There are numerous instances when the stock of non-public (closely held) companies must be valued. Because the stocks do not trade in a market, their "fair market value" is difficult to determine. Often, Certified (Professional) appraisers are called upon to value the stock. The appraisers themselves apply any of several valuation techniques. / The dissertation seeks evidence regarding the validity of the appraisers' valuation techniques. In particular, it seeks to determine (1) in an economic sense, how well the methods perform, and (2) in a statistical sense, whether some methods perform better than others. Forty valuation techniques were applied to shares of publicly traded companies (and the observed market price was used as the "true" fair market value of each stock). There were 25,460 valuations across four test dates. / In an economic sense, the methods were found to perform poorly. As a group, a little more than two-thirds of their valuations were more than 25% off of the fair market value. Almost one-in-six valuations were more than 100% off the fair market value. In a statistical sense, the methods did not perform equally poorly. In particular, two of the methods had valuations that were more accurate (on average) and less dispersed (relative to the fair market values). Thus, the evidence suggests that the methods perform poorly, but not equally poorly. The implication is that some methods should be given preference over others, but all should be used with much caution. / Source: Dissertation Abstracts International, Volume: 56-04, Section: A, page: 1471. / Thesis (Ph.D.)--The Florida State University, 1995.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_77416 |
| Contributors | McConkie, William Robert, II., Florida State University |
| Source Sets | Florida State University |
| Language | English |
| Detected Language | English |
| Type | Text |
| Format | 272 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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