How the Equity Terminal Value Influences the Value of the Firm?

References

Arzac, E. R. 2007. Valuation: Mergers, Buyouts and Restructuring, 2nd ed. New York: Wiley.Search in Google Scholar

Ashton, D., and P. Wang. 2013. “Terminal Valuations, Growth Rates and the Implied Cost of Capital.” Review of Accounting Studies 18 (1):261–290.10.1007/s11142-012-9208-5Search in Google Scholar

Bancel, F., and U. R. Mittoo. 2014. “The Gap between the Theory and Practice of Corporate Valuation: Survey of European Experts.” Journal of Applied Corporate Finance 26 (4):106–117.10.1111/jacf.12095Search in Google Scholar

Bauman, M. P. 1996. “A Review of Fundamental Analysis Research in Accounting.” Journal of Accounting Literature 15:1–33.Search in Google Scholar

Belsley, D. A., E. Kuh, and R. E. Welsch. 1980. Regression Diagnostics: Identifying Influential Data and Sources of Collinearity. New York: John Wiley & Sons.10.1002/0471725153Search in Google Scholar

Bennedsen, M., K. Nielsen Meisner, F. Pérez-González, and D. Wolfenzon. 2007. “Inside the Family Firm: The Role of Families in Succession Decisions and Performance.” Quarterly Journal of Economics 122 (2):647–691.10.3386/w12356Search in Google Scholar

Berkman, H., M. Bradbury, and J. Ferguson. 1998. “The Magic of Earnings in Terminal Value Calculations.” Journal of Financial Statement Analysis 3 (4):27–32.Search in Google Scholar

Blasco, A., and J. Ribal. 2013. “Application of the Continuing Value Model to Small and Medium-Sized Spanish Enterprises.” Mathematical and Computer Modelling 57 (7–8):1788–1794.10.1016/j.mcm.2011.11.046Search in Google Scholar

Booth, L. 2007. “Capital Cash Flows, APV and Valuation.” European Financial Management. doi:10.1111/j.1468-036X.2006.00284.x.Search in Google Scholar

Breuer, W., D. Fuchs, and K. Mark. 2014. “Estimating Cost of Capital in Firm Valuations with Arithmetic or Geometric Mean – Or Better Use the Cooper Estimator?.” The European Journal of Finance 20 (6):568–594.10.1080/1351847X.2012.733717Search in Google Scholar

Brotherson, W. T., K. M. Eades, R. S. Harris, and R. C. Higgins. 2013. ““Best Practices” in Estimating the Cost of Capital: An Update.” Journal of Applied Finance 23 (1).Search in Google Scholar

Brotherson, W. T., K. M. Eades, R. S. Harris, and R. C. Higgins. 2013. "'Best Practices' in Estimating the Cost of Capital: An Update". (November 5, 2015). Journal of Applied Finance(Formerly Financial Practice and Education) 23(1). Available at SSRN: https://ssrn.com/abstract=2686738.Search in Google Scholar

Bruner, R. F., K. M. Eades, R. S. Harris, and R. C. Higging. 1998. “Best Practices on Estimating the Cost of Capital: Survey and Syntesis.” Financial Practice and Education 8 (1):13–28.Search in Google Scholar

Buus, T. 2007. “Terminal Value Parameters: A Short Note.” European Financial and Accounting Journal 2 (2):44–54.Search in Google Scholar

Camilleri, D. 2015. “Hotel Valuations Earning Multipliers – Terminal Value: Malta’s Scenarionull.” Journal of Property Investment & Finance 33 (3):212–241.10.1108/JPIF-09-2013-0057Search in Google Scholar

Cassia, L., and S. Vismara. 2009. “Valuation Accuracy and Infinity Horizon Forecast: Empirical Evidence from Europe.” Journal of International Financial Management & Accounting 20 (2):135–165.10.1111/j.1467-646X.2009.01030.xSearch in Google Scholar

Copeland, T., T. Koller, and J. Murrin. 1994. Valuation Measuring and Managing the Value of Companies, 3rd ed. New York: John Wiley & Sons.Search in Google Scholar

Courteau, L., J. Kao, and G. Richardson. 2001. “Equity Valuation Employing the Ideal versus Ad Hoc Terminal Value Expressions.” Contemporary Accounting Research 18 (4):625–661.10.1506/77TK-1N3Q-82QU-UATRSearch in Google Scholar

Cyert, R. M., and J. G. March. 1963. A Behavioral Theory of the Firm. Englewood Cliffs, NJ: Prentice-Hall.Search in Google Scholar

Damodaran, A. 2002. Investment Valuation. Tools and Techniques for Determining the Value of Any Assets, 2nd ed., Vol. 2nd. New York: John Wiley & Sons.Search in Google Scholar

DeAngelo, L. E. 1990. “Equity Valuation and Corporate Control.” Accounting Review 65 (1):93–112.Search in Google Scholar

