Value Of Process Research Articles

Assessment and valuation of technologies, development and application of Valorativo software

PurposeAlthough Public Research Institutions (PRIs) are large technology producers, they lack automated information tools that follow technical and scientific criteria for assessing and valuing patents. The assessment and valuation processes are stages of technology transfer (TT) that make it possible to obtain productive arrangements and guide the efforts of those involved in the development, maintenance and negotiation. This study aims to analyze the hybrid model of assessment and valuation of technologies by Soares (2018), applying the ‘Valorativo' software. In addition to patent value and indicator scores, the methods allow an understanding of the technology portfolio and its management.Design/methodology/approachThis research is quali-quantitative, following an approach of applied nature and descriptive objectives. The research has bibliographical, documental and case study features based on the software development methodologies described in the study and the theoretical framework.FindingsThe Valorativo software assisted in the analysis of ten patents on PRIs. With the data collection and patent analysis, PAT1 scored highest among engineering patents, PAT3 scored highest among pharmaceutical patents and PAT10 scored highest among biotechnology patents. Five of the assessed patents resulted in a surplus of net present value (NPV), final net present value (NPVF) and royalties; revenue expectations outpaced investments.Practical implicationsThe authors based the developed software on Soares’s (2018) methodology, with additional calculations and graphs. The Web software and the spreadsheet with Visual Basic for Application (VBA) were developed to deal with the patents assessment and valuation, helping in the analysis of their Legal Value, Technological Value and Market Conditions in the assessment process, and the Discounted Cash Flow and NPV in the valuation process.Originality/valueThe software helps with patent analysis and can generate indicators for traders, technology holders and researchers. Thus, it was necessary to understand and develop a theoretical-applied framework to outline and replicate the methodology clearly and easily.

Striatal hypoactivation during monetary loss anticipation in individuals with substance use disorders in a heterogenous urban American Indian sample

Research suggests that disproportionate exposure to risk factors places American Indian (AI) peoples at higher risk for substance use disorders (SUD). Although SUD is linked to striatal prioritization of drug rewards over other appetitive stimuli, there are gaps in the literature related to the investigation of aversive valuation processing, and inclusion of AI samples. To address these gaps, this study compared striatal anticipatory gain and loss processing between AI-identified with SUD (SUD+; n = 52) and without SUD (SUD-; n = 35) groups from the Tulsa 1000 study who completed a monetary incentive delay (MID) task during functional magnetic resonance imaging. Results indicated that striatal activations in the nucleus accumbens (NAcc), caudate, and putamen were greatest for anticipating gains (ps < 0.001) but showed no group differences. In contrast to gains, the SUD+ exhibited lower NAcc (p = .01, d =0.53) and putamen (p = .04, d =0.40) activation to anticipating large losses than the comparison group. Within SUD+ , lower striatal responses during loss anticipations were associated with slower MID reaction times (NAcc: r = −0.43; putamen: r = −0.35) during loss trials. This is among the first imaging studies to examine underlying neural mechanisms associated with SUD within AIs. Attenuated loss processing provides initial evidence of a potential mechanism wherein blunted prediction of aversive consequences may be a defining feature of SUD that can inform future prevention and intervention targets.

DESIGNING A TECHNOLOGY VALUATION MODEL IN IRANIAN STARTUPS

Technology valuation is needed by companies in today's knowledge-based economy. The intangible nature of technology, influence of environmental factors and conditions on it, have made calculating its value complicated. At present, a large part of the country's economic activities in the technological ecosystem is carried out by companies and startups, whose growth and development are possible with the influx of capital. Therefore, the aim of the upcoming research was to identify dimensions and explain the technology valuation model in Iranian startups. The approach of the research is qualitative, and in the research process, the Grounded Theory has been used. The 10 participants including active experts, policymakers, consultants, and CEOs in Iran's startup ecosystem, were selected by using the purposeful sampling method and analyzed by using the content analysis method. Participants identified factors such as lack of technology valuation requirements, bubble of startups claiming technology, innovation as causal factors, technology brokers and conflict of interests as interfering factors in the strategies of the desired phenomenon, development and promotion of technology valuation discourse, transformation of existing knowledge in the field of technology to valuable knowledge, leadership and idea management and localization of technology valuation as solution-oriented strategies, benefits of calculating the real value of technology and valuation process itself regardless of the result were expressed as the consequences of expanding the technology valuation model in Iranian startups. In this way, the dimensions of the desired model were extracted and explained.

