Mark Kantšukov will defend his doctoral thesis „Valuation of companies under the distributed profit taxation system“

On 14 November at 14:15 Mark Kantšukov will defend his doctoral thesis „Valuation of companies under the distributed profit taxation system“ for obtaining the degree of Doctor of Philosophy (in Economics).

Supervisors:
Associate Professor Priit Sander, University of Tartu
Professor Toomas Haldma, University of Tartu

Opponents:
Professor Stefan Dierkes, Georg August University of Göttingen (Germany)
Professor Aaro Hazak, Tallinn University of Technology (Estonia)

Summary
The doctoral thesis studies the valuation of companies under distributed profit taxation. More specifically, the study considers the implications of distributed profit taxation systems for the valuation of companies, with primary emphasis on adjusting the well-known theoretical valuation models to consider the features of the system of distributed profit-based taxation. These adaptations cover income-based, market-based, and asset-based valuation approaches. The central thesis posits that companies operating under conditions of distributed profit taxation cannot be valued in the same way as companies operating under other systems of profit taxation, especially classical (traditional) profit taxation systems – the impact of distributed profit-based taxation on a company's value deviates from that of traditional profit taxation. The core of the thesis comprises five research articles, of which four are theoretical and one empirical: the theoretical studies consider various valuation models and their income tax-related adjustments; the empirical study is based on responses collected from a survey of Estonian financial professionals. The findings from the theoretical articles indicate that the (equity) value of a company operating under distributed profit taxation tends to be higher compared to that under other systems of profit taxation, especially under traditional profit taxation. The peculiarities of the system of distributed profit taxation reveal themselves in every valuation approach. In addition, aspects of distributed profit taxation must be factored into assessments of a company's profitability. The survey results reveal a lack of uniformity among Estonian financial experts in addressing the nuances of distributed profit taxation within the context of valuation. This variance is largely attributed to the diversity of approaches employed by valuation practitioners. A significant contribution of this dissertation lies in the development of specific valuation models suitable for assessing both leveraged and unleveraged companies in real-world scenarios encompassing distributed profit taxation and classical profit taxation.

The defence will be held in Narva Rd. 18–1018 and online.

Thesis: https://hdl.handle.net/10062/93813

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