Decomposing Global Yield Curve Co-Movement

Byrne, Joseph P.; Cao, Shuo; Korobilis, Dimitris

doi:10.2139/ssrn.3005064

Cited by 2 publications

(2 citation statements)

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“…These complex structures have been seen by investors before in some fraudulent companies were special purpose entities were used to hide losses and obfuscate financial data that financial intermediaries use among other things to correctly value a business (McLean and Elkind, 2004). The linkage of financial markets and the effects of contagion as shown through stock markets and global yield curve comovement (Byrne et al, 2019), also places questions on the effectiveness of this strategy.…”

Section: Enterprise Risk Structure and Management Strategymentioning

confidence: 99%

Valuation Challenges in High Tech Platform Based Corporations

Tsanacas¹

2022

IJEBA

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Purpose: This paper explores the practical issues of information asymmetry as it pertains to the methods of valuation of high-tech platform-based corporations. The paper touches upon the theoretical discussion of the issues of asymmetry and valuation techniques and summarizes some of the published literary work on these issues, without engaging in an indepth discussion. Design/Methodology/Approach: The methodology consists of an analysis and comparison/ contrast between supply, demand platform companies ((SDPs) with industry incumbents on: capital structure, weighted average cost of capital (WACC), working capital and liquidity management, and enterprise risk structure and management strategy as they pertain to discounted cash flows and multiples valuation techniques. Tables showcasing various types of financial data such as: assets and liabilities, equity, market capitalization, debt to equity and current ratios are utilized in making the comparisons and drawings conclusions Findings: The research shows that the peculiar and complicated structure, the ability to raise funds, the initial high profit margins and the explosive growth rates of companies such as: WeCo, Uber, B2B, Netflix and others, lead to overvaluation when the traditional valuation models are utilized. Practical implementations:The study concludes by recommending alternative valuation models that utilize some of the specific findings of previous researchers on assessing terminal value, estimating cost of capital, and capital expenditures to address some of the peculiarities of the SDPs and adding to the rubrics and scorecards to account for nonfinancial factors such as switching costs, brand recognition and other intangibles. The inclusion of these would lead to an improved valuation of these types of companies and reduce the overall risk exposure of financial intermediaries that provide funding Originality value: The audience for this type of research are: financial advisors, stock analysts and investors who appreciate the challenges that information asymmetry and uncertainty present in their efforts to correctly value stock and IPOs in this high-tech subsector.

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Section: Enterprise Risk Structure and Management Strategymentioning

confidence: 99%

Valuation Challenges in High Tech Platform Based Corporations

Tsanacas¹

2022

IJEBA

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“…Pricing and applied economics are central topics in this cluster. For example, one publication by Byrne et al (2019) investigates the movement of global yield curve dynamics using a data-driven hierarchical factor model. This data-driven approach is capable of determining the driving forces of yield curve dynamics and producing plausible estimates of term premiums.…”

Section: Mapping 2: Consideration Of Subject Categories Exclusively From the Business And Economic Sciencesmentioning

confidence: 99%

The effect of web of science subject categories on clustering: the case of data-driven methods in business and economic sciences

Jesenko

Schlögl

2021

Scientometrics

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The primary goal of this article is to identify the research fronts on the application of data-driven methods in business and economics. For this purpose, the research literature of the business and economic sciences Subject Categories from the Web of Science is mapped using BibExcel and VOSviewer. Since the assignment to subject categories is done at the journal level and since a journal is often assigned to several subject categories in Web of Science, two mappings are performed: one without considering multiple assignments (broad view) and one considering only those (articles from) journals that have been assigned exclusively to the business and economic sciences subject categories and no others (narrow view). A further aim of this article is therefore to identify differences in the two mappings. Surprisingly, engineering sciences play a major role in the broad mapping, in addition to the economic sciences. In the narrow mapping, however, only the following clusters with a clear business-management focus emerge: (i) Data-driven methods in management in general and data-driven supply chain management in particular, (ii) Data-driven operations research analyses with different business administration/management focuses, (iii) Data-driven methods and processes in economics and finance, and (iv) Data-driven methods in Information Systems. One limitation of the narrow mapping is that many relevant documents are not covered since the journals in which they appear are assigned to multiple subject categories in WoS. The paper comes to the conclusion that the multiple assignments of subject categories in Web of Science may lead to massive changes in the results. Adjacent subject areas—in this specific case the application of data-driven methods in engineering and more mathematically oriented contributions in economics (econometrics) are considered in the broad mapping (not excluding subject categories from neighbouring disciplines) and are even over-represented compared to the core areas of business and economics. If a mapping should only consider the core aspects of particular research fields, it is shown in this use case that the exclusion of Web of Science-subject categories that do not belong to the core areas due to multiple assignments (narrow view), may be a valuable alternative. Finally, it depends on the reader to decide which mapping is more beneficial to them.

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Decomposing Global Yield Curve Co-Movement

Cited by 2 publications

References 0 publications

Valuation Challenges in High Tech Platform Based Corporations

Valuation Challenges in High Tech Platform Based Corporations

The effect of web of science subject categories on clustering: the case of data-driven methods in business and economic sciences

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