Abstract
As discussed before, the aim of this study is to incorporate the principles of corporate governance, capital markets and risk management into the investment appraisal principles that a firm in the e-commerce sector should adopt. Accordingly, this chapter analyses the impact of corporate governance principles, capital markets, accounting standards and the regulatory environment in Hong Kong on Tom.com discounted cash flows (DCF), net present value (NPV) and the required rate of return (RRR) methods used to maximise the firm’s value. It also discusses some selected advanced techniques used in investment appraisals such as real options and how other areas of discipline impact on them. The impact of capital markets such as that of the main bank-based financial system which allows the supplier of debt capital to actively participate in the firm’s operational and strategic decision making used in Japanese corporations is also discussed for undertaking a comparative analysis of this issue.
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Notes
- 1.
See EU Report Says Hong Kong Tycoon “Too Powerful” available online at http://www.tax-news.com/news/EU_Report_Says_Hong_Kong_Tycoon_Too_Powerful_1088.html.
- 2.
See http://www.sfc.hk/sfc/html/EN/ (accessed 8/9/10).
- 3.
See http://www.sfc.hk/sfc/html/EN/ (accessed 8/9/10).
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Kalyebara, B., Islam, S.M.N. (2014). Discounted Cash Flow for Tom.com. In: Corporate Governance, Capital Markets, and Capital Budgeting. Contributions to Management Science. Physica, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-35907-1_4
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