Skip to ContentSkip to Navigation
About us FEB Research / FEB FEB Research News News / FEB

Thesis prize of Association of Registered Controllers for student Martijn Gils

05 November 2013
Martijn Gils
Martijn Gils

Martijn Gils, a student of the controller’s programme (Executive Master of Finance and Control, EMFC) at the Economics and Business Faculty of the RUG, has won the annual thesis prize of the national Association of Registered Controllers ( VRC ). The prize was awarded at the annual congress of the VRC and the NBA (professional organisation of Accountants) in Utrecht on 30 October.

For his thesis, Martijn Gils, conducted research into how housing corporations determine the value of their capital, or 'Weighted Average Cost of Capital' (WACC).

Jury: “great relevance and topicality”

According to the jury, which selected the thesis by Gils from nominees of 7 controller programmes in the Netherlands, the thesis has “a clear structure, a logical and clear narrative and is pleasant to read. Gils managed to apply a generally accepted theory of capital costs to a regulated sector with many market imperfections”. Finally, the jury praises the high relevance and topicality of the subject and the importance for the housing corporations sector.

Gils’ research

Gils found in his research, among other things, that housing corporations have lower capital costs than commercial companies in the real estate sector. And also that, in practice, corporations apply lower capital costs than calculated.

Capital costs consists of costs of equity capital, loan capital and capital structure (ratio of loan and equity capital). But with which efficiency standard should this comply? That is difficult to determine because housing corporations, for instance, do not have shareholders who demand tough capital requirements. Also, continual changes in the risks for corporations contribute to a lack of clarity about yield requirements. In addition, there is the introduction of the levy on renting out, separation of living and care, and the bad housing market in general.

The fact that calculated capital costs are higher than used, in practice, by the corporations, is due, according to Gils, to the fact that illiquidity of the sector is not taken into account in practice, but is taken into account in the calculations.

Recognised programme

The Groningen Controllers programme EMFC is one of the programmes that is officially recognised by the Association of Registered Controllers. Recognised programmes are regarded as “a reliable choice for the financial top”. By awarding the VRC thesis prize the VRC wishes to increase the quality of theses and consequently the quality of post-doctorate RC education. Also, in 2007 the VRC thesis prize was won by a student of the Groningen programme.

Further information : www.rug.nl/feb/emfc

Last modified:01 February 2023 10.53 a.m.
View this page in: Nederlands

More news