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Value-based pricing is by many companies as well as in academia perceived as the preferred pricing model. The pricing literature includes a long-standing debate on pricing authority and centralized pricing authority can be associated with value-based pricing strategies. A critical success factor for value-based pricing is customer value assessment, and many companies have experienced challenges in implementing value assessment to support its value-based pricing. This paper outlines how centralized versus delegated value assessment responsibility depends on the organization’s value creation character and the variations in value in use for different customers within individual market segments. Based on the integration of literature on pricing and value configurations we propose a framework which we then exemplify by four illustrative cases for which data were gathered by semi-structured interviews. By considering the implications of value creation models on value assessment following our framework we contribute to the understanding of how value assessment responsibilities should be assigned for firms working with value-based pricing.

Purpose Academics and practitioners are in relative agreement on what drives a company’s fundamental value, primarily it’s current assets and future cash flows. The practice of paying a premium may thus be due to the non-tangible factors associated with perceived value that currently are not incorporated into the assets of the company and the expected growth of the cash flows. Design/methodology/approach This paper looks at the most common theoretical models used in the calculation of the value of a firm. It then explains how human factors can cause divergence in the original price set. Findings Empirical evidence proves that the price paid for a company can easily reach 40-50 per cent above this calculation of the current value. Until valuation models can account for the factors that drive premium pricing, it is necessary to recognize that intangible and, in some cases, emotional aspects will have a great influence on the final price. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Equity accounting is a controversial accounting treatment. Although fair value measurement represents a potential alternative measurement base, information content may be lost under a pure fair value measurement approach. This study investigates the value-relevance of equity accounted carrying amounts and disclosed fair values of listed associates, using a sample of the largest firms listed in South Africa, Australia and the UK. The main finding is that the alternative measurement bases are incrementally value-relevant during the sample period of 31 December 2005 to 31 December 2011, implying that equity investors do not blindly accept either measurement base. Rather, investors include their own assessment of the intrinsic value of an entity's listed associates in their valuations.

The paper examines whether company's characteristics, namely, stockholders number, listing status and company's age affect its accounting information relevance and which stock price measure, among average price, closing price and after three months price, is more dependable in pointing out the accounting information value relevance for a sample consists of 91 companies in the services and industrial sectors in Jordan within 2004-2013. Using price model, it is found that companies with larger stockholder numbers, listed on Amman Stock Exchange primary market, and that are older in age yield greater value relevance for per share earnings and book value. Book value has the greatest value relevance being the best predictor for firm value, while cash flows showed insignificant results. Finally, we concluded that closing price is the most dependable among the three stock price measures in detecting the accounting information value relevance in Jordan. The paper presents the ability of valuation theory/model to interact with other theories by including the effect of non-accounting information on the accounting information value relevance. Our findings might present evidence that can serve the educational institutions in their courses and provide a guideline to investors, managers and financial analysts to better summarize the firm value.

ur issue brings together a set of conceptual and empirical articles around the broad topic of sharing and ownership. Keeping and sharing are not only fundamental to consumer behavior, but these basic interactions “establish the various social ties linking both individuals and groups” (Godelier 2011, 469). Hence, sharing is an active practice that is constitutive of social relations (John 2013). As our ancient Cro-Magnon and Neanderthal ancestors gathered around a fire in the self-interested desire to stay warm, they also formed relations and learned to “cooperate durably in ways not found in themost closely related primate societies” (Godelier 2011, 464). Sharing talk, food, and relations around a fire became something done for its own sake—its own intrinsic value, not involving expectations of reciprocal exchange (Vaughan 1997; Widlok 2013). Sharing is ubiquitous, but often taken for granted and embedded in everyday rituals and routines (Belk 2010). It is sometimes difficult to precisely define and distinguish from market and gift-giving exchanges (Belk 2010, 2014a; Widlok 2013;BardhiandEckhardt2015;Scaraboto2015).Moreover, sharing and ownership are socially constructed, embedded in values, cultural norms, relations, and human emotions; there are often social constraints on sharing and owning, and theremay be social sanctions for not sharing or not owning (John 2013; Siebert 2013). Ownership, access, and sharing are emerging as key concepts across a number of fields and contexts. We are now barraged with information about “the sharing economy” and collaborative consumption that provokes new questions about interplay between keeping and sharing and the consequences for consumers and companies (Chen 2009; Botsman and Rogers 2010; Bardhi and Eckhardt 2012; Lamberton and Rose 2012; Matzler, Veider, Kathan 2015; Scaraboto 2015). Much recent research explores hybrid variants that strive to combine the logics of sharing and market exchange. In some of the theory and research surrounding

We study how the presence of consumers’ peer-to-peer sharing option in addition to exclusive ownership affects sellers’ pricing and product design decisions, as well as consumers’ benefits. We identify the conditions in which a seller would accommodate or hinder sharing by pricing the product appropriately. The seller’s profit can be enhanced by accommodating sharing when consumer valuation heterogeneity is neither too high nor too low. Second, sharing does not always improve consumers’ access to goods, and consumers’ access is the most constrained in product categories of medium intrinsic value. Third, existing consumers who seek exclusive ownership may end up being worse off in markets where, without the sharing option, the seller would price the product such that sharing consumers could afford to own the product. Finally, sharing enhances the seller’s incentive to improve product quality in markets where sharing consumers cannot afford to own the product if sharing is precluded.

