IDEAS home Printed from https://ideas.repec.org/p/ags/ifma13/345693.html
   My bibliography  Save this paper

PR - Pretesting The Suitability Of The Income Valuation Framework On The Agricultural Companies Within The Visegrad Group

Author

Listed:
  • Ruzickova, Kamila

Abstract

The income valuation framework presents high-powered, complex and math-intensive process. Therefore, any pretesting of valuation objects can be beneficial and time saving for the individual professional appraisers. Since the income valuation approach is based on the estimation of the income value of the company on an ongoing-concern basis, if this basic assumption is not met by the valuation object, the other approaches need to be employed. This paper closely examines theoretical and practical aspects for the initial stage for the application of the income valuation methods on the agricultural companies within the member countries of the Visegrad Group. Firstly, the applicability of the income valuation methods is verified via the indicator of value spread, as a difference between the return on equity and costs of equity and secondly, the conclusions are drawn properly. This paper finds that only a part of the sample is suitable for income valuation, for the majority of companies the income valuation methods are rather non-applicable, due the fact that some of the basic requirements are not met. Based on empirical tests, it was shown that there is a slightly positive dependence between the value spread indicator and the country of origin of the agricultural company.

Suggested Citation

  • Ruzickova, Kamila, 2013. "PR - Pretesting The Suitability Of The Income Valuation Framework On The Agricultural Companies Within The Visegrad Group," 19th Congress, Warsaw, Poland, 2013 345693, International Farm Management Association.
    • Handle: RePEc:ags:ifma13:345693
    DOI: 10.22004/ag.econ.345693
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/345693/files/13_Ruzickova_P58-64v2.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.345693?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Banaszak, Ilona, 2007. "Testing Theories of Cooperative Arrangements in Agricultural Markets: Results from Producer Groups in Poland," 104th Seminar, September 5-8, 2007, Budapest, Hungary 7837, European Association of Agricultural Economists.
    2. Plenborg, Thomas, 2002. "Firm valuation: comparing the residual income and discounted cash flow approaches," Scandinavian Journal of Management, Elsevier, vol. 18(3), pages 303-318, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paweł Mielcarz & Paweł Wnuczak, 2011. "DCF Fair Value Valuation, Excessive Assetes and Hidden Inefficiencies," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 5(4), December.
    2. Marco Fazzini & Antonella Russo, 2014. "Profitability in the Italian Wine Sector: An Empirical Analysis of Cooperatives and Investor-Owned Firms," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(3), pages 130-137, July.
    3. World Bank, 2010. "Uganda - Public Expenditure Review : Strengthening the Impact of the Roads Budget," World Bank Publications - Reports 2941, The World Bank Group.
    4. Jana Vavřina & Kamila Růžičková & Dana Martinovičová, 2012. "The CAP reform beyond 2013: the economic performance of agricultural enterprises within the Visegrad Group," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(7), pages 451-462.
    5. Jan Vavřina & Kamila Růžičková, 2012. "Agricultural producers' groups in the Czech Republic: introductory review and discussion of the problem area economic performance measurement," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(7), pages 441-450.
    6. Nangia, Vinay Kumar & Agrawal, Rajat & Reddy, K. Srinivasa, 2011. "Business Valuation: Modelling Forecasting Hurdle Rate," MPRA Paper 60420, University Library of Munich, Germany, revised 2011.
    7. Raballand, Gael & Macchi, Patricia & Merotto, Dino & Petracco, Carly, 2009. "Revising the roads investment strategy in rural areas : an application for Uganda," Policy Research Working Paper Series 5036, The World Bank.
    8. Kotyza, P. & Tomšík, K., 2014. "Effects of Public Support on Producer Groups Establishment in the Czech Republic and Slovakia," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(2), pages 1-11, June.
    9. Cesar Cupertino & Newton Da Costa & Reinaldo Coelho & Emilio Menezes, 2013. "Cash flow, earnings, and dividends: A comparison between different valuation methods for Brazilian companies," Economics Bulletin, AccessEcon, vol. 33(1), pages 309-322.
    10. Shigufta Hena Uzma & J.P. Singh & Naveen Kumar, 2010. "Discounted Cash Flow and Its Implication on Intangible Valuation," Global Business Review, International Management Institute, vol. 11(3), pages 365-377, October.
    11. Chaolin He & Yijia Gao & Feng Xiao & Liangling Tang & Yasir Khan, 2024. "A bubble identification mechanism: Evidence from the Chinese stock market," Pacific Economic Review, Wiley Blackwell, vol. 29(1), pages 55-87, February.
    12. Iliopoulos, C. & Hendrikse, G.W.J., 2008. "Influence Costs in Agribusiness Cooperatives: Evidence from Case Studies," ERIM Report Series Research in Management ERS-2008-040-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    13. Hamadi, Hassan & Awdeh, Ali, 2011. "Determining Financial Performance: Evidence from UK and USA Firms," MPRA Paper 121151, University Library of Munich, Germany.
    14. Stefan Dierkes & Ulrich Schäfer, 2021. "Valuation of firms with multiple business units," Journal of Business Economics, Springer, vol. 91(4), pages 401-432, May.
    15. César Medeiros Cupertino & Paulo Roberto Barbosa Lustosa, 2004. "Ohlson Model Testability:Empirical Tests Findings," Brazilian Business Review, Fucape Business School, vol. 1(2), pages 136-150, June.

    More about this item

    Keywords

    Agricultural and Food Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifma13:345693. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifmaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.