THE PROBLEMS OF VALUING COMPANIES AT EARLY STAGES OF THEIR DEVELOPMENT
Journal Title: Інноваційна економіка - Year 2017, Vol 67, Issue 1
Abstract
Purpose. The aim of the article is the research, systematization and analysis of theoretical and methodological foundations to evaluate companies at early stages of their development by methods of traditional finance and identifying key issues associated with their use. Methodology of research. The fundamental provisions of modern economic theory, scientific works of scientists in the theory of corporate finance, entrepreneurship and venture capital investment are the theoretical and methodological basis of the study. The following methods are used in the study: monographic (in the study features of development of economic thought in the field of analysis of methods and evaluation models of newly established companies), systems analysis (classification of problems when using traditional financial theory). Findings. The article revealed issues that arise in using the method of discounted cash flows. It is also tracked why these same problems arise in valuation newly established companies by relative method. The general characteristics of these problems are traced. Originality. Scientific novelty is to determine the theoretical propositions, formulated problems, recommendations and opinions on limited use of traditional methods of finance in evaluating of newly established companies. Practical value. The obtained results of research are the basis for improve the evaluation methods of newly established companies. They can be used to solve practical problems related with making decisions concerning funding of companies at early stages of their development.
Authors and Affiliations
Olena Mosiyevych
Keywords
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