Value Approach Research Articles

Analysis of willingness to pay for carbon emission reduction by road users in northeastern Nigeria

This study investigates the willingness to pay for carbon reduction by road users in Northeastern Nigeria and addresses the lack of research on this topic in the region. A survey was conducted among 601 road users, and the data were analysed using descriptive and open-ended contingent valuation approach. The outcomes of the study showed that 65.7% of the surveyed road users were ready to pay for carbon offset, but at relatively low price point. However, 83% of the participants do not have experience on buying carbon emission. Additionally, 42.8% of the road users have a basic understanding of carbon offset program. The average open-ended willingness to pay for a carbon offset was found to be ₦100.73 per trip. The study recommends the need for a programme that will increase awareness and education to road users not only on carbon emission and climate change issues, but also on the importance of carbon offset programme for improving environmental sustainability of the region.

Contingent valuation approach to maximising park finances: a study of Kaziranga National Park

Contingent valuation approach to maximising park finances: a study of Kaziranga National Park

Application of Prospect Theory to Microinsurance Based on Contingent Valuation Approach for Poor Population in Ukraine

This paper takes a behavioral economics approach and empirically tests if Prospect Theory can explain behavior of low-income people in Ukraine. The study uses the contingent valuation method due to direct inquiry of low-income people, in a survey, how much they would be willing to pay for insurance and to get back in case of an insurance event arising. This paper provides suggestive evidence that according to Prospect Theory poor individuals make decisions based on expectations of loss or gain from their current relative position and are more sensitive to losses compared to gains. The work also answers the question concerning the microinsurance: can microinsurance be a business proposition and provide value for low-income people at the same time? The results lead to the power-law distribution of potential clients according to the price of a microinsurance service. The obtained correlations help to formulate strategies to tap the low-income market in the country.

Unlocking the monetary value: investigating the importance of quality information in Australian red meat chains

Context This study assesses the monetary value of product quality information, specifically feedback from slaughter and production methods, within the Australian beef and sheep meat supply chains. Aims The primary objective was to investigate the value assigned by supply chain actors to product quality information, measured as willingness to pay for receiving it or willingness to accept payment for providing it. The study also aimed to explore how the value of this information varies based on information quality and quantity. Methods A contingent valuation approach was employed, utilising survey data from 104 producers. Logit models were used to identify the factors influencing meat producers’ willingness to accept payment and willingness to pay. Key results Over one-third of cattle and sheep producers expressed interest in receiving feedback from slaughter information and providing production methods information. Production methods information had the highest mean value at the premium information quality and quantity level, with values of AU$20.49/head in the beef industry and AU$10.13/head in the sheep industry. Conversely, feedback from slaughter information had the lowest mean value at the low information quality and quantity level, with values of AU$0.83/carcass in beef and AU$0.14/carcass in sheep. Farmers’ experience and education level significantly influenced their willingness to accept payment and willingness to pay for product quality information. Conclusions A significant proportion of producers within the Australian beef and sheep meat supply chains express a desire to provide or pay for product quality information. The value assigned to this information demonstrates a positive relationship with higher information quality and quantity. However, variations in expressed value of different information types, and the influence of farmer and farm characteristics, suggest the presence of chain failures that disrupt information valuation. Implications These findings have important implications for improving the performance of the red meat supply chains. Understanding the factors that influence the valuation of product quality information allows stakeholders to develop targeted strategies to enhance the efficiency and effectiveness of information exchange. This may involve addressing chain failures, and implementing measures to ensure consistent and accurate valuation of information. Ultimately, these improvements can contribute to enhanced decision-making processes and overall supply chain performance in the Australian beef and sheep meat industry.

Valuation with share repurchases and personal taxes

AbstractWe derive a consistent valuation approach that integrates the interdependent effects of cash dividends, share repurchases and active debt management while considering personal taxes. The valuation approach is based on the assumption that a predetermined proportion of the flow to equity is used for share repurchases instead of cash dividends. Additionally, we examine the effects of share repurchases on the cost of equity by deriving appropriate adjustment formulae. Furthermore, we run simulations to investigate the valuation differences caused by the distribution of excess cash via cash dividends or share repurchases. The results show that share repurchases have a significant positive effect on equity market value.

