Hornung, Mareike; Luther, Robert; Schuster, Peter - In: Journal of Applied Accounting Research 17 (2016) 4, pp. 440-455
. “Scientific” investment appraisal can play a central role, particularly setting the hurdle rate. Empirical research reveals that … actual rates generally exceed organisations’ cost of capital – the so-called hurdle rate premium (HRP) puzzle. Allowing for … a cognitive bias to the setting of the hurdle rate in investment appraisal. …