This study presents an economic ordering policy for deteriorating items with stock-level dependent demand rate in the presence of trade credit using the discounted cash flows approach. Mathematical models are derived under three different situations: instantaneous cash flows; credit only on units in stock; and a constant credit period. The main objective of this work is to minimize the present value of all future cash flows. The optimal solution is derived for finding the optimal cycle time and the present value of all future cash flows. Next, numerical examples are provided to validate the proposed models. Numerical examples show that there is significant difference in the values of optimal cycle time, order quantity, and present value of all future cash flows. Sensitivity analysis is carried out with respect to the variation of key parameters. Mathematica® 5.1 is used to find numerical results.

Este trabalho é dedicado ao processo de avaliações de empresas, suas principais abordagens, assim como o detalhamento por etapas do modelo utilizado com o objetivo de encontrar o valor intrínseco da ação da empresa Tesla. Baseando-se na premissa de que, o valor de uma empresa corresponde ao valor de seus fluxos de caixa no futuro, usaremos o método do fluxo de caixa descontado para calcular o valor presente dos fluxos de caixa livre futuros ao acionista descontados por uma taxa encontrada através do modelo de precificação de ativos de capital (CAPM). Nesta pesquisa, são utilizados os trabalhos do professor Aswath Damodaran, os relatórios divulgados pela Tesla em seu site oficial e artigos online.

Over the last years, cryptocurrencies have acquired a growing social and economic interest. The most representative features of this new phenomenon are strong price increases and high volatility. The investigations developed in this field are not excessively numerous nor unanimous. Some researches consider this phenomenon to be a bubble, since they don't agree that the price pattern of the cryptocurrencies is justified or explained by their intrinsic value. The present article aims to provide a theoretical framework for the assessment of these new realities embodied by cryptocurrencies. We have created a model which differentiates two types of cryptocurrencies: the cryptocurrencies meant to fund a specific project, and the cryptocurrencies designed for general or non-specific uses. We will also make a distinction between block chain networks designed to work only with cryptocurrencies from those which admit other tasks. Our model establishes the difference between the value of the currency and that of the network. The result of this research is a theoretical valuation model based on three fundamental categories of cryptocurrencies by purpose or finality.

This paper revisits the issue of price explosiveness in cryptocurrency markets by analysing the prices of Bitcoin, XRP, Ether, and Litecoin not only expressed in US Dollars, but also the price of the latter three expressed in Bitcoin. There is strong evidence of explosive periods in cryptocurrency prices expressed in US Dollars, but also when XRP and Ether are expressed in Bitcoin. Whether or not these explosive periods can be interpreted as cryptocurrency bubbles requires a sufficient understanding of the fundamental value of cryptocurrencies. As this is currently insufficient, the term bubble should be used with more caution.

La actual crisis sanitaria se traduce en un cisne negro que impactó en todas las economías. A diferencia de otras crisis cuyo impacto fue general, esta afectó determinados segmentos de negocios. En particular aquellos con mercados enfocados al transporte, ocio y consumo discrecional, con uso intensivo de factor humano para operaciones y significativo apalancamiento financiero aplicado a significativos stocks de capital. En esa línea los modelos de valuación de empresa, más que nunca, deben apoyarse en los fundamentos de valor y los riesgos macroeconómicos. Argentina, como mercado emergente, suma la dificultad del importante proceso inflacionario. El trabajo propone un modelo de valuación donde los riesgos propios y fundamentos de valor son incorporados en los flujos proyectados y los riesgos sistémicos son contenidos en las tasas. El modelo plantea la valuación en dos monedas, curso legal y dólares EE.UU., en el marco de las teorías de paridad de tipos de interés y poder adquisitivo. El valor de la firma será función del crecimiento real de los ingresos y la vuelta a niveles de márgenes operativos prepandemia, variables analizadas con método de simulación Monte Carlo. El funcionamiento del modelo se ilustra mediante la valuación de las empresas cotizantes en el mercado local al 12 de junio del 2020, exponiendo una destrucción de valor intrínseco medido en dólares del 38%.

Practical Applications In Cryptocurrencies as an Asset Class?An Empirical Assessment from the Fall 2020 issue of TheJournal of Alternative Investments, author Daniele Bianchi of Queen Mary University of London explores how cryptocurrencies (for example, Bitcoin) relate to traditional asset classes such as stocks and bonds. Bianchi posits that cryptocurrencies are global investments because they are not tied to any country. He therefore matches the performance and volume of cryptocurrency against that of global stock, bond, and other indexes. He also explores the driving factors behind cryptocurrency market activity. Bianchi finds no significant correlation between the performance of cryptocurrencies and that of traditional assets, except for a slight correlation with commodities, especially precious metals. He also finds no correlation between the volatility of cryptocurrencies and traditional assets. Finally, he finds that cryptocurrency trading volumes are not affected by macroeconomic events; their main driver is past performance—meaning investors trade cryptocurrency based on gut feelings rather than analysis. Like gold, cryptocurrencies can act as a hedge against stock market losses—but they do not have gold’s perceived intrinsic value, since their value is based only on the platforms and projects with which they are associated. TOPICS:Currency, exchanges/markets/clearinghouses

As the energy system progresses towards full decarbonization, natural gas could play an important role in it with its relatively low carbon characteristics and its abundant supply. At the core of the paper is a modelling analysis of the European Union (EU) natural gas network resilience in case of short-term supply disruption or unexpected increase in demand. The adopted linear programming model solves for the most cost effective transmission of gas flows, capacity and storage utilization in an interconnected EU gas system. Results presented in the paper show a significant increase in liquefied natural gas (LNG) costs (+40%) when commodity price increases (+40%) and LNG prices decreases (−20%), and an equally significant decline in transport and LNG costs (−30%,-50%) when storage volumes varies (−35%,+35%).The analysis highlights a complementary role between LNG and storage in ensuring a cost-effective response to a natural gas supply shock. It also indicates that LNG alone is inadequate in providing system resilience in case of an emergency in supply, stressing the importance of storage in the gas market and its intrinsic value in the system. The study emphasizes the need to further investigate the reliability and value of gas storage to reinforce energy security in Europe.

