{"id":3348,"date":"2024-10-14T14:03:34","date_gmt":"2024-10-14T18:03:34","guid":{"rendered":"https:\/\/www.montclair.edu\/business\/?p=3348"},"modified":"2024-10-14T14:04:19","modified_gmt":"2024-10-14T18:04:19","slug":"3348","status":"publish","type":"post","link":"https:\/\/www.montclair.edu\/business\/2024\/10\/14\/3348\/","title":{"rendered":"Company-Specific Risk and Small Company Valuation"},"content":{"rendered":"<p><a href=\"https:\/\/www.montclair.edu\/profilepages\/view_profile.php?username=digabrielej\">James DiGabriele<\/a>, Professor in the Accounting and Finance Department, recently had his co-authored paper <a href=\"https:\/\/publications.aaahq.org\/jfar\/article-abstract\/6\/1\/33\/9528\/Company-Specific-Risk-and-Small-Company-Valuation?redirectedFrom=PDF\">\u201cCompany-Specific Risk and Small Company Valuation,\u201d<\/a> featured in Business Valuation Update, a highly regarded practitioner journal.<\/p>\n<p>This study explores how the characteristics of private company transactions influence capitalization rates, industry risk premiums, and company-specific risks in private firms. The findings of this research conclude that company-specific risk accounts for at least 50 percent of the capitalization rate. The industry risk premium represents less than 2 percent of this capitalization rate. However, it plays a crucial role in shaping company-specific risk. Additionally, the study identifies several transaction features related to private companies that are linked to company-specific risk. These insights are pivotal for enhancing the understanding of capitalization rates and company-specific risks in private company valuations. These findings can assist both practitioners and academics in more accurately assessing the cost of capital for private firms.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>James DiGabriele, Professor in the Accounting and Finance Department, recently had his co-authored paper \u201cCompany-Specific Risk and Small Company Valuation,\u201d featured in Business Valuation Update, a highly regarded practitioner journal. This study explores how the characteristics of private company transactions influence capitalization rates, industry risk premiums, and company-specific risks in private firms. The findings of [&hellip;]<\/p>\n","protected":false},"author":359,"featured_media":3349,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-finance"],"_links":{"self":[{"href":"https:\/\/www.montclair.edu\/business\/wp-json\/wp\/v2\/posts\/3348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.montclair.edu\/business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.montclair.edu\/business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.montclair.edu\/business\/wp-json\/wp\/v2\/users\/359"}],"replies":[{"embeddable":true,"href":"https:\/\/www.montclair.edu\/business\/wp-json\/wp\/v2\/comments?post=3348"}],"version-history":[{"count":3,"href":"https:\/\/www.montclair.edu\/business\/wp-json\/wp\/v2\/posts\/3348\/revisions"}],"predecessor-version":[{"id":3352,"href":"https:\/\/www.montclair.edu\/business\/wp-json\/wp\/v2\/posts\/3348\/revisions\/3352"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.montclair.edu\/business\/wp-json\/wp\/v2\/media\/3349"}],"wp:attachment":[{"href":"https:\/\/www.montclair.edu\/business\/wp-json\/wp\/v2\/media?parent=3348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.montclair.edu\/business\/wp-json\/wp\/v2\/categories?post=3348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.montclair.edu\/business\/wp-json\/wp\/v2\/tags?post=3348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}