Valuation of Negative Earning Firms

2020 ◽  
pp. 126-136
Author(s):  
Faisal Usmani ◽  
Atif Ghayas ◽  
Mohd Sarim
Keyword(s):  
Growth Rate ◽  
Growth Rates ◽  
Firm Growth ◽  
Current Income ◽  
Valuation Technique ◽  
A Company ◽  
Positive Earning ◽  
Negative Growth ◽  
Negative Earnings

This book mostly concentrates on firms with positive earnings, but this chapter focuses on the negative earnings firms or firms with very low earnings. It is easier to value a positive earning firm than a company with negative earnings. Analyzing negative earning firms has always created problems for researchers and analysts. In case of a negative earning firm, growth rates cannot be predicted or used in the valuation of firms. When current income of the firms is negative, growth rate will make it more negative. Tax computation becomes more complicated and the Going Concern Assumption does not apply properly. Authors start with complications in valuing negative earning firms, discuss the causes of negative earnings, and whether the problem is short-term, long-term, or cyclical in nature. Finally, authors provide the appropriate valuation technique for each case.

An Evaluation of RNA–DNA Ratio as a Measure of Long-Term Growth in Fish Populations

1973 ◽  
Vol 30 (2) ◽  
pp. 195-199 ◽  
Author(s):  
Terry A. Haines
Keyword(s):  
Growth Rate ◽  
Population Growth ◽  
Growth Rates ◽  
Population Growth Rate ◽  
Environmental Changes ◽  
Age Distribution ◽  
Smallmouth Bass ◽  
Fish Populations ◽  
Population Growth Rates

The value of RNA–DNA ratio as a measure of long-term growth of fish populations under semi-natural conditions and when subjected to environmental manipulations was determined. Populations of carp and smallmouth bass of known age distribution were established in artificial ponds maintained at two fertility levels. After 15 months, population growth rates (as percent increase in weight) and RNA–DNA ratios of muscle tissue from selected fish were measured. Each species exhibited a range of population growth rates. The relation between population growth rate and individual fish RNA–DNA ratio for each species was significant. When reproduction occurred, the relation was not significant unless young-of-the-year fish were excluded from population growth rate calculations. Age of fish was also found to have an important effect on RNA–DNA ratio, with the ratio being higher in younger fish.RNA–DNA ratio can be a reliable indicator of long-term population growth in fish when population age structure is known and recruitment is controlled. The method has potential for use in detecting response to environmental changes before growth rate changes become severe.

scholarly journals Short-term relative invader growth rate predicts long-term equilibrium proportion in a stable, coexisting microbial community

2020 ◽  
Author(s):  
Daniel Padfield ◽  
Meaghan Castledine ◽  
Joseph Pennycook ◽  
Elze Hesse ◽  
Angus Buckling
Keyword(s):  
Growth Rate ◽  
Microbial Community ◽  
Relative Abundance ◽  
Growth Rates ◽  
Community Dynamics ◽  
Species Coexistence ◽  
Short Term ◽  
Long Term Culture ◽  
Modelling Approach

AbstractThe ability of species to mutually invade from rare is the defining measure of species coexistence. However, it is unknown whether invasion growth rates predict any characteristic of long-term community dynamics. Here, we use a model five-species microbial community to investigate the link between short-term growth rate and long-term relative abundance. We manipulated diversity and tested the ability of species to coexist in different combinations. Across all diversity levels and species combinations, populations re-established from rare in 71 of 75 combinations and all combinations were stable in long-term culture. Moreover, short-term relative invader growth rate was positively associated with long-term equilibrium proportion, despite large variation in interactions between species and communities. This finding was confirmed using a modelling approach and suggests that the short-term invasion growth rate can predict long-term relative abundance within that community.

scholarly journals Effects of pronatalist population measures in the Republic of Srpska in the municipalities with negative natural growth

2010 ◽  
pp. 67-77
Author(s):  
Mira Cuk
Keyword(s):  
Growth Rate ◽  
Population Growth ◽  
Population Policy ◽  
Migration Policy ◽  
The Third ◽  
Negative Growth Rate ◽  
The Republic ◽  
The Government ◽  
Negative Growth

Over the last years in the Republic of Srpska, a trend of negative population growth has been detected. Positive population growth has been identified only in four municipalities (two large and two small). The main reasons of the negative growth rate are population ageing and depopulation. The Government of the Republic of Srpska has been monitoring and analysing the situation and changes concerning demographic developments and it has also responded to that by undertaking various measures such as: institutionalised measures (establishing the Ministry of Family Affairs and Demographic Policy Council), incentive measures in the field of social policy, population education and measures for stimulating local communities to implement population policy measures. Local self-government units with distinct long-term problem of depopulation adopt their special measures. Effects of the abovementioned measures are shown by means of results of the research conducted in municipalities of East Herzegovina which is demographically deserted and have negative growth rate. The research covered families with the third and fourth child which enjoy the benefits of some population measures, as well as families which have got their first or second child for whom these measures should represent additional motivation to give birth to the third child. The research results prove that existing measures do not achieve expected goals and that the Republic of Srpska needs long-term and comprehensive measures in the field of economic, social, housing, education, cultural, national and migration policy. .

