A Markovian Model for the Valuation of Human Assets Acquired by an Organizational Purchase
Published Online:1 Dec 1984https://doi.org/10.1287/inte.14.6.11
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.