Time series analysis of intensive longitudinal data provides the psychological literature with a powerful tool for assessing how psychological processes evolve through time. Recent applications in the field of psychosomatic research have provided insights into the dynamical nature of the relationship between somatic symptoms, physiological measures, and emotional states. These promising results highlight the intrinsic value of employing time series analysis, although application comes with some important challenges. This paper aims to present an approachable, non-technical overview of the state of the art on these challenges and the solutions that have been proposed, with emphasis on application towards psychosomatic hypotheses. Specifically, we elaborate on issues related to measurement intervals, the number and nature of the variables used in the analysis, modeling stable and changing processes, concurrent relationships, and extending time series analysis to incorporate the data of multiple individuals. We also briefly discuss some general modeling issues, such as lag-specification, sample size and time series length, and the role of measurement errors. We hope to arm applied researchers with an overview from which to select appropriate techniques from the ever growing variety of time series analysis approaches. ispartof: Journal Of Psychosomatic Research vol:137 pages:1-15 ispartof: location:England status: published

This paper presents evidence that information asymmetry increases equity misvaluation by showing the impact of analyst coverage on misvaluation. To establish the causality, I use two exogenous events (broker closures and mergers), as well as an instrumental variable approach. The identification strategies indicate that there is a negative causal effect of analyst coverage on equity misvalutaion. The evidence is consistent with the hypothesis that information environment can cause investors to use their perceived value in cash flow and discount rate to estimate their perceived equity prices, which deviate from intrinsic value.

Stock investment has an attraction for investors because with investments in the form of shares, investors have the expectation of obtaining profits in the form of capital gains or stock dividends. To take into account the risk factors and produce a maximum level of profit, the stock purchase decision-making process requires careful analysis when determining its market value. Thus, in deciding investment in the stock market, prospective investors must first conduct an in-depth analysis of the company whose shares will be purchased. The fundamental analysis concerns the projected condition of the company in the future by showing the present and past situations. This approach is used to assess the intrinsic value of these shares, and investors are used for investment over a long period. The data used in this research are 22 infrastructure issuers on the Indonesia Stock Exchange from 2015-2018. The data is then processed by the econometrics method using Eviews and Microsoft Excel software with a panel data regression model or pooled regression. Hypothesis testing shows that fundamental macro-micro factors jointly affect the stock returns on infrastructure companies listed on the Indonesia Stock Exchange

We look at the strategic introduction of take-back programs (TBPs) which offer consumers a discount on their next purchase (reward) when they drop off previous purchases. In a Hotelling duopoly, consumers are heterogeneous not only in terms of their location on the Hotelling line but also in terms of their recycling preferences. Firms introduce TBPs to obtain a market share advantage (reward effect) and/or to recover the intrinsic value of the recycled units (recycling effect); their choice of the optimal reward balances these two effects: for instance, a firm might be willing to introduce a TBP, even if this means losing money on each recycled unit, in order to prevent the competitor from gaining a too large market share advantage. Comparing the level of TBP uptake at the market equilibrium to the one that maximizes social welfare, we show that a lower or higher TBP uptake can be socially desirable, depending, among other, on the weight that is given to the environmental benefits of TBPs. Several extended producer responsibility policies are discussed in terms of their potential to encourage TBP uptake and their overall impact on social welfare.

Considering that a manufacturer and its core part supplier make collaborative R&D on serial products of 3 grades, high-, mid-, and low-grade, and their core parts according to costumers’ preference for the performance, or intrinsic value, of products, we propose a collaborative R&D model based on costumers’ selection behavior to study the collaborative R&D policy and pricing policy of the supply chain. Then we establish a bargaining game model to study how they allocate the profit they earned. We obtain the optimal policies through theoretic and experimental analysis, and we use Apple iPhone case to illustrate the models and conclusions of this paper. It is found that if the aim of the supply chain is only to maximize its total profit, it should only develop the high-grade product and make its price half of its intrinsic value; if the aim of the supply chain is to maximizing profit while increasing the sales and market shares of the serial products, it should at least develop the high-grade and low-grade product; the ratio of price between the higher grade and the lower grade should be greater than the corresponding ratio of the intrinsic value, while the difference of price between higher grade and the lower grade should be less than the corresponding difference of the intrinsic value.

