The companies’ appraisal in terms of inactive capital market


  • Тајана Сердар Faculty of Economics, University of Banja Luka



inactive capital market, characteristics of inactivity, concepts of value, fair value, appraisal methods, discount rate


In the inactive capital market value of company is not easy to determine. It is evident that in the case of inactive markets, the process of input determination for assessing the value is more complicated, and the value of the company itself, for reasons of lack of transparency, unavailability of information and other inherent risks is less relevant than it would be in active capital markets. In companies’ appraisal in terms of inactive capital markets, the level of importance attached to transaction prices is inevitably analyzed, compared to other indicators of fair value. The level of transaction significance depends on the facts and circumstances, such as: transaction volume, transaction temporal proximity to the measurement date and transactions comparability with asset or liability whose fair value is measured. In the paper we have started from two hypotheses. The first one is that the capital market in the Republic of Srpska is inactive and underdeveloped. The second hypothesis is that the inactive capital market significantly restricts and determines the ability of using approaches and methods of appraisal, the cost of capital and the concepts of value. Accordingly, in the inactive capital markets precondition of relevant appraisal is previous analysis of transactions prices significance and aspects of market inactivity. The aim of research is to emphasize the importance of the examination of capital markets characteristics in the process of appraisal that thereby will be relevant and useful for purchasers in making the right business and investment decisions.


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How to Cite

Сердар, Т. (2015). The companies’ appraisal in terms of inactive capital market. Acta Economica, 13(23), 121–138.



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