Investing in resources: An interaction model of personal resources, commitment, and work achievement.

Management practice commonly assumes that the value of a work-goal dictates the nature of motivation processes. We investigate instead how individuals invest resources from the perspective of their own value system. Drawing from Conservation of Resources theory, we explore the valuation process by testing a reciprocal model between work-goal attainment, goal commitment, and personal resources, including self-efficacy, optimism, and subjective well-being. Data were collected in a two-wave longitudinal study among sales professionals (n=793) from France (F), Pakistan (P), and the United States (U). Multi-group cross-lagged path analysis confirmed the reciprocal model across all three countries. Time 1 resources and goal commitment predicted work goal attainment (F=0.24; P=0.37; U=0.39) and (F=0.31; P=0.40; U=0.36) respectively. T1 level of goal attainment also fuelled T2 resources and goal commitment (F=0.30; P=0.29; U=0.34) and (F=0.33; P=0.32; U=0.29). Our reciprocal findings suggest a revised approach on the nature of targets and goals. They indicate an alternative to linear path modeling, as the role of goal commitment is not necessarily that of an intermediary stage linking antecedent resources to attainment purposes. Furthermore, cultural values play a differentiating role in the goal-attainment process.

Economic Valuation of Sun Bear (Helarctos malayanus) and Sumatran Elephant (Elephas maximus sumatranus) Based on Maintenance Cost Approach

Sun bear (Helarctos malayanus) and sumatran elephant (Elephas maximus sumatranus) are two species with high population decline due to poaching and illegal wildlife trade. It is still difficult to enforce laws related to hunting and wildlife trade due to legal standardization that can be used as an economic basis for lawsuits. One method of quantifying the economic value of animals can be done through an economic valuation process. This study aims to examine the economic value of sun bears and sumatran elephants based on a maintenance cost approach. The research was conducted at the conservation institutions of Medan Zoo, Siantar Zoo, and PPS Tashikoki from February – May 2021. The method used in the study was to manage conservation institutions to obtain the amount of cost allocation for animal care that refers to the five principles of animal welfare. The results showed that the sun bear's economic value based on its maintenance cost for 2 years reached Rp. 76,760,000 and for the sumatran elephant, it reached Rp. 621,730,000. The highest maintenance cost allocation for these two species is in the feed allocation. This high economic value indicates a disproportionate amount of fines given to the perpetrators of hunting and illegal wildlife trade, which has implications for weak legal products and does not cause a deterrent effect.

Tackling the wicked challenge of climate change risks to property: are Australian valuers prepared?

PurposeThis research investigated Australian property valuers' identification and consideration of physical climate change risks in valuation practice.Design/methodology/approachThirty Australian valuer members of the Australian Property Institute from a variety of specialisations were interviewed. The semi-structured interviews explored climate change risks and the extent of risk investigation and consideration in valuation practice. The analysis utilised the Moser and Luers (2008) climate risk preparedness framework as a lens to evaluate current valuation practice in Australia.FindingsThe analysis reflects that while physical risks are easily identified and engaged with by valuers, correspondingly, there is a lack of understanding of and engagement with, climate change risks. This supports the need for better information sources and guidance to inform valuers of climate change risks and the development of specific mechanisms for the consideration of such risks to be included in valuation processes, practices and reports.Research limitations/implicationsThe research was limited by its sample size and qualitative approach. Therefore, the research is not a representative opinion of the Australian profession; however, the analysis provides the perspective of a range of valuers from across Australia with different valuation specialisations.Practical implicationsThis research has established that valuers have the potential to be prepared to address climate change in their professional capacity, as described by Moser and Luers (2008). However, they are constrained by information communication, access and detail and subsequent market awareness of information on climate change risk exposure on properties. There is a need for further support, guidance, information and tools, as well as awareness-raising, to enable valuers to accurately identify and reflect all risks affecting a property in the process of valuation.Originality/valueThis research provides the first investigation into the consideration of climate change in valuation practice. Property stakeholders—owners, investors, financiers and occupiers—are escalating their climate change risk analysis and reporting for property portfolios and organisations. This research suggests that valuers also need to be aware of the changing dynamics of market reporting and decision-making related to climate change risks to ensure appropriate reflection in valuation practice.