Consumers tend to perceive a service of higher value when more consumers, under the influence of others, make the same choice. In this paper, we investigate the price and capacity decisions in a service system under the influence of social interactions. We model such a service process by an M/M/1 queue system with observable queues. Consumers perceive a positive (negative) value of the service if the observed queue length is longer (shorter) than the base queue length --- an anchor point in their value perception. We examine the effects of the intrinsic value of the service and the consumer's value perception (in terms of the queue length anchor point) on the price and capacity decisions under the influence of social interactions. We also quantify the potential gain or loss in profit when the influence of social interactions is ignored. Theoretical results are derived to guide the price and capacity decisions to exploit the influence of social interactions. It is found that there exist delicate dynamics among key parameters and variables, when ignored, that could lead to undesirable outcomes. The study offers new insights to balance the demand-inducing effect and the congestion-aggravating effect in a service system under the influence of social interactions.

Value investing, as defined by the Fama–French HML factor, has underperformed growth investing since 2007, producing a drawdown of 55% as of mid-2020. The underperformance leads many to argue that value is dead. Our analysis attributes value’s recent underperformance to two sources: the HML book-value-to-price definition fails to capture the increasingly important intangible assets, and valuations of value stocks relative to growth stocks have tumbled. Both arguments are inconsistent with value’s death arguments. We capitalize intangibles and show that this measure of value outperforms the traditional measure by a wide margin. We also perform a return decomposition and demonstrate that changes in the valuation spread between the growth and value portfolios explain the entire drawdown, with room to spare. The relative valuation of the value factor falls from the top quartile of the historical distribution at the start of 2007 to the bottom percentile as of June 2020. Financial Analysts Journal, 2021, 77(1): 44–67. Data for our iHML factor can be downloaded here. First posted to SSRN: November 17, 2019.

For dividend discount models, the intrinsic value of stock is estimated by discounting all the future dividends of the stock. In the simplest assumption where growth is constant forever, the Constant Dividend Growth Model formula is expressed as P = D1 / (k-g). The premise is that the firm will pay future dividend that will grow at a constant rate. In this paper, we show that the price generated by this traditional formula is not stable if ROE is not equal to k. In the long run where capital can be varied, the company’s ROE should be equal to k. Otherwise, firms will have the incentive to boost share value by increasing or reducing capital accordingly. The long run equilibrium state is attained when the return on equity is equal to the required return (k = ROE). In such case, the constant dividend growth model can be simplified to: V = EPS1 / k. Only in the condition where k = ROE would the price yielded by the traditional dividend growth model is stable. Interestingly, the derived valuation formula for the long run equilibrium condition is based on only EPS and required return, which means that the model can also be applied to firms which pay no dividend.

Advertising to a consumer moves her further along the purchase journey, and tracking the consumer's online activities enables the advertiser to infer her purchase journey stage and target her accordingly. However, many consumers dislike being tracked, and repeated advertising leads to ad wearout. Under these considerations, we investigate the impact of regulations that endow a consumer with the choice to opt in to have her activity be tracked or opt out of tracking. A consumer's opt-in decision balances two aspects of privacy: its intrinsic value (protect privacy for its own sake) and its instrumental value (compromise privacy if doing so leads to utility-enhancing outcomes). Consumers opt in or out of tracking under different conditions. For instance, when ad effectiveness is intermediate, such that repeated ads would be useful for the advertiser, consumers opt in. This is because tracking reveals the consumer's purchase journey stage, which increases advertising efficiency and thus reduces ad repetition than if the consumer had opted out. Due to the opt-in/-out choice, and compared to the pre-regulation benchmark of consumer data being tracked, consumer surplus weakly increases and the advertiser's and the ad network's profits weakly decrease. Interestingly, the advertiser's and the ad network's profits may decrease in ad effectiveness.

Under the recent negative interest rate situation, the Bachelier model has been attracting attention and adopted for evaluating the price of interest rate options. In this paper, we will derive an option pricing formula based on the Bachelier model and compare it with the prior researches. We will derive it by eight methods and clarify the property of the Bachelier model. Then we will confirm the validity of the Normal model that is actually used in the valuation of interest rate options under negative interest rate, while comparing it with the Bachelier model for stocks. We start from the natural setting of modeling the undiscounted stock price by the Ornstein=Uhlenbeck process, and derive the Bachelier formula in consideration of discount. On the other hand, since the major prior researches start from modeling the discounted stock price by the Brownian motion, their models of the undiscounted stock price has an unnatural setting that the price of the numeraire asset is included. Furthermore, It has been confirmed that their formulas are not consistent among them. During the derivation process, we have obtained various results concerning the Bachelier model. In particular, in the case of the Bachelier model, it has been confirmed that the utility function of a representative agent is the CARA utility function unlike the Black-Scholes model. The assumption of the exponential type utility function is quite natural setting. In addition, we have derived other expressions of the Bachelier's formula (the formula decomposed into the intrinsic value and the time value and the formula using a characteristic function). As for the Normal model used for pricing interest rate options, we have derived an original pricing formula (Modified Normal model) in which the unnatural points of the Normal model of the forward LIBOR and forward swap rate have been partially corrected.

