How fundamental are fundamental values? Valuation methods and their impact on the performance of german venture capitalists

European Financial Management

Volumn 10, Issue 4, 2004, Pages 609-638

  Dittmann, Ingolf ^a   Maug, Ernst ^a   Kemper, Johannes ^a  

^a HUMBOLDT UNIVERSITY   (Germany)

Author keywords

DCF; G15; G24; G31; IPO; Performance; Valuation; Venture capital

Indexed keywords

EID: 84978387498     PISSN: 13547798     EISSN: 1468036X     Source Type: Journal    
DOI: 10.1111/j.1354-7798.2004.00268.x     Document Type: Article

References (31)

1. Alford, A., ‘The effect of the set of comparable firms on the accuracy of the price-earnings valuation method’, Journal of Accounting Research, Vol. 30, 1992, pp. 3–30.
2. Benninga, S. And Sarig, O., Corporate Finance – a Valuation Approach New York: McGraw-Hill, 1997.
3. Boatsman, J. And Baskin, E., ‘Asset valuation with incomplete markets’, Accounting Review, Vol. 56, 1981, pp. 38–53.
4. Brav, A. And Gompers, P. A., ‘Myth or reality? The long-run underperformance of initial public offerings: Evidence from venture and nonventure capital-backed companies’, Journal of Finance, Vol. 52, 1997, pp. 1791–1821.
5. Brealey, R. A. And Myers, S. C., Principles of Corporate Finance New York: Irwin/McGraw-Hill, 2000.
6. Bruner, R. F., Eades, K. M., Harris, R. And Higgins, R. C., ‘Best practices in estimating the cost of capital: survey and synthesis’, Financial Practice and Education, Vol. 8, 1998, pp. 13–28.
7. Copeland, T., Koller, T. And Murrin, J., Valuation: Measuring and Managing the Value of Companies(New York: Wiley, 1990).
8. Cornell, B., Corporate Valuation: Tools for Effective Appraisal and Decision Making New York: McGraw-Hill, 1993.
9. Damodaran, A., The Dark Side of Valuation: Valuing Old Tech, New Tech, and New Economy Companies Upper Saddle River: Prentice Hall, 2001.
10. Drukarczyk, J., Unternehmensbewertung Munich: Verlag Vahlen, 2001.
11. Epps, R. W. And Mitchem, C. E., ‘A comparison of capital budgeting techniques with those used in Japan and Korea’, Advances in International Accounting, Vol. 7, 1994, pp. 205–214.
12. Gilson, S. C., Hotchkiss, E. S. And Ruback, R. S., ‘Valuation of bankrupt firms’, Review of Financial Studies, Vol. 13, 2000, pp. 43–74.
13. Gitman, L.J. And Mercurio, V. A., ‘Cost of capital techniques used by major U.S. firms: survey and analysis of Fortune’s 1000’, Financial Management, Vol. 14, 1982, pp. 21–29.
14. Gompers, P. A. And Lerner, J., ‘The determinants of corporate venture capital success: Organizational structure, incentives, and complementarities’, Working Paper NBER, 1998.
15. Gompers, P. A. And Lerner, J., The Venture Capital Cycle Cambridge: MIT Press, 1999.
16. Graham, J. R. And Campbell R. H., ‘The theory and practice of corporate finance: Evidence from the field’, Journal of Financial Economics, Vol. 60, 2001, pp. 187–243.
17. Kaplan, S. N. And Ruback, R. S., ‘The valuation of cash flow forecasts: An empirical analysis’, Journal of Finance, Vol. 50, 1995, pp. 1059–1093.
18. Kim, M. And Ritter, J. R., ‘Valuing IPOs’, Journal of Financial Economics, Vol. 53, 1999, pp. 409–37.
19. Leopold, G. And Frommann, H., Eigenkapital für den Mittelstand Munich: Beck Verlag, 1998.
20. Manigart, S., De Waele, K., Wright, M., Robbie, K., Desbrières, P., Sapienza, H. And Beekman, A., ‘Venture capitalists, investment appraisal and accounting information: Comparative study of the USA, UK, France, Belgium and Holland’, European Financial Management, Vol. 6, 2000, pp. 389–403.
21. Manigart, S., Wright, M., Robbie, K., Desbrières, P. And De Waele, K., ‘Venture capitalists’ appraisal of investment projects: An empirical European study’, Entrepreneurship Theory and Practice, Vol. 21, 1997, pp. 29–43.
22. Moore, J. S. And Reichert, A. K., ‘An analysis of the financial management techniques currently employed by large U.S. corporations’, Journal of Business Finance and Accounting, Vol. 10, 1983, pp. 623–45.
23. Palepu, K. G., Bernard, V. L. And Healy, P. M., Business Analysis and Valuation Using Financial Statements – Text and CasesCincinnati OH: South-Western College Publishing, 2000.
24. Ritter, J. R., ‘Differences between European and American IPO markets’, European Financial Management, Vol. 9, 2003, pp. 421–34.
25. Ross, S. A., Westerfield, R. W. And Jaffe, J. F., Corporate Finance New York: McGraw-Hill/Irwin, 2001.
26. Sahlman, W. A., ‘The structure and governance of venture-capital organizations’, Journal of Financial Economics, Vol. 27, 1990, pp. 473–521.
27. Sangster, A., ‘Capital investment appraisal techniques: A survey of current usage’, Journal of Business Finance and Accounting, Vol. 20, 1993, pp. 307–32.
28. Schefczyk, M., Finanzieren mit Venture Capital Stuttgart: Schäfer-Poeschel, 2000.
29. Shao, L. P. And Shao, A. T., ‘Risk analysis and capital budgeting techniques of U.S. multinational enterprises’, Managerial Finance, Vol. 22, 1996, pp. 41–57.
30. Stanley, M. T. And Block, S. B., ‘A survey of multinational capital budgeting’, Financial Review, Vol. 19, 1984, pp. 36–54.
31. Stummer, F. And Nolte, B., ‘Die Entwicklung des deutschen Beteiligungskapitalmarkts’, Finanz Betrieb, 2000, pp. 808–811.