COMING SOON! PQDT Open is getting a new home!

ProQuest Open Access Dissertations & Theses will remain freely available as part of a new and enhanced search experience at

Questions? Please refer to this FAQ.

Dissertation/Thesis Abstract

Valuing Commercial Finance Companies
by Coit, David E., Jr., D.B.A., Walden University, 2016, 238; 10044512
Abstract (Summary)

Stakeholders are increasingly insistent that companies increase firm value. The problem is that stakeholders of financial services firms are unable to accurately determine firm value. The purpose of this correlational study was to examine the accuracy of 4 valuation models in predicting the market value of equity of commercial finance companies. Study participating companies were 8 listed U.S. or Canadian commercial finance companies. The theoretical constructs of the study included the accuracy of valuation models, modern portfolio theory, and the correlation of book value of equity to market value of equity. Financial information on participating companies obtained from public filings were input data in 4 valuation models. Multiple regression analysis of valuation model results and book value of equity (the predictor variables) were used to determine the accuracy of the models in predicting the market value of equity (response variable). The findings of the study showed that all 4 valuation models in combination with the book value of equity were statistically significant predictors of the market value of equity of the participating companies at the p < .05 level. However, the dividend discount model (DDM) and residual income model (RIM) were statistically more accurate without the combination of book value of equity (p = .000 and p = .000, respectively) than the discounted cash flow and risk-adjusted discounted cash flow valuation models (p = .371 and p = .904, respectively). The results of this study contribute to positive social change by providing business leaders an ability to measure the effectiveness of their actions in creating firm value. Corporate social responsibility activities correlate to value creation for firms that engage in promoting employee welfare and other stakeholder welfare.

Indexing (document details)
Advisor: Stokes, William
Commitee: Davies, Kevin, Heyliger, Wilton
School: Walden University
Department: Management
School Location: United States -- Minnesota
Source: DAI-A 77/08(E), Dissertation Abstracts International
Subjects: Management, Finance
Keywords: Commercial finance, Valuation, Valuing
Publication Number: 10044512
ISBN: 978-1-339-55739-7
Copyright © 2021 ProQuest LLC. All rights reserved. Terms and Conditions Privacy Policy Cookie Policy