Recent years have witnessed the successful marriage of finance innovations and AI techniques in various finance applications including quantitative trading (QT). Despite great research efforts devoted to leveraging deep learning (DL) methods for building better QT strategies, existing studies still face serious challenges especially from the side of finance, such as the balance of risk and return, the resistance to extreme loss, and the interpretability of strategies, which limit the application of DL-based strategies in real-life financial markets. In this work, we propose AlphaStock, a novel reinforcement learning (RL) based investment strategy enhanced by interpretable deep attention networks, to address the above challenges. Our main contributions are summarized as follows: i) We integrate deep attention networks with a Sharpe ratio-oriented reinforcement learning framework to achieve a risk-return balanced investment strategy; ii) We suggest modeling interrelationships among assets to avoid selection bias and develop a cross-asset attention mechanism; iii) To our best knowledge, this work is among the first to offer an interpretable investment strategy using deep reinforcement learning models. The experiments on long-periodic U.S. and Chinese markets demonstrate the effectiveness and robustness of AlphaStock over diverse market states. It turns out that AlphaStock tends to select the stocks as winners with high long-term growth, low volatility, high intrinsic value, and being undervalued recently., Comment: Accepted for POSTER presentation at KDD2019 Applied Data Science Track

Macroeconomic risk is a financial risk associated with macroeconomic or political factors. There are at least three different areas of application of this term. It may relate to: economic or financial risk found in stocks and funds; political risk in different countries; impact of economic or financial factors on political risk. Macroeconomic risk can also relate to the types of economic factors that affect the volatility of investments, assets, portfolios and intrinsic value of companies over time.

To determine a company’s intrinsic value, equity analysts make forecasts several years into the future, although the value generated in the explicit forecast period only represents a small part of the total valuation. Instead, most of a company’s value is determined in the terminal period - a perpetuity that includes all years after the explicit forecast. The literature states that the forecasts of analysts are too optimistic, and their assumptions in the terminal period does not reflect a normalized level in the company’s business cycle. This thesis develops several investment strategies based on estimates of the terminal value by using past financials with the goal of eliminating optimism and bias. Our valuations utilize the Gordon Growth and value driver formulas – both of which are commonly used in discounted cash flow models. We present several variations to estimate the fundamental components in the two formulas and test whether these variations are robust. The strategies are applied to the 727 non-financial stocks that have been a part of the S&P 500 index from 2003 to 2018. The results are benchmarked against the index and the performance of stock recommendations from Morningstar’s independent equity analysts. By investing in stocks trading below their terminal value, the strategies produce average annualized returns between 12.6% and 17.6% in excess of the risk-free rate, while the S&P 500 index excluding financials has generated 12.5% annualized. A portfolio of 4- and 5-star rated stocks gave 13.1% yearly but with a relatively higher risk. The Gordon Growth and value driver strategies have similar returns and risk, but an important finding is that they invest in stocks with very different characteristics. The Gordon Growth strategy invests in stocks that appear cheap on price multiples and have higher debt, lower margins, and lower returns on invested capital. In contrast, the value driver strategy invests in cheap stocks with higher quality on these parameters. Both strategies favour stocks in the healthcare and consumer defensive sectors but often find technology stocks to be overvalued. If the strategies are used to both buy cheap and short-sell expensive stocks, they continue to deliver strong risk-adjusted returns, but the different variations of the strategies are less consistent – particularly the value driver strategies. The results are robust across many variations of the Gordon Growth and value driver strategies, but if the assumptions to growth and discount rates become too conservative, the amount of undervalued stocks is reduced, which makes the strategies more concentrated and riskier. The discount rate also has significant influence on which sectors appear most attractive. The results indicate, that our strategies represent a better alternative to the traditional quantitative value factor of Fama & French that evaluates stocks on their book-to-market ratios. The value factor has performed poorly in the past decade and appear redundant in the face of more recent factors of profitability and investment.

We investigate the return forecasting ability of a residual income model based on analysts’ estimates and time-varying risk-free rates, equity risk premiums and terminal value growths, in US and Europe, along the period 1995-2018. While the academic literature acknowledged the reliability of the model, practitioners and especially market operators paid scarce attention to it. Therefore, in a framework where market inefficiencies are admitted, a valuation model that shows superior predicting power for returns, at least compared to main market multiples and analysts’ recommendations, should be considered in providing better empirical estimates of intrinsic value. We display three major results: a) RIM-based V/P portfolios yield statistically significant alphas relative to market indexes; b) outperform portfolios built through other factors, reporting higher Sharpe ratios and information ratios; c) remarkably beat analysts’ buy-sell recommendations. Furthermore, two facts stand out: RIM proves to be extremely effective in signaling overvalued stocks and producing substantial long-short returns; the simpler RIM model studied generates better outcomes than the more complex one.

We investigate the effects of misvaluation (defined as fluctuation in the market value of equity relative to its intrinsic value) on financing decisions of REITs (Real Estate Investment Trusts). Our findings reveal that misvaluation increases the likelihood of capital-increasing decisions (i.e., equity issues, debt issues and dual issues) and decreases the likelihood of capital-reducing decisions (i.e., equity repurchases and debt retirements). The impact of misvaluation on the equity-related decisions is consistent with market timing behaviour, whereas its impact on debt-related decisions is peculiar. Our further analyses document that due to exogenously capital constraints, highly misvalued REITs, which are motivated to undertake merger activities or new investments, issue both equity and debt financing because single equity capital might be insufficient to finance their new projects. In addition, the effects of misvaluation on debt-related decisions are different between REITs and non-real estate firms (non-REs).

Purpose in this study is to find the reasonable value shares at subsector retail trade listed on the Indonesian stock, and the formation of portfolio shares at subsector retail trade with Capital Asset Pricing Model (CAPM), and analyzes the difference between intrinsic value and value of the stock market at subsector retail trade listed on the Indonesian stock. Method in this research to count intrinsic value shares whit the ways Dividend Discount Model (DDM), while the formation of portfolio use Capital Asset Pricing Model (CAPM), the result of research showed that the price of stock that is in the market is not shows a value that truth and in the results research no issuers having stock prices being in a condition of balance between intrinsic value and that the value of the market (Correctly Valued), and there is no significant difference where the benefits of natural and value of the market in companies registered on a stock.