Do Damodaran's Multiples Value a Company Accurately? Evidence from Germany

The article examines the market valuation approach using industry market multiples as this method has recently attracted increasing interest from appraisers. It investigates whether constructing one’s own industry market multiples for company valuation which are based on a market approach provides better results than using Damodaran’s market multiples in terms of the resulting valuation accuracy. The study uses a sample of 162 German companies publicly traded in 2010–2019 and analyses some of the most frequently adopted multiples: EV/EBITDA, P/BV and P/E. Moreover, the presented results may guide the appraisers in selecting the most appropriate valuation approach. Based on the statistical error analysis, the results prove better valuation accuracy of the own-built market multiples compared to Damodaran’s multiples. Nevertheless, this study is limited to German listed companies and should not be relied upon with respect to other European markets. Furthermore, its scope is limited to only 15 industries which are listed by Damodaran and subsequently included in the test sample.

A finance approach to climate stress testing

There is increasing interest in assessing the impact of climate policies on the value of financial sector assets, and consequently on financial stability. Prior studies either take a “black box” macro-financial approach or focus solely on equity instruments – though banks’ exposures predominantly consist of debt. We develop a more tractable finance (valuation) approach at the industry-level and use a Merton contingent claims model to assess the impact of a carbon tax shock on the market value of equity and debt instruments. We calibrate our model using detailed firm level vulnerability data and apply the model to 2-digit sectoral exposures of Dutch banks. We find declines in the market value of banks’ assets of 2–13% of core capital for a €100 carbon tax shock, increasing to 6–29% for a €200 carbon tax shock.

The Philosophy of Assets Fair Value Presentation in Financial Statements

Publication of companies’ financial statements is carried out in accordance with the requirements of International Accounting Standards, pursuit the aim of providing the reporting users with reliable decision-making information. The subject of research is scope of assets fair value philosophy, based on generally accepted principles in International Financial Reporting Standards (IFRS), in particular, on prudence approach The purpose of article is to give suggestions for improvement of assets in financial statements of organizations, taking into account the interests of the users of the report, avoiding as much as possible the overestimation of the disposed assets or the underestimation of the assumed liabilities. In addition, financial reporting standards also require the presentation of assets at fair value, which is somewhat contrary to the principle of prudence. Philosophical issues of asset valuation are discussed in the article, analyzing the range of valuation approaches of assets at fair value in the financial statements published by organizations. The results of the research are proposals for new philosophical approaches to the fair value assessment of the organization’s assets, according to which the current assets should be presented by market value, and the philosophy of valuation of non-current assets is to be based on the prudence concept.

The Financial Component of the Scientific Publication’s Value Original article

Publication activity in modern society is presented as a driving force of scientific and technological development and as an indicator of university management reporting. The article is devoted to the study of approaches to determining the monetary value of a scientific publication, taking into account different behavior’s motives of researchers and teachers in higher education as authors. The methodological basis of the study was formed by concepts of creating a public good and financial good, concepts of scientific productivity and academic remuneration, neoclassical and neoinstitutional economic theories, approaches to the implementation of state policy in the field of science and education in terms of stimulating scientific publications. Research methods: critical and comparative analysis, with the inclusion of three groups of methods: a) the study of direct and indirect authors’ motives and traps in the publication of scientific papers; b) asset evaluation methods; c) a combination of socio-economic campaigns for monetary evaluation of the results of scientific research. Asset valuation approaches have been adapted to assess the scientific publication’s value from the position of the author as a beneficiary. The theoretical and practical significance of the research lies in the contribution to the value dimension of scientific publications for their authors in the conditions of academic capitalism with potential opportunities to receive monetary income from the results of their research.

A finite elements approach for spread contract valuation via associated two-dimensional PIDE

A finite elements approach for spread contract valuation via associated two-dimensional PIDE

Willingness to Pay (WTP) for COVID-19 Vaccine Booster Dose and Its Determinants in Indonesia.

Willingness to pay (WTP) for booster doses of coronavirus disease 2019 (COVID-19) vaccines is an under studied research topic. Therefore, the current study aimed to investigate the WTP for the booster doses of COVID-19 vaccines and its predictors in Indonesia using an online survey distributed all over the provinces of this low-middle-income country. The WTP was evaluated using a basic dichotomous contingent valuation approach, and its associated determinants were evaluated using a linear regression model. Out of 2935 responders, 66.2% (1942/2935) were willing to pay for a booster dose of the COVID-19 vaccine. The majority of respondents (63.5%) were willing to pay within a price range of 100,000-500,000 Indonesian rupiah (IDR), i.e., USD 6.71-33.57. Being older than 40 years, having a higher educational level, having a higher income, knowing and understanding that booster doses were important, and having a vaccine status that is certified halal (permissible in Islamic law), were all associated with a higher WTP for the booster dose of COVID-19 vaccines. The study findings imply that the WTP for a booster dose of COVID-19 vaccination in Indonesia is lower compared to acceptance of vaccines provided free of charge. This WTP data can be utilized to develop a pricing scheme for the booster doses of COVID-19 vaccination in the country with potential benefits in other low-income countries. The government may be required to provide subsidies for the herd immunity vaccination process to proceed as anticipated. Furthermore, the public community must be educated on the importance of vaccination as well as the fact that the COVID-19 epidemic is far from being over.

