Valuation Practices Research Articles

Death and disappearance at border crossings: factualization devices and truth(s) accounts

ABSTRACT In this article, we analyze three forensic and counter-forensic devices that go beyond the strictly medico-legal realm to show which concrete practices and truth-spots contribute to (re)constructing a public account of migrant deaths and disappearances along border zones. Drawing on written documents and semi-structured interviews, we examine operations led by the International Committee of the Red Cross (ICRC) in Europe and Africa, the work of the Pima County Office of the Medical Examiner (PCOME) together with the NGO Colibrí Center for Human Rights in Arizona, and Forensic Oceanography's (FO) open-source investigations of shipwrecks of migrants in the Central Mediterranean Sea and the structural violence embedded in militarized border regimes. We argue that these practices constitute factualization devices, namely practices that transform lived experience of death and disappearance into an objectified reality that can be visibilized and mobilized in the public sphere as part of a counter-narrative. We demonstrate how these factualization practices are imbricated in valuation practices, i.e. practices that ascribe not only an epistemological but also an ethical, aesthetic and political value to the work of objectification, which inform the production of truth narratives.

The economic valuation of ecosystem services in Colombia. Challenges, gaps and future pathways

ABSTRACT This paper provides a comprehensive assessment of the economic values for ecosystem services (ESs) in Colombia. Were analyzed 154 studies that estimated economic values for 21 ESs in 18 general ecosystems. In total, 502 values were coded and classified according to the Common International Classification of Ecosystem Services – CICES. Despite being a technique that is not based on primary economic valuation information, Benefits transfer was the most common method used to estimate the value of ESs in Colombia, followed by market prices and contingent valuation. Opportunities for recreation and tourism, climate regulation, habitat conservation, and water have been the most valued ESs. Many important ESs remain unnoticed and are not adequately accounted (e.g. pollination). Additionally, 53% of the information available on the economic values of ESs is concentrated in only 5 of the 32 Colombian departments. Finally, this review highlights the multiple challenges of Colombian academics and practitioners to improve the economic valuation practice and complement and recognize the multiple social relationships and the multiple views in terms of the values nature has.

Modern Technologies in the Real Estate Market—Opponents vs. Proponents of Their Use: Does New Category of Value Solve the Problem?

The scientific literature and practical studies show that one of the main challenges facing the ongoing development of sustainable real estate markets is the understanding of the specifics of real estate as an object of increasing importance in the global economy. Misinterpretation of the principles of modern valuation models causes conflict between opponents and proponents of their use. To reconcile the two sides, the authors of this study propose the possibility of extending the methodology with new solutions—hybrid automated valuation models—and introducing a new value called the rough value. The study mostly draws on monographic and deductive reasoning methods, which includes an analysis of the basic principles of real estate appraisal (as described by internationally recognized professional standards) and valuation methods. The introduction of proposed solutions to valuation practice should be preceded by the development of unified standards and the principles of their application.

Compensation for farms compulsorily acquired for mining in Ghana: an analysis of the laws, compensation practices and valuation methods

PurposeThis paper aims to examine the compensation practices and the valuation methods valuers apply in the context of the current legal framework for expropriation to assess compensation for farms impacted by mining in Ghana.Design/methodology/approachCompensation reports and archival materials were examined to identify the issues related to the valuation methods, compensation practices and expropriation procedures in the mining sector. Interviews were then conducted with 35 farmers and farmers' representatives, officials of mining companies, representatives of the Land Valuation Division of the Lands Commission and valuers/researchers on the issues identified through the document analysis.FindingsThe results reveal that the lack of express standards for assessing compensation for mining-impacted crops has occasioned variations in the valuation methods and the standard crop population for compensation. The study further reveals the impacts of exchange rate distortions on crop compensation values.Practical implicationsThe study empirically substantiates the arguments for a revised compensation regime in Ghana's mining sector. Valuers, mining companies and policymakers' awareness of this research will impact farm compensation valuation practices in the future.Social implicationsThe adequacy of compensation for mining-impacted farmers remains a topical issue, especially in African countries. This research contributes to the literature and reveals the socio-economic impacts of the current compensation regime on the livelihoods of expropriated farmers.Originality/valueThis paper is the first to analyse the valuation methods, the compensation values and the key parameters valuers apply in assessing compensation for mining-impacted crops in Ghana.

