Paper says CEO wealth affects company risk
There is evidence that, as CEOs become wealthier, they take less risk with their firms to the detriment of shareholders, according to a new paper.
Bygone size effect resurfaces in highly volatile times, per new research
Although most empirical studies find that the size effect has disappeared since the early 1980s, it shows up during times of high macroeconomic volatility, according to a new paper.
Business Valuation Update Yearbook, 2019 Edition
February 2019 PDF
BVR (editor)
Business Valuation Resources, LLC
Top 10 observations on the Tax Cuts and Jobs Act (TCJA) from the perspective of business valuation professionals
BVR caught up with practitioners at the most recent AICPA Forensic & Valuation Services (FVS) Conference to collect some thought-provoking observations on how the Tax Cuts and Jobs Act (TCJA) is impacting valuations. Practitioners are still grappling with understanding the new law’s many provisions, so this list is certainly not exhaustive, and the thinking will continue to evolve.
YE2018 data—plus enhancements—now in the Cost of Capital Professional
Year-end 2018 equity risk premia and size premia are now available in BVR’s Cost of Capital Professional platform.
Letter to the Editor: Comments on the Cost of Capital Professional
A user who tested out BVR’s new platform for estimating the cost of capital has some very thought-provoking comments on the use of historical data for the equity risk premium.
Response to Eric Nath’s Comments on the Cost of Capital Professional
Comments in response to the need to develop a “truly forward-looking required rate of return system that gives appraisers an understanding of how to estimate cost of capital for private companies and interests in private companies.”
Damodaran posts his 2019 data updates
Professor Aswath Damodaran (New York University Stern School of Business) has so far posted a series of five data updates on his blog, “Musings on Markets.”
Business Valuation Review spotlights the ‘size effect’
If you’re a subscriber to BVResearch Pro, you have access to a vast amount of research material, including the full archive of Business Valuation Review, the journal of the American Society of Appraisers (ASA).
Improving on historical data for the cost of capital
There are shortcomings to using historical data in developing an equity risk premium (ERP) when estimating the cost of capital, points out Eric Nath (Eric Nath & Associates LLC) in the February issue of Business Valuation Update.
2018 in review: The most important developments in the business valuation profession
The new tax law, lively debates, new guidance, a strong protest, and a simpler approach to estimating cost of capital were just some of the highlights in the business valuation profession during 2018.
Pepperdine launches 2019 cost of capital survey
Input is sought from anyone involved in the funding of private businesses for the annual cost of capital survey that is part of the research at the Pepperdine Private Capital Markets Project.
BVR’s New Cost of Capital Platform Makes Its Public Debut
A record-setting audience of valuation experts got the first look at BVR’s new simple, independent service to estimate the cost of capital. The online platform is designed to augment each appraiser’s own professional judgment and his or her other research.
Online global business valuation education from the iiBV, on your schedule and from any location
If you’re looking for global business valuation education—when and where you want it—check out four new e-learning courses from the International Institute of Business Valuers (iiBV) and Business Valuation Resources (BVR).
Fernandez on badly explained finance topics
A number of topics relevant to business valuers including CAPM, WACC, betas, ERP, and returns are in the latest paper by Pablo Fernandez (University of Navarra, IESE Business School), "18 Topics Badly Explained by Many Finance Professors."
Don’t be locked into a start year for historical returns
During a recent demo of BVR’s new Cost of Capital Professional, an audience member asked whether he could choose the starting year used to calculate the historical equity risk premium and historical size premium.
Free trial expires soon for new cost of capital platform
Have you had a chance to test drive BVR’s Cost of Capital Professional (CCPro)?
Bibliography explains basis for new cost of capital platform
The Cost of Capital Professional, BVR’s new platform for estimating the cost of capital, is rooted in solid theory and empirical data.
First public demo of BVR’s new cost of capital platform
Last week, valuation experts got the first walk-through of BVR’s Cost of Capital Professional, the newest resource for developing a cost of equity capital estimate.
International Cost of Capital: Global Education by iiBV (eLearning course)
Advanced Business Valuation: Global Education by iiBV (eLearning Course)
Cost of Capital Professional: Transparent. Simple. Free.
The newest resource for developing cost of equity capital estimates has arrived. The inputs to cost of capital have become so complex that the risk of making errors has increased greatly. This new cost-effective resource from BVR integrates data from multiple sources, including University of Chicago’s Center for Research in Security Prices (CRSP) data, Professor Aswath Damodaran’s data resources, and the U.S. Federal Reserve on Treasury bond yields. The philosophy behind the resource is to ...
BVR’s Cost of Capital Professional: What the experts behind this new platform have to say
BVR is excited to announce the release of its new Cost of Capital Professional platform, a state-of-the-art resource that provides a simple and transparent way to estimate cost of capital. We recently sat down with two of the individuals involved in the development of the new platform, Dr. Michael Crain and Ronald Seigneur, for a comprehensive Q&A.
New paper finds scant evidence of a size effect
“The bottom line is that after addressing the facts and fictions of the size effect, we find neither strong empirical evidence nor robust theoretical support for a prominent size premium.”
FAQs posted for new cost of capital platform
A set of FAQs for BVR’s Cost of Capital Professional (CCP) has been added to the webpage that explains the new independent service for estimating the cost of equity.