Research Summary
Research Summary
Valuation Theory and Practice
Description
Timothy A. Luehrman's primary research interest is in the application of valuation methods to companies, businesses, and individual assets. Some of his work involves applications of tools originally developed for valuing derivative securities to the valuation of other corporate assets. Examples include work on real options, the use of put pricing techniques to evaluate illiquidity discounts on restricted stock, and the use of put options to estimate so called 'expected losses' under financial reporting standards. Luehrman's recent work also covers the use and limitations of various families of option pricing models to estimate the value of equity-linked compensation, such as employee stock options. Luehrman also works on the synthesis of economic and mathematical insights into discipline-based managerial frameworks.