Comprehensive look at the re-examination of the re-valuation effect of auditor switch and its determinants in Malaysia : a post crises analysis from Bursa Malaysia

This study examines economic rational for auditor switch and its impact on share revaluation of 51 switched firms main board of Bursa Malaysia for the post crisis period (1997-2002). This study adopted both logistic regression model and event study methodology to examine the determinants of auditor switches and its impact to share price. Findings show that the auditor switch decision of Malaysian listed finns for post crisis period has been partly explained by audit report, turnover growth and firm's performance. While, findings suggest no significant evidence of wealth effect from auditor switch announcements once switches were divided along the line of auditor switch type, different findings emerged.

Valuation and incentive effects of hurdle rate executive stock options

Traditional executive stock options are often criticized for inherently weak links between pay and performance. Hurdle rate executive stock options represent a viable improvement. However, valuing these options presents extraordinary analytic difficulties. With a constant dividend yield the strike price becomes a path-dependent function of the stock price and exact analytic valuation is intractable. To solve this problem, we apply the Monte Carlo valuation approach developed by Longstaff and Schwartz (Rev Financ Stud 4:113–147, 2001) to estimate the value of path-dependent American options. We also extend the methodology to incorporate the theoretical framework by Ingersoll (J Bus 79:453–487, 2006) to permit subjective valuation influenced by an executive’s risk aversion.

Valuation of sustainable commercial buildings

Valuation is critical to sustainability take-up in commercial buildings because the combined monetary value of the building and land, as identified in the valuation process, remains an important consideration for many stakeholders. These stakeholders include investors and owners who refer to the market value on behalf of their shareholders, as well as financiers who rely on the value for lending purposes.

This article examines the valuation of sustainable commercial buildings and why it requires a broader consideration of what constitutes value, compared with 'traditional' valuation processes. Definitions relevant to the valuation of sustainable commercial buildings are listed, and the importance of sustainable buildings to the broader property industry is emphasised. The article covers traditional valuation methodology and how sustainability is included in each of the valuation approaches.

Consideration is given to the globally accepted definition of market value, and what the individual components of the definition refer to. The article outlines opportunities for incorporating sustainability considerations into the valuation process, and examines what the future direction for the valuation of commercial buildings may be.

By increasing knowledge about the approach to valuing sustainable office buildings, this article is designed to benefit three groups:

* It will equip valuers, financiers, investors/owners, and other stakeholders with a better understanding of the varying levels of sustainability, and how sustainability affects the level of risk, and subsequently the value, associated with a commercial building.
* It will allow owners, investors and tenants to appreciate the role of a valuer, their exposure to liability, and their challenging task of assessing the current and future risk, and subsequently the value, of a sustainable commercial building.
* This higher level of understanding should mean that the benefits of sustainability will be fully reflected in the valuation process, therefore contributing to support for those developers and investors who are leading in the provision of sustainable solutions.

The valuation of fast-food outlets : analysis, methodology, and reliability

Fast-food outlets are a significant subsector of the hospitality and tourism property market in Australia, and have experienced significant growth and global change in the past 20 years. However, little attention has been given in professional and academic literature to the valuation methodology and analysis of these properties. This article proposes a working definition of a fast-food outlet, traces recent changes in the structure of the fast-food industry, investigates the major determinants of value with respect to asset value, and examines to what extent these have changed. In particular, it isolates the role of goodwill in assessing going-concern value.

The valuation of self-funded retirement villages in Australia

Changing demographics will see an increasing demand for self-funded sector retirement villages in Australia. As such, valuers can expect to be more involved in providing valuation advice in this sector, although the central issue remains that retirement villages are complex businesses. They have been described as management intensive operating businesses with a substantial real estate element. As a result the valuation process in this sector requires a different type of analysis, in comparison to the traditional real estate based investment.
This paper provides an analysis of recent trends in the demand for retirement villages and examine current practise with respect to valuation thereof. It emphasises the need for a greater awareness of the ‘business enterprise value’ component and provides a framework within which the components of value can be better understood. The purpose of the paper is to provide a foundation for a greater reliability with respect to valuation advice.

The valuation of fast food outlets in Australia : methodology, analysis and reliability

Fast food outlets are a significant sub sector of the Hospitality and Tourism Property Market and a specialized form of business. This form of hospitality outlet has experienced significant growth and change in the last 20 years. Their value as an asset is therefore of significant interest to many involved in the tourism and hospitality industry, not least fast food operators or potential operators and their financiers. However, little attention has been given in professional and academic literature to valuation methodology, the analysis of the major components of asset value, and the underlying factors which influence asset value. As such the reliability of the valuation process could justifiably be questioned.
This paper sets out a working definition of a fast food outlet. It investigates the major determinants of value with respect to asset value and examines the accepted methods of valuation of fast food outlets in Australia as well as establishing the methods most commonly used. It clarifies the major components of asset value and examines to what extent these have changed with the changing business environment. In particular it isolates the role of Goodwill in assessing Going Concern Value. Sources of data include a comprehensive literature review and personal interviews with professionals involved in the valuation process. The paper concludes that an efficient valuation process requires that fast food outlets be considered as both a real estate and business investment. The contribution of both tangible and intangible assets to the value of the asset must be identified.