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Business Commons

Open Access. Powered by Scholars. Published by Universities.®

1984

Finance and Financial Management

Loyola Marymount University and Loyola Law School

Articles 1 - 1 of 1

Full-Text Articles in Business

A Markovian Model For The Valuation Of Human Assets Acquired By An Organizational Purchase, Eric G. Flamholtz, George T. Geis, Richard J. Perle Jan 1984

A Markovian Model For The Valuation Of Human Assets Acquired By An Organizational Purchase, Eric G. Flamholtz, George T. Geis, Richard J. Perle

Finance Faculty Works

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.