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Estimating Smes Cost of Equity Using a Value at Risk Approach: The Capital at Risk Model - Tapa dura

Beltrame, Federico; Cappelletto, Roberto; Toniolo, Gabriele

 
9781137389299: Estimating Smes Cost of Equity Using a Value at Risk Approach: The Capital at Risk Model

Sinopsis

Estimating business value is an issue of great complexity, attracting attention from academics and professionals alike. Measuring value is an ever more complex topic from the perspectives of operations, strategy, integration, and restructuring. Historically, academics have focussed their research on the 'cost of capital', proposing many different approaches to estimate the cost of capital.

Estimating SMEs Cost of Equity Using a Value at Risk Approach reviews traditional models and proposes an alternative model for estimating the cost of equity. This model, known as CaRM (Capital at Risk Model), bases the cost estimate of risk capital on VaR (Value at Risk) for the very first time. As well as describing the theory behind the CaRM, the authors illustrate the critical issues inherent in financing small and medium firms, consider whether the model should be adapted for firms not listed on regulated markets, and provide a comparative analysis with the CAPM method through three case studies.

This book is an ideal resource for developing valuation research in SMEs; allowing students to understand how classical corporate finance theory can run in private equity firms; and providing a valuable professional solution for evaluating unlisted companies.

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Acerca del autor

Federico Beltrame is a Lecturer in Banking and Finance at the University of Udine, Italy. He graduated in Economics from the University of Udine and received a PhD in Business Science from the same university. His main research interests are related to SMEs cost of capital and mutual guarantee credit institutions.

Roberto Cappelletto is a Full Professor in Corporate Finance at the University of Udine, Italy. He has also taught at Ca' Foscari University (Venice) and Bocconi University (Milan). His main research interests are related to financial analysis and rating systems.

Gabriele Toniolo holds as PhD in Corporate Finance from the University of Trieste and is a financial and business advisor. He graduated in Economics from Ca' Foscari University (Venice). His main research interests are related to SMEs cost of capital, credit risk and rating systems.

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