Effectiveness of the Classical Actuarial Mathematics: Establishment of the Valuation Practices in the 1770s for the Equitable Life in England

1770年代の英国エクイタブル生命において，プライスとモーガンによる世界最初の生命保険会社のバリュエーションが実施されるに至った。このバリュエーション実務の構築を通じて，責任準備金概念を使用した統一的な契約価値評価に基づく生命保険会社の全体の財政状況の検証とそれに基づく経営の枠組みが姿を現わしたことになるが，本稿では，それとともに，その枠組みを実行可能とするために必要な大量の計算について，当時の計算力でもタイムリーに算出可能とする計算の体系が考案されたことを示す。この計算の工夫において，純粋数学の活用が効率性につながり，体系的数学が有効に保険数理へ持ち込まれているため，ここで古典生保数理が完成したと言えると主張する。また，既存の研究によりながら，当時において，この古典生保数理の事例が組織運営における定量的評価に基づく管理やその管理における計算などの知的労働の効率化の効果を示す事例とみなされ，他分野へ影響したことも指摘する。

Dynamics between Direct Industrial Real Estate and the Macroeconomy: An Empirical Study of Hong Kong

Pricing of direct industrial real estate (DIRE) has long been under-researched due to the paucity of analysable data. Compared to other types of real estate, DIRE has often been regarded as more inefficient because of information asymmetry amongst market players stemming from a lack of market transparency. Therefore, pricing of DIRE usually does not follow a random walk and should be more predictable than other types of real estate. Along this line of reasoning, this study empirically investigates the causal relationships between the price-to-rent ratio of DIRE and macroeconomic attributes using cointegration and causality techniques. More specifically, we employ data on the market of Hong Kong to investigate the lead-lag relationships between the price-to-rent ratio of DIRE and a wide spectrum of macroeconomic and financial indicators, including inflation, money supply, national income, exchange rates, performance of housing market and other economic indicators specific to the industrial sector. The results of our statistical tests reveal significant evidence that DIRE is generally moving in syncs with other segments of the economy over time in terms of long-term cointegration. Further, DIRE tends to lag behind the overall macroeconomy in terms of Granger causation with the price-to-rent ratio exhibiting varying lengths of time lag with the macroeconomic determinants. The findings of the study carry important implications for informing property valuation practices and industrial land policy, particularly in designing urban revitalization programmes aimed at optimising industrial land use.

Pricing and value creation in private equity-backed buy-and-build strategies

We investigate the pricing and value creation in private equity-backed buy-and-build (B&B) strategies using a sample of 3399 buyouts between 1997 and 2020 as well as proprietary performance data. We find that private equity firms pay sizable premiums for B&B platforms. The transaction multiples are similar to those paid by strategic acquirers for matched targets. Despite paying high premiums, private equity firms generate above-average equity returns in B&B strategies. This is because of both higher top-line growth and multiple expansion. To back up our empirical results and shed light on decision-making in B&B strategies, we present evidence from the field. Survey results from 32 interviews with private equity managers provide novel insights into B&B rationale, valuation practices, pricing, value creation, acquisition processes and execution.

Knowledge Management and Practices of Real Estate Valuation in Turkey

The purpose of this research is to examine knowledge management (KM) and changes in the real estate (RE) valuation (V) profession in the case of Turkey, which is among the countries that are not fully transparent in RE investments, and to compare them with good practise examples. The increase in RE prices around the world, which started with the conditions of the COVID-19 period, while financial institution REV process and also creates dissatisfaction for buyers and sellers. While the world is experiencing an inflationary process, the rapid change in RE values ​​has made information management even more important in V in countries where there is no transparency in RE transactions. In this study, market players, KM in V accessible databases in V, software and web portals for valuers and companies, V workflows, number of RE sales with known transaction price information by year, number of RE sales with unknown transaction price information by year, value objection data by year, KM systems, public data sharing platforms, and legislation are looked at in the context of how they are used in the sample country. Literature research has been conducted in the field of information management since 2001 in the RE sector in the sample country and compared with world examples. In REV, the KM deficiencies needed to make more accurate value estimations for the benefit of credit institutions, collateral financing institutions, buyers, sellers, housing loan institutions, REV companies, and valuers have been researched. With its recommendations, good practise examples in the field of RE and REV in the world in KM are included. This study aims to be a reference source for future studies and discussions in this field by compiling knowledge on how KM is applied and used in the field of REV.