The purpose of this study was to determine the intrinsic value, condition of stock prices, the decision to be taken and to determine the projected fair price of the company's shares in the property, real estate, and building construction sectors listed on the Indonesia Eek Exchange (IDX). This research uses quantitative descriptive research. The data used in this study is secondary data, in the form of company financial statements and closing price. The population in this study is the construction and building subsector as many as 70 issuers. The sampling technique uses saturated sampling with a total sample of 30 issuers. The analysis technique used is fundamental analysis through the Price Earning Ratio (PER) approach and the concept of Time Value of Money with the absolute method of Discount Cash Flow (DCF). Research Results through the Price Earning Ratio (PER) approach show that there are 18 issuers with high stock price conditions (overvalued) and there are 12 issuers with low stock prices (undervalued). Research Results using the concept of Time Value of Money with the absolute method Discount Cash Flow (DCF) shows that there are 23 issuers that are in an undervalued position that can be bought and owned by new investors and there are 17 issuers that are in overvalued positions that should not be purchased by investors new. The most prioritized shares are the shares of PT Acset Indonusa Tbk (ACST) with the current market price of Rp. 2,460 and the projected fair price for the next 3 years (2020) is Rp. 6,383.03

Money as a medium of exchange in economic activities always changes, both in form, intrinsic value, and extrinsic value. Islam as a universal religion and as a way of life, regulates new symptoms that arise in society. The halal use of electronic money is still in doubt by the public. Because the form that is not visible is only how many numbers, and in the form of digital code on a chip or server. This goal aims to find the common value and position of electronic money. Research is limited to tcash issued by PT. Telkomsel. The results of the study found that electronic money is only a service offered by publishers to simplify and streamline the process of economic transactions.

RESUMEN La implementación de los métodos alternos en específico el arbitraje comercial en la solución de conflictos internacionales derivados de compromisos comerciales, es una realidad. Se ha convertido en una práctica común de las lex mercatoria la introducción de cláusulas arbitrales en todo contrato, elevándose estas a ser consideradas una cláusula de estilo de todo contrato internacional, rebasando la práctica comercial e introduciéndose en todo tipo de contrato con reconocimiento y validez legal en todo el orbe, respaldada por la lex fori y por el ius mercatorum. Entendiéndose esta como un contrato independiente del contrato principal, sustentado su reconocimiento por la Convención de New York del 58. Es por ello que se le considera un valor intangible de los MASC, en específico del arbitraje, permitiendo que las partes puedan resolver sus conflictos en un ámbito privado, como principal ganancia, valor intrínseco y rasgo distintivo de esta cláusula de estilo. ABSTRACT The implementation of alternative in specific commercial arbitration in resolving international disputes arising from commercial, methods is a reality. It has become a common practice of lex mercatoria the introduction of arbitration clauses in any contract, rising these to be considered a clause of style any international agreement, outstripping the commercial practice and shoves in all types of contract with legal validity and recognition around the world, backed by the lex fori and the ius mercatorum. It is being understood as a separate contract from the main contract, supporting its recognition by the New York Convention ‘58 is why it is considered an intangible value of the MASC specifically in arbitration, allowing parties to resolve their conflicts in a private sector, as the main gain intrinsic value and distinctive feature of this style clause.

Location data from mobile devices is a sensitive yet valuable commodity for location-based services and advertising. We investigate the intrinsic value of location data in the context of strong privacy, where location information is only available from end users via purchase. We present an algorithm to compute the expected value of location data from a user, without access to the specific coordinates of the location data point. We use decision-theoretic techniques to provide a principled way for a potential buyer to make purchasing decisions about private user location data. We illustrate our approach in two scenarios: the delivery of targeted ads specific to a user's home location and the estimation of traffic speed. In both cases, the methodology leads to quantifiably better purchasing decisions than competing methods.

The purpose of this paper is to explore the application of the absolute valuation methods, with the Hebei Gucheng Incense Group Co., Ltd (NEEQ: 830837, Hereinafter referred to as the company) as an example. This paper studies the intrinsic value of the company and makes a reasonable valuation for the company's stock.

Cryptocurrency appears to be a trending payment as well as an investment asset. The substantial number of investors are willing to allocate their wealth in such specific asset in 2018. That led to the increase of the demand on cryptocurrency, which subsequently influenced on its prices a lot. Investors are considering such instrument as an alternative investment, an acceptable substitution to ordinary stocks, bonds or commodities. In that case it becomes necessary to clearly determine the approach of estimation of the intrinsic value of such kind of assets. The article examines what type of asset is closer to the cryptocurrency. Moreover, the extent to which traditional methods of assessing financial assets applicable to the cryptocurrencies is also estimated.

The recent evolution of cryptocurrencies has been characterized by bubble-like behavior and extreme volatility. While it is difficult to assess an intrinsic value to a specific cryptocurrency, one can employ recently proposed bubble tests that rely on recursive applications of classical unit root tests. This paper extends this approach to the case where volatility is time varying, assuming a deterministic long-run component that may take into account a decrease of unconditional volatility when the cryptocurrency matures with a higher market dissemination. Volatility also includes a stochastic short-run component to capture volatility clustering. The wild bootstrap is shown to correctly adjust the size properties of the bubble test, which retains good power properties. In an empirical application using eleven of the largest cryptocurrencies and the CRIX index, the general evidence in favor of bubbles is confirmed, but much less pronounced than under constant volatility.

