HIGHLIGHTS
- What: The aim of this paper is to clarify the definition of diversification and to show how diversification effects can be incorporated into business valuation. The analysis shows that this approach captures all non-hedged risks and thus performs a stand-alone valuation without diversification effects. Given that the conventional variance-covariance method excludes extreme risks the authors propose the use of the copula approach. The analysis demonstrates that it is possible to effectively model different diversification effects in business valuation.
- Who: Anja Bettina Blatter from the (UNIVERSITY) have published the paper: Diversification in Business . . .
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