la tasa de descuento para EEm se calcula haciendo ajustes al Capital Asset Pricing Model-CAPM, que consisten en estimaciones del retorno adicional debido al riesgo-pais o riesgo soberano. Existen varios modelos que adaptan al CAPM para estimar la tasa de descuento para EEm y la diferencia entre los resultados obtenibl...

- by Elvis Zavatti
- •
- Finance, Financial Economics, Banking, Corporate Finance

Se ofrece una visión general de la importancia de la valoración en el contexto de la empresa familiar y la relevancia que tiene el incluirlo dentro del protocolo familiar, con el fin de prevenir los posibles problemas profesionales,... more

The main objective of this work is to bring us the importance of the family business and to include adequately, inside the family protocol, the topic of the company valuation to anticipate professional, economic and personal problems that can arise at the moment of deciding about the ownership of the company, the succession and its management. In this respect, the approximations and models of valuation are analyzed and we make reference to the aspects that restrict the transmission of securities and how to consider these aspects inside the value.

- by Marshal Iwedi PhD
- •
- Firm Valuation, Inflation
- by Gokhan Ozer
- •
- Accounting earnings and security valuation, Firm Valuation
- by Alfonso A Rojo Ramírez
- •
- Firm Valuation, Company Valuation Methods