Since implementing the reform and opening-up policy in 1978, China has been making considerable progress in building a socialist economy with Chinese characteristics, and exhibiting the intrinsic value of land, labor force, and capital which function as production factors in value creation and distribution. While the Chinese economic volume keeps expanding the resources and environment, energy and carbon emissions credits have become scarce elements that have received attention of policymakers. As such, establishing a market mechanism with energy consumption and carbon emissions as basic elements has become an especially important task.

The objective of this research was to examine some incentive and informational properties of contingent valuation surveys and provide some suggestions in survey design. The contingent valuation method uses survey questions to elicit individuals' preferences for nonmarket goods. The essential task of a contingent valuation exercise is to design a questionnaire which elicits respondents' preference for the good being valued.;This dissertation includes three essays that contribute to the contingent valuation literature. The contingent valuation method is widely used in estimating the economic value of nonmarket goods. The first essay offers an empirical test of a theoretical result in the contingent valuation literature, which argues that respondents will respond to survey questions truthfully, if they perceive the survey as being "consequential", regardless of the degree of consequentiality. The second essay tests the commitment cost theory suggested by Zhao and Kling (2001, 2004). They argue that a respondent's willingness to pay for a good at a particular point of time depends not only on the intrinsic value of the good, but also on the timing of the decision and the characteristics of the market environment. The third study examines whether three value elicitation formats---the dichotomous choice question, the multinomial choice question, and a modified multinomial choice question suggested by Carson and Groves (2007)---provide comparable welfare estimates

We demonstrate a machine learning and artificial intelligence method, i.e., lexical link analysis (LLA) to discover high-value information from big data. In this paper, high-value information refers to the information that has the potential to grow its value over time. LLA is a unsupervised learning method that does not require manually labeled training data. New value metrics are defined based on a game-theoretic framework for LLA. In this paper, we show the value metrics generated from LLA in a use case of analyzing business news. We show the results from LLA are validated and correlated with the ground truth. We show that by using game theory, the high-value information selected by LLA reaches a Nash equilibrium by superpositioning popular and anomalous information, and at the same time generates high social welfare, therefore, contains higher intrinsic value.

MUI fatwa against legal permissibility (jawaz) wakaf cash has the basis of consideration nash argument (hadith Ibn Umar) which reads ihbas ashlaha wa sabbil tsamarataha. The basic considerations of MUI also exist in the aspect of its mashlahah, that the money waqf has flexibility (flexibility) and the great benefit that is not owned by other objects, in addition to its easiness in capturing waqif. The MUI sees it necessary to the development of meaning because of the substance of that understanding is the necessity of ta'bid on the substance of mawquf substance (baqa 'ainih). So the element of his devotion is to emphasize only aspects of matter not including the nature of things as well as the eternal intrinsic value of money (baqa 'ashlih). So with the development of understanding of this wakaf, is expected to open opportunities for reinterpretation of the meaning of waqf more relevant in the economic development of society. MUI also sees the need for the addition of "aw ashlihi" (baqa ashlih) which means the subject of fixed property is not lost, the addition of sentence in the definition of wakaf is also in order to understand or interpret the dedication on the aspect of the nature of the wakaf (nature)

La universidad y el museo son los mejores ejemplos de globalización que ofrece Europa a nivel institucional. Muchas de las colecciones de las universidades, además de su valor e interés intrínseco, tienen una relación estrecha con los lugares donde se asientan; su significación aumenta considerablemente al situarlo en el contexto de lo que conocemos como la dimensión europea. El futuro de los museos y colecciones universitarias europeas se encuentra inmerso en un intenso debate, las universidades se enfrentan a un proceso de cambio necesario y, en éste, el patrimonio puede jugar un papel fundamental. Se plantean proyectos de reorganización y nuevas fórmulas de interpretación, participación y colaboración con el objetivo de incrementar su potencial e interés para un amplio abanico de usuarios.

When trying to figure out which valuation method to use to value a stock for the first time, most investors will quickly discover the overwhelming number of valuation techniques available to them today. There are the simple to use ones, such as the comparable method, and there are the more involved methods, such as the discounted cash flow model besides all of them have their own problems and limitations as well as impacted with behavioral finance. Companies have an intrinsic value, and that intrinsic value is based on the amount of free cash flow they can provide during their effective lifetime. Money later is worth less than money now, however, so future free cash flows have to be discounted at an appropriate rate. The theory behind most stock valuation methods is that the value of a business is equal to the sum value of all future free cash flows. All future cash flows are discounted due to the time value of money. If you objectively know all future cash flows of a company, and you have a target rate of return on your money, then you can know the exact amount of money you should pay for that company. Preparing the work, the following methods were used: Systematic analysis of the scientific literature; Comparative analysis; Systematization, comparison and summarizing of the results. Behavioral Finance in the theoretical plane based on a cumulative and develop the institutional framework and practical manifestations become increasingly important element-catalyst for the development of financial markets. Unfortunately, there is no one method that is best suited for every situation. Each stock is different, and each industry sector has unique properties that may require varying valuation approaches. In this article we structure and compare different methods, their strengths and weaknesses.

