Industry-specific empirical support for passive appreciation

In a recent webinar, Prof. Ashok Abbott (West Virginia University), a consultant to top valuation firms who testifies in cases involving active and passive appreciation, discussed his empirical methodology for isolating the passive component of a firm’s appreciation in value. He presented his analysis of causal factors and their elasticities for several industries. For example, for the period 1992 to 2014, 88% of the change in grocery sales was due to factors over which the industry had no control.

A webinar attendee asked: "Are there any published sources of causal factors and elasticities by industry?" Dr. Abbott replied “no,” but he offered to provide some of this analysis in future issues of Business Valuation Update.

Vote now: Take a quick survey to tell us which industries you’d like to see analyzed for causal factors and their elasticities, and Dr. Abbott will address them in the order of preference. Thanks in advance for helping us help you!