Valuation of PT Pertamina (Persero) Post Restructuring

This research aims to assess the valuation of Pertamina post restructuring using the Sum of The Part (SOTP) valuation method of each sub-holdings and subsidiaries. Internal and external analysis of each sub-holdings and subsidiaries used as the input of the valuation process. Intrinsic valuation method using FCFF and relative valuation method using EV/EBITDA and P/BV used to calculate the implied equity value of each sub-holdings and subsidiaries. FCFF valuation results of each sub-holdings and subsidiaries post restructuring revealed the total implied equity value of USD 75,23 billion. The total relative valuation result of each sub-holdings and subsidiaries is USD 76,04 billion. Average total implied equity value using both methods is USD 75,65 billion. After net cash and debt adjustment of USD -9,79 billion, the average total implied equity value for PT Pertamina (Persero) is USD 65,85 billion, much lower than shareholder’s aspirations of USD 100 billion. The total implied equity value can reach USD 100,9 billion in the optimistic scenario and becomes USD 36,06 billion in the pessimistic scenario. Sensitivity analysis of valuation variables conclude that ICP is the most sensitive variable to PHE as the major contributor for Pertamina valuation. Majority of other sub-holdings and subsidiaries' most sensitive variable is cost of revenue.

M&As and determinants of financial multiples in shipping: the European ro-pax and ferry market

ABSTRACT The paper investigates the determinants of M&As in the shipping industry by applying an original methodology paved on strategic management and financial perspectives. Despite the magnitude of the figures related to the financial deals and the potentially dramatic effects of M&As on the shipping industry, a literature gap persists in this business. No prior studies have theoretically and empirically addressed the determinants affecting the valuation process of target shipping companies. Therefore, financial multiples constitute a valuable method to address this topic. Given the relevance and size of the ro-pax and ferry market for the European maritime transport system as well as the increasing number of transactions, the paper investigates the determinants of the financial multiples in this market. The paper grounds on an original conceptual model that includes endogenous, exogenous, and transaction-related variables and proposes nine research hypotheses on endogenous variables. The hypotheses are empirically tested through ordinary least squares regression analysis on 85 M&As carried out in the 2005–2021 timeframe. The findings demonstrate differences between asset-side and equity-side multiples suggesting asset-side multiples are more suitable for pricing shipping companies. The paper adds extant academic literature by unveiling the principal endogenous variables that affect the due diligence of target ro-pax and ferry companies.

Brand Valuation: Recognizing the brands as strategical assets in the balance sheet of the companies

The brand continues representing an important and strategic asset for companies. After adoptation of norms (IFRS/FASB), the brand was approved to be recognized as intangible assets in the balance sheet of the companies. The purpose of this paper was investigating how the big multinationals companies recognized the brand valuation in the financial statements and respective consequences. This paper discusses about several aspects involving the brand valuation process and relationship with EMH Theory focusing to have more communication and transparency with stakeholders. The results showed that all companies recognized substantial intangible assets in the balance sheet, but only Google, Coca-Cola, Samsung and Facebook recognized trademarks, although it is more associated with intellectual properties, copyrights and not exactly brands. Amazon and Microsoft bought several companies in 2018, but the brands were not duly recognized or disclosure in the financial statements.

Transfer Pricing and Valuation of Intangible Assets: The French Supreme Administrative Court Opens a Debate about the Weighting of Methods

In its decision of 27 October 2022 in the Sacla case, the French Supreme Administrative Court overturned the lower administrative courts’ decisions in a long-running transfer pricing battle over how to value taxpayers’ brands. Whereas the court-appointed expert witness calculated a weighted average from the results of applying the historical cost-based method and the discounted cash-flow method, the lower courts relied only on the latter method without sufficient reasoning, the French Supreme Administrative Court found. The case at stake went deeply into details in the valuation process. However, the French Supreme Administrative Court only overturned the decision on the grounds of distortion, which means there are still outstanding issues to be tackled.

