This paper analyzes the impact of model complexity on the net present value distribution and the expected default probability of equity investments in project finance. Model complexity is analyzed along two dimensions: simulation complexity and forecast complexity. We aim to identify model elements which are crucial for the valuation of project finance in practice. First, we present a simulatio...

This paper examines the capability of firm fundamentals in explaining the cross-sectional variation of credit default swap spreads. We start with the Merton (1974) model, which combines two major credit risk determinants into a distance-to-default measure. We convert the distance-to-default measure into a raw CDS valuation based on a constant hazard rate assumption and then map the raw CDS valu...

We introduce a new solution concept for games in extensive formwith perfect information, valuation equilibrium, which is based on a partition of each player’s moves into similarity classes. A valuation of a player is a real-valued function on the set of her similarity classes. In this equilibrium each player’s strategy is optimal in the sense that at each of her nodes, a player chooses a move t...

BACKGROUND Health state valuation exercises can be conducted online, but the quality of data generated is unclear. OBJECTIVE To investigate whether responses to binary choice health state valuation questions differ by administration mode: online versus face to face. METHODS Identical surveys including demographic, self-reported health status, and seven types of binary choice valuation quest...

given the specific geographic and spatial location of rural areas in developing countries, to bring agrochemical to the rural farming households, it is argued, may have to come at a cost over and above the normal price it is sold in market. to this end, this work focuses on the willingness of rural farming households to pay more than the mean average regional retail price for agrochemicals in k...

introduction: patient safety and its requirements fulfillment are today one of the useful valuation indicators in healthcare organizations. thus, patient safety culture and its promotion are referred to as one of the most important issues raised in the country. the present study aims to examine the effective factors (personal and organizational) in patient safety culture from the point of view ...

before making decisions about the investment and financing the companies. it is necessary to know how the value of a company is determined. in this article three valuation methods are discussed: 1) value dirver method. 2) free cash flow method 3) economic value added method. in these methods the factors affecting the value of companies such as operating rate of return, cost of capital. amount o...

External circumstances and internal bodily states often change and require organisms to flexibly adapt valuation processes to select the optimal action in a given context. Here, we investigate the neurobiology of context-dependent valuation in 22 human subjects using functional magnetic resonance imaging. Subjects made binary choices between visual stimuli with three attributes (shape, color, a...

Recent years have seen a dramatic decline in the creditworthiness of firms and increasing concern regarding the reliability of credit estimates provided by rating agencies. In this paper, I find evidence that a particular account, the valuation allowance for deferred tax assets, helps predict the future creditworthiness of a firm. Under the provisions of SFAS No. 109, a firm records a deferred ...

This paper develops a simple model of pricing and choice of capacity in a market where riskaverse customers are ex-anfeuncertain about their valuation for use of the capacity. As unused capacity has no salvage value, the seller maximizes profit by economizing on capacity through over-booking. Thus each customer faces both uncertainty in his own valuation as well as uncertainty about availabilit...