Understanding the nexus between forest dependence and willingness to pay for forest conservation: case of forest dependent households in Kenya

PurposeForests support human livelihoods and mitigate against climate change, yet they are at a risk of irreversible loss due to high degradation rates. The success of forest conservation mechanisms depends on involvement and support by forest dependent communities. In this paper, the authors assess forest dependent household's willingness to pay (WTP) labour or cash for a conservation programme seeking to restore degraded forestland in Mount Elgon Forest, Kenya.Design/methodology/approachData were collected from 919 households in Mt Elgon forest reserve, Kenya. A double bounded contingent valuation approach was used to examine households' WTP and an ordered probit model to estimate the determinants of WTP.FindingsThe findings of the study show a higher WTP for conservation through labour days (12 days/month, equivalent to 1800 KES/month) compared to cash (KES 450/month). Forest dependence has a significant influence on households' willingness to support conservation activities. A higher WTP was observed amongst households with higher vulnerability (high shocks value, low asset value and those in the poorest wealth categories) implying that they are more willing to contribute for forest conservation.Originality/valueWhile emerging literature on WTP for forest conservation is growing, few studies have paid attention on the influence of forest dependence on WTP for forest conservation. There are limited studies on use of in-kind contribution as a payment vehicle for WTP. The study's findings show a high WTP in form of labour suggesting the importance of embracing in-kind contribution as a mechanism of supporting forest conservation in contexts of developing countries.

Land Use Preference for Ecosystem Services and Well-Being in Chittagong Hill Tracts of Bangladesh

Researchers increasingly investigate ecosystem services to assess their role in supporting livelihoods, well-being and economic value in order to inform decision-making. Many studies have explored links between ecosystem services and community-based livelihoods, with a very narrow focus on the importance of land use to well-being. We evaluated the value of ecosystem services from various land uses supporting livelihoods and the overall well-being of local communities in the Chittagong Hill Tracts (CHT) of Bangladesh. By applying a participatory habitat valuation approach with the ethnic communities from eight villages, we explored their preferences for, and perceptions of, ecosystem services and their sources in a multi-functional landscape under different land use, i.e., forest, swidden and low-land agriculture, fruit orchard and water bodies, and three land ownership contexts (state, private and mixed ownership on forest lands). Our findings revealed that community land use preference for ecosystem services supports ten different well-being needs. Among others, forests were valued land used for two-thirds of well-being needs, including the provision of shelter, nutrition, primary health care, an adequate supply of potable water, a lower level of ecological stress (i.e., protection from associated landslide soil erosion), cultural and spiritual benefits and livestock foraging. People commonly valued the food, income and nutrition contributions of all land uses. However, different forest and land ownership contexts and rights within the landscape influence people’s preference for ecosystem services from land use in supporting their well-being. People with secure ownership (i.e., private and private-community) showed a broad and positive appreciation for ecosystem services to meet their well-being needs. Our study highlights that local and ethnic people’s land-use preferences and ownership contexts are critical factors in assessing well-being in the context of multifunctional landscapes. We recommend that ecosystem services be considered in future decision-making related to forest and land use to support human well-being.

Bridging the relationship gap between the training function and chief financial officers: practices, challenges, and solutions

PurposeThis paper provides a review of literature on associated practices, challenges, and proposed solutions to bridging the relationship gap between training practitioners and chief financial officers (CFOs).Design/methodology/approachThis is a descriptive research paper based on a multidisciplinary and critical review of existing literature discussing the relationship gaps between the training function and chief financial officers.FindingsAvailable literature suggests a relationship gap exists between the training function and chief financial officers. As a result, both functions interpret the value of workplace training differently, leading to misalignment in their respective operations. The lack of relationship between the functions may result in defunding of the training function, which can adversely affect an organization’s financial performance. Although CFOs and training functions have the same goal of creating organizational value, an opportunity exists to create a stronger partnership between finance practitioners and training practitioners, leading to increased investment in training and ultimately improved organizational value.Research limitations/implicationsThis article presents contextual research findings and may not fit all settings, but offers a comparative account of challenges associated with relationship challenges between the training function and CFOs. A paucity of research exists on the relationships between training and CFOs.Practical implicationsThis paper has real and practical implications for learning and development, finance, and human resources practitioners. The findings seek to encourage training practitioners and CFOs to build stronger relationships and jointly define measurement and reporting practices. This research aims to provide an informed perspective on practices to help executives better understand the value of workplace training, leading to an increase of the investment in training, and ultimately changing the categorization of training spend from a cost to an investment.Originality/valueThis paper provides original insights and reviews newly published studies regarding relationships between the training function and chief financial officers, the development of workplace training valuation approaches, the associated challenges faced, and proposed solutions. This paper will be of value to human resources, learning and development, and finance, assisting practitioners in thinking differently about approaches to quantifying the value of workplace training.

