This study investigates the predictability of firm values for venture capital-backed firms. Having insights into the internal documents of more than 300 venture capitalists, we derive three common categories of firm value drivers: team characteristics, firm and market characteristics, and accounting information. Based on these value drivers, we provide a regression based valuation approach, whi...

We consider the fair valuation of a participating life insurance policy with surrender options when the market values of the asset are modelled by Markov-modulated Geometric Brownian Motion (GBM). We reduce the dimension of the optimal stopping problem for the policy by changing probability measures. We also provide a decomposition result for the value of the policy. The Barone-Adesi-Whaley app...

The prices of wine is a key topic for market participants interested in valuing their stock, including dealers, restaurants or consumers who may be interested in optimizing their purchases. As a closely related issue, re-valuation is the need to regularly update the value of a stock. This need is especially met by fund managers in the growing industry of wine as an investment. In this case, fai...

Online social networks are gaining increasing economic importance in light of the rising number of members. The numerous recent acquisitions priced at enormous amounts illustrate this development. Therefore, the growing relevance of online social networks in science as well as in practise revealed the need for adequate valuation models, which take into account these networks’ specific character...

BACKGROUND There is a dearth of data relating UK general practice workload to personal and social markers of individual patients. AIM To test whether there is a significant association between general practice patient contact rates and the council tax valuation band of their residential address. DESIGN OF STUDY Cross-sectional analyses using data recorded, over 1 year, for over 3300 general...

We study a model where multiple sellers with limited supply strategically choose both the price formation rule and the allocation rule. We show that inefficiency in this setting arises both because sellers withhold the good and because they sell to lower valuation buyers despite the presence of higher valuation buyers. This contrasts with the findings of the literatures on monopolistic and comp...

We develop a financial model to assess the option value of outsourcing. We value the real options associated with outsourcing an item using Monte Carlo simulation. This valuation gives decision makers a way to choose the appropriate outsourcing strategy based on an integrated view of market dynamics. A simulation example is used to demonstrate the application of real options to value outsourcin...

In media markets, the value of advertisement exposure depends on circulation, and media consumers’ valuation is affected by advertising. This paper analyzes media market competition in a duopoly framework. There exist symmetric and asymmetric equilibria in terms of firm size. There is less scope for asymmetry when products are more differentiated or of higher intrinsic quality. Some media exhib...

I develop and test the theoretical predictions that when investor overreaction to marketwide news is larger, firm valuations in the cross section become more dispersed and stocks earn lower expected returns. Consistent with these predictions, measures of cross-sectional dispersion of firm valuations are negatively related to subsequent market and portfolio excess returns, especially for sets of...

Contingent valuation (CV) has become one of the most widely used non-market valuation techniques. CV’s prominence is due to its flexibility and ability to estimate total value, including passive use value. Its use and the inclusion of passive use value in benefit-cost analyses and environmental litigation are the subject of a contentious debate. This paper discusses key areas of the debate over...