valuation of companies and derivatives: a research proposal
The conduct of a research study is proposed to investigate links between the valuation of companies and the valuation of derivatives. In this brief proposal for the conduct of research, several issues are addressed. First, background information on the proposed research topic is presented. This presentation is followed by a statement of the purpose of the proposed study and by a statement of the research question that is proposed for investigation. A brief explanation of the proposed research methodology then is presented. Lastly, the expected contributions of the proposed research to the academic literature and to practitioner literature are explained.
A global financial and economic meltdown came to the widespread attention of people around the world in the early-Fall of 2008. This global financial and economic meltdown soon evolved into a global economic recession that assumed economic depression characteristics in some economies. The early-Fall of 2008, however, was not the beginning point of the economic meltdown. Measured by the academic parameters of the discipline of economics, the economic meltdown is variously traced to points ranging from the Spring of 2007 to the Fall of 2007. The seeds of the global economic meltdown can be traced back years, perhaps decades. Just as many historians view the Second World War as a delayed continuation of the First World War, it is feasible to view the global financial and economic meltdown of the early-Fall of 2008 as a delayed continuation of the so-called dot-com crash of late-2000, with precipitating casual factors occurring much earlier.
Many highly negative outcomes were spawned by the global financial and economic meltdown. One of the more devastating outcomes for publicly traded companies, however, was the collapse of asset values. The roles played by financial derivative and economic derivat...