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The impact of industry classification on the valuation accuracy of multiples in the South African capital market

dc.contributor.authorNel, Soon
dc.contributor.authorBruwer, Wilna
dc.contributor.authorLe Roux, Niel
dc.date.accessioned2013-01-18T13:18:01Z
dc.date.available2013-01-18T13:18:01Z
dc.date.issued2013-01
dc.identifier.citationNel, W. S., Bruwer, B. W. & Le Roux, N. J. 2013. The impact of industry classification on the valuation accuracy of multiples in the South African capital market. International business & economics research journal, 12(1):79-102.en_ZA
dc.identifier.issn2157-9393 (online)
dc.identifier.issn1535-0754 (print)
dc.identifier.urihttp://hdl.handle.net/10019.1/72021
dc.descriptionThe original publication is available at http://www.cluteinstitute.com/en_ZA
dc.descriptionPublication of this article was funded by the Stellenbosch University Open Access Fund.en_ZA
dc.description.abstractAlthough multiples are used extensively in practice, empirical guidance in emerging markets is limited in this regard. In terms of valuation accuracy, the impact of peer group selection by way of industry classification in emerging markets has not yet been substantiated by research. This paper investigates the valuation performance of multiples over various industry classifications when valuing the equity of South African companies listed on the Johannesburg Stock Exchange for the period 2001 to 2010. The empirical results revealed that peer group selection based on a narrower industry classification could, on average, increase valuation accuracy by as much as 19.60%.en_ZA
dc.description.sponsorshipStellenbosch University Open Access Funden_ZA
dc.format.extentp. 79-102 : ill.
dc.language.isoen_ZAen_ZA
dc.publisherThe Clute Instituteen_ZA
dc.subjectIndustries -- South Africa -- Valuationen_ZA
dc.subjectJohannesburg Stock Exchangeen_ZA
dc.subjectCorporations -- South Africa -- Valuationen_ZA
dc.subjectIndustries -- South Africa -- Classificationen_ZA
dc.subjectMultiplesen_ZA
dc.titleThe impact of industry classification on the valuation accuracy of multiples in the South African capital marketen_ZA
dc.typeArticleen_ZA
dc.description.versionPublishers' Versionen_ZA
dc.rights.holderAuthor retain copyrighten_ZA


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