Classical single-factor comparable company valuation (CCV) like e.g. valuation using the price-earnings ratio is associated with several shortcomings. The two most important are the non-applicability of negative values in the basis of reference and the high requirements to the qualitative...

Residual income valuation is based on the assumption that the clean surplus relation holds. As pointed out by Ohlson (2000), among others, the standard clean surplus relation is frequently violated. Moreover, standard residual income valuation models rest on the implicit assumption that future...

Necesitatea realizării unor estimări profesionale, imparțiale și nepărtinitoare a proprietăților a adus noi provocări activității de evaluare. În general, valoarea estimată a unei companii diferă de la un evaluator la altul în contextul în care metodele utilizate sunt diferite sau...

This paper presents an equity valuation model that employs risk-neutral valuation under stochastic interest rates along the lines of Ohlson and Feltham (1999). Closed form valuation formulae for equities are presented in a discrete time setting whereby the short term interest rate is modelled by...

Standard equity valuation approaches (i.e., DDM, RIM, and DCF model) are derived under the assumption of ideal conditions, such as infinite payoffs and clean surplus accounting. Because these conditions are hardly ever met, we extend the standard approaches, based on the fundamental principle of...

We investigate the association between voluntary disclosure and the risk-related discount investors apply to price. First, we study the association between (endogenous) disclosure choice and the discount in price induced by changes in the underlying model parameters: this informs empirical...

This research is a feedback to the call from Richardson et al. (2010) for more structure in researchers’ forecasting frameworks. The purpose is to study the ability of three technical earnings forecasting methods (smoothing, random walk and cross-section) to reflect Tunisian stock market...

This study's underlying premise is that current pension plan accounting has two important negative effects. First, it distorts the measurement of earnings and net worth in the short run, as well as the pattern of earnings over future periods. Second, this distortion can send incorrect signals to...

Companies' investments in research and development (R&D) are usually associated with better growth opportunities incorporated in the firms' market valuation. This study focuses on the question how does the firms' market value attributable to R&D investments depend on the firms' ability to employ...

Standard equity valuation approaches (i.e., DDM, RIM, and DCF model) are derived under theassumption of ideal conditions, such as infinite payoffs and clean surplus accounting. Becausethese conditions are hardly ever met, we extend the standard approaches, based on thefundamental principle of...