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This paper aims to propose an account of the use of numbers and mathematical formulae and, more generally, of the quantitative aspects in the qualitative equity valuation model of the American investor Philip A. Fisher who is considered to be one of the fathers of the qualitative equity valuation models.

A Conceptual analysis was conducted (Glasersfeld, 1992) of the four volumes published by Fisher between 1954 and 1980 (1958, 1960, 1975, 1980) in relation to his equity valuation process. On the basis of this analysis, a modelization of this author’s perspective on quantitative instruments was built.

A modelization to use quantitative data in a qualitative equity valuation model that is sufficiently detailed and useful for an asset manager is proposed.

What is propose is a qualitative analysis of quantitative elements in the thought of a qualitative author on the subject of equity valuation. It is believed that this paper could be of interest to all those who use or are involved in the development of qualitative models of equity valuation or business valuation. This work is also an example of how conceptual analysis – generally employed in the field of mathematics education research – can be used to build descriptive models of decision-making processes of individual investors, models designed to enable the reproduction/approximation of the conceptual operations of the investor.

This paper aims to explore how fund managers (FMs) deal with major problems of ignorance and uncertainty in stock selection and in asset allocation decisions.

Interviews were conducted with 40 fund managers in the period October 1997 to January 2000. A seven stage approach was adopted to sift through and process the large volumes of case data. The interview case data formed the basis for identifying common patterns and themes across the cases.

The case data revealed the nature of this private information agenda concerning intellectual capital or intangibles and the dynamic connections between these variables in the value creation process. The case data provided insight into how the book value and market value gap arose and the special role of information on intangibles and intellectual capital in valuing the company.

The fund management behaviour has important implications for regulatory policy issues on insider information, on corporate disclosure, the corporate governance role of financial institutions, and for the governance of financial institutions.

The paper focuses on issues of importance in an increasingly concentrated and global FM industry.

The purpose of this study is to investigate if a firm's exchange complexity profile (that is, the linkages between the firm and its environment) influences investor behavior at the negotiation table where a firm valuation is derived.

The authors utilize Qualitative Comparative Analysis (QCA). Specifically, the authors utilize fuzzy-set Qualitative Comparative Analysis (fsQCA), a QCA variant that allows the researcher to assign graduated membership in sets.

When the authors dichotomize their positions as either higher stakes that favor the seller (high capital, low equity, high valuation) or lower stakes that favor the buyer (low capital, high equity, low valuation), and when the authors focus primarily on the equity outcome, the authors find that investors adopt a reductionist stance that adheres to a transaction cost economics logic under conditions of lower stakes and higher complexity as well as higher stakes and lower complexity conditions. The authors interpret this to mean that equity serves as a counter-balancing lever for a firm's exchange complexity configuration.

On a theoretical level, the authors showcase the exchange complexity framework and differentiate its position within the extant frameworks that address a firm's competitive advantage. More generally, the authors note that this framework brings the discipline of micro-economics and the field of strategic management closer together, providing scholars with a new tool enabling research across industries for the portfolio level of analysis.

The purpose of this paper is to develop an investment valuation model using the mezzanine debt mechanism based on blue bonds that explicitly allude to public–private partnerships (P3s) and project finance (PF). Additionally, this study proposes the financial captured value (FCV) theory for measuring how much financial value lenders may capture by becoming sponsors through financing of sustainable infrastructure systems (SIS).

The investment valuation model was validated through the Aguas Claras wastewater treatment plant as a case study.

The empirical results show that lenders may capture financial value by converting outstanding debt into equity shares throughout the operation and maintenance stage. Furthermore, case study results provide new insights into the implications of the debt–equity conversion ratio on the relationship between the sponsors’ internal rate of return and the FCV.

The most significant limitation is the lack of primary and secondary information on blue bonds. Thus, robust statistical analyses to contrast results were not possible.

Researchers and practising professionals can improve their understanding of how mezzanine debt, P3s and PF into an investment valuation model allows financing SIS using a non-conventional financial mechanism. The recommendations will benefit both the academia as well infrastructure industry in bridging the gap between design theory and practice.

Sustainability components have not been addressed explicitly or combined in the financing’s structuring. Therefore, the investment valuation model could be considered a novel methodology for decision making related to financing and investment of SIS.

This paper aims to assess how to select an appropriate intellectual property valuation method according to the valuation situation and context.

