Corporate valuation: theoretical postulates and empirical evidence from SENSEX firms in India

Corporate valuation forms as one of the most significant pillars in the field of finance. With refinements in academic theories surrounding asset-pricing models and advancements in computing technology, studies in this field have generated an enormous amount of interest among academics and practitioners alike. In this paper, the author seeks to investigate the above research phenomenon by resorting to an empirical examination carried out on a sample comprising of the firms forming part of India’s benchmark market index – SENSEX. As a prelude to the scientific procedure outlining the above, the author discusses all the significant theoretical postulates surrounding the corporate valuation led by the Discounted Cash Flow (DCF) analysis. Upon the empirical investigation surrounding the corroboration of intrinsic measure of corporate values with the market-determined counterparts, the author finds statistically significant evidence refuting the null hypothesis underlying the indifference between intrinsically-determined enterprise values and market-determined enterprise values. Such an observation throws up interesting research possibilities. One, the author might wish to decipher arguments against the phenomenon underlying ‘market efficiency’, as the same would obliterate any attempt made by a discerning investor to earn ‘abnormal return’ on her investment. Second, the author might wish to substantiate the arguments forwarded by the iconic breed of investors subscribing to the ‘value investing’ philosophy by reasoning out the need to identify prospective investment opportunities available against a vast expanse of securities founded on a calibrated notion of ‘fundamental approach towards investments’

Reliability Estimation Measure: Generic Discounting Approach

In the belief function theory, several measures of uncertainty have been introduced. One of their possible use is unreliable source discounting before the fusion stage. Two different measures of uncertainty exist which are the intrinsic and extrinsic ones. The intrinsic measure makes it possible to assess the source's confusion whereas the extrinsic one measures the contradiction between sources. In this paper, we associate both measures in order to estimate the global reliability of a source. This method, named Generic Discounting Approach (GDA), is proposed in two different versions: Weighted GDA and Exponent GDA. Those reliability measures are integrated into a classifier. The method was tested, against to some pioneer approaches, on several UCI datasets as well as on an urban image classification problem and showed very encouraging results.

IRR: A Blind Guide

Over the past 60 years the internal rate of return (IRR) has become a major tool in investment evaluation. Many executives prefer it to net present value (NPV), presumably because they can more easily comprehend a percentage measure. This article demonstrates that, except in the rare case of an investment that is followed by a single cash return, IRR suffers from a definitional quandary. Is it an intrinsic measure, defined only in terms of itself, or is it defined by the efforts of active investors? Additionally, the article explains significant problems with the measure - reinvestment issues, multiple IRRs, timing problems, problems of choice among unequal investment opportunities, and practical difficulties with multiple discount rates. IRR is a blind guide because its definition is in doubt and because of its many practical problems.

DILATATION AND ORDER OF CONTACT FOR HOLOMORPHIC SELF-MAPS OF STRONGLY CONVEX DOMAINS

Let $D$ be a bounded strongly convex domain and let $f$ be a holomorphic self-map of $D$. In this paper we introduce and study the dilatation $\alpha (f)$ of $f$ defined, if $f$ has no fixed points in $D$, as the usual boundary dilatation coefficient of $f$ at its Wolff point, or, if $f$ has some fixed points in $D$, as the ratio of shrinking of the Kobayashi balls around a fixed point of $f$. In particular, we show that the map $\alpha$, defined as $\alpha : f \mapsto \alpha (f) \in [0,1]$, is lower semicontinuous. Among other things, this allows us to study the limits of a family of holomorphic self-maps of $D$. In the case of an inner fixed point, the dilatation is an intrinsic measure of the order of contact of $f(D)$ to $\partial D$.Finally, using complex geodesics, we define and study a directional dilatation, which is a measure of the shrinking of the domain along a given direction. Again, results of semicontinuity are given and applied to a family of holomorphic self-maps.2000 Mathematical Subject Classification: primary 32H99; secondary 30F99, 32H15.

THE USE OF ACCOUNTING INFORMATION IN GOVERNMENTAL REGULATION AND PUBLIC ADMINISTRATION: THE IMPACT OF JOHN R. COMMONS AND EARLY INSTITUTIONAL ECONOMISTS

This paper examines the socio-political process by which an ensemble of such calculative practices and techniques as accounting came to be developed, adopted, and justified within turn-of-the-century public administration. We are particularly concerned with examining the influence of John R. Commons and other early institutional economists during this Progressive era. Using primary and secondary archival materials, our purpose is to make three main contributions to the literature. First, the paper explores Commons' contribution to the debates over “value” which seems to be somewhat unique in that he explicitly recognized that there exists no unproblematic, intrinsic measure of value, but rather that it must be socially constituted as “reasonable” with reference to common law. To illustrate this point, this paper explores Commons' role in the historical development and implementation of rate of return regulation for utilities. Second, the paper describes the contradictory role accounting played during this period in ostensibly fostering administrative objectivity while accommodating a more pragmatic rhetoric of “realpolitik” in its development and deployment. The third contribution is to establish a linkage between current work in economics and accounting concerned with utility regulation and the debates of ninety years ago, noting that Commons' contribution has not been fully explored or recognized within the accounting literature.