A Markovian Model for the Valuation of Human Assets Acquired by an Organizational Purchase

Eric G. Flamholtz, George T. Geis and Richard J. Perle
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Eric G. Flamholtz: Graduate School of Management, and Center for Human Resource Management, Institute of Industrial Relations, University of California, Los Angeles, Los Angeles, California 90024
George T. Geis: Center for Human Resource Management, Institute of Industrial Relations, University of California, Los Angeles, Los Angeles, California 90024
Richard J. Perle: College of Business, Loyola Marymount University, Los Angeles, California 90045

Interfaces, 1984, vol. 14, issue 6, 11-15

Abstract: A corporation acquires the assets and liabilities of a securities brokerage firm for a price in excess of net book value. A Markov analysis is used in conjunction with human resource accounting to value a pool of account executives employed by the brokerage firm. The tax implications of imputing a portion of the purchase price premium to the pool of human assets (as opposed to goodwill) are discussed.

Keywords: dynamic programming: Markov; finite state; financial institutions: brokerage and trading (search for similar items in EconPapers)
Date: 1984
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Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:14:y:1984:i:6:p:11-15

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