scholarly journals Valuation of Banks in Bulgaria Using the DCF Method

2021 ◽  
Vol 27 (2) ◽  
pp. 72-108
Keyword(s):  
Deterministic Model ◽  
Point Of View ◽  
Balance Sheets ◽  
Book Value ◽  
Deterministic Modeling ◽  
Valuation Model ◽  
Interest Margins

The article presents a procedure for detailed deterministic modeling of bank valuation from the point of view of an outside observer, which is applied individually for First and Second Group banks in Bulgaria. The margin variables participating in the deterministic model, expressing the revenue and expenditure interest and non-interest margins, are combined in one generalized margin variable, and the volumes of balance sheets positions are represented by the value of bank-attracted resources. The results obtained from the application of the deterministic valuation model are compared with their book value, and for some of the smaller banks there are significant deviations between the valuation result and their book value.

scholarly journals Ecosystem–atmosphere exchange of microorganisms in a Mediterranean grassland: new insights into microbial flux through a combined experimental-modeling approach

2017 ◽  
Author(s):  
Federico Carotenuto ◽  
Teodoro Georgiadis ◽  
Beniamino Gioli ◽  
Christel Leyronas ◽  
Cindy E. Morris ◽  
...  
Keyword(s):  
Deterministic Model ◽  
Point Of View ◽  
Cloud Formation ◽  
Training Dataset ◽  
Promising Tool ◽  
Biological Aerosols ◽  
Ice Nuclei ◽  
Lack Of Information ◽  
Bacteria And Fungi ◽  
The Impact

Abstract. Microbial aerosols (mainly composed by bacterial and fungal cells), may constitute up to 74 % of the total aerosol volume. These biological aerosols are relevant not only from the point of view of the dispersion of pathogenic species, but also due to the potential geochemical implications. Some bacteria and fungi may, in fact, serve as cloud condensation or ice nuclei, potentially affecting cloud formation and precipitation and are active at higher temperatures compared to their, much more intensively studied, inorganic counterparts. Simulations of the impact of microbial aerosols on climate are still hindered by the lack of information regarding their emissions from ground sources. This work tackles this knowledge gap by (i) applying a rigorous micrometeorological approach to the estimation of microbial net fluxes above a Mediterranean grassland and (ii) developing a deterministic model to estimate these emissions on the basis of a few easily recovered meteorological parameters (the PLAnET model). The grassland itself is characterized by an abundance of positive net microbial fluxes and the model proves to be a promising tool capable of capturing the day-to-day variability in microbial fluxes with a relatively small bias and sufficient accuracy. PLAnET is still in its infancy and will benefit from future campaigns extending the available training dataset as well as the inclusion of ever more complex and critical phenomena affecting the release of microbial aerosol (such as rainfall). The model itself is also adaptable as an emission module for dispersion and chemical transport models, allowing to further explore the impact of microbial aerosols on the atmosphere and climate.

Fundamental Valuation in Seven Asian Countries: Role of Earnings, Book Value, and Dividends

2020 ◽  
pp. 0148558X2094690
Author(s):  
Kriengkrai Boonlert-U-Thai ◽  
Shahrokh M. Saudagaran ◽  
Pradyot K. Sen
Keyword(s):  
Financial Reporting ◽  
Stock Prices ◽  
Asian Countries ◽  
Book Value ◽  
International Firms ◽  
Financial Reporting Standards ◽  
Valuation Model ◽  
Prior Use ◽  
Other Information

We examine the role of earnings, book value, and dividends in examining the valuation of firms in select Asian countries. Besides the usual variables of earnings and book value, inclusion of dividends is motivated by prior use of the variable in the literature, as well as an adaptation of the Ohlson 2001 empirical specification of the valuation model. In our specification, absent credible analysts’ forecasts, as is typical in these markets, dividends together with earnings play the role of “other information” in explaining stock prices. In a large sample of Asian firms from seven Asian countries that lack an active analyst community, we document two key results. First, the model with earnings, book value, and dividends outperforms the earnings capitalization, book value, and a model with earnings and book value together, the traditional benchmarks used in the literature. This is in contrast to Ashbaugh and Olsson, 2002 who find that earnings capitalization is the best model for the international firms. Second, the ability of the model to explain stock valuations does not vary materially over time, thus indicating reasonable consistency across different accounting regimes in these countries that may include International Financial Reporting Standards (IFRS) adaptation at different paces. Our finding highlights the information role of earnings and dividends when other channels of information are blocked.

