The impact of 'familiness' on financial value

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

This paper distills three core value drivers common across the accepted valuation models and explores the application of these core valuation elements in a family firm context, drawing on the empirical evidence in the discipline. We adopt a Resource-Base View (RBV) of the competitive advantage of family firms and show that the 'familiness' factor is largely manifested in the firm's intangible assets. However, extant accounting does not recognise these intangible assets in the book value of the firm nor the implication for the long run permanence of earnings and cash flows. Thus valuation models predicated on book value, earnings and cash flows as inputs are miss-specified and do not reflect the intrinsic value of family firms. Theoretical propositions are presented as a road map for future empirical research.
Original languageEnglish
Pages1-39
Number of pages39
Publication statusPublished - 2010
Event27th Asian-Pacific Conference on International Accounting Issues: Global Perspectives of Accounting Information in the 21st Century - Gold Coast, Australia
Duration: 1 Nov 20154 Nov 2015
Conference number: 22nd
http://www.apconference.org/

Conference

Conference27th Asian-Pacific Conference on International Accounting Issues
CountryAustralia
CityGold Coast
Period1/11/154/11/15
Internet address

Fingerprint

Familiness
Family firms
Cash flow
Valuation model
Book value
Intangible assets
Competitive advantage
Permanence
Empirical research
Resources
Value drivers
Intrinsic value
Empirical evidence
Core values
Roadmap
Factors

Cite this

Hasso, T., & Duncan, K. (2010). The impact of 'familiness' on financial value. 1-39. Paper presented at 27th Asian-Pacific Conference on International Accounting Issues, Gold Coast, Australia.
Hasso, Tim ; Duncan, Keith. / The impact of 'familiness' on financial value. Paper presented at 27th Asian-Pacific Conference on International Accounting Issues, Gold Coast, Australia.39 p.
@conference{40a8c58374df4388a261870181abcc84,
title = "The impact of 'familiness' on financial value",
abstract = "This paper distills three core value drivers common across the accepted valuation models and explores the application of these core valuation elements in a family firm context, drawing on the empirical evidence in the discipline. We adopt a Resource-Base View (RBV) of the competitive advantage of family firms and show that the 'familiness' factor is largely manifested in the firm's intangible assets. However, extant accounting does not recognise these intangible assets in the book value of the firm nor the implication for the long run permanence of earnings and cash flows. Thus valuation models predicated on book value, earnings and cash flows as inputs are miss-specified and do not reflect the intrinsic value of family firms. Theoretical propositions are presented as a road map for future empirical research.",
author = "Tim Hasso and Keith Duncan",
year = "2010",
language = "English",
pages = "1--39",
note = "27th Asian-Pacific Conference on International Accounting Issues : Global Perspectives of Accounting Information in the 21st Century ; Conference date: 01-11-2015 Through 04-11-2015",
url = "http://www.apconference.org/",

}

Hasso, T & Duncan, K 2010, 'The impact of 'familiness' on financial value' Paper presented at 27th Asian-Pacific Conference on International Accounting Issues, Gold Coast, Australia, 1/11/15 - 4/11/15, pp. 1-39.

The impact of 'familiness' on financial value. / Hasso, Tim; Duncan, Keith.

2010. 1-39 Paper presented at 27th Asian-Pacific Conference on International Accounting Issues, Gold Coast, Australia.

Research output: Contribution to conferencePaperResearchpeer-review

TY - CONF

T1 - The impact of 'familiness' on financial value

AU - Hasso, Tim

AU - Duncan, Keith

PY - 2010

Y1 - 2010

N2 - This paper distills three core value drivers common across the accepted valuation models and explores the application of these core valuation elements in a family firm context, drawing on the empirical evidence in the discipline. We adopt a Resource-Base View (RBV) of the competitive advantage of family firms and show that the 'familiness' factor is largely manifested in the firm's intangible assets. However, extant accounting does not recognise these intangible assets in the book value of the firm nor the implication for the long run permanence of earnings and cash flows. Thus valuation models predicated on book value, earnings and cash flows as inputs are miss-specified and do not reflect the intrinsic value of family firms. Theoretical propositions are presented as a road map for future empirical research.

AB - This paper distills three core value drivers common across the accepted valuation models and explores the application of these core valuation elements in a family firm context, drawing on the empirical evidence in the discipline. We adopt a Resource-Base View (RBV) of the competitive advantage of family firms and show that the 'familiness' factor is largely manifested in the firm's intangible assets. However, extant accounting does not recognise these intangible assets in the book value of the firm nor the implication for the long run permanence of earnings and cash flows. Thus valuation models predicated on book value, earnings and cash flows as inputs are miss-specified and do not reflect the intrinsic value of family firms. Theoretical propositions are presented as a road map for future empirical research.

M3 - Paper

SP - 1

EP - 39

ER -

Hasso T, Duncan K. The impact of 'familiness' on financial value. 2010. Paper presented at 27th Asian-Pacific Conference on International Accounting Issues, Gold Coast, Australia.