Valuation inaccuracy, approaches, basis and procedures for judgment execution in Ethiopia

PurposeThe causes of valuation inaccuracy, the approaches, basis and procedures used for value estimation were not profoundly identified in Ethiopia. Particularly, the causes of property valuation inaccuracy for court decisions have not been assiduously studied by scholars. Hence, the ultimate goal of this study aims to identify the determinant variables of valuation inaccuracy, the approaches, basis and procedures used for court execution purposes.Design/methodology/approachThis study employed both qualitative and quantitative approaches. The target populations of the study were the courts at the federal and regional levels. A purposive sampling technique was employed to undertake this study. The survey data was analyzed using the Relative Importance Index (RII).FindingsThe finding of this research revealed that courts have not outshined and uniform valuation manuals and guidelines that clearly state the approaches, procedures and bases of valuation. As a consequence, courts execute based on the opinion of value determined by other institutions. The insignificant numbers of independent valuation institution with the lack of uniform standards in the country prejudice the implementation of the decision of the court and faced injustice. The finding also reveals as there are several causative variables for real property valuation inaccuracy.Practical implicationsTo alleviate the problem, the government should strengthen the valuation sector by creating an independent institution for advancing valuation regulation and policymaking.Originality/valueThis study was the first of all and could be a pointer for different government and non-government bodies regarding the limitations of valuation for judgment execution purposes.

Start-ups, bearers of innovation in globalizing environment and their valuation

The paper presents chosen methods of star-up valuation. In the context of globalization, innovations are clearly bearers of a potential enterprises’ competitiveness, start-ups are consider as their most important sources. Start-ups are mainly based on the human capital designed to create novel products, services, processes, and bring them to the markets. The basic precondition for meaningful growth of start-ups is favourable business environment (legal and administrative point of view) and framework supporting innovative entrepreneurship including access to external sources of financing. Start-ups are investments with a significant degree of uncertainty, lacking any characteristics pointing to their financial and economic performance from a historical perspective, which restricts the use of “traditional” business valuation methods. It should also be pointed out that, as there is no uniform valuation for maturity enterprises, there is no uniform procedure for valuing of a business even in the case of start-ups. The presented approaches take into account decisive criteria of start-ups, including a life cycle of a start-up in which an investment is made, and other factors affecting valuation. Their use from a theoretical point of view is generalized, the practical use is already determined by specific conditions under which the valuation takes place.