Appraising the State of Knowledge of the Valuation of Contaminated Freshwater Ecosystem of the Niger Delta

The valuation practice utilised in valuing natural resources in the Niger Delta has shown signs of the paucity of professional knowledge, thus necessitating an appraisal of the state of knowledge possessed by valuers practicing in the Niger Delta. This paper assesses the state of knowledge among Niger Delta valuers in contaminated freshwater on the applicability of the methods of valuation for assessing damaged freshwater resources. With reference to freshwater ecosystem valuation, a survey of practicing valuation firms was conducted on 102 valuation firms using census sampling, and (11) expert valuers were interviewed purposively. Findings indicate a poor knowledge of environmental valuation techniques and a constant recourse to using a predetermined compensation rate in valuing contaminated natural resources. It thus recommends the intensive training and education of practicing valuers on methods of environmental valuation and the valuation of contaminated natural resources.

Use of Natural and Cultural Resources by Tourism as a Strategy for Regional Development: Bibliometric Analysis

Territories throughout different continents have a wide variety of natural and cultural resources, defined by the dynamics of spatiality, temporality, and functionality that have been generated by the human groups settled in these spaces. These resources have become an object of study of great interest since they constitute the initial sources for the definition of the tourism potential of destinations, as well as contributing to the generation of new tourism activities and modalities for those already consolidated. Although these resources were initially used as objects of exploitation, with the passage of time the dynamics have changed to the use of these resources, focusing on the foundation of the pillars of sustainability, a condition that implies practices of environmental valuation in situ, the recognition of the cultural heritage of the territories and the valuation of the interaction between culture–nature–human beings. The objective of this research is to identify the existing scientific production in which the relationship between the tourist exploitation of natural and cultural resources and regional development is explored. Bibliometric analysis based on the guidelines of the PRISMA method was used. The international databases considered were Web of Science and Scopus. The analysis was complemented with an overlap analysis to establish the relationship of information between the WoS and Scopus databases. A total of 507 documents on the subject were identified, which provided a preliminary X-ray that will allow future research work to be focused on this line of re-search. The results allowed us to observe that there is little literature on the relationship between the use of natural and cultural resources for tourism and the regional development of the territory, both from an economic and social point of view.

“Doing Good” in U.S. Cancer Genomics? Valuation practices across the boundaries of research and care in rural community oncology

Genomic Tumour Testing (GTT) is an emerging site of “experimental care” in oncology [Cambrosio, Alberto, Peter Keating, Etienne Vignola-Gagné, Sylvain Besle, and Pascale Bourret. 2018a. “Extending Experimentation: Oncology’s Fading Boundary Bbetween Research and Care.” New Genetics and Society 37 (3): 207–226. doi: 10.1080/14636778.2018.1487281]. Few efforts to implement GTT have reached community oncology practices or patients living in rural communities within the US. Drawing on interdisciplinary research on a state-wide cancer genomics initiative in the rural US state of Maine, this paper explores the valuation practices within community oncologist and cancer stakeholders accounts of “doing good” within genomic science and care. We contribute to STS literatures on the bio-economy by highlighting the affective dimensions of strategies for managing economic and non-economic values. Clinician and stakeholders negotiated de-economizing and capitalizing modes of doing good as they built local genomic platforms “for Maine.” These situated modes of doing good and feeling good via cancer genomics shaped how they navigated the ethical ambiguities of US biomedical markets across the boundaries of research and care.

On assigning service life for technical systems under inflation

A technical system is used by an enterprise that is a typical market participant to perform specific work. During operation, the operating characteristics of the system deteriorate. In case of a possible failure of the system, it is decommissioned and this causes losses for the enterprise. It turns out that it is beneficial to assign a certain service life to the system after which (if no failure has occurred) it is subject to decommissioning. We are solving the problem of optimizing this assigned service life. Usually, when solving it, inflation is not taken into account, and the optimality criteria are the average costs per unit of time and other indicators that do not fully reflect the commercial interests of the enterprise owning the system. Using the principles and methods of valuation, we build a mathematical model and propose formulas that allow us, taking into account inflation, to find the optimal assigned service life of the system and at the same time estimate the market value of the work performed by the system and calculate the change in the market value of the system with age. Moreover, in this problem, the optimality criterion is the ratio of the expected discounted costs to the expected discounted volume of work performed by the system. We show that such a criterion maximizes the market value of the enterprise owning the system. We give examples of using the constructed model. The results obtained can be used both for solving other optimization problems of the reliability theory and for practical valuation of some types of machinery and equipment.

