A Capability Approach to Real Estate Valuation and Value Enhancement

There are numerous financial metrics available in the academic and commercial world to estimate real estate value. Appraisers often use such metrics when advising on the purchase or sale of real estate at a point in time. The first part of this paper proposes a new metric, based on the capability approach, to make an ex-post single period valuation. Further, appraisers often give advice to their clients on actions to take in order to enhance the value of their real estate. This area of value enhancement has received scant attention in the academic literature. In practice, this advice is often based ad-hoc, anecdotal recommendations. The second part of the paper develops seven real estate strengths that can be targeted and provides an ex-ante approach to building real estate value. The valuation model presented in this paper is a pragmatic approach to enhancing both the values of tangible and intangible capabilities of a property by utilizing Expense Leveraged Value Indexes (ELVI).

COVID-19 and Corporate Governance Performance: Beyond the Financial Metrics

Corporate governance and, more broadly, the performance of corporate boards have traditionally been measured using financial metrics. These financial metrics such as Return on Investment (ROI), Return on Assets (ROA), Return on Equity (ROE), Earnings and Profitability Ratio (E and P) are ex post measure of organizations performance arising from corporate board activities. These financial metrics are largely one-dimensional measure of corporate performance and do not fully account for the other dimensions of organization responsibilities. The COVID-19 and the changing organizational dynamics have made the case for corporate board’s performance to be assessed beyond the usual financial metrics. In this study, we provide a framework that accounts for the various dimensions of organization activities: finance, social and environmental, the Triple-Bottom (TBL) approach. A TBL-compliance metric was constructed, which tracked the performance of selected manufacturing firms in Nigeria using a content analytical technique. The result showed that the majority of the firms performed remarkably well in areas of profitability and economic value creation but less satisfactorily in areas of social and environmental sustainability. On aggregate, the sampled firms committed less than 1% of their profit after tax on corporate social responsibility, while less than 5% of the sampled firms scored above average on the TBL-adoption matrix.

Volatility of Financial Metrics: Important Data for Contingent Consideration Valuations

This article presents the first detailed statistical analysis of the volatilities of various commonly encountered financial metrics used in contingent consideration (and earn-out) agreements. The valuation of contingent consideration using an option-based methodology and non-equity volatilities is becoming more common in business valuation. We provide clear evidence that the volatility of five financial metrics—revenue; earnings before interest, taxes, depreciation, and amortization (EBITDA); EBIT, net income, and total assets—is strongly, negatively related to firm size and profitability. However, contrary to common belief, the volatility of these metrics is not related to a firm's financial leverage. We also calculated the volatilities using four different methodologies that are employed in practice. Although no theory guides the selection of methodologies, based upon our work, we have found that the year-over-year growth rate, using a quarterly frequency, provides the most reasonable results.

Application of Artificial Intelligence Model to Identify the Distorted Financial Statements

Distortion of financial statements is recognized as one of the most important issues in the field of accounting and auditing, which is also one of the most common issues today. In this regard, the present research was conducted, in which stock exchange information was used to investigate, predict, and model accounting distortions. For this purpose, financial performance, non-financial metrics, market-based metrics and commitment, or selection items were reviewed over a 6-year period. For collecting data of distorting companies, database of the Society of Certified Public Accountants in Iran was used and the information was analyzed using data mining methods (decision tree, neural networks, and Bayesian method). The results showed that analysis of financial statements҆ information has a high accuracy in determining and identifying the distorted financial statements. Using this information, it is possible to get better acquainted with the methods of document distortion and to take necessary measures in order to control and prevent administrative violations at national and international levels. Given frequent occurrence of these violations, artificial intelligence models can be used to identify these papers.

STRATEGI PENINGKATAN JUMLAH PENDAFTAR UNTUK MENINGKATKAN PROFITABILITAS (STUDI KASUS PADA BISNIS SD BAITURRAHMAN)

The marketing strategy carried out by the company has an impact called marketing performance. and evaluation of benchmarks is something that is very much needed. To get an evaluation as well as a benchmark, a marketing performance measurement is needed. One of the tools to measure marketing performance is marketing materials where in this measurement there is a calculation of financial metrics. Measurement with financial metrics is usually oriented to measuring profitability with financial ratios of profit on sales from the business carried out by SD Baiturrahman. The method used in this research is descriptive analysis research with a quantitative approach. Where this research will explore the company's performance which is calculated through the marketing metric of profit on sales. Based on this research, the marketing strategy process carried out by Baiturrahman Elementary School to increase the interest of parents to send their children to school is by conducting strategic analysis and internal and external analysis of the company, conducting strategic planning, and developing marketing programs.

Why do state-owned utilities become subject to financial logics? The case of energy distribution in Flanders

According to political economists, the state’s governance of infrastructure is becoming prone to processes of financialization. To date, however, research on how state owners of infrastructure enable and react to the entry of financial logics into such domains remains limited. This paper mobilizes the case of Eandis, a Flemish energy grid company, as a typical case to examine the causal mechanisms involved when state-owned utilities become subject to financial logics. During the 2000s, Flemish municipalities increased their ownership of Eandis, while the company deepened its debt exposure to optimize return on capital. In 2016, Eandis aimed to attract private financial equity and selected a Chinese investment fund as a potential co-shareholder. Although this buy-in was blocked, the conditions under which the state-owned company became increasingly entangled with financial markets remain unchanged and warrant a deeper examination. To explain this trajectory, we identify two causal mechanisms in the fields of market-making and ownership strategies by the multiscalar state. First, we show how regulatory models caused Eandis to focus on financial metrics such as credit ratings, subjecting management to financial market disciplines. Second, we find that budgetary constraints, combined with top-down utility governance, have made municipalities dependent on financial returns on utilities. The interaction between market-making and financial ownership strategies institutionalizes a financialized gridlock, in which municipal shareholders’ interests conflict with the need for low consumer fees and green grid investment. We argue that reforming the regulatory framework and strengthening fiscal solidarity across state layers would allow states to develop non-financialized strategies.

