IDEAS home Printed from https://ideas.repec.org/a/bpj/jbvela/v1y2006i1n2.html
   My bibliography  Save this article

Lost Profits Damages to New Businesses: Adjusting for Survival

Author

Listed:
  • MacPherson David A

    (Florida State University)

  • Stephenson Stanley P.

    (Litigation Economics)

Abstract

Survival risk of new businesses is a challenging issue to incorporate into lost profits analyses used in litigation, an issue some financial experts and courts ignore rather than consider explicitly. This paper considers several ways to make qualitative and quantitative adjustments for the survival rates of new businesses. The paper concludes firm-specific modeling of survival rates is the most appropriate way to weight future economic returns because it offers the best alternative in terms of fitting the analysis to the facts of the case and doing so in a credible and clear manner.

Suggested Citation

  • MacPherson David A & Stephenson Stanley P., 2006. "Lost Profits Damages to New Businesses: Adjusting for Survival," Journal of Business Valuation and Economic Loss Analysis, De Gruyter, vol. 1(1), pages 1-14, October.
    • Handle: RePEc:bpj:jbvela:v:1:y:2006:i:1:n:2
    DOI: 10.2202/1932-9156.1000
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1932-9156.1000
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1932-9156.1000?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:jbvela:v:1:y:2006:i:1:n:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.