Login

Publications  •  Project Statistics

Glossary  •  Schools  •  Disciplines
People Search: 
   
Title/Abstract Search: 

Dissertation Information for Nicholas James Mastracchio

NAME:
- Nicholas James Mastracchio

DEGREE:
- Ph.D.

DISCIPLINE:
- Accounting

SCHOOL:
- Union College (New York) (USA) (1993)

ADVISORS:
- Jeffrey Lippitt

COMMITTEE MEMBERS:
- None

MPACT Status: Incomplete - Not_Inspected

Title: An examination of the theoretical basis and the application of the capitalization of earnings method and the excess earnings method to closely held businesses

Abstract: "This dissertation studies the valuation methods used in determining the value of closely held businesses. In particular, it looks at using a capitalization of earnings stream and the ability of net asset values to contribute to the valuation. It studies the theoretical justification of the excess earnings method and compares it to the earnings capitalization model.

Prior treatments of valuation methods have discounted the excess earnings model as being theoretically without merit and empirically without overall applicability. The major concern of this dissertation is to consider whether this method can be rejected as being without merit. The study considers the theoretical justifications that can be made and their limitations. The research tests the hypothesis that the earnings capitalization method is superior to the excess earnings method.

The analysis of selected publicly traded firms is developed from the compustat data base for firms with years ended in 1991. Tests are conducted based upon split data selected randomly from a selected pool of firms in six industries. Overall and industry specific results are reported.

The results of the test provide overwhelming evidence that the excess earnings model cannot be considered as having less predictive ability of a firms value than a simple capitalization of earnings. In addition, there is significant evidence that this method frequently performs in a superior manner to the earnings method and that the value of net assets adds information in the valuation process."

MPACT Scores for Nicholas James Mastracchio

A = 0
C = 1
A+C = 1
T = 0
G = 0
W = 0
TD = 0
TA = 0
calculated 2010-10-27 17:37:58

Advisors and Advisees Graph