This paper-based dissertation discusses applications of asset pricing using the methodology of stochastic modelling for different questions in corporate finance and comprises three essays. The first essay reconsiders the pricing of a firm by more appropriately quantifying one component of the APV equation, i.e., the tax savings. This study proposes a state dependent taxation of a cancellation of indebtedness (COD), reflecting the diverse national tax systems more realistically and investigates whether this has an impact on the value of a leveraged firm. The second essay quantifies the performance measure of a leveraged buyout (LBO) and facilitates the optimization of this figure by searching for an optimal redemption policy within the firm’s financial structure. Further evidence is brought to the often-discussed consideration between the internal rate of return (IRR) and the net present value (NPV) as investment decision criteria. The third and last essay prices a common clause in mergers and acquisitions (M&A) transactions – the earnout - by revisiting a prominent assumption about the payoff modeling in standard corporate finance literature. While current literature on pricing contingent claims mainly relies on the standard Black-Scholes-Merton framework, this study investigates whether a more realistic modelling by introducing stochastic jumps into the EBIT of firm earnout clauses to be mispriced under standard models.
| Identifer | oai:union.ndltd.org:DRESDEN/oai:qucosa:de:qucosa:91788 |
| Date | 30 May 2024 |
| Creators | Stimper (mar. Hacker), Franziska |
| Contributors | Lahmann, Alexander, Zülch, Henning, HHL Leipzig Graduate School of Management |
| Source Sets | Hochschulschriftenserver (HSSS) der SLUB Dresden |
| Language | English |
| Detected Language | English |
| Type | info:eu-repo/semantics/publishedVersion, doc-type:doctoralThesis, info:eu-repo/semantics/doctoralThesis, doc-type:Text |
| Rights | info:eu-repo/semantics/openAccess |
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