On: “What is noise?,” (J. A. Scales and R. Snieder, GEOPHYSICS, 63, 1122–1124)

Geophysics ◽  
1999 ◽  
Vol 64 (2) ◽  
pp. 628-631
Author(s):  
Howard Grubb
Keyword(s):  
Deterministic Model ◽  
Point Of View ◽  
Statistical Interpretation ◽  
Interesting Part ◽  
Data Variation ◽  
Statistical Viewpoint

With reference to Scales and Snieder’s (1998) discussion of “what is noise,” I would like to offer a statistical interpretation of this question. Any experiment involving measurement will have variation—this is what allows us to make inference upon the results—and it is the partition of this variation which is key to the noise question. From an experimenter’s point of view, noise may be “that part of the data (variation) which we choose not to explain,” although Scales and Snieder are correct to point out that we must then have a model to explain the rest, since a purely statistical one (i.e., assuming that the remainder is in some way “random”) may not be adequate. From a statistical viewpoint however, noise may be better described as “that part of the variation which we cannot explain with a parsimonious deterministic model” and the signal is then the interesting part of the overall model.

scholarly journals Automated valuation model for livestock appraisal in loaning practice

2014 ◽  
Vol 8 (1) ◽  
pp. 37-42
Author(s):  
Ferenc Buzás ◽  
Sándor Kiss
Keyword(s):  
Point Of View ◽  
Valuation Model ◽  
Stock Value ◽  
Appraisal Method ◽  
Set Up ◽  
Automated Valuation ◽  
Professional Guidance

Actualization of loan security (mortgage) value is of major importance in Hungarian loaning practice. Due to the recession in economics, the value of agricultural portfolio of banks has decreased a great deal, though not to such a great extent as other branches of the economy. Depreciation of estate stock is compensated with additional collateral security. Besides other stock, often temporarily and out of necessity, livestock is presented as additional collateral security. From the loaners’ point of view, however, the registered inventory value does not guarantee security. The authors have set up an appraisal method giving professional guidance through automated valuation as to how dairy stock can be used as mortgage for loan security. Hereby we are to present the details of both the theory and the methodology of a model that is appropriate for the valuation of dairy livestock on an MS Excel basis. Thus, the process is fast and has more prospects for all parties in the loaning or leasing business. The method involves the features of livestock technology, the expected realized profit, and breed stock value. By the implementation of this method, the loaners can calculate the value of loan recovery (loan to value) with acceptable security.

scholarly journals How Does Bankruptcy Risk Affect Stock Values?

2011 ◽  
Vol 21 (4) ◽  
Author(s):  
John D. Neill ◽  
Glenn M. Pfeiffer
Keyword(s):  
Firm Value ◽  
Indirect Costs ◽  
Investment Horizon ◽  
Cross Sectional ◽  
Bankruptcy Risk ◽  
Book Value ◽  
Equity Values ◽  
Valuation Model ◽  
Probability Of Bankruptcy ◽  
Stock Values

<p class="rmnorm" style="text-align: justify; line-height: normal; margin: 0in 0.6in 0pt 0.5in; tab-stops: .5in; mso-hyphenate: auto;"><span style="letter-spacing: 0pt; font-size: 10pt; mso-bidi-font-style: italic;"><span style="font-family: Times New Roman;">Research in corporate restructuring argues that the risk of bankruptcy reduces firm value by the present value of both the direct and indirect costs of bankruptcy.<span style="mso-spacerun: yes;">&nbsp; </span>Additionally, the potential for bankruptcy affects both the investment horizon of investors and the discount rate implicit in equity values.<span style="mso-spacerun: yes;">&nbsp; </span>This paper empirically examines the effect of cross-sectional differences in the probability of bankruptcy on the determinants of firm value.<span style="mso-spacerun: yes;">&nbsp; </span>We estimate bankruptcy probabilities for an extensive sample of more than 38,000 firm-year observations over a twelve-year period.<span style="mso-spacerun: yes;">&nbsp; </span>Using a valuation model that employs both book value and earnings, we provide empirical evidence that earnings multiples decrease as the estimated probability of bankruptcy increases.<span style="mso-spacerun: yes;">&nbsp; </span>These results imply that investors and analysts rely less on current earnings and more on book value (which proxies for the firm&rsquo;s liquidation value) as a firm&rsquo;s probability of bankruptcy increases. </span></span></p>

IT-Enabled Globalization and the Environment

2010 ◽  
pp. 208-224 ◽  
Author(s):  
Robert A. Schultz
Keyword(s):  
Economic Development ◽  
Environmental Ethics ◽  
Carbon Emissions ◽  
Stock Prices ◽  
Global Justice ◽  
Developed Countries ◽  
Point Of View ◽  
Developed Country ◽  
Balance Sheets ◽  
Reduce Emissions

