In this paper we modify the approach pioneered by Barclay and Holderness (1989) and recently reproposed by Dyck and Zingales (2004) in order to measure the value of control in countries, like Italy, where transfer of control is regulated by law. Our estimates range from 12% to 14%, depending on...

We discuss the simple model pioneered by Barclay and Holderness (1989) and recently re-proposed by Dyck and Zingales (2004) in order to measure the value of control in countries, like Italy, where transfer of control is regulated by law. We demonstrate that it is possible to broaden the...

Despite many preferable aspects of the APV method, most investment banks and financial analysts still use the WACC approach when they undertake a firm valuation. In this paper we show under which assumptions the two approaches lead to the same results.We show that the use of the wacc model in a...

This paper analyzes the relationships between leverage and value in presence of growth.In the first part we develop a valuation model for the growing firm, adopting the Adjusted Present Value approach (from the equity side), under the assumption of certainty.In the second part, we consider an...

"While in a steady state framework the choice between the wacc approach (""Modigliani-Miller, 1963"") and the adjusted present value (APV) approach (""Myers, 1974"") is irrelevant since the two approaches provide the same result, however, in a growing firm context the wacc equation seems to be...

This book presents the main valuation approaches that can be used to value financial institutions. By sketching 1) the different business models of banks (both commercial and investment banks) and insurance companies (life, property and casualty and reinsurance); 2) the structure and...