Valuing Companies in Transition

Forthcoming in Sustainability Letters (2022), Issue 1

11 Pages Posted: 16 Mar 2022 Last revised: 3 Jul 2022

See all articles by Dirk Schoenmaker

Dirk Schoenmaker

Rotterdam School of Management, Erasmus University; Erasmus Research Institute of Management (ERIM); Centre for Economic Policy Research (CEPR)

Willem Schramade

Nyenrode Business University

Date Written: February 5, 2022

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.

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

JEL Classification: G32, G33, L11, Q51

Suggested Citation

Schoenmaker, Dirk and Schramade, Willem, Valuing Companies in Transition (February 5, 2022). Forthcoming in Sustainability Letters (2022), Issue 1, Available at SSRN: https://ssrn.com/abstract=4027333 or http://dx.doi.org/10.2139/ssrn.4027333

Dirk Schoenmaker (Contact Author)

Rotterdam School of Management, Erasmus University ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam
Netherlands

HOME PAGE: http://www.rsm.nl/people/dirk-schoenmaker/

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Willem Schramade

Nyenrode Business University ( email )

Straatweg 25
P.O. Box 130
Breukelen, 3620 AC
Netherlands

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