Problems of environmental ethics transcend global justice. We can behave ethically and justly toward each other across the globe, but at the same time let the environment deteriorate in catastrophic ways. I believe principles of environmental ethics have to be treated as of higher order, and therefore of greater priority than even principles of global justice.1 The environment is not a person and therefore cannot be a participant in a social contract. So the different basis for its priority is that if the environment deteriorates, it makes all of our lives difficult or even impossible. Challenges to the priority of the environment sometimes come from corporations when their own interests in profitability would be harmed. Very often a focus on profit maximization will make the point of view of a corporation shortsighted. Notoriously, corporate stock prices tend to value short-term financial results over longer term results. And corporate financial results do not include externalities, impacts on the environment that are not directly reflected in their balance sheets. Carbon emissions are an excellent example. Developing nations sometimes object to constraints on their development for economic reasons. Their argument is that developed nations have had the benefit of unconstrained economic development, and it is unreasonable to expect them to curtail their development at its current stage. This objection was incorporated into the Kyoto Protocols of 1997 for carbon emissions: Developed countries were required to reduce emissions by 5 percent by 2012, but developing countries had no requirements but could be compensated for voluntary reduction. This feature of the protocols led to their rejection by the US Congress, although every other developed country adopted them. (Sachs 2008) The value of corporations is their ability to achieve economic development. But is economic development itself always a good thing? To what extent should development be constrained by environmental concerns?

A Comparative Analysis of Accounting-Based Valuation Models

2016 ◽  
Vol 32 (4) ◽  
pp. 561-575 ◽  
Author(s):  
Kung-Cheng Ho ◽  
Shih-Cheng Lee ◽  
Chien-Ting Lin ◽  
Min-Teh Yu
Keyword(s):  
Stock Prices ◽  
The Other ◽  
Residual Income ◽  
Switching Regression ◽  
Book Value ◽  
Earnings Growth ◽  
Valuation Model ◽  
Pricing Errors ◽  
Residual Income Valuation ◽  
Average Probability

We empirically compare the reliability of the dividend (DIV) model, the residual income valuation (CT, GLS) model, and the abnormal earnings growth (OJ) model. We find that valuation estimates from the OJ model are generally more reliable than those from the other three models, because the residual income valuation model anchored by book value gets off to a poor start when compared with the OJ model led by capitalized next-year earnings. We adopt a 34-year sample covering from 1985 to 2013 to compare the reliability of valuation estimates via their means of absolute pricing errors ( MAPE) and corresponding t statistics. We further use the switching regression of Barrios and Blanco to show that the average probability of OJ valuation estimates is greater in explaining stock prices than the DIV, CT, and GLS models. In addition, our finding that the OJ model yields more reliable estimates is robust to analysts-based and model-based earnings measures.

scholarly journals Investigation on the value relevance of accounting information: evidence from incorporated companies in the Singapore capital market

2016 ◽  
Vol 13 (3) ◽  
pp. 9-21 ◽  
Author(s):  
Basil Abeifaa Der ◽  
Petr Polak ◽  
Masairol Masri
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Capital Market ◽  
Value Relevance ◽  
Accounting Information ◽  
Book Value ◽  
Valuation Model ◽  
Long Run ◽  
Short Run ◽  
Asset Turnover

The purpose of this study is to investigate the relative, incremental and the systematic changes in value relevance of the accounting information. This study also attempts to investigate the effect of earnings management on the value relevance of accounting information. It basically uses Ohlson’s (1995) valuation model to test the conceptual framework. The findings of this paper reveal that book value is more value relevant and incremental followed by earnings and, then, cash flow. Cash flow, however, performs a lesser valuation role. The results also show that combined book value and earnings are more value relevant than combined book value and cash flow. As a third contribution, the paper also finds that the value relevance of some accounting variables has increased over time, while others showed no evidence of their inclined or declined patterns in the value relevance of accounting information. Finally, the paper finds that earnings management has no effect on the value relevance of accounting information. Further analyses suggest that earnings management is opportunistic in the short run, but efficient in the long run, when firms are small or have high asset turnover

scholarly journals To the Evaluation of the Insulation State Based on the Analysis of Partial Discharges

2021 ◽  
Vol 2096 (1) ◽  
pp. 012192
Author(s):  
S Yu Tetiora ◽  
N V Silin ◽  
N N Petrunko
Keyword(s):  
Deterministic Model ◽  
Partial Discharge ◽  
Electrical Equipment ◽  
Diagnostic Value ◽  
Point Of View ◽  
Partial Discharges ◽  
Diagnostic Methods ◽  
Application Area ◽  
New Approach ◽  
Discharge Modeling

Abstract The existing partial discharge models, their diagnostic value, and application area are analyzed in the article. The models are considered from the point of view of their improvement or the possibility of creating new diagnostic methods for electrical equipment based on the characteristics of partial discharges. As an example of the implementation of a new approach to partial discharge modeling, a quasi-deterministic model is considered, which makes it possible to obtain information on the real number of cavities in the insulation of high-voltage equipment.

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