Demirakos, E. G., N. C. Strong, and M. Walker. 2004. “What Valuation Models Do Analysts Use?” Accounting Horizons 18 (4):221–240.10.2308/acch.2004.18.4.221Search in Google Scholar

Feltham, G. A., and J. A. Ohlson. 1999. “Residual Earning Valuation with Risk and Stochastic Interest Rates.” The Accounting Review 74 (2):165–183.10.2308/accr.1999.74.2.165Search in Google Scholar

Fernández, P. 2007. “Valuing Companies by Cash Flow Discounting: Ten Methods and Nine Theories.” Managerial Finance 35 (11):853–876.10.1108/03074350710823827Search in Google Scholar

Field, A. 2013. Discovering Statistics Using IBM SPSS Statistics, 4th ed. London: SAGE Publication Ltd.Search in Google Scholar

Francis, J., P. Olsson, and D. R. Oswald. 2000. “Comparing the Accuracy and Explainability of Dividend, Free Cash Flow, and Abnormal Earnings Equity Value Estimates.” Journal of Accounting Research 38 (1):45–70.10.2307/2672922Search in Google Scholar

Giner Inchausti, B., C. Reverte Maya, and M. Arce Gisbert. 2002. “El Papel del Análisis Fundamental en la Investigación del Mercado de Capitales: Análisis Crítico de su Evolución.” Spanish Journal of Finance and Accounting 31 (114):1111–1150.10.1080/02102412.2002.10779470Search in Google Scholar

Gordon, M. J., and E. Shapiro. 1956. “Capital Equipment Analysis: The Required Rate of Profit.” Management Science. doi:10.1287/mnsc.3.1.102.Search in Google Scholar

Graham, J. R., and C. R. Harvey. 2001. “The Theory and Practice of Corporate Finance: Evidence from the Field.” Journal of Financial Economics 60:187–243.10.1016/S0304-405X(01)00044-7Search in Google Scholar

Jennergren, L. P. 2008. “Continuing Value in Firm Valuation by the Discounted Cash Flow Model.” European Journal of Operational Research 185 (3):1548–1563.10.1016/j.ejor.2006.08.012Search in Google Scholar

Jorgensen, B. N., Y. G. Lee, and Y. K. Yoo. 2011. “The Valuation Accuracy of Equity Value Estimates Inferred from Conventional Empirical Implementations of the Abnormal Earnings Growth Model: US Evidence.” Journal of Business Finance and Accounting 38 (3–4):446–471.10.1111/j.1468-5957.2011.02241.xSearch in Google Scholar

Kaplan, S. N., and R. S. Ruback. 1995. “The Valuation of Cash Flow Forecasts: An Empirical Analysis.” The Journal of Finance 50 (4):1059.10.3386/w4724Search in Google Scholar

Kiechle, D., and N. Lampenius. 2012. “The Terminal Value and Inflation Controversy.” Journal of Applied Corporate Finance. doi:10.1111/j.1745-6622.2012.00394.x.Search in Google Scholar

Kramná, E. 2014. “Key Input Factors for Discounted Cash Flow Valuations.” WSEAS Transactions on Business and Economics 11:454–464.Search in Google Scholar

Larrán Jorge, M., and W. Rees. 1999. “Propiedades de los pronósticos de beneficios realizados por los analistas financieros: una aplicación al caso español.” Revista Española de Financiación Y Contabilidad 28 (101): 675–729.Search in Google Scholar

Levin, J., and P. Olsson (2000). Terminal Value Techniques in Equity Valuation – Implications of the Steady State Assumption (SSE/EFI Working Paper Series in Business Administration No No. 2000:7). Madison.Search in Google Scholar

Lundholm, R., and R. Sloan. 2007. Equity Valuation and Analysis, 2nd ed. New York: McGraw Hill Irwin.Search in Google Scholar

Marsat, S., and B. Williams. 2013. “Does Price Influence Assessment of Fundamental Value? Experimental Evidence.” Journal of Behavioral Finance 14 (4):268–275.10.1080/15427560.2013.848866Search in Google Scholar

Martínez Romero, M. J., and A. A. Rojo Ramírez. 2017. “Socioemotional Wealth’s Implications in the Calculus of the Minimum Rate of Return Required by Family Businesses’ Owners.” Review of Managerial Science 11 (1):95–118.10.1007/s11846-015-0181-9Search in Google Scholar

McDaniel, W. R., and C. Evans. 2012. “A Simple and or the Alternative Continuing Value Method.” Journal of Financial and Economic Practice 12 (2):101–114.Search in Google Scholar

Milburn, J. 2008. "The Relationship Between Fair Value, Market Value, and Efficient Markets." Accounting Perspectives 7 (4): 293–316. https://doi.org/10.1506/ap.7.4.210.1506/ap.7.4.2Search in Google Scholar

