Research On The Growing Corporate Valuation

In the last few decades, due to the rapid advancements witnessed in the property and securities markets, more attention has been devoted to the issue of corporate value. At the heart of this issue lies the process and efficacy of present day corporate valuation assessment.This research will begin with an introduction to corporate valuation theory and delve into the underlying problems in corporate valuation assessment by citing relevant reference materials and providing an empirical analysis study. Although there are numerous corporate valuation assessment methods widely available today such as the book value approach, replacement value approach, security and bond market approach, discounted cash flow approach, and economic value added approach, but they lack the diverse perspectives needed to effectively assess corporate value. The following problems exist in the current methods of assessment: (1) All of the different approaches are used independently thus resulting in the lack of a multi-faceted and integrated assessment system. (2) Even when multiple approaches are used, they tend to be used for the sole purpose of validating each other. (3) The assessor is unable to provide an objective, quantifiable explanation why one assessment approach is superior to another.To solve the problems stated above, this study aims to establish a valuation assessment approach via the concept of analytical hierarchy process that will take the assets, earnings and market value of a corporation into consideration as well as provide an integrated, holistic approach to corporate valuation assessment. This approach transcendsthe traditional limitation of conducting corporate valuation from one single perspective. Furthermore, corporations today strive to maximize their value in terms of the financial objective based on the modern financial theory, therefore, this paper aims to provide an in-depth analysis into what factors contribute to and impact the final outcome of a valuation assessment. The paper will also recommend ways to enhance corporate operations so as to increase value. The paper will use data envelopment analysis to conduct a performance analysis in order to disclose areas where there are hidden corporate values. One of the main forerunners of the television industry in Taiwan, China Television Company, will serve an empirical analysis study for this paper.The findings and outcome of this study can be summarized into the following four points:1. To compare different corporate valuation theories and methods and reveal the discounted cash flow approach with its sound theoretical foundation and comprehensive measurement model is currently the most popular assessment approach; however this approach still has many limitations.2. To establish an innovative integrated corporate valuation approach. This integrated approach will be assessed by a panel of relevant experts on areas such as assets, profitability and market value and 6 assessment measures will be proposed. Through the concept of analytic hierarchy process, the paper will propose the weightings accorded to the 6 assessment measures so as to set up a holistic and integrated corporate valuation approach that takes asset value, earnings value and market value all into consideration.3. To analyze the application and limitations of the integrated corporate valuation approach proposed in this study in the overall corporate valuation theory framework.4. To examine the issue from a performance efficiency point of view - the performance efficiency of CTV in Taiwan will be reviewed through data envelopment analysis in order to observe changes in efficiency over the long-term. For the purpose of improving operations and enhancing corporate value, the paper will also point out areas with less efficiency and recommend ways to improve.