Lack of Marketability Discount - Analysis of Empirical Studies

Analýza empirických studií k diskontu za omezenou obchodovatelnost

Barbora Rýdlová

Český finanční a účetní časopis, 2006, vol. 2006, issue 1, 118-134

Abstract: Estimation of the lack of marketability discount remains one of the big issues in business valuation. Empirical studies of the lack of marketability discount originated in the USA are one of the main resources for business valuers in the Czech Republic. However, they are used rather intuitively without any deeper analysis of the key factors that influence the value of the discount. The theoretical quantification models of the discount are not very well known and used in the Czech Republic. The paper presents a brief overview of these theoretical models and typology of empirical studies, their results but also limitations which we have to consider when using them in practical business valuation. Finally, recommendations are made for the use of US empirical studies in the conditions of the Czech Republic.

Keywords: Lack of marketability discount; Restricted stocks; Pre-IPO; Diskont za omezenou obchodovatelnost (search for similar items in EconPapers)
JEL-codes: G34 (search for similar items in EconPapers)
Date: 2006
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DOI: 10.18267/j.cfuc.132

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