International Tourists' Willingness to Pay for A Wildlife Conservation Program: A Case Study of Northern Yellow-cheeked Gibbons in Bach Ma National Park, Vietnam

Extending protected areas has enabled global species and habitat protection, especially for endangered species. In addition, understanding social preferences for species protection is essential to contribute to the biodiversity conservation efforts of protected areas. The main purpose of the study was to investigate the preferences of international tourists towards the protection of the northern yellow-cheeked gibbon (Nomascus annamensis) through a proposed wildlife conservation program in Bach Ma National Park, Central Vietnam. Data for the study was collected from a face-to-face survey of 361 randomly selected foreign tourists visiting Bach Ma National Park. By using the dichotomous choice contingent valuation approach, we estimate international tourists' willingness to pay (WTP) for the proposed conservation program of gibbons and identify elements that influence their WTP for the conservation program. We found that international tourists strongly support conserving gibbon populations in the Bach Ma. The findings from the logistic regression model in the study reveal that the respondents' bid level, education, knowledge, biodiversity conservation, climate change, and revisit variables were all significantly predictive of WTP. The estimated mean WTP amount for one-time funding of the species conservation program was US$7.83 per international tourist. The obtained results of this study suggest that policy-makers and managers of national parks should consider the significance of international visitors' support for gibbon conservation efforts when designing and developing their social strategies, programs, and policies for protecting nature and preserving biodiversity, particularly with regard to tourism segmentation in protected areas.

Analysis of the implementation of regional regulation no 14 of 2019 concerning forest management to drive improvements of forest resources governance in the province of West Nusa Tenggara

To optimize the role and function of forest management at the site level, the provincial government has issued a regional regulation (PERDA) No. 14 of 2019 concerning forest management, which consists of 18 chapters and 64 articles. This regional regulation (PERDA) is expected to be a guide, basis, and conceptual framework in every decision making in the forestry sector in West Nusa Tenggara (NTB). Thus, the presence of PERDA No. 14 of 2019 has a high urgency in determining the direction of forestry development in NTB, hence requiring a comprehensive process to oversee its implementation. This study aims to analyze more deeply related to the effectiveness and strategy of implementing PERDA No. 14 of 2019, where the results can be used as a reference for the government in optimizing forestry development policies and programs in NTB. This study uses a policy valuation approach with a retrospective (ex-post) scope of analysis, namely the analysis process carried out after the policy action is carried out. The criteria used to analyze the implementation of the PERDA No. 14 of 2019 focus on six main criteria, including policy effectiveness, efficiency in policy implementation, adequacy of needs, alignment in policy implementation, responsiveness, and the accuracy of the policies implemented.

Spatial econometrics and spatial hedonic model in property valuation: A bibliometric analysis

The econometric and hedonic analysis offers reliable input in property valuation, primarily for economic studies and the country’s revenue. However, the lack of spatial reliability in statistical analysis has become a serious debate among researchers. This research is carried out to review the current trend and pattern of literature and visualize the network of the authors, countries, and keywords applied in property valuation by emphasizing the application of spatial analysis in econometric and hedonic using bibliometric analysis. The increment of documents related to spatial analysis, especially the approach of Spatial Econometric (SE) and Spatial Hedonic (SH) in property valuation, has indicated the current interest of researchers around the globe. A few bibliometric analyses are done on the Hedonic Pricing Method (HPM) and property valuation issues. Still, the attention of the review on emphasizing the spatial element is limited. Three hundred ten (310) documents are involved in the bibliometric analysis related to the property valuation issue from the Scopus database. The methodology was according to the modified Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) to provide clarity in screening and filtering documents. VOSviewer, Harzing’s Publish or Perish (PoP), and Microsoft Excel are used to ease the analysis process. This research will provide a basis to unlock new research opportunities for scholars and assist property valuation practitioners with an efficient valuation approach with spatial application. An efficient property valuation approach would drive a comprehensive insight into supporting sustainable economic and living quality. Keywords: Bibliometric, property valuation, spatial econometric, spatial hedonic

