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Developpement Durable, Flux Comptables Et Evaluation D'Entreprise

Author

Listed:
  • Paul Amadieu

    (CR2M - UM2 - Université Montpellier 2 - Sciences et Techniques)

  • Jean-Laurent Viviani

    (CR2M - UM2 - Université Montpellier 2 - Sciences et Techniques)

Abstract

The objective of this paper is to investigate the impact of non sustainability on company value. Non sustainability is defined as the incapacity for the present business model to perpetuate the same cash flow or the same profit generation. The consequence of non sustainability must be a dramatic drop in company value. This impact of non sustainability is often neglected by the traditional two steps discount cash flows method or by the residual income model. Thus empirical valuation methods presuppose often without any investigation a perfect sustainability of the present business model. Using a double exponential jump diffusion process do describe the evolutions of the company's asset, we are able to describe the consequences of large downward jumps on the asset value on the debt, equity and company value. Numerical simulations show that this impact is non linear and could be quite large especially on companies with large leverage.

Suggested Citation

  • Paul Amadieu & Jean-Laurent Viviani, 2010. "Developpement Durable, Flux Comptables Et Evaluation D'Entreprise," Post-Print hal-00479524, HAL.
  • Handle: RePEc:hal:journl:hal-00479524
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00479524
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    References listed on IDEAS

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    9. repec:dau:papers:123456789/1433 is not listed on IDEAS
    10. Hélyette Geman & Andrea Roncoroni, 2006. "Understanding the Fine Structure of Electricity Prices," The Journal of Business, University of Chicago Press, vol. 79(3), pages 1225-1262, May.
    11. Daskalakis, George & Psychoyios, Dimitris & Markellos, Raphael N., 2009. "Modeling CO2 emission allowance prices and derivatives: Evidence from the European trading scheme," Journal of Banking & Finance, Elsevier, vol. 33(7), pages 1230-1241, July.
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