Identification of Risk Factors in Business Valuation

It is widely accepted that risk and uncertainty are integral parts of the property valuation process. Uncertainty in property valuation is derived from the characteristics of property itself. The issue pertaining to risk and uncertainty in property valuations is currently one of the key concerns in global valuation practice to date in addressing the decision of risk and uncertainty in valuation, especially for business purposes or in the current term known as business valuation. The judgment and experience still depend on the expertise of the individual valuers alone. The valuation methods used can cause problems if certain elements in business such as risk are highlighted, especially to determine market value. There is a need for valuers to express assumptions which take into account risk and uncertainties, and then pass on the results of the estimation process to the end user of the valuation report. This research employed Analytical Hierarchical Process (AHP) to identify the level of risk in business valuation for valuers to identify which risk areas will expose them to professional liabilities, which then leads to mitigation of risk to determine value in business valuations. AHP will also be able to identify the level of risk in each of the approaches in business valuation which could help valuers to determine the value and market value in the valuation process. This paper will propose some practical approaches of how to address the risk and uncertainty of the valuation process, especially for the purpose of business valuation.

Práticas gerenciais de valoração de patentes acadêmicas

Objective: To understand the patent valuation practices developed in the academic context to promote innovation.Methodology: A systematic review of the literature was carried out from the scientific bases Scopus and Web of Science using specific search strings, in which 377 works were found. After applying the defined criteria, eight articles were analyzed.Originality: The study is justified due to the importance of understanding the valuation of academic patents as an inducer of innovation.Main results: The results led to a current understanding of perspectives related to the valuation of academic patents on two fronts: models of academic patent valuation and managerial practices of patent valuation in order to promote innovation.Theoretical-methodological contributions: The research presents an incremental theoretical contribution in the area of valuation of academic patents.Social/Managerial Contributions: Academic patent valuation practices are important mechanisms to induce technological innovation by universities, and the gains are generally defined in the form of royalties.

Investing in imagined digital futures: the techno-financial ‘futuring’ of edtech investors in higher education

ABSTRACT Educational technology is the focus of increasing financial investment. In this article, we examine how edtech investors imagine and invest in the future of higher education through an empirical case study of a UK investing company. Utilising concepts and methods from economic sociology, we analyse how investment companies engage in techno-financial ‘futuring’ practices. We identify two kinds of futuring practices. First, investors’ imaginary practices produce qualitative ‘fictional expectations’ about the future of education, supported by quantitative financial valuation practices that predict the monetary returns on investment available from funding edtech. Second, we analyse the specific investment-supporting operations of edtech investors, highlighting how imagined futures of education are funded into existence (or not) as investors select and support edtech products or services. In these ways, imaginaries of the future may be materialised in educational institutions through financial investments in specific edtech products. We particularly trace how investment imaginaries and operations shift from edtech markets as selling commodities to edtech industry controlling digital products and resources as assets. Therefore, the two identified complementary futuring practices function as processes of ‘assetisation’, aimed at turning educational services and resources into digital assets with calculable future value for edtech investors.

Private Company Valuations by Mutual Funds

AbstractMutual fund families set and report values of their private startup holdings, which affect the fund net asset value (NAV) at which investors buy/sell fund shares. We test three hypotheses related to the valuation practice: (i) information cost/access, (ii) litigation risk, and (iii) strategic NAV management. Consistent with (i), families with larger PE holdings and/or stronger information access update valuations more frequently in the absence of public information releases, their updates co-move less with other families, and their fund returns jump less at follow-on financings. We find no support for hypotheses (ii) or (iii). We also find that high-PE-exposure funds are subject to greater financial fragility.

