What Is a Firm’s Life Expectancy? Empirical Evidence in the Context of Portuguese Companies

It is a fact that the uncertainty about a firm’s future has to be measured and incorporated into a company’s valuation throughout the explicit analysis period – in the continuing or terminal value within valuation models. One of the concerns that can influence the continuing value of enterprises, which is not explicitly considered in traditional valuation models, is a firm’s average life expectancy. Although the literature has studied the life cycle of a firm, there is still a considerable lack of references on this topic. If we ignore the period during which a company has the ability to produce future cash flows, the valuations can fall into irreversible errors, leading to results markedly different from market values. This paper aims to provide a contribution in this area. Its main objective is to construct a mortality table for non-listed Portuguese enterprises, showing that the use of a terminal value through a mathematical expression of perpetuity of free cash flows is not adequate. We provide the use of an appropriate coefficient to perceive the number of years in which the company will continue to operate until its theoretical extinction. If well addressed regarding valuation models, this issue can be used to reduce or even to eliminate one of the main problems that cause distortions in contemporary enterprise valuation models: the premise of an enterprise’s unlimited existence in time. Besides studying the companies involved in it, from their existence to their demise, our study intends to push knowledge forward by providing a consistent life and mortality expectancy table for each age of the company, presenting models with an explicitly and different survival rate for each year. Moreover, we show that, after reaching a certain age, firms can reinvent their business, acquiring maturity and consequently postponing their mortality through an additional life period.

Music copyright in the digital age: creators, commerce and copyright - an empirical study of the UK music copyright industries

Copyright markets, it is said, are ‘winner takes all’ markets favouring the interests of corporate investors over the interests of primary creators. However, little is known about popular music creators’ ‘lived experience’ of copyright. This thesis interrogates key aspects of copyright transactions between creators and investors operating in the UK music industries using analysis of various copyright related documents and semi-structured interviews with creators and investors. The research found considerable variety in the types of ‘deal’ creators enter into and considerable divergence in the potential rewards. It was observed that new-entrant creators have little comprehension of the basic tenets of copyright, but with experience they become more ‘copyright aware’. Documentary and interview evidence reveals creators routinely assign copyright to third party investors for the full term of copyright in sound recordings: the justification for this is questionable. An almost inevitable consequence of this asymmetry of understanding of copyright and asymmetry of bargaining power is that creators become alienated from their copyright works. The empirical evidence presented here supports historic and contemporary calls for a statutory mechanism limiting the maximum copyright assignment period to ten-years.

A segunda vida da Praia dos Espanhóis: dançarinos, pescadores e turistas no sul de Portugal

Abstract: In this text, we deal with proccesses of appropriation of space in the Dam of Póvoa (Portugal) using a dwelling perspective (Ingold 2009) over the territory. The reconversion of innactive spaces in rural areas into leisure-related ones in a quite common practice in contemporary times.The Spaniards beach is one of the local names given by locals to the Dam of Póvoa (Castelo de Vide), in northern Alentejo (Portugal). In the collective memory of the residents, the Dam (built in the 1920’s) is remembered for the many flowers surrounding the area. This Garden-style aesthetics has outlived the initial function of the Dam (to produce electric power). From the 1960’s to the 1980’s, it was also a popular leisure space for Spanish and Portuguese people. It is not a beach, but being inland, it was the closest thing to a beach the residents had. The centrality of this leisure space in the area only decayed after the construction of swimming pools in the nearby towns. Early in the begginning of 21st century a fire destroyed part of the natural floral landscape of the dam. Abandoned for some years, the place has still been appropriated by leisured people in day-trips (for sight-seeing, pic-nics), fishing competitions, caravan soujorns, and, since 2013, in a music and dance festival named Andanças (www.andancas.net). The research that underlies this paper was carried out between 2013 and 2016 by a team of anthropologists. An ethnography of the Dam and its uses, and of the festival and its participants was carried out. In our working-paper we higlight the main research findings achieved. Key-words: Leisure; Landscape; Tourism; Music; Space; Portugal.