The Pricing Model in the Foreign Mergers and Acquisitions of State-Owned Shares Based on Residual Income Valuation Model and Real Option Pricing Method

Author

Liu, Yanping ; Liu, Sha

Author_Institution

Sch. of Manage., Dalian Univ. of Technol., Dalian, China

fYear

2010

fDate

24-26 Aug. 2010

Firstpage

1

Lastpage

5

Abstract

How to get the real value of State-owned enterprises in foreign mergers and acquisitions activity, which directly affects not only the success of M&A(mergers and acquisitions) activity but also concerns the protection of national interests. The value of State-owned enterprises was divided into two parts, Self-value and M&A-added value in this paper by using RIV (residual income valuation) model and real options method. This paper used the data of Shenyang Commercial City for empirical analysis. Improvement of RIV model by DuPont analysis system, made more based financial data could be utilized. The real options method analyzed M & A-added value that can not be neglected in equity transfer activity.

Keywords

corporate acquisitions; pricing; DuPont analysis system; Shenyang commercial city; equity transfer activity; foreign mergers; pricing model; real option pricing method; residual income valuation model; state owned enterprises; state owned shares acquisitions; Biological system modeling; Cities and towns; Companies; Corporate acquisitions; Cost accounting; Industries; Pricing;

fLanguage

English

Publisher

ieee

Conference_Titel

Management and Service Science (MASS), 2010 International Conference on

Conference_Location

Wuhan

Print_ISBN

978-1-4244-5325-2

Electronic_ISBN

978-1-4244-5326-9

Type

conf

DOI

10.1109/ICMSS.2010.5576473

Filename

5576473