This paper distills three core value drivers common across thee 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 ~miliness ’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. Thus valuation models predicated on book value as an input are miss-specified and do not reflect the intrinsic value of family firms.
|Number of pages||28|
|Publication status||Published - 2010|
|Event||Annual Conference of the European Accounting Association - Instanbul, Turkey|
Duration: 19 May 2010 → 21 May 2010
Conference number: 33rd
|Conference||Annual Conference of the European Accounting Association|
|Period||19/05/10 → 21/05/10|