Use Of Valuation Methods Research Articles

Optimization of production processes when building a value flow map

The article aims to optimize value flows using the VSM map to increase the efficiency of an enterprise. The article shows that the VSM method is a key method of lean manufacturing. It has already gained popularity. Application of the method is relevant for industrial, transport, educational and many activities. Simulation of production processes reflected as flows for two different industrial activities. This approach allowed for the use of valuation methods to optimize production processes. The approach to assessing the effectiveness of the flow has been changed, and new assessment methods have been proposed.

Integrating social values with other value dimensions: parallel use vs. combination vs. full integration

The need to link different valuation methods, especially beyond disciplinary realms, has been discussed at least since the 1990s, and recently it has gained special attention. In the present contribution to this debate, we analyse the prospects for integrating different valuation methods representing three areas of disciplinary knowledge or value dimensions: social, monetary and ecological. We present a framework building on two key factors deciding the integration potential: logical commensurability of values, and technical compatibility of valuation methods. Using this framework, we analyse the integration potential in the case of social and monetary, and social and ecological valuation methods, along with the relevant empirical examples. Our conceptualization of social values refers principally to contextual values and value indicators. Our analysis shows that there is untapped potential for co-developing methods specifically to obtain more specific, integrated results. If full integration is not meaningful, the combination of different valuation methods can still support the analysis and interpretation of those methods’ results. At the very least, parallel use of the different valuation methods produces a more comprehensive picture than using any of those methods alone. In conclusion, integrated valuation gives a nuanced picture of what is valued, but even parallel use of valuation methods is useful in highlighting the different perspectives on what is valuable and why.

Scientific examination and valuation of holistic managerial competence

The aim of the article is to define the competence of the employees - managers and employees, the need and methods of its evaluation. Meeting the set goals requires a scientific approach to meeting the goal set. Employees’ holistic competence consists of them, professional knowledge, practical skills and personality traits. Defining the necessary knowledge, application skills and human personality traits is a fundamental contribution of a scientific article. Another scientific benefit is emphasis the need to know the necessary knowledge, skills and human qualities to achieve the holistic competence of the workers. The specific scientific contribution of the article is the definition, justification and explanation of the use of valuation methods in management practice.

Valuation Models for Low-Income Housing: How Does Income Approach Reduce Ambiguity of Assessing Property Tax?

Property tax valuation and assessment for low-income housing remain a challenge for real estate assessors, developers, property managers, and local governments. This paper reported the research findings on the use of valuation methods for real estate tax abatement in low-income properties gathered from real data. Based on data from income statements and balance sheets of client’s properties, valuation models for low-income housing versus market-price housing were proposed and the major variances were compared. From the examination of the major valuation methods used by states and localities, evidence was found to explain: 1) How the fair market value method failed to apply to the tax assessment in Massachusetts that requires a market-price value for property assessment purpose, and 2) why the income approach is preferred in the asset valuation of low-income housing. The findings showed the effectiveness of income approach in the absence of statutory mandates in the State of Massachusetts where a disparate body of case law is used. The paper shined light on valuing real estate encumbered with restrictions for assessment purposes, especially for properties vulnerable to changes in property taxes. It further suggested the need for a legislative resolution for clarity and consistency in valuation of low income housing.

The profile of venture capital investments: the European context

The aim of this paper is to deepen our understanding of the investment valuation process followed by venture capitalists (VCs) at the European level. Its contribution is two-fold. First, we shed light on the manner in which VCs estimate the investee company's value and operationalise the main variables involved in the practical application of the well-known discounted cash flow method. Second, we study whether the different degree of use of valuation methods across European countries may be explained by differences in institutional characteristics related to the underlying legal regime (i.e., English vs. German vs. French-based legal traditions). Using both univariate and multivariate analysis for a sample of 99 responses obtained from a survey addressed to VCs from the UK, France, Germany and Italy, we find that both legal systems and characteristics of VCs (i.e., experience, preferred investment stage, and main source of funds) do influence in the valuation methods used.

How are Banks Valued? An Examination of Research Reports in Europe

The idiosyncratic attributes of banks call for the use of valuation methods that are adapted specifically for the peculiar characteristics of the banking business with due regards to the special roles played by the industry’s leverage and capital constrains. This study reviews 171 research reports on the valuation of some of the largest European banks in 2011. The results of the research indicate that there is divergence between the financial literature and the real world. Equity analyst, in general, use valuation models that are more closely adapted to the specific characteristics of banks and not always follow what the financial literature proposes as the core methods for bank valuation. This finding suggests that there is ample room for further research to re-evaluate the banking valuation methodologies in the literature.

Small businesses, share buybacks, tax auditing and the use of valuation methods

Purpose – The purpose of this paper is to analyze how share buybacks can be, in Portuguese small privately held firms, a source of tax‐based conflicts between shareholders and tax administrations. Two issues are of particular relevance: the favored tax treatment of capital gains relative to dividends, and the use of valuation formulae to compute prices used in such transactions. The paper intends to present some advice to firms and consultants regarding equity valuation in privately held firms, to avoid tax based litigation. An extended analysis of the issue and its relevance to other jurisdictions is also presented.Design/methodology/approach – The paper is based on a conceptual discussion of the usual approach taken by the Portuguese tax authorities to challenge share buybacks in small, privately held, firms. The arm's length principle in transfer pricing rules is the cornerstone of the topic analysed. The paper compares the merits of alternative pricing basis, and shows the economic and legal problems ...

The Concept of Covaluation: Institutionalising the Involvement of Local (Public) Values in Regional Planning on Water

This paper discusses the issue of valuation with respect to the use of water systems and related infrastructures in the context of regional planning. It is argued that a further institutionalisation of the integration of local (public) values into interactive decision making is needed. This requires an institutional design that embeds local values in the use of valuation methods and rules and guidelines relevant to regional planning. Existing procedures of valuation and weighing may still be used but in a context of co-valuation. However, co-valuation is characterized by its multi-actor approach towards valuation that assesses different and sometimes competing values. A case study was conducted to experiment with the combination of deliberation and weighing in local/regional spatial development concerning water systems and related infrastructures. Based on the case study and related research, some first steps towards the involvement of local values in decision making are proposed.