Previous studies have identified that the use of currency derivatives in order to minimize the risk involved with foreign trade can also increase a firm’s value. Evidence of this can be found in a paper such as Allayannis and Weston (2001) “Use of Foreign Derivatives and Firm Market Value”, which showed that companies in the U.S. that uses these currency derivatives has a higher firm value than companies that do not use them. However, there have not been any studies concerning the Swedish market. This is why the Swedish market is selected for this thesis but also since the Swedish market is a more open market than the U.S. market for instance. The more open, the more volatile is the exchange rate, which one could see as a reason to why Swedish companies should hedge even more. The purpose of this thesis is to analyze the Swedish market and to find out if there is a relation between the firm value and hedging, analyzed with help of Tobin’s Q that gives us a measurement of the firm’s underlying value. The analysis is done on the 50 largest companies in Sweden, although some of the companies are ranked lower in the category total asset but since not all of the 50 largest companies met the requirements, the selection had to go further down the list. The data is received from the companies annual reports (2005), this to receive the latest data. The companies are analyzed with help of Tobin’s Q and also EBIT (Earnings Before Interest and Tax), this to get a measurement of how the market value of the companies was towards each others with pr without hedging. The result is presented in the analyze and shows that there is no relation between firm value and hedging, at least not in this research and with this selection of companies in the Swedish market. This result contradicts the findings in the paper made on the U.S. market.

The differences between firms‘ book values and market values has drawn attention to investigate what factors are causing this phenomenon. A considerable amount of research was dedicated to investigating the association between firms‘ innovative activity, which results in the patenting of new products or services and firms market value in the context of United States. However, not many studies of similar kind are documented in the Swedish firms context. The purpose of this thesis is to investigate the previous studies, and analyze whether and how patents and R&D are associated with Swedish firms‘ market values. For this study the cross-section and time-series data were collected from publicly listed Swedish companies’ financial statements and the Amadeus database. Investigation begins with an attempt to find out whether R&D and patents are associated. Finally, the hypothesis is tested whether patents are positively associated with Swedish firms’ market values. The results partially support the expectations. There was no strong statistical association found between R&D and patents, however in the final model patents were found to be positively associated with Swedish firms’ market values. A conclusion can be drawn that the patent is a powerful device providing incentives for innovation, while innovation in products and services ensures that our quality of life is increasing.

Blockbuster and Netflix are two firms in the home video rental market that experienced vastly different outcomes. Netflix vastly increased its firm value while Blockbuster lost its dominant market position and slid into bankruptcy. This paper examines the strategies pursued by Blockbuster and Netflix and the impact these strategies had on firm value. This paper finds that on average Blockbuster’s strategies did not have a significant impact on its firm value while Netflix’s strategies increased its firm value. Specifically, Netflix’s strategies in the areas of service improvement and promotional activity created the most value. The strategies each firm pursued in product line expansion provided value for Blockbuster but reduced value for Netflix.

According to the existing literatures, there are few directly discussions about the relations of cash flow volatility on firm value and the issues of cash flow volatility are relatively disadvantage to those of earning volatility, arousing the interest of this study.Therefore, this study verifies the effect of cash flow volatility on firm value by using data of listed companies in Taiwan and the method of Pooled Regression. Also, the number of companies are divided up based on the median of cash flow¡Bdebt ratio and total asset, and examine which circumstances are more significant statistically. Finally, this study verifies the effect of earning volatility and earning management on firm value to explain that cash flow volatility is more effective on firm value. The empirical results show that cash flow volatility is negatively on firm value, and the effects are more significant statistically in small asset firms¡Blow debt ratio firms and high cash flow firms. But earning volatility is not significant statistically on firm value, and earning management is ineffective on firm value. The results indirectly explain that cash flow volatility is a more effective indicator on firm value and explain that managers managing earning to increase firm value are useless. According to the empirical results, there is no benefit when managers continue stabilizing earnings based on earning management. If investors continue selecting companies to invest based on earning volatility, the effects could be less than the ones of cash flow volatility. Therefore, the empirical results provide one indicator of the evaluations of firm value with managers and investors.

