How is inflation reflected in company valuation? A new paper has been published on this subject: The consistent mapping of inflation expectations is important for company values and company valuation (not only) in times of high inflation rates. In an article in the Schmalenbach Journal of Business Research, Andreas Schüler and Sebastian Wünsche analyze inflation rates assumed by valuation practitioners and compare them with the expected inflation at the valuation date. The sample consists of around 260 expert opinions prepared by auditors over the past two decades. We criticize the preference for a so-called company-specific inflation rate of around 1% on average, quantify a number of value effects, show the transition from nominal to real valuation parameters and hope that increased inflation expectations will be adequately taken into account in the future.
In addition to other recent publications on the valuation of cash flows in foreign currency (cross-border valuation), an article by Professor Schüler entitled "Cross-border DCF valuation in a nutshell" has been published in the application-oriented Business Valuation OIV Journal. You can find the article here.
The article "Cross-border DCF valuation: discounting cash flows in foreign currency", written by Professor Schüler, deals with the pricing of exchange rate risk and the mapping of this risk in the valuation of internationally active companies. It has been accepted for publication by the Journal of Business Economics. The article is available here.

How can concepts of performance dependent executive compensation be integrated into company valuation consistently? What are the consequences for the separation of risk and company value between owners and management? The article "Executive Compensation and Company Valuation" from Prof. Dr. Andreas Schüler, which has been accepted for publishment in the renowned academic journal Abacus, adresses these questions. The article can be found here.


Consistent with our mission to promote international exchange, MBA-students of the St. Cloud State University visited the Department of Economics and Management. The report can be found here.

27.03.2018 Further information on the current working paper: Do we need to change the way we value companies with the flows-to-equity method? Comments on Cooper, I. A., & Nyborg, K. G. (2018). Consistent valuation of project finance and LBOs using the flows-to-equity method. European Financial Management, 24: 34-52. are available here.
26.03.2018 Please also visit my pages on SSRN and in particular on ResearchGate.
25.03.2018  An overview of recent presentations can be found here.