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Assessing the marginal value of subsidiary ownership

Björkander, Maria LU and Runeus, Fredrik (2010) FEKP02 20101
Department of Business Administration
Abstract (Swedish)
Titel: Assessing the marginal value of subsidiary ownership
- A case study on Alfa Laval India Ltd
Authors: Maria Björkander & Fredrik Runéus
Tutors: Måns Kjellsson – PHD candidate, Department of Business Administration, Lund School of Economics and Management
Anders Vilhelmsson – PHD, Department of Economics, Lund School of Economics and Management
Thomas Thuresson – Chief Financial Officer, Alfa Laval AB
Issue of study: This thesis adds a new perspective to the issue of firm valuation by introducing the discussion of how to assess the marginal value of ownership. Which are the determinants of the marginal value of subsidiary ownership? How can a company that wants to assess the marginal value of its subsidiary holding perform the... (More)
Titel: Assessing the marginal value of subsidiary ownership
- A case study on Alfa Laval India Ltd
Authors: Maria Björkander & Fredrik Runéus
Tutors: Måns Kjellsson – PHD candidate, Department of Business Administration, Lund School of Economics and Management
Anders Vilhelmsson – PHD, Department of Economics, Lund School of Economics and Management
Thomas Thuresson – Chief Financial Officer, Alfa Laval AB
Issue of study: This thesis adds a new perspective to the issue of firm valuation by introducing the discussion of how to assess the marginal value of ownership. Which are the determinants of the marginal value of subsidiary ownership? How can a company that wants to assess the marginal value of its subsidiary holding perform the valuation? How does the value of flexibility to act on different outcomes of an uncertain situation affect the marginal value?
Purpose: The purpose of this study is to establish an understanding for the drivers of the marginal value of subsidiary ownership. Building on this understanding, it is furthermore the purpose to formalize the process of assessing the marginal value into a model that can be used by companies when deciding on the appropriate level of holding in a subsidiary.
Method: This study has been conducted using a qualitative and inductive research method. A deviant case study has been carried out at Alfa Laval AB. The findings from the empirical study have lead up to the construction of a model to be used when assessing the marginal value.
Conclusions: The marginal value of subsidiary ownership is foremost affected when passing certain thresholds, defined as value breakpoints. The legal framework in the country of operations and the company’s ownership structure determine the locations of the value breakpoints. Between these breakpoints the marginal value will increase linearly with the size of the holding. (Less)
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author
Björkander, Maria LU and Runeus, Fredrik
supervisor
organization
course
FEKP02 20101
year
type
H2 - Master's Degree (Two Years)
subject
keywords
value breakpoints, legal framework, Marginal value of ownership, subsidiary
report number
192
ISSN
1651-0100
language
English
id
1710044
date added to LUP
2010-10-29 13:54:13
date last changed
2011-01-25 14:29:17
@misc{1710044,
  abstract     = {Titel: Assessing the marginal value of subsidiary ownership
- A case study on Alfa Laval India Ltd
Authors: Maria Björkander & Fredrik Runéus
Tutors: Måns Kjellsson – PHD candidate, Department of Business Administration, Lund School of Economics and Management
Anders Vilhelmsson – PHD, Department of Economics, Lund School of Economics and Management
Thomas Thuresson – Chief Financial Officer, Alfa Laval AB
Issue of study: This thesis adds a new perspective to the issue of firm valuation by introducing the discussion of how to assess the marginal value of ownership. Which are the determinants of the marginal value of subsidiary ownership? How can a company that wants to assess the marginal value of its subsidiary holding perform the valuation? How does the value of flexibility to act on different outcomes of an uncertain situation affect the marginal value?
Purpose: The purpose of this study is to establish an understanding for the drivers of the marginal value of subsidiary ownership. Building on this understanding, it is furthermore the purpose to formalize the process of assessing the marginal value into a model that can be used by companies when deciding on the appropriate level of holding in a subsidiary.
Method: This study has been conducted using a qualitative and inductive research method. A deviant case study has been carried out at Alfa Laval AB. The findings from the empirical study have lead up to the construction of a model to be used when assessing the marginal value.
Conclusions: The marginal value of subsidiary ownership is foremost affected when passing certain thresholds, defined as value breakpoints. The legal framework in the country of operations and the company’s ownership structure determine the locations of the value breakpoints. Between these breakpoints the marginal value will increase linearly with the size of the holding.},
  author       = {Björkander, Maria and Runeus, Fredrik},
  issn         = {1651-0100},
  keyword      = {value breakpoints,legal framework,Marginal value of ownership,subsidiary},
  language     = {eng},
  note         = {Student Paper},
  title        = {Assessing the marginal value of subsidiary ownership},
  year         = {2010},
}