Valuers' Perception on Mitigating Material Uncertainty in Property Valuation

Property valuation is the process of estimating the market price of an asset, especially one carried out by a professional valuer. The estimated price significantly affected by uncertainties in the market where the impact of these uncertainties will be reflected in the output figure, i.e., the valuation. Thus, careful consideration is essential for valuation assignment in the relevant market. The existence of recent or contemporary evidence, and the degree of trustworthiness of that evidence when determining the level of uncertainty at a specific valuation date is a requirement to minimize the level of material uncertainty in property valuation process. In this context, the main purpose of this study is to figure out valuers’ perception on best mitigation measures for material uncertainty in property valuation procedure. The population of the study are the professional valuers who engaged in property valuation in Sri Lanka; members of Institute of Valuers of Sri Lanka (IVSL) and Royal Institution of Chartered Surveyors (RICS). The sampling techniques of the study is cluster sampling and total of 270 members answered the questionnaire distributed via email. The analysis results confirmed that COVID-19 pandemic situation, valuation assumptions and clients’ influence are major contributory factors on valuation uncertainty. However, the factor extraction and rotation confirmed that only uncertainty created by the COVID-19 pandemic situation and valuation assumptions are two significant elements on material uncertainty of valuation. The findings suggest that client influence may not be seen as a threat to the emergence of material uncertainty. Furthermore, the study identifies measures such as developing a digital land registration database, defining valuation procedures as per the guidelines of respective valuation institution, use of realistic valuation assumptions, and analysing long-term market behaviour are appropriate measures for mitigating material uncertainty in property valuation.

Analysis of local community participation in the valuation process of Lota’s industrial mining heritage (1997-2021)

This research addresses the process to enhance Lota’s industrial mining heritage, in the period between the Labor Reconversion Plan of 1997 and Lota Mining Complex’s application to UNESCO’s Tentative List at the beginning of 2021. This period allowed studying a series of strategies implemented by the State together with other actors, as well as understanding the involvement of the community in the commune’s revitalization process. The purpose of the research was to analyze these strategies, to make a comparison regarding the prevailing purposes and uses for each type of actor, according to the hypotheses and paradigms on the social uses of cultural heritage. To do this, the Critical Discourse Analysis approach and tools were applied to different documentary sources. The heritage valuation strategies and actions that emerge from the closure of the mines in Lota, were initially developed top-down, starting from the authorities. However, throughout the heritage valuation process, a series of instances are established where the local community begins to influence the comprehensive management of the site's components. In this way, the results of the research reveal a trend toward a horizontal relationship between the different actors involved in the safeguarding process, from a participatory approach that contemplates the involvement of the local community.

From values to valuing: an ethnographic approach to get a grip on the implicit disclosure of built heritage

PurposeThe purpose of this paper is to map the process of (social) valuing by people encountering built heritage in their daily environments. Value-based approaches are not well researched and formalized in Flemish policy context. New questions and issues are emerging in relation to values-based heritage management and the (adaptive) reuse of heritage within a context of spatial development and urban renewal practices. This paper firstly focus on what factors influence the process of (social) valuing, secondly on the hybrid character of the process and finally at the conflicts between the values frames of the different actors. This way it also inquires the potentials of participatory design supporting alternative regimes of care.Design/methodology/approachWithin the research trajectory, the authors approached built heritage as a social construction and a social product, where there are as many stories as users. What heritage is and how heritage is dealt with, forms the basis of negotiation and valuation processes. An ethnographic approach was embarked on to get a grip on the socio-cultural significance of immovable property heritage in Flanders.FindingsThis paper describes the process of (social) valuing of by people encountering built heritage in their daily environments and offers an integrated conceptual framework for this kind of dynamic processes.Originality/valueNew questions and issues are emerging in relation to values-based heritage management and the (adaptive) reuse of heritage within a context of spatial development and urban renewal practices. This paper firstly focuses on what factors influence the process of (social) valuing, secondly on the hybrid character of the process and finally at the conflicts between the values frames of the different actors.

