I currently test some ways to figure about whether a business model is stable or not like for example the usage of the coefficient of determination used over 10 years. Till now all tests are negative which means that there is no method out there which can help investors to define businesses as stable fist just based on financial data. Maybe someone has an idea.
Dear Björn,
Please find our working paper as an enclosure. In that paper we explore the empirical roots of the concept of profiting from product innovation in the industrial and commercial machinery and equipment industry, offer a global value chain analysis of how an EU-27 headquartered firm has employed an effective business model for capturing value added from product innovation. I hope this helps!
Best Regards
Timo
Thank you Timo! I will have a look whether I can add informations from that to my work.
May I recommend this paper By Demil and Lecocq on business model evolution. It might provide you with useful insight.
You will find the article hereby attached.
Why would you think that the stability can be tested purely on the basis of financial data? In actuality the stability of a business proposition (of which a business case is a formal subset) is a function of the uncertainties in the environment and the assumptions made about those uncertainties.
I read in the book from Benjamin Graham "Security Analysis" that there is a methode to test the stability. I now tested the Methode and it turned out that it does not totally work. So I wondered whethers there are other methodes. But generally I would also say from my Point of view now, that it is not possible to do that. I used for the testing a database with 30.000 companies and Basic data over 20 years.
- Badges
- Science topic
- Similar topics
- Mathematical Sciences
- Statistics
- Statistical Software
- SPSS