An Exploration Of The Impact Of Organizational Culture On Innovation Performance In The Canadian Biotechnology Industry

Research addressing innovation performance in the Canadian biotech industry has primarily addressed financial metrics and not the influence of organizational culture. The lack of research on biotech organizations in terms of culture presented a "gap" in the research. An innovation performance model was developed based on the existing literature and the theorized linkages between constructs. The key addition to the conceptual model was the construct of organizational culture. The key addition to the conceptual model was the construct of organizational culture. The Competing Values Framework of Cameron and Quinn (1999) was the theoretical framework selected as the lens through which to explore the impact of culture on innovation performance, defined in terms of aggregate organizational patent output. Overall, based on the results of this research, the dominant culture generated greater innovation performance. Although, several constructs in the research model reached significance, organizational culture had a weak association with innovation performance.

An Exploration Of The Impact Of Organizational Culture On Innovation Performance In The Canadian Biotechnology Industry

Research addressing innovation performance in the Canadian biotech industry has primarily addressed financial metrics and not the influence of organizational culture. The lack of research on biotech organizations in terms of culture presented a "gap" in the research. An innovation performance model was developed based on the existing literature and the theorized linkages between constructs. The key addition to the conceptual model was the construct of organizational culture. The key addition to the conceptual model was the construct of organizational culture. The Competing Values Framework of Cameron and Quinn (1999) was the theoretical framework selected as the lens through which to explore the impact of culture on innovation performance, defined in terms of aggregate organizational patent output. Overall, based on the results of this research, the dominant culture generated greater innovation performance. Although, several constructs in the research model reached significance, organizational culture had a weak association with innovation performance.

Strategic business decision making: the use and relevance of marketing metrics and knowledge management

Purpose The purpose of this paper is to investigate the perception of marketing managers in a transition country Montenegro with regards to marketing metrics. The paper examines the degree in which managers are familiar with the way marketing metrics are applied and how important they are in the process of making business decisions in a company operating in a Montenegro. Design/methodology/approach Data was collected during 2020 through a survey of 171 randomly selected companies and was analyzed using structural equation model and the statistical method of analysis of variance tests. Findings The obtained results show that managers are quite familiar with financial and non-financial metrics. Both groups are applied to a significant degree, as managers believe that these indicators provide valuable information needed during the decision-making process. Still, more emphasis is placed on the knowledge, implementation and importance of non-financial metrics compared to financial metrics. This is probably due to the specificities of the economic activities of the companies operating in Montenegro, as most of them are service companies, which is why non-financial metrics (such as consumer metrics) are the most important indicators when it comes to ascertaining the market position of the company. Additionally, in recent years the primary focus in Montenegro, as country that is still in the process of transformation from planned economy to a free-market form, has been placed on strengthening of competitiveness and advancing the market orientation of companies. This led to an increase in the importance that managers in transition countries attach to non-financial metrics. Research limitations/implications The fact that the survey only covers companies from one country is its limitation. Practical implications The obtained results will have a significant empirical contribution, which is reflected in providing guidelines for managers on how to improve the system of measuring and controlling marketing performance, all that to strengthen the competitiveness of the company, and can serve managers of hierarchy levels in a company as guidelines for making decisions on the implementation of marketing strategy and marketing metrics, to improve business performance, multi-context customer interaction, cost-saving and strengthen competitiveness. Social implications Obtaining necessary knowledge management and implementing marketing metrics are important conditions for consideration when it comes to the continuous monitoring and improvement of business results, increasing competitiveness and advancing the market position of the company. Originality/value The originality stems from the analysis of the interconnection that exists between marketing metrics and strategic decision-making, which is expected to be positively reflected in the development of society, i.e. strengthening the competitiveness of companies based on knowledge management achieved through the assessment of the degree of knowledge, the implementation and the significance of each of the metrics covered within this research in business decision-making processes. The paper provides insights into the extent to which managers understand the meaning of these indicators and are able to combine different marketing metrics to obtain more complex indicators, serving as necessary inputs when making strategic business decisions.

Social impact investing as a neoliberal construction: ego and altruism in the post-colonial space of Oaxaca, Mexico

Purpose This paper examines social impact investing (SII), a growing source of investment from the Global North to the Global South celebrated as a new way of doing good in low-income countries, but bearing elements of neoliberalism that can reify post-colonial contexts. Design/methodology/approach A microfoundational, autoethnographic approach is used based on the author’s experiences and emotional epiphanies while engaged in an activist entrepreneurial enterprise. The author’s goal was to effect positive social change with Indigenous Mexican producers of mezcal liquor. Findings Despite the best of intentions and following best practices for SII, the expected altruistic outcomes were eclipsed by inadvertent post-colonial behaviours. Neoliberal foundations of financialization gave primacy to the perspectives and egos of the investors rather than meaningful impact for the Indigenous beneficiaries. Research limitations/implications Based on the findings, three areas are presented for further research. First, how Global North social impact investors balance the ego of their motivations with the altruism of intended outcomes for beneficiaries. Second, what ownership structures of Global North investments allow for social benefits to flow through to intended beneficiaries. Third, how post-colonial power imbalances can be redressed to give an equal position to Global South beneficiaries as people, rather than financial metrics indicating only that they have become less poor. Originality/value By using autoethnographic methods that expose the vulnerability of the researcher, unique insights are generated on what happens when good intentions meet with a post-colonial context. The neoliberal underbelly of SII is revealed, and ways to make improvements are considered.