Two Articles Addressing Firm Quality and Its Impact on the Size Effect

Business Valuation UpdateVol. 25 No. 5
May 2019
Roger J. Grabowski, FASA
Anas Aboulamer, Ph.D.
cost of capital
cost of capital, discount rate, private company valuation, risk analysis, cost of equity, size effect

Summary

The authors discuss two recent papers that present the concept of firms’ quality and show that it plays an important role in understanding the size effect. Also discussed are papers that present a differing view.