Acquisition risk assessment and valuation

Article Abstract:

The Shareholder Value technique of acquisition risk assessment is based on Discounted Cash Flow (DCF) analysis to produce the kind of data that executive decision makers require. The Shareholder Value technique is very sensitive to risk due to the impact of capital cost, according to DCF analysis. A case study is made of how the stockholder value of a potential acquisition target - Riskco Inc. - can affected by the following: financial risk, business risk, fixed capital intensity, price reductions, competition, and the volatility of profits.

Analysis, Planning, Economic aspects, Stocks, Acquisitions and mergers, Investor relations, Corporation reports, Company reports

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Forecasting creditworthiness: logistic vs. artificial neural net

Article Abstract:

Issues concerning credit risk assessment in South Korea are discussed, with particular focus on forecasts based on logistic regression and artificial neural net. The two forecasting methods are described and it is concluded that the logistic model performs better when applied to urban accounts, whereas the neural net technique is better at forecasting rural accounts delinquency levels.

Forecasts and trends, Credit ratings, Forecasting

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Paying attention to real options

Article Abstract:

The article identifies management attention as a necessary component for successfully implementing the real options approach when assessing future potential and possibilities. A conceptual framework is described for the realization process.

Venture Analysis, Decision-making, Decision making, Competition (Economics), Influence, Attention (Psychology), Attention

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