Valuing companies in transition

Authors

  • Dirk Schoenmaker Department of Finance, Rotterdam School of Management, Erasmus University, Rotterdam, The Netherlands; Erasmus Platform for Sustainable Value Creation, Erasmus University, Rotterdam, The Netherlands
  • Willem Schramade Erasmus Platform for Sustainable Value Creation, Erasmus University, Rotterdam, The Netherlands; Sustainable Finance Factory, Rotterdam, The Netherlands

DOI:

https://doi.org/10.62513/sl118065

Keywords:

transition management, sustainability, corporate finance, corporate valuation, corporate strategy

Abstract

Transition management and corporate finance are separate disciplines. This article connects the two disciplines by developing a model of expected transition losses. It appears that adaptation to transition is a key determinant of a company’s long-term value. Companies that are early in the game can reap the first mover benefits. Companies that adapt later experience higher adaptation costs and may even not survive. The transition model helps companies to sharpen their strategy and cope with major sustainability transitions that are currently happening.

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Published

05-07-2022

Issue

Vol. 1 No. 1 (2022): Inaugural Issue

Section

Letters-Accounting and Finance

License

Copyright (c) 2022 Dirk Schoenmaker, Willem Schramade

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Schoenmaker, D., & Schramade, W. (2022). Valuing companies in transition. Sustainability Letters, 1(1). https://doi.org/10.62513/sl118065