Anatomy of entrepreneurship: Using key competencies to drive social capital acquisition and develop social entrepreneurship practices in MBA education

This research produces a content analysis of a U.S. social entrepreneurship (SE)–focused graduate management program which examines the intersection of SE key competencies and SE practices that produce avenues of accessibility for SE MBA students. This paper puts previously proposed SE key competencies in dialogue with theories of practice, identifying how curricular and practicum practices are performed through an examination of public-facing program documentation, which includes websites, social media, and curricula. Results show that social capitals are manifest in SE practices that work both internally and externally to define the SE field and foster meaningful SE education. Four patterns of practice are crucial to creating accessibility and engaging multiple stakeholders: institutional practices which instill an active and outward-facing institutional presence, practices of a student-centered organization that bridge and link entrepreneurs, valuation practices incorporating sustainability, and persistent external engagements. These findings provide a roadmap to guide management programs in creating knowledgeable and effective social entrepreneurs, and suggest that this multi-pronged approach to creating SE pathways of practice addresses the complex and pluralistic problems that lie at the core of social innovation projects.

A comparative analysis of the applied WIP evaluation and accounting methods in Russian and International practices

Subject. This article explores the rules for accounting and evaluating work-in-progress (WIP) in the new Russian Federal Standard FSBU 5/2019 – Inventories, and compares it with IFRS (IAS) 2 – Inventories. Objectives. The article aims to identify the substantive characteristics of WIP accounting. Methods. For the study, we used the methods of comparison and generalization. Results. Based on a comparative analysis of the WIP accounting and valuation in FSBU 5/2019 and IAS 2, the article identifies their main similarities and differences. It offers options for WIP and finished product accounting and evaluation, taking into account FSBU 5/2019, and determines the prospects for further development of Russian rules for WIP accounting. Conclusions and Relevance. The article concludes that in the international and domestic practices of accounting and valuation of inventories, including work-in-progress and finished products, there are more similarities than differences. However, there are still enough issues that need further consideration and resolution. The results of the study can be applied both in accounting and in the practice of an economic entity in the context of sustainable business development.

Geographical Information System (GIS) Application to Property Valuation Practices in Port Harcourt Metropolis of Rivers State, Nigeria

Technology has in the recent years been vehicle for improving effectiveness and precision by different professions in an attempt to achieving the best practice by these professions. One of such technologies which can employ to aid Estate Surveying and Valuation practice is Geographical Information System (GIS). Valuation of properties including real estate and other assets have often been carried out through the application of manual methods which is often found to be cumbersome and sometimes not producing accurate and reliable results. It is in realization of the inherent deficiency entailed in the application of manual approach in carrying out valuation that this study seeks to investigate the application of Geographic Information System (GIS) to the art of valuation practice in Nigeria using Port Harcourt Metropolis of Rivers State as a case study with a view to ascertaining its inherent benefits to valuation practice. To achieve the aim of the study, questionnaires were administered to seventy-four (74) estate surveying and valuation firms randomly selected in the study area. Presentation and analysis of data was done using mean and relative important index. Finding from the study revealed that estate surveyors and valuer are quite aware of the inherent benefits of the geographical information system (GIS) to property valuation, but only very few of the Estate Surveying and Valuation firms make use of it in their valuation practice. The study further revealed that majority of the Estate Surveying and Valuation firms were willing to adopt its use if only they could gain better understanding of its application to valuation practice as its application is bound to having positive effect on the practice of Estate Surveying and Valuation profession. Based on the findings, the study recommends that training should be held to equip estate surveyors and valuers with the required skills for the application of geographical information system (GIS) since empirical research has shown that it has potential of enhancing valuation practices.
 
 Received: 14 December 2021 / Accepted: 20 March 2022 / Published: 5 May 2022

Should central bank liquidity be a vehicle for fiscal disciplining?

Abstract With notable exceptions, central banking scholars typically pay little attention to collateral frameworks, and therein, to the haircuts applied to the collateral assets pledged to access central bank liquidity. One such exception, Kjell Nyborg (2017) argues that the collateral policies adopted by the European Central Bank (ECB) aggravated the sovereign debt crisis and put the survival of the euro at risk. Drawing on the money view, we argue that Nyborg’s critique of the ECB’s crisis response is misguided and that his proposal to deepen and reinforce the ECBs role in the fiscal disciplining of member states via its collateral framework would be procyclical and destabilizing. We identify core principles for collateral policies suitable to stabilise market-based financial systems: (i) countercyclical haircuts, (ii) suspension of collateral valuation practices; and should these not be sufficient to abate collateral market liquidity strains, (iii) outright purchases of collateral assets.