Volatility is one of the most important parameters in the valuation of share-based payment programs under IFRS 2. As a measure of share price fluctuation, it significantly influences - along with other factors such as term, risk-free interest rate, and exercise price - the value of stock options and similar instruments. This article demonstrates the practical significance of volatility determination and its impact on company valuation.

IFRS 2 defines the framework for accounting for transactions in which companies use equity instruments as compensation. The standard extends far beyond traditional employee compensation and also covers the use of equity instruments in business transactions with suppliers, service providers, and other business partners. This article demonstrates the systematic approach to valuation and accounting for such transactions and provides practical guidance for implementing the requirements.

The strategic management of corporate investments is becoming increasingly complex in today's corporate landscape. Professional investment management is now the key to sustainable value creation. At the same time, it forms the foundation for long-term corporate success. This article illuminates the essential dimensions of contemporary investment management - from strategic portfolio management through legal and operational aspects to the requirements of digital transformation and ESG criteria.

The Capital Asset Pricing Model (CAPM) by Sharpe (1964), Lintner (1965) and Mossin (1966) was long regarded as a comprehensive model for explaining stock returns. However, Fama and MacBeth (1973) found that the CAPM was not able to fully explain stock returns. As a result, further factors were identified that contribute to the understanding of stock returns. The first of these market anomalies is the size premium, which was first discovered by Banz (1981). The size premium states that small companies tend to have higher returns compared to large companies.

Company share prices are subject to constant fluctuations on the financial markets. A decisive factor for the volatility of a share is the so-called beta factor. It indicates how strongly a company share reacts to general market developments. Understanding the beta factors is essential for an accurate business valuation. This is because it provides valuable information on the risk of an investment. In this article, we shed light on the relationship between the beta factors and the liquidity of a share. We explain how the two factors influence each other and what practical implications this has in practice.