Nogueira Reis, P. M., and M. G. Augusto. 2014. “Determinants of Firm Terminal Value: The Perspective of North American and European Financial Analysts.” The International Business & Economics Research Journal (Online) 13 (4):793.10.19030/iber.v13i4.8687Search in Google Scholar

Penman, S. H. 1998. “A Synthesis of Equity Valuation Techniques and the Terminal Value Calculation for the Dividend Discount Model.” Review of Accounting Studies 2:303–323.10.2139/ssrn.38720Search in Google Scholar

Penman, S. H. 2007. “Financial Reporting Quality: Is Fair Value a Plus or a Minus?.” Accounting and Business Research 37 (3):33.10.1080/00014788.2007.9730083Search in Google Scholar

Petersen, C., and T. Plenborg. 2009. “The Implementation and Application of Firm Valuation Models.” Journal of Applied Business Research 25 (1):1.10.19030/jabr.v25i1.1044Search in Google Scholar

Pinto, J. E., E. Henry, T. R. Robinson, and J. D. Stowe. 2015. “Equity Asset Valuation.” CFA Institute Investment Books 2015 (4):1–595.Search in Google Scholar

Platt, H., S. Demirkan, and M. Platt. 2009. “Perilous Forecast: Implications of Reliance on Terminal Value.” Corporate Finance Review 14 (3):23–34.Search in Google Scholar

Platt, H., S. Demirkan, and M. Platt. 2010. “Free Cash Flow, Enterprise Value, and Investor Caution.” The Journal of Private Equity 13 (4):42–50.10.3905/jpe.2010.13.4.042Search in Google Scholar

Rappaport, A. 1983. “Corporate Performance Standards and Shareholder Value.” The Journal of Business Strategy 3 (4):28–38.10.1108/eb038987Search in Google Scholar

Rojo Ramírez, A. A. 2014. “Privately Held Company Valuation and Cost of Capital.” Journal of Business Valuation and Economic Loss Analysis 9 (1):1–22.10.1515/jbvela-2013-0017Search in Google Scholar

Rojo Ramírez, A. A., J. Alonso Cañadas, and M. D. P. Casado Belmonte. 2012a. “La importancia del valor residual en el valor final de la empresa.” Revista Española de Capital Riesgo, Enero-marz 1(1):21–34.Search in Google Scholar

Rojo Ramírez, A. A., S. Cruz Rambaud, and J. Alonso Cañadas. 2012. “Discount Rate and Cost of Capital: More about the Puzzle.” Valuation, Capital Budgeting & Investment Policy eJournal 4 (24):1–19.10.2139/ssrn.2034163Search in Google Scholar

Rojo Ramírez, A. A., and D. García Pérez de Lema. 2006. “Valoración De Empresas En España: Un Estudio Empírico.” Spanish Journal of Finance and Accounting 35 (32):913–934.10.1080/02102412.2006.10779611Search in Google Scholar

Rojo Ramírez, A. A., and M. J. Martínez Romero. 2017. “Required and Obtained Equity Returns in Privately Held Businesses: The Impact of Family Nature – Evidence before and after the Global Economic Crisis.” Review of Managerial Science (First on line):1–31. doi:10.1007/s11846-017-0230-7.Search in Google Scholar

Ruback, R. S. 2002. “Capital Cash Flows: A Simple Approach to Valuing Risky Cash Flows.” Financial Management 31 (2):85–103.10.2307/3666224Search in Google Scholar

Rutterford, J. 2004. “From Dividend Yield to Discounted Cash Flow: A History of UK and US Equity Valuation Techniques.” Accounting, Business & Financial History 14 (2):115–149.10.1080/0958520042000225745Search in Google Scholar

Sabal, J. 2014. “Common Errors regarding Terminal Value Perpetuities.” Cuadernos Latinoamericanos De Administración X (18):21–28.10.2139/ssrn.2358324Search in Google Scholar

Sacristan-Navarro, M., S. Gomez-Anson, and L. Cabeza-Garcia. 2011. “Family Ownership and Control, the Presence of Other Large Shareholders, and Firm Performance: Further Evidence.” Family Business Review 24 (1):71–93.10.1177/0894486510396705Search in Google Scholar

Tabachnick, B. G., and L. S. Fidell. 1996. Using Multivariate Statistics. (H. Collins. & Taguiri, Eds.), 3rd ed. New York: Pearson.Search in Google Scholar

Tippett, M. 2000. “Discussion of Estimating the Equity Risk Premium Using Accounting Fundamentals.” Journal of Business Finance & Accounting 27 (9):1085–1106.10.1111/1468-5957.00347Search in Google Scholar

Welch, I. 2000. “Views of Financial Economists on the Equity Premium and on Professional Controversies.” The Journal of Business 73 (4):501–537.10.1086/209653Search in Google Scholar