THE PROBLEM OF ASSESSING THE EQUITY OF FINANCIAL COMPANIES
( Pp. 215-219)

More about authors
Krasnickaya Natalia A. aspirant kafedry «Ocenka i upravlenie sobstvennostyu»
Finance University under the Government of the Russian Federation
Abstract:
In the article author presents overview of the specific features and principal methods of valuation of banks’ equity capital, based on the analysis of the economic literature. The conclusion is made that the most effective methods are Dividend discount model and Residual income model. As a supportive method multiplier Market/Book equity could be used.
How to Cite:
Krasnickaya N.A., (2015), THE PROBLEM OF ASSESSING THE EQUITY OF FINANCIAL COMPANIES. Business in Law, 6 => 215-219.
Reference list:
Shannon P. Pratt; with Robert F. Reilly and Robert P. Schweihs. Valuing Small Businesses and Professional Practices. - 3rd edition, McGraw-Hill, 1998. - 887 p.
Jean Dermine. Bank Valuation and Value-based Management (Deposit and Loan Pricing, Performance Evaluation, and Risk Management. - McGraw-Hill, 2009. - electronic edition
Jeffrey R. Bohn, Roger M. Stein. Active Credit Portfolio Management in Practice. - Wiley, 2009. - electronic edition
Stephanie Gross. Banks and Shareholder Value. An Overview of Bank Valuation and Empirical Evidence on Shareholder Value for Banks. - Deutscher Universitats-Verlag GWV Fachverlage GmbH, Wiesbaden 2006. - 277 p.
Natalie Schoon. Residual Income Models and the Valuation of Conventional and Islamic Banks. - School of Management University of Surrey, January 2005. - 211 p.
Charles W. Calomiris, Doron Nissim. Activity-based Valuation of Bank Holding Companies. Working paper 12918 - National Bureau of Economic Research, 2007. - 64 p.
Aswath Damodaran. Valuing Financial Services Firms. - April, 2009. Electronic article - http://people.stern.nyu. edu/adamodar/pdfiles/papers/finfirm09.pdf
Luca Francesco Franceschi. Valuations of Banks in Mergers. - February 2008, Catholic University of Milan, Social Science Research Network. - 47 p.
Franco Fiordelisi, Phil Molyneux. The determinants of shareholder value in European banking. - Journal of Banking Finance//June 2010. - p.1189-1200.
Ralf - H.Fiedler. Analysing the Financial Statements of Banks. Euromoney training materials. Vienna, 7-10 October 2013
Ralf - H.Fiedler. Bank Valuation Euromoney training materials. Prague, 23-26 June 2014
Keywords:
the financial institutions, commercial banks, estimate the cost of equity.


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