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Type | Journal Article |
Scope | Discipline-based scholarship |
Title | The Choice of Valuation Techniques in Practice: Education Versus Profession |
Organization Unit | |
Authors |
|
Item Subtype | Original Work |
Refereed | Yes |
Status | Published in final form |
Language |
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Journal Title | Critical Finance Review |
Publisher | Now Publishers Inc. |
Geographical Reach | international |
ISSN | 2164-5744 |
Volume | 9 |
Number | 1-2 |
Page Range | 201 - 265 |
Date | 2020 |
Abstract Text | We use a survey approach to learn about valuation professionals’ choices and implementations of valuation techniques in practice. Most use both multiples and DCF, but implement DCF in a way that almost turns it into a multiples exercise. Confusion reigns with respect to interest tax shields and the WACC. Higher educational levels do not reduce the confusion. The survey design allows us to control for a respondent’s professional subgroup(e.g., consulting), education, experience, and valuation-purpose characteristics. We find that profession matters more than education; different professions have different valuation cultures. Other factors are less important. The relative unimportance of education raises questions about the role, benefit, and optimal mode of higher level finance education. |
Related URLs | |
Digital Object Identifier | 10.1561/104.00000088 |
Other Identification Number | merlin-id:16862 |
PDF File | Download from ZORA |
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Additional Information | Swiss Finance Institute Research Paper No. 16-36 |