Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )
Sinceahostileacquisitionofsuchacompanyisnotfeasible, theexpectedvalueofcontrolwillbecomeanissueonlywhen the private company is f ...
itover.Thus,whenacquiringa 51 percentstakeofafirm, youshouldbewillingtopay 51 percentoftheoptimalvalue forthatfirm.Ifyouaresettl ...
inthefirm,whereyoupresumablycanaffectcontrol,youare in a position to alter both the likelihood of management changingandhowitwil ...
acquisitions become a muchsmaller percentage of the equity. In a publicly traded firm with widely dispersedholdings,controlmaybe ...
discountinprivatetransactionssincethereisnomarketvalue to compare the transaction price to. Harouna,Sarin, andShapiro(2001)attem ...
ILLUSTRATION 13.6: Estimating the Minority Discount Assume that you are valuing Kristin Kandy, a privately ownedcandybusinessfor ...
changed.Itisourcontentionthatthemarketvalueofevery firm reflects the expected value of control, which is the productoftheprobabi ...
valueexceedsthevalueofcontinuinginthebusiness;ifitis, divestituremakessense.Afterall,whenabusinessisearning poorreturns,itisunli ...
9 J.H.Mulherinand A. B.Poulsen, “ProxyContests and Corporate Change: Implications for Shareholder Wealth,” Journal of FinancialE ...
14 H. DeAngelo and E. M. Rice, “Antitakeover Charter AmendmentsandStockholderWealth,”JournalofFinancial Economics11 (1983): 329– ...
find thatwhile 37 percent arewidelyheld, 44 percent are family controlled, with dual-class shares and pyramid structures. Smalle ...
of hostile takeovers and management change than other companies. 24 K. G. Palepu, “Predicting Take-Over Targets: A Methodologica ...
AccountingandEconomics 16 (1993):273-316;S.Pufferand J.B.Weintrop, CorporatePerformance andCEOTurnover: The Role of Performance ...
36 M.L.DeFondtandC.W.Park,TheEffectofCompetition onCEOTurnover,”JournalofAccountingandEconomics 27 (1999): 35–56. 37 This number ...
of Distressed Firms,” Journal of Financial Economics 43 (1997): 401–432. 42 Evenifitisnotthepopularview,itisthepopulistview that ...
47 P.A.Gompers, J.L. Ishi, and A. Metrick,“Corporate Governance and Equity Prices,” Quarterly Journal of Economics118, (2003): 1 ...
54 L. Zingales, “WhatDetermines the Valueof Corporate Votes?,” Quarterly Journal of Economics 4 (1995): 1047–1073. 55 T.Nenova,“ ...
likelytobefiredwhenprofitabilitydeclinesthantheCEOof a similar publicly traded firm. 62 P. Harouna, A. Sarin, and A. C. Shapiro, ...
CHAPTER 14 The Value of Liquidity Whenyou buy a stock, bond, real asset, or business, you sometimesfacebuyer’sremorse,whereyouwa ...
transactions costs for publicly traded assets first and then extend the analysis to cover nontraded assets. Transactions Costs o ...
«
110
111
112
113
114
115
116
117
118
119
»
Free download pdf