Development of a valuation system of technology for the enhancement of innovation in Indonesia

PurposeInnovation as intellectual capital is the main capital to improve the economy and welfare for developing countries. In this article, the researchers focus on discussing how this Patent valuation system is built in developing countries, In this article, the word technology here is patent-protected technology especially in Indonesia. The primary purpose of the patent assessment in this article is to provide loans, or in Indonesia, it is referred to as a patent fiduciary. This research is also expected to provide a solution to the decline in Indonesia's GII rank in 2021. The researchers describe how this technology valuation relates to fostering innovation in Indonesia. Design/methodology/approachThis research applies a descriptive analytical method. The researchers analyze existing innovation conditions through an intellectual property management approach and theories in intellectual property. The researchers construct the formation of a valuation system in Indonesia and form a valuation linkage scheme and technology improvement in Indonesia. FindingThe researchers map a valuation system consisting of integrated subsystems and describe how these subsystems work and are integrated with each other. Furthermore, it is also found that valuation has a positive correlation with the increase in innovation in developing countries, especially for innovation-based startups and small and medium-sized companies in Indonesia. Research limitation/implicationThe limitation of this research is the technology valuation process using three conventional methods. It still allows the emergence of new methods and this research is based on Indonesian characteristics, although this research can be applied in developing countries in ASEAN region which have the same characteristics as Indonesia. Original/valueThe novelty values contained in this article, firstly on the formation of a valuation system that can be adopted by Indonesia which does not yet exist, The technology valuation system can also apply in several developing countries, especially countries in the ASEAN region which will focus on the development of innovation and technology. Secondly, the valuation system and fiduciary implementation can indirectly increase national innovation.

A convolutional neural network (CNN)‐based direct method to detect stiction in control valves

AbstractControl valves are considered important capital assets in any process industry. A properly maintained control valve can have a significant impact on how well the process is controlled as well as the overall cost of the plant. However, control valves can suffer from poor control performance due to valve non‐linearities. One of the main reasons for non‐linearity is control valve stiction. Stiction not only causes oscillations in the process variables but also shortens the life of the control valve, resulting in an economic loss for the process. In a process plant, a control engineer generally analyzes the time series plot of process value (PV), set point (SP), and controller output (OP) data and identifies stiction based on the typical shape pattern of PV/SP/OP plot. In this study, the same shape pattern methodology is adapted to identify stiction using convolutional neural network (CNN) technique. A one‐dimensional convolution neural network (Conv1D) algorithm is developed, which works directly on PV/SP/OP time series data for stiction detection. The proposed CNN algorithm is tested on both simulated and industrial control loop data. The suggested method provides promising results with a combined stiction prediction accuracy of 92% (92.2% in predicting non‐sticky and 91.53% in predicting sticky loops) for the industrial loops data studied.

Stochastic volatility modeling of high-frequency CSI 300 index and dynamic jump prediction driven by machine learning

&lt;abstract&gt;&lt;p&gt;This paper models stochastic process of price time series of $ CSI $ $ 300 $ index in Chinese financial market, analyzes volatility characteristics of intraday high-frequency price data. In the new generalized Barndorff-Nielsen and Shephard model, the lag caused by asynchrony of market information and market microstructure noises are considered, and the problem of lack of long-term dependence is solved. To speed up the valuation process, several machine learning and deep learning algorithms are used to estimate parameter and evaluate forecast results. Tracking historical jumps of different magnitudes offers promising avenues for simulating dynamic price processes and predicting future jumps. Numerical results show that the deterministic component of stochastic volatility processes would always be captured over short and longer-term windows. Research finding could be suitable for influence investors and regulators interested in predicting market dynamics based on high-frequency realized volatility.&lt;/p&gt;&lt;/abstract&gt;

