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    Quasi-Valuations Extending a Valuation

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    Suppose FF is a field with valuation vv and valuation ring OvO_{v}, EE is a finite field extension and ww is a quasi-valuation on EE extending vv. We study quasi-valuations on EE that extend vv; in particular, their corresponding rings and their prime spectrums. We prove that these ring extensions satisfy INC (incomparability), LO (lying over), and GD (going down) over OvO_{v}; in particular, they have the same Krull Dimension. We also prove that every such quasi-valuation is dominated by some valuation extending vv. Under the assumption that the value monoid of the quasi-valuation is a group we prove that these ring extensions satisfy GU (going up) over OvO_{v}, and a bound on the size of the prime spectrum is given. In addition, a 1:1 correspondence is obtained between exponential quasi-valuations and integrally closed quasi-valuation rings. Given RR, an algebra over OvO_{v}, we construct a quasi-valuation on RR; we also construct a quasi-valuation on R⊗OvFR \otimes_{O_{v}} F which helps us prove our main Theorem. The main Theorem states that if R⊆ER \subseteq E satisfies R∩F=OvR \cap F=O_{v} and EE is the field of fractions of RR, then RR and vv induce a quasi-valuation ww on EE such that R=OwR=O_{w} and ww extends vv; thus RR satisfies the properties of a quasi-valuation ring.Comment: 51 page

    Business Value of IT Investment: The Case of a Low Cost Airline’s Website

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    Using the case of a low cost airline company’s website we analyze some special research questions of information technology valuation. The distinctive characteristics of this research are the ex post valuation perspective; the parallel and comparative use of accounting and business valuation approaches; and the integrated application of discounted cash flow and real option valuation. As the examined international company is a strategic user of e-technology and wants to manage and account intangible IT-assets explicitly, these specific valuation perspectives are gaining practical significance

    The use of intellectual capital information by sell-side analysts in company valuation

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    This paper investigates the role of intellectual capital information (ICI) in sell-side analysts’ fundamental analysis and valuation of companies. Using in-depth semi-structured interviews, it penetrates the black box of analysts’ valuation decision-making by identifying and conceptualising the mechanisms and rationales by which ICI is integrated within their valuation decision processes. We find that capital market participants are not ambivalent to ICI, and ICI is used: (1) to form analysts’ perceptions of the overall quality, strengths and future prospects of companies; (2) in deriving valuation model inputs; (3) in setting price targets and making investment recommendations; and (4) as an important and integral element in analyst–client communications. We show that: there is a ‘pecking order’ of mechanisms for incorporating ICI in valuations, based on quantifiability; IC valuation is grounded in valuation theory; there are designated entry points in the valuation process for ICI; and a number of factors affect analysts’ ICI use in valuation. We also identify a need to redefine ‘value-relevant’ ICI to include non-price-sensitive information; acknowledge the boundedness and contextuality of analysts’ rationality and motives of their ICI use; and the important role of analyst–client meetings for ICI communication
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