Federal Reserve Bank of Atlanta E C O N O M I C R E V I E W First Quarter 2003 P eople often speculate that a particular stock is overpriced, or underpriced, and analysts sometimes issue stock price targets followed abruptly by price “corrections.” A natural question is, What is the right price for a stock? Mergers and acquisitions of firms rely heavily on determining the right or fair price of...

Today’s theoretic, i.e. stochastic, option valuation models, inherently base on unrealistic assumptions. Especially the adequate estimation of a volatility measure is discussed controversially. Several studies show that the issuer’s individual volatility measure is used to exploit the consumer surplus. Moreover, not only the well-known inputs but also "hidden" inputs affect option market prices...

Market failures are the main cause of poor acknowledgement of the true impact of functional sheep traits on the management and economic performance of farms, which results in their omission from the breeding goal or the estimation of non-representative economic weights in the breeding goal. Consequently, stated-preference non-market valuation techniques, which recently emerged to mitigate these...

We provide empirical evidence which discriminates among the value-relevance of alternative pension accounting treatments to capital market participants by examining whether the assets and liabilities of pension funds is reflected in stock prices of UK firms who raise equity capital in US securities markets during 1996-1999 and are therefore required to report their pension exposure under both S...

Subject. This article discusses the issue of defining Fair Value concept, its similarity and identification with concept Market Value. It examines specifics each particular value, defines Value, analyzes approaches (methods) fair value valuation, clarifies existing problems determining for purposes IFRS application. Objectives. The aims to define notion appropriate use in accounting, as well ex...

This paper studies interand intramodal competition in the London-Paris passenger market. Using revealed preference data, we estimate nested and mixed multinomial logit models to examine passenger behaviour in the London-Paris market. We present a case study on the relocation of Eurostar services from Waterloo International to St Pancras International station. The results show that competition i...

...................................................................................... 5 I. Environmental values and valuation approaches........... 7 1. The economic concept of environmental value .................... 7 2. Willingness-to-pay and willingness-to-accept ...................... 8 3. Classifying environmental values ......................................... 9 4. Valuation approaches...

The shareholder value and the customer lifetime value approach are conceptually and methodically analogous. Both concepts calculate the value of a particular decision unit by discounting the forecasted net cash flows by the risk-adjusted cost of capital. However, virtually no scholarly attention has been devoted to the question if any of the components of the shareholder value could be determin...

Large enterprises have been at the forefront of environmental management with active participation in industrywide programs and adoption a ‘beyond compliance’ approach. The present study revisits premise environmental–financial linkage an Indian context focus on large listed enterprises. We develop comprehensive dataset 459 companies covering major manufacturing service sectors economy over ele...

A multiple-curve Heath-Jarrow-Morton (HJM) forward rate model driven by time-inhomogeneous Lévy processes is presented. In this approach to model spreads between curves for different tenors, credit as well as liquidity risk is taken into account. Deterministic conditions are derived to ensure the positivity of spreads and thus the monotonicity of the curves for the various tenors. Valuation for...