This study analyzes 197 companies formed through strategic alliance during the period 1995-2004. There are 107 samples of technological strategic alliance and 90 samples of marketing strategic alliance. The empirical methodology used in this research is the event study approach, which assesses the value implications of the announcement of forming strategic alliance. This study then examines relationships between abnormal returns and relative scale of strategic alliances partners, and profitability of companies through regression analysis to find the following results: 1. The announcement will bring significantly positive abnormal return to the company. 2. Abnormal returns of technological alliance are greater than that of marketing alliance announcements. 3. There is no significant relationship between relative sizes of partners and abnormal returns. Accumulative abnormal returns of relatively larger size partner are higher than relatively smaller size partners. Relatively larger partners in technological alliances gain more benefits in a strategic alliance. 4. The profitability of firms entering strategic alliances is negatively correlated with abnormal returns attributable to alliance announcements. Such a negative correlation is greater for marketing alliances than for technological alliances.

Abstract Since the Asian financial crisis in 1997, several researches for the East Asian have found that concentration of ownership higher than other areas and weak corporate governance have been important reasons of financing crisis. Therefore, the study adopts the method developed by La Porta, Lopez-de-Silanes and Shleifer (1999), which traces the chain of ownership to find who has the most voting rights, identifies their ultimate control patterns, finds the controlling shareholders of firm, and then calculates each ultimate owner¡¦s control rights and cash flow rights. We also try to find the relationship between those ways of controlling shareholders to the voting rights, cash flow rights, and the degree of control rights deviating from cash flow rights. In Addition, we regress to the Proxy Q on controlling shareholders¡¦ control rights deviating from cash flow rights, then examine the evidence on expropriation of minority shareholders. This paper investigates whether the board construction on corporate governance mechanism effectively discharge its monitoring function and mitigate central agency problem. The research data are collected from the publications of those companies that stocks are openly traded on the Taiwan Stock Market between 2000 and 2003 April. There are 183 validated observations which are obtained. Empirical result suggests¡G 1. The high concentration of ownership is more common in Taiwan publicly listed companies and those firms are typically controlled by families. 2. The controlling shareholders typically have power over firms significantly in excess of their cash flow rights because they through the use of pyramids, cross-holdings, paper company and participation in management. And the condition of family control company is the worst. 3. The more the controlling shareholders¡¦ cash flow rights, the better performance of the firm. 4. For Taiwan publicly listed companies, the corporate governance mechanism could not effectively discharge its monitoring function and mitigate central agency problem.

Essay 1: I examine sales of private firms to better understand the effect of relaxing financial constraints on firm value. My empirical tests exploit an exogenous shock to financial constraints caused by interstate bank branching deregulation. On a sample of 557 sales of private firms to public acquirers, I find that relaxed financial constraints lead to a statistically significant increase of 7.3% in valuation multiples of private targets. I also find a significant increase in private target valuation multiples benchmarked to public target valuation multiples. These effects are more pronounced for firms in the sample with below median annual sales. Acquirer returns are negatively impacted when financial constraints on private targets are relaxed. The evidence supports the prediction that relaxing financial constraints allows private targets to substitute bank credit for some of the financing benefits provided by acquirers and bargain for a higher valuation.

This paper investigates the academic conclusions on how CEO gender and salary affect firm value, while at the same time adding data on how CEO age affects firm value. Via an event study of S&P 500 CEO changes from 2000 to 2006 I confirm the current academic findings and discover that CEOs promoted during their 40s negatively influence firm value, while CEOs in older age brackets show a positive abnormal return on firm value. With this validation and addition to the existing data, firms and investors can more effectively assess proper candidates for the position of CEO and allocate resources accordingly.

Thesis is about firm valuation GCE in condition going concern princip. Value was provided by FCFF method.

Thesis is about firm valuation Lázně Poděbrady in condition going concern princip. Value was provided by FCFF method.