Three essays on the valuation of private firms with a particular focus on cost of capital

Abstract

My dissertation is centred around the following three valuation issues: a company's beta, the limited tradability of shares and a firm's credit spread. In the first chapter, I investigate the fundamental determinants of beta as an essential firm-specific input parameter in cost of equity calculations. The second chapter analyses whether, and to what extent, over-the-counter (OTC) traded firms face an illiquidity discount compared to publicly listed firms. My third chapter focuses on the fundamental determinants of credit risk and, thus, credit spreads as an important cost of debt component.