Effects of Market Approach to the Valuation on the Financial Performance of Real Estate Investments in the Western Region, Kenya

The main aim of this study was to examine the effect of the market approach to the valuation on the financial performance of real estate management investments in Western region, Kenya. The study was guided by Market Efficient Theory. The study employed a correlational research design. The target population of the study consisted of 52 registered real estate agents within the western Kenya region. The study adopted a census technique to gather all the required data from the existing population. Primary data were collected through structured questionnaires, and secondary data schedules were used to gather secondary data for analysis. Pretesting of survey instruments was conducted as an effort to ensure that there was both content validity and reliability. Both descriptive and inferential statistics were employed for data analysis. From the study results, market-based explained 57.2% (R2=0.572, p=0.000) of variance in the financial performance of real estate investments. The regression coefficient revealed (β=1.019, P=0.000), implying that a unit increase in the market-based valuation approach would significantly increase the financial performance by 1.019 units. Therefore, the null hypothesis was rejected. The study, therefore, concluded that market-based valuation influences the financial performance of real estate management investments in Western Kenya. The study recommended that evaluators should take caution while employing a market approach as either a primary or secondary approach to valuing a business. One of the notable issues with the market approach is that price may not always be a good indicator of value. Price may be influenced by uneven negotiating skills, the difference in information available, the compulsion to act, payment terms, and financial strengths.

The Value of Vaccines: A Tale of Two Parts.

Vaccines are essential to ensuring a nation's health, wellbeing and prosperity. After the coronavirus pandemic commenced, the Australian Government introduced social restrictions to constrain virus transmission, seeing significant economic impacts. Reflecting the extraordinary circumstances, subsequent vaccination rollout forwent usual health technology assessment (HTA) processes, facilitating restrictions removal and leading to societal and economic recovery. However, in 'usual' circumstances, HTA may not consider such broader effects of vaccines, making it challenging for them to achieve timely funding. We used detailed modelling to compare economic impacts under continued lockdowns against population-wide vaccination rollout between January 2020 and June 2023 and examined global HTA vaccine evaluation methodologies and efforts to develop broader valuation approaches. Australian gross domestic product reduces by approximately AUD 395 billion with lockdowns. With vaccination rollout, this effect is approximately AUD 214bn, a positive incremental impact of AUD 181bn. Vaccination contributes to large estimated positive effects for tourism (AUD 28bn) and education (AUD 26bn) exports, employment (142,000 jobs) and government finances (AUD 259bn). Conversely, global HTA methods generally only consider direct patient health outcomes and healthcare system-related costs, with broader effects usually not impacting funding decisions. Our results suggest that recent efforts to propose broader HTA valuation frameworks warrant further policy consideration.

Value transfer in ecosystem accounting applications

Ecosystem accounting is a statistical framework that aims to track the state of ecosystems and ecosystem services, with periodic updates. This framework follows the statistical standard of the System of Environmental Economic Accounting Ecosystem Accounting (SEEA EA). SEEA EA is composed of physical ecosystem extent, condition and ecosystem service supply-use accounts and monetary ecosystem service and asset accounts. This paper focuses on the potential use of the “Value Transfer” (VT) valuation method to produce the monetary ecosystem service accounts, taking advantage of experience with rigorous benefit transfer methods that have been developed and tested over many years in environmental economics. Although benefit transfer methods have been developed primarily for welfare analysis, the underlying techniques and advantages are directly applicable to monetary exchange values required for ecosystem accounting. The compilation of regular accounts is about to become a key area of work for the National Statistical Offices worldwide as well as for the EU Member States in particular, due to the anticipated amendment to regulation on European environmental economic accounts introducing ecosystem accounts. On this basis, accounting practitioners have voiced their concerns in a global consultation during SEEA EA revision, about three issues in particular: the lack of resources, the need for guidelines and the challenge of periodically updating the accounts. We argue that VT can facilitate empirical applications that assess ecosystem services in monetary terms, especially at national scales and in situations with limited expertise and resources available. VT is a low-cost valuation approach in line with SEEA EA requirements able to provide periodic, rigorous and consistent estimates for use in accounts. While some methodological challenges remain, it is likely that VT can help to implement SEEA EA at scale and in time to respond to the pressing need to incorporate nature into mainstream decision-making processes.