A Markovian Model for the Valuation of Human Assets Acquired by an Organizational Purchase

Authors

Eric G. Flamholtz, University of California - Los Angeles
George T. Geis, University of California - Los Angeles
Richard J. Perle, Loyola Marymount UniversityFollow

Document Type

Article

Publication Date

1984

Abstract

A corporation acquires the assets and liabilities of a securities brokerage firm for a price in excess of net book value. A Markov analysis is used in conjunction with human resource accounting to value a pool of account executives employed by the brokerage firm. The tax implications of imputing a portion of the purchase price premium to the pool of human assets (as opposed to goodwill) are discussed.

Digital Commons @ LMU & LLS Citation

Flamholtz, E.G., Geis, G.T., and Perle, Richard J. "A Markovian Model for the Valuation of Human Assets Acquired by an Organizational Purchase." Interfaces 14 (1984): 11-15.