The paper analyses the potential impact of stock market developments on lending behaviour from different perspectives. First we scrutinize the impact of stock market movements on the banks’ and on the borrowers’ balance sheets. Subsequently we estimate aggregate credit supply and demand...

In this paper we shed new light on the most widely used terminal valuation tool: the accounting based value driver model (VDM). Based on a purely cash flow-driven approach we identify the requirements necessary for proper application of the VDM under a conservative accounting regime and show...

This paper is a guide on how to perform DCF valuations of distressed companies from the viewpoint of a well diversified investor. It is shown that companies with temporarily negative cash flows typically only require minor (though not negligible) adjustments to the discount rate. Contrary to...