IPO Offering Size and Analyst Forecasts

2016 ◽  
Vol 19 (03) ◽  
pp. 1650020 ◽  
Author(s):  
Chuntai Jin ◽  
Tianze Li ◽  
Steven Xiaofan Zheng
Keyword(s):  
Growth Rate ◽  
Cash Flow ◽  
Growth Rates ◽  
Analyst Forecasts ◽  
Free Cash Flow ◽  
Negative Relation ◽  
Flow Effect ◽  
Earnings Growth ◽  
Offering Size

In this paper, we examine how analysts react to IPO percentage offering size. We find that analysts predict lower long-term earnings growth rates for IPOs with larger percentage offering size. The sizes of both primary and secondary offering are negatively related to long-term growth rate forecasts. We find evidence that the free cash flow effect may be related to the negative relation between primary offering size and growth forecast.

THE CAUSE OF HIGHER ECONOMIC GROWTH: ASSESSING THE LONG-TERM AND SHORT-TERM RELATIONSHIPS BETWEEN ECONOMIC GROWTH AND GOVERNMENT EXPENDITURE

2014 ◽  
Vol 20 (1) ◽  
pp. 229-250 ◽  
Author(s):  
Motasam Tatahi ◽  
Emre Ipekci Cetin ◽  
M. Koray Cetin
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Growth Rates ◽  
Government Expenditure ◽  
Government Expenditures ◽  
Gdp Growth ◽  
Short Term ◽  
Data Set ◽  
Dynamic Relationship

This study examines the cause of higher (5% or more) economic growth rates in countries around the world over the past 35 years. It explores the long- and short-term relationships between GDP and government expenditures in these countries. A panel data set of 60 countries over the period from 1976 to 2010 is deployed to implement pooled mean group estimation. Countries are divided into three economic growth rate groups: high, middle, and low. Panel-based/error correction models are used to estimate long-term equilibrium relationships and short-term dynamics between government expenditures and GDP growth rates. Results indicate that the hypothesis of a common long-term elasticity and a short-term dynamic relationship between GDP growth rates and government expenditures cannot be rejected for high group countries, whereas for middle group countries this is true only for the long term, not for the short term. No long-term or short-term relationship between these two variables exists for low-growth-rate countries.

Using Fundamental Earnings Factors to Forecast Equity Market Volatility

2018 ◽  
Keyword(s):  
Growth Rates ◽  
Explanatory Power ◽  
Mean Reversion ◽  
Equity Market ◽  
Market Volatility ◽  
Treasury Bill ◽  
Earnings Growth ◽  
Negative Earnings

This article introduces a model for forecasting future volatility using fundamental factors, including the extent to which the market’s valuation deviates from its predicted value, the losses reported by companies with negative earnings, projected earnings growth rates, and Treasury bill rates. The main result is that fundamental factors provide significant incremental explanatory power for predicting volatility relative to that provided by past volatility realizations alone. The explanatory power of fundamental factors is greatest when the VIX Index is at moderate rather than extreme levels so there is no expectation of long-term mean reversion for volatility. In addition, the explanatory power of fundamental factors is greatest when the model forecasts an increase in VIX. The overall conclusion of this study is that forecasts of future volatility should incorporate fundamental factors.

scholarly journals Family Business Growth Around the World

2020 ◽  
pp. 104225872091302 ◽  
Author(s):  
Ivan Miroshnychenko ◽  
Alfredo De Massis ◽  
Danny Miller ◽  
Roberto Barontini
Keyword(s):  
Growth Rates ◽  
Firm Growth ◽  
Family Firms ◽  
Theory And Practice ◽  
Family Influence ◽  
Business Growth ◽  
Family Control ◽  
The Impact ◽  
Positive Effect

Growth is important for the long-term success of a business. Regrettably, the impact of family influence on firm growth is largely neglected. We examine whether family firms have a higher growth rate than their nonfamily counterparts. Based on a large sample of firms across 43 countries over a 10-year period, we show that family firms on average have higher growth rates than nonfamily firms, and this positive effect is greater for family firms operating in strong national institutional environments which are less corrupt, more democratic, more subject to rule of law, and have effective government policies. We also find that the positive effect of family influence on firm growth varies significantly across different types of family firms and different business cycles. These findings show that family control has an economically significant impact on growth rates and important implications for both family firm theory and practice.