The article describes the difference between the quantitative and qualitative methods and principles. It reviews the principal approaches and methods used to evaluate an intellectual property asset and proposes a framework to help the evaluators to select an appropriate valuation method. The paper initiates a discussion on the parameters and requirements that influence the choice of an IP valuation method in order to reach the expected valuation result.

This paper provides useful guidelines for any evaluator who would be responsible for executing an IP valuation and who would be faced with the difficult task of choosing an appropriate IP valuation method. It is the intention of this paper to develop a synthesised and integrated procedure for the selection of an IP valuation method.

The limitation of this paper is that not all of the existing methods were described and taken into account in the final proposed procedure. The authors made a series of assumptions and a selection of the methods that may not be entirely shared by other researchers and practitioners. The authors are conscious that this constitutes a first proposal in the selection process of the most relevant IP valuation method. Further discussions and developments would be carried on in the future to enhance the proposed procedure.

This paper proposes a framework to orientate the choice of an appropriate IP valuation method according to the context and situation in which the valuation is to be implemented.

I show that the common residual income model assumption that return on equity approaches zero in the long run as competitive advantage dissipates is incorrect. This erroneous assumption comes from the common misinterpretation of the spread between return on equity and the cost of equity as a measure of economic profit. I also show that an unbiased accounting system (Feltham and Ohlson, 1995), which would make such an interpretation acceptable, is unlikely to exist in actual financial statements. Finally, I argue that because an accounting system can be deemed to be unbiased only if the firm's value is already known, the concept is of little practical use for actual valuation work.

The International Valuations Standards Committee adopts the Capital Asset Pricing Model as a method for estimation of the cost of equity. It has several drawbacks and appraisers in emerging markets need more useful model for cost of equity estimation. The paper aims to discuss these issues.

The proposed model is a modification of the Salomon Smith Barney model for cost of capital determination. The econometric part of the model incorporates the non-synchronous effect, the thin trading effect, the time varying risk nature, and the systematic country risk.

The model estimates the cost of equity of Bulgarian REITs more accurate than the one, who uses the traditional β estimation.

The study provides appraisers, business consultants, and investment bankers with a consistent model for cost of equity estimation. The model incorporates most of the features of emerging markets REITs return series and avoids the weaknesses of the single-factor model for cost of equity estimation in emerging markets.

The proposed model reflects the following characteristics: the degree of diversification of the particular investor (imperfectly diversified); country risk; and time-varying risk nature. The political risk is incorporated by more objective measure of the systematic country risk.

This chapter addresses the general process of determining the value of a particular company, with additional detail on how valuation processes might be adapted to produce credible value conclusions of emerging technology ventures. There are three primary approaches to business valuation. There is the income approach, which indicates that value is a product of expected future cash flows – cash flows that are discounted to equate them to dollars in-hand (present value). There is the market approach, which attempts to draw conclusions of value based on the market prices of similar companies in the public and/or private markets. Finally, there is the asset approach, which indicates that the value of a company is equal to the sum of the values of its net assets. Specific adjustments are appropriate with respect to each of these approaches where the value of an emerging technology company is concerned. Professional valuation standards require that all of these approaches be considered in the valuation, even if the available information does not permit their credible application. Often, multiple approaches and techniques can be applied. The results of applying multiple techniques often do not overlap, and it is the analyst’s very important task to reconcile differing valuation results, or to decide which result or results should be discarded.

The purpose of this paper is to describe the role of brand equity on mergers and acquisition (M&A) in the pharmaceutical sector; also to emphasize the various strategies and the benefits incurred in the arena of M&A in this sector.

The author studies two major mergers in recent years, i.e. the Daiichi‐Ranbaxy and the Pfizer‐Wyeth deals. Brand equities were calculated. This study applied the “RKS” model developed by the author and Inter‐brand model for calculation of brand equity. The results obtained after the application of the two models were analysed for financial‐based decisions.

The study captures the perceived importance of brand equity factors to M&A decision making. Although this strategy carries a high price tag, it offers quick returns, including access to new markets or a stronger position in current markets. A study on the recent acquisition and mergers in the pharmaceutical industry indicates that there is consolidation in medical devices, generic and consumer health segments of the healthcare industry.

The paper studies two recent mergers which indicate that often these decisions are based on emotion rather than rationality. Therefore, it is suggested that managers should be more rational while taking decisions on mergers or acquisition.