The valuation of banks is inherently complicated because of the uncertainties arising from their information opaqueness and inherent risks. Unlike non-banking firms, banks require specialised equity-side valuation approaches. This study addresses a gap in the literature by examining valuation...

Excess profit taxes (EPTs) emerge as an option to contribute to the extra needed revenues, avoiding a general increase in corporate tax rates, while having the prospect to serve as a gateway to converge toward a permanent efficient rent tax instaed of the corporate income tax. General unilateral...

Excess profit taxes (EPTs) emerge as an option to contribute to the extra needed revenues, avoiding a general increase in corporate tax rates, while having the prospect to serve as a gateway to converge toward a permanent efficient rent tax instaed of the corporate income tax. General unilateral...

Economic Value Added (EVA®) has attracted considerable attention as an alternative to traditional accounting earnings for use in both valuation and incentive compensation. With a host of consultants now marketing related metrics, numerous claims have been made – most based on anecdotal...

We show that the standard notion of residual income (RI) does not fulfill additive coherence. This gives rise to ambiguities and inconsistencies. The pitfall resides in the capital charge, which blends a non-market value with a market rate. We solve the problem by using a capital charge based on...

The purpose of this article is to examine the academic literature about the function, structure, calculation, and weaknesses of economic value added (EVA). EVA has been used as a measure of economic profit and captures the inadequacies of using traditional rates of return. In addition, this...

Chapter 1: Introduction -- Chapter 2: The Basics Of Time Value Of Money -- Chapter 3: Valuation Of Cash Flows, Annuities And Perpetuities -- Chapter 4: Sources And Cost Of Long-Term Capital -- Chapter 5: Valuation Of Fixed Income Securities -- Chapter 6: Valuation Of Equities -- Chapter 7: Firm...

The purpose of this research is an attempt to present a mixed model based on the residual income valuation model, where two new factors, business cycles and financial items, are added. We offer a practical investment opinion by which investors and fundamental analysts can either establish or...

We conduct an experiment to examine the separate and interactive effects of individuals' risk preferences and two commonly-used performance measures – return on investment (ROI) and residual income (RI) – on risk-taking in capital investment decisions. We predict and find that the use of ROI...

Schemes of residual profit allocation (RPA) tax multinationals by allocating their 'routine' profits to countries in which their activities take place and sharing their remaining 'residual' profit across countries on some formulaic basis. They have recently and rapidly come to prominence in...

Schemes of residual profit allocation (RPA) tax multinationals by allocating their 'routine' profits to countries in which their activities take place and sharing their remaining 'residual' profit across countries on some formulaic basis. They have recently and rapidly come to prominence in...

Purpose This study will examine the impact of cash dividends on the market value of banks listed in Middle East and North African (MENA) emerging countries during the period 2000-2015. Design/methodology/approach The current study adopts residual income approach based on Ohlson's (1995)...

We assess the empirical implications of the valuation model for equity prices developed in Ohlson (1995), by accounting for residual income information dynamics. A key assumption of the Ohlson (1995) residual income model stipulates that next period t + 1 residual income is a linear function of...

This paper is a draft chapter of a forthcoming book on the taxation of international business profit by the authors of this paper, to be published by Oxford University Press. The group has been meeting regularly for five years, to identify and discuss the key problems of the existing...

We investigate the return forecasting ability of a residual income model based on analysts' estimates and time-varying risk-free rates, equity risk premiums and terminal value growths, in US and Europe, along the period 1995-2018. While the academic literature acknowledged the reliability of the...

This study investigates the impact of networking skills on company value by using the residual income model. We examine U.S. companies that constitute Standard and Poor's 1500 index for the period 2002-2015 and we provide evidence that networking skills are significant part of company value. The...

In diesem Buch wird ein in aktuelle Planungsinstrumente integrierbares Instrument zur Verbesserung der Entscheidungsunterstützungsfunktion des Controlling mit der Möglichkeit der Fokusjustierung der Entscheider entwickelt. Im Vordergrund steht dabei die technische Durchführbarkeit einer...

"This book applies finance to the field of capital theory. While financial economics is a well-established field of study, the specific application of finance to capital theory remains unexplored. It is the first book to comprehensively study this financial application, which also includes...

Zum Entwicklungsstand des Residualgewinnverfahrens -- Grundlagen der funktionalen Unternehmensbewertung -- Grundform des Residualgewinnverfahrens -- Residualgewinnverfahren in finanzierungstheoretischer Ausprägung -- Zusammenfassung der Ergebnisse.

"This book applies finance to the field of capital theory. While financial economics is a well-established field of study, the specific application of finance to capital theory remains unexplored. It is the first book to comprehensively study this financial application, which also includes...

The Residual Earnings (RE) model has informed the capital market research over the last twenty years. To employ it in an empirical setting researchers commonly make extra assumptions about how future RE are related to and predicted by today's observed numbers. In this article, we show that the...

We study the use of residual income (RI) valuation methods by U.S. sell-side equity analysts, particularly as compared to DCF. We document that RI valuations are rare — just 1/16th as common as DCF — and that different RI and DCF valuations are not infrequently provided by the same analyst...

Housing affordability problems are expected to increase for Austrian households because housing costs have been rising dynamically over the last years. Households who moved more recently are expected to be affected the most. Previous research has identified younger households as also being prone...

Much debate exists about the effectiveness of Economic Value Added (EVA). We evaluate 11 common concerns about EVA and conclude that the major concerns are that EVA: (1) is distorted by the depreciation method, (2) might require complex adjustments; (3) is a short-term measure; (4) is an absolute...

The aim of this paper is to present a framework to bank valuation based on two generally acceptable valuation models that are not specific to banks: the model of discounted Equity Cash Flow to Equity (ECF) and the model of discounted Residual Income (RI). As emphasized by Koller, Goedhart and...