Radiocarbon dating of Chinese Ancient Tea Trees

Radiocarbon ◽  
2019 ◽  
Vol 61 (6) ◽  
pp. 1741-1748
Author(s):  
Jia Chen ◽  
Hongtao Shen ◽  
Kimikazu Sasa ◽  
Haihui Lan ◽  
Tetsuya Matsunaka ◽  
...  
Keyword(s):  
Growth Rate ◽  
Growth Rates ◽  
Radial Growth ◽  
Accurate Determination ◽  
Annual Rings ◽  
The World ◽  
Automated Sample Preparation ◽  
The University

ABSTRACTThe jungles of Linyun and Longlin Autonomous Prefecture, located in the heart of the southwestern Guangxi Zhuang Autonomous Region of China, are home to the oldest tea trees (Camellia sinensis) in the world. In the absence of regular annual rings, radiocarbon (14C) dating is one of the most powerful tools that can assist in the determination of the ages and growth rates of these plants. In this work, cores were extracted from large ancient tea trees in a central Longlin rain forest; extraction of carbon was performed with an automated sample preparation system. The 14C levels in the tree cores were measured using accelerator mass spectrometry (AMS) at the University of Tsukuba. These measurements indicated that contrary to conventional views, the ages of trees in these forests range up to ~700 years, and the growth rate of this species is notably slow, exhibiting a long-term radial growth rate of 0.039±0.006 cm/yr. It was demonstrated that 14C analyses provide accurate determination of ages and growth rates for subtropical wild tea trees.

Serous Cystadenomas of the Pancreas: Long-term Follow-up Measurement of Growth Rate

2011 ◽  
Vol 62 (3) ◽  
pp. 190-196 ◽  
Author(s):  
Alexandre Menard ◽  
George Tomlinson ◽  
Sean Cleary ◽  
Alice Wei ◽  
Steven Gallinger ◽  
...  
Keyword(s):  
Growth Rate ◽  
Growth Rates ◽  
Linear Growth ◽  
Inclusion Criteria ◽  
Patient Demographics ◽  
Imaging Characteristics ◽  
Serous Cystadenomas ◽  
Long Term Follow Up

Purpose To measure the growth rate of microcystic subtype serous adenomas of the pancreas diagnosed by imaging. Methods For this retrospective study, 241 imaging studies were reviewed from 1998 to 2005. Thirty-one patients met our strict diagnostic imaging inclusion criteria and had at least 18 months of imaging follow-up. Patient demographics and lesion imaging characteristics were tested as predictors of growth. Results Growth was measured over a mean period of 42 months. There was a significant ( P = .0004) linear growth of tumour for the population. There was significant clustering ( P = .001) of the population into 2 growth rates: 0.50 mm/y ( n = 23) and 5.5 mm/y ( n = 8). The diameter of the lesion at presentation was significantly correlated with growth (r = 0.45; P = .01). Conclusion The microcystic subtype of serous cystadenomas of the pancreas diagnosed with imaging criteria demonstrates 2 distinct and slow growth rates. The size of the lesion at presentation is correlated with growth rate.

scholarly journals Pengaruh Pertumbuhan Perusahaan, Profitabilitas, Likuiditas, Struktur Modal Dan Struktur Kepemilikan Terhadap Nilai Perusahaan

2019 ◽  
Vol 8 (1) ◽  
Author(s):  
Sandra Laurencia Mandjar, Yustina Triyani
Keyword(s):  
Capital Structure ◽  
Firm Value ◽  
Firm Growth ◽  
Sampling Method ◽  
Stock Exchange ◽  
Sufficient Evidence ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
A Company

In general, the long-term goals of a company is to maximize the value of the company. A good firm value makes the company well-regarded by potential investors, that will make the value of shareholders increase and the value of the company will increases which is marked by high return of investment to shareholder. The purpose of this research is to gain empirical evidence about the effects of firm growth, profitability, liquidity, capital structure, managerial ownership, and institusional ownership on firm value in manufacturing companies listed on the Indonesian Stock Exchange in the period of 2014-2016. The object in this research uses the financial statements of manufacturing firms listed in the Indonesian Stock Exchange in the period of 2014-2016. Sampling method used in this research is purposive sampling method with 7 criterias, with 141 firms as sample. The analysis used are descriptive statistical analysis, the similiarity coefficient test, the classical assumption test and multiple regresion test. The conclusion of this research show that firm growth, liquidity, capital structure, managerial ownership, and institusional ownership did not prove to significantly influence the firm value, while profitability have sufficient evidence of positive effect on firm value.Keywords: Firm value, Growth, profitability, liquidity

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