Valuation of Valuable Decisions of parent Company on its Subsidiaries

Subject Areas : Journal of Investment Knowledge

Payam Hanafizadeh ¹ (Department of Industrial Management, School of Management and Accountancy, Allameh Tabataba’i University, Tehran, Iran)
Mina Zzarei ² (Graduate Financial Engineering, University of Science and Culture, Tehran, Iran)

Received: 2016-05-01 Accepted : 2016-06-24 Published : 2017-02-19

Keywords: parent company, subsidiary businesses, valuable decisions of parent c, stakeholder, valuation approaches,

Abstract :

The need for the parent company identifies by impacts and valuable decisions and strategies of parent company to meet stakeholder expectations subsidiary businesses. if the parent company’s strategies and decisions led to an increase in cash flow, expected growth rate, duration of growth or reduce the cost of capital, they create value in its subsidiary businesses. In this study, we consider the parent company's strategies and decisions as an intangible asset and by using valuation approaches offer process that could measure the value creation of valuable decisions and strategies of parent company at its subsidiaries.

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