One character of self-reliance in relation to entrepreneurship is the taking of initiatives about the business opportunities that can result. Market opportunities indicate the need for more tax consultants in the effort of one of them achieving tax revenue targets. Efforts to increase these numbers can be supported early on starting from the level of Higher Education, where graduates with related courses can contribute in shaping the profession of tax consultants in Indonesia. The purpose of this study is to analyze whether the desire of career dipengaurhi by the basic factors. By using multiple regression analysis and measurement with SPSS, the results of the study explain that career choice is influenced by personal factors, intrinsic value of work, job market opportunity, financial reward, professional recognition, work environment, social value. Socialization of the profession as a consultant is deemed necessary especially to form and increase student motivation, especially from accounting study program. The study aims to know and analyze interest in marching as a tax consultant and the factors that influence it. The results of this study describe career choices as influenced by personalities, intrinsic value of employment, job market opportunities, financial rewards / awards, professional recognition, work environment, and social values. What and how career paths and job characteristics are deemed necessary to be delivered to students especially those from accounting study programs. It aims to motivate and interest in the profession semakian sharpened and directed with important information concerning this profession. Socialization by tax consultants to campuses is considered appropriate for the program to direct the potential of another company's career or independent business as a tax consultant. Keywords: consultant, tax, profession, accounting

Background: Sections 30(4) and 30(5) of the Companies Act 71 of 2008 (the Act) require, inter alia , disclosure of the remuneration received by each director in a company’s annual financial statements. Section 30(6) defines the term ‘remuneration’, which includes, inter alia , in Section 30(6)(e) the ‘value’ of any option or right granted to a director, as contemplated in Section 42, which deals with options for the allotment or subscription of securities or shares of a company. It is uncertain what the intended meaning of the term ‘value’ is in this context and it is interpreted differently by different companies in practice. Aim: The objective of this study was to understand the meaning of the term ‘value’ in Section 30(6)(e) of the Act (including the date of measurement thereof), as intended by the legislature. Setting: This article examined existing literature in a South African corporate and legislative environment. Method: A non-empirical study of existing literature was conducted by performing a historical analysis within a South African context. A doctrinal research approach was followed. Results: Possible interpretations of the term ‘value’ include the grant date fair value of the rights, the fair value at reporting date, the fair value on vesting date, the expense calculated in terms of the International Financial Reporting Standard on share-based payments, the gain on exercise of the rights and the intrinsic value on reporting date. It is submitted that the most likely meaning is the grant date fair value. Conclusion: It was found that the meaning of the term ‘value’, for purposes of Section 30(6)(e) of the Act, is unclear and interpreted differently by different companies. It is, therefore, recommended that the wording of Section 30(6)(e) is amended to reflect the meaning intended by the legislature.

Altering the terms of a call option to fully protect its value when the underlying stock goes ex-dividend turns out to be trickier than one might think, and the same problem applies to protecting a convertible bond when a stock dividend is paid. Simply lowering the strike price by the same proportion that the stock price falls reduces ( S – X ) by the same percentage, so to maintain the option9s intrinsic value in dollars, the number of options must also be increased. This re-striking method equalizes the option9s exercise value before and after the dividend, but the volatility of the underlying still changes. Zimmermann proposes a new correction method that preserves option value when dividends are paid. The difference between valuation under the new method and under the re-striking method is not insignificant, amounting to several points of implied volatility for a holding period of three to five years.

The support vector machine (SVM) is a fast, and reliable machine learning mechanism. In this paper, we evaluated the stock price predictability of SVM, which is a kind of fundamental analysis that predicts the stock price from corporate intrinsic value. Corporate financial statements are used as input into SVM. Based on the results, we predicted the rise or drop of the stock. In addition, we evaluated how long a given financial statement can be used to predict a stock’s price. Compared to the experts forecast, the results of SVM show good predictability. However, as times goes on, the predictability begins to drop. These predictions based on financial statements are excellent, but after a short period, the dissonance between financial statements and stock price can be offset by reasonable investors. These results support the efficient market hypothesis.

Research summary: Cash can create shareholder value when used for adaptation to unfolding contingencies, but can also reduce value when appropriated by other stakeholders. We synthesize arguments from the behavioral theory of the firm, economic perspectives like agency theory, and the value-creation versus value-appropriation literatures to argue that the implications of cash for firm performance are context-specific. Cash is more beneficial for firms operating in highly competitive, research-intensive, or growth-focused industries that are typical of contexts requiring adaptation in the face of uncertainties. Conversely, cash is more detrimental to performance in firms that are poorly governed, diversified, or opaque, as are typical of contexts where stakeholder conflicts, information asymmetries, or power imbalances can encourage value appropriation by other stakeholders. Managerial summary: Cash can create shareholder value when used for adaptation to unfolding contingencies, but can also reduce value when appropriated by other stakeholders. While cash-rich firms have higher performance on average, with those in the 75th percentile having a market-to-book value 15 percent higher than those in the 25th percentile, we find that the performance benefits of cash depend on the context. Cash is more beneficial for firms operating in highly competitive, research-intensive, or growth-focused industries that are typical of contexts requiring adaptation in the face of uncertainties. Conversely, cash is more detrimental to performance in firms that are poorly governed, diversified, or opaque, as are typical of contexts where stakeholder conflicts, information asymmetries, or power imbalances can encourage value appropriation by other stakeholders. Copyright © 2015 John Wiley & Sons, Ltd.