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1 – 10 of over 1000Arun Upneja and Nan Hua
This paper seeks to accomplish three objectives. First, based on prior research, this paper attempts to infer the value relevance of earnings and equity for firm valuation in the…
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This paper seeks to accomplish three objectives. First, based on prior research, this paper attempts to infer the value relevance of earnings and equity for firm valuation in the restaurant industry. The second objective is to document the joint information content of earning and equity in firm valuation. Finally, the model tested above is used to evaluate the relevance of capital structure for firm valuation in the static capital structure framework. The empirical results indicate that the incremental R2 associated with earnings was found to be generally less than the incremental R2 associated with equity. The adjusted R2 of the model that included both earnings and equity ranged from 0.54 to 0.77. The results suggest that the addition of capital structure variables have no incremental explanatory power in explaining the market value of firm, in the presence of earnings and equity.
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Lucio Cassia, Stefano Paleari and Silvio Vismara
In this chapter we study the peer comparable approach used for the valuation of companies that went public on the Italian Nuovo Mercato. In Italy, IPO prospectuses often report…
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In this chapter we study the peer comparable approach used for the valuation of companies that went public on the Italian Nuovo Mercato. In Italy, IPO prospectuses often report the valuation methods used by investment banks. This allows us to analyze the accuracy of “real-world” valuation estimates. We show that underwriters rely on price-to-book and price-earnings multiples. The valuation estimates generated by these multiples are closest to offer prices. Conversely, when using enterprise value ratios comparable firms’ multiples are typically higher than those of the firms going public. We argue that underwriters have the possibility to select comparables that make their valuations look conservative.
Simona Leonelli, Francesca Di Pietro and Francesca Masciarelli
Crowdfunding campaigns reflect the personality traits of the entrepreneur, influencing the chances of a successful fundraising. In this study, the authors focus on three different…
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Crowdfunding campaigns reflect the personality traits of the entrepreneur, influencing the chances of a successful fundraising. In this study, the authors focus on three different entrepreneurs’ personality dark traits: narcissism, Machiavellianism and psychopathy. Through a text analysis of 338 equity-crowdfunding campaigns in the UK, the authors identified narcissistic expressions used by entrepreneurs in their pitches, and their impact on funding success. The authors found an inverted U-shape relationship between entrepreneurs’ narcissism and the crowdfunding success. On the other hand, entrepreneurs’ psychopathy has a negative linear relationship with crowdfunding success. This study contributes to the entrepreneurship literature, highlighting the importance of displayed entrepreneurs’ personality traits in engaging with crowd investors.
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