Does your incentive compensation system add value? - November 2011
Ideally, an incentive compensation system focuses the mind and actions around drivers of value and encourages and rewards value creation. An article by Dr Steven Bishop and Justin O'Brien
Add value to your planning - October 2011
An article by Dr Steven Bishop. Strategy often uses the language of "building competitive advantage" whereas finance uses the language of "creating and delivering value". The two are really the same.
Adjusting the MRP to reflect the GFC – May 2011
An article published in JASSA, the FINSIA journal of Applied Finance examining how to deal with the increase in stock market risk arising from the global financial crisis when estimating the cost of capital. Prepared by Dr Steven Bishop, Mr Michael Fitzsimmons and Prof Bob Officer.
IPO Pricing – March 2011
Examines IPOs on a global and domestic scale, industry sector observations and the phenomena of underpricing. Prepared by Dr Steven Bishop and Justin O’Brien.
Add Value to your Planning – October 2010
Prepared for the Value Adviser Associates WACC workshop in October 2010 this piece reviews the strategic planning process. A clear and concise message about the importance of strategic planning prepared by Dr Steven Bishop.
Goodwill Hunting – October 2010
Goodwill is a well recognised concept in the accounting and legal spheres although there could be differences in application. An article by Michael Churchill.
Economic Profit as a Performance Measure – November 2009
An overview of Economic Profit: a performance measure that links internal business performance with the return requirement of investors in the capital market. Discusses the benefits of using Economic Profit as a business performance measure. Prepared by Dr Steven Bishop of Value Adviser Associates.
Independent Expert Report Survey – August 2009
A survey of the approaches taken by professional valuers to estimate the parameters of the weighted average cost of capital when preparing Independent Expert Reports. Prepared by Dr Steven Bishop and Gareth Thompson of Value Adviser Associates, who undertook a thorough review of published expert reports. Both a summary paper and a complete report are available.
What is the Market Risk Premium for the CAPM in Australia? An Update – January 2009
An update to the Market Risk Premium review paper (below). This update incorporates 2008 year data and includes a section on estimating a forward looking MRP from the implied volatility of options on the ASX 200 Index. Prepared by Prof Bob Officer and Dr Steven Bishop of Value Adviser Associates for a submission to the Australian Energy Regulator.
Deciding on fair value – The Boardroom Report, Volume 7, Issue 1, 28 January 2009
Presents the views of Andrew Beeson (Senior Corporate Adviser) on Directors’ responsibility to ensure there is a robust basis for the "fair value" of goodwill and intangible assets as disclosed in the 31 December 2008 results. The article includes Value Adviser Associates’ seven-point checklist for Directors to ensure they satisfy their responsibilities.
The Boardroom Report is a fortnightly bulletin published by the Australian Institute of Company Directors.
Evaluating the Balance sheet for the effect of the Global Financial Crisis – November 2008
Describes how the global financial crisis is forcing CFOs and Boards to re-evaluate the carrying value of balance sheet assets, especially intangibles and goodwill. Companies are encouraged to calculate revised values, communicate these values to internal and external stakeholders, and comply with the asset impairment rules in relevant Accounting standards.
What term should be used for the risk free rate when estimating WACC? – September 2008
A discussion of the appropriate term for the risk free rate when estimating the weighted average cost of capital. Prepared by Prof Bob Officer and Dr Steven Bishop of Value Adviser Associates for an Australian Energy Regulator hearing on the parameters of the weighted average cost of capital. The recommendation is a 10 year maturity in the face of the AER arguing for a 5 year period to match the regulatory period.
What is the Market Risk Premium for the CAPM in Australia? A Review – August 2008
A review of various approaches to estimating the Market Risk Premium. Prepared by Prof Bob Officer and Dr Steven Bishop of Value Adviser Associates for a submission to the Australian Energy Regulator.