Methods of Building Resilience Valuation: A Literature Review

Resilience valuation appears to be gaining ground in the real estate and built environment profession globally, although its level of acceptance may not yet have been ascertained in Nigeria and other emerging economies. More than at any other time it has become imperative to examine investors' commitment to making buildings resilient in valuation practice. Today many countries are battling with the effects of extreme weather conditions, even as they confront the aftermath of the COVID-19 pandemic. Against this backdrop, this article reviews the literature on the valuation of building resilience with a view to deepening the understanding and knowledge of valuers and other stakeholders. In achieving this aim, we undertake a review of different perspectives on resilience valuation methodologies and initiatives as well as their applications and the challenges faced in the valuation process. We found varying approaches to valuing resilience that cut across disciplines. Moreover, issues of green buildings and sustainability were also found to be prominent in the literature. While some approaches e.g., RDVM model, etc. are seen to be at infancy, others have been applied to specific situations. We therefore suggest a multidisciplinary approach to valuation of resilience in buildings.

An Empirical Case Study of Foreign Asset &amp; Derivatives Leverage Effect on the Shipbuilding Firms

Purpose – This study aims to analyze the foreign asset leverage effect on Korean shipbuilding companies’ foreign profitability and maintain the appropriate foreign asset size for reducing exchange risk. Design/Methodology/Approach – As a research method, a simple average difference comparison method was used to estimate and compare the difference from the total average value for each variable. Our paper proceeds in presenting serial-stage analysis considering exchange risk factors through estimation on transformation of foreign transactions &amp; derivatives including annual trends of foreign asset and industrial characteristics. Findings – The value of the foreign asset leverage effect on shipbuilding companies was -36.4, and the result was more negative than other industries. This is because ship manufacturing companies focus more than 85% of their sales on overseas transactions and have large amounts of transaction units. Especially, the proportion of the gains from the derivatives book valuation process accounts for 109.8% of the net foreign profits. Research Implications – We need to introduce an independent credit rating system for foreign currency accounts which reflect the relating stability of the foreign currency denominated transaction on global business companies. From a long-term perspective, the exchange risk management of global companies requires relationships and mutual understanding with stakeholders in addition to financial hedging tools.

Valuation of Ecosystem Services Based on EU Carbon Allowances-Optimal Recovery for a Coal Mining Area.

This paper presents a new way of valuing ecosystem services based on the price of EU carbon dioxide emission allowances. Its main advantage is that it facilitates the monetisation of non-provisioning ecosystem services, which is the Achilles heel of current frameworks. The research approach is built on the notion that land rehabilitation and ecological restoration involve trade-offs between ecosystem services. A quantitative assessment (valuation) of these trade-offs is necessary to make sound decisions. However, using different valuation methods to estimate monetary values creates a non-comparability in the valuation process that is difficult to correct. To address this problem, in the first place, the propagation of imprecise preference statements in hierarchical weighting is proposed, avoiding the non-comparability caused by the different current approaches while reducing the effort of preference elicitation. In the second place, to achieve consistency, monetisation of all non-provisioning ecosystem services was carried on the above comparison and the monetary valuation of the attribute with the most direct and market-related valuation possible: carbon sequestration, using the EU Emissions Trading System. A former coal mining area exemplifies the valuation of ecosystem services provided by alternative ecological restoration scenarios. The aim is to estimate their contribution to human well-being, understand the incentives faced by decision makers to manage ecosystems in different ways and assess the values of alternative solutions. An exercise is then carried out to show that the price of EU carbon permits (as of December 2021) after the price escalation that coincides with phase 4 of the allocation of allowances under the EU Emissions Trading System can be estimated by prioritising biodiversity over other ecosystem services.

Does Herding Matter in the Chinese Stock Markets?

This paper examines the herd behavior in six segmented markets on the Chinese stock markets. Using the OLS, GARCH, Quantile Regression, and State Space Models to examine the daily returns from 2003 to 2018, we find that herd behavior exists widely in all the segmented markets examined in China, particularly in the two B-share markets. The two B-share markets also show stronger (weaker) asymmetric herd effects when market returns are rising (falling) and when trading volumes are higher (lower). Further evidence suggests that the herd effect in China became stronger during the period of the Chinese stock market turbulence. The results can help investors to determine the existence and magnitude of herd effect in the Chinese stock markets, improve stock valuation process, and construct proper investment portfolio.