Reality check: when it comes to valuing a business, real market data can be more helpful than theoretical models
Article Abstract:
The theoretical models that are usually relied on when valuing a business are not as accurate as they are perceived to be. The insufficient reliability of these models becomes more obvious when one compares the assessed value to the company's final selling price. This weakness is the result of the inability of the accountant to access a feedback loop from the private marketplace. Valuation of a business, therefore, should be performed in relation to other businesses sold in the market.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1995
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A New Approach to the Use of Expectancy Value Models
Article Abstract:
There is a major discrepancy between expectancy model theory and its applications. An alternative form of the expectancy model is presented. This model uses individual salient beliefs instead of the common belief set. This will enable the researcher to evaluate how beliefs about a particular product or service vary across the population. The model is tested and its validity is confirmed.
Publication Name: Journal of the Market Research Society
Subject: Business
ISSN: 0025-3618
Year: 1984
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Hedging the value of waiting
Article Abstract:
A study is conducted to emphasize the merits of using a hedging policy, which can improve flexibility in timing of investment.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 2006
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