Narrow search
Showing 1 - 10 of 15,734
Cover Image
Discounting, Patience, and Dynamic Decision Making
Quah, John; Strulovici, Bruno - Department of Economics, Oxford University - 2011
Whether they are financial, economic, or psychological, discount rates affect most economic decisions: investment and savings, hirings and firings, defaults and refinancing, financial and economic reforms, learning and experimentation, and any other decision with long-term consequences, such as...
Persistent link: https://www.econbiz.de/10009144004
Cover Image
Investment decisions, NPV and bounded rationality
Magni, Carlo Alberto - MASTER CONSULTORES - 2010
The Net Present Value maximizing model has a respectable ancestry and is considered by most scholars a theoretically sound decision model. In real-life applications, decision makers use the NPV rule, but apply a subjectively determined hurdle rate, as opposed to the allegedly correct opportunity...
Persistent link: https://www.econbiz.de/10010763079
Cover Image
Discounting and Patience in Optimal Stopping and Control Problems
Quah, John K. -H; Strulovici, Bruno - Center for Mathematical Studies in Economics and … - 2009
management problem until its interruption. We also apply our results to the theory of optimal growth and capital deepening and to …
Persistent link: https://www.econbiz.de/10008578134
Cover Image
Erweiterungen zu „Simplified Discounting Rules in Binomial Models“ von Frank Richter
Rosarius, Stephan; Wiese, Jörg - Volkswirtschaftliche Fakultät, … - 2005
Bei der Bewertung von Unternehmen ist es üblich, die erwarteten Überschussverteilungen mit Kapitalkosten zu … Anwendung von konstanten Kapitalkosten erlauben. Die vorliegende Arbeit erweitert die Überlegungen von Richter dahingehend, dass …, dass sich die Kapitalkosten auf Basis der unterstellten Verteilungsparameter der Wachstumsraten und der Marktrendite sowie …
Persistent link: https://www.econbiz.de/10005649763
Cover Image
ECONOMIC VALUE ADDED AND STAKEHOLDERS INTERESTS
Vasile, Burja - In: Annals of Faculty of Economics 1 (2013) 2, pp. 512-522
Abstract. The value creation is the major objective of companies' functioning. It aims at meeting the general interests of stakeholders. The shareholders are directly interested by value added as they can recover the investments made and obtain the expected profit. Managers and the other...
Persistent link: https://www.econbiz.de/10011150724
Cover Image
The WACC Fallacy: The Real Effects of Using a Unique Discount Rate
Krüger, Philipp; Landier, Augustin; Thesmar, David - Institut d'Économie Industrielle (IDEI), Toulouse … - 2011
We document investment distortions induced by the use of a single discount rate within firms. According to textbook capital budgeting, firms should value any project using a discount rate determined by the risk characteristics of the project. If they use a unique company-wide discount rate, they...
Persistent link: https://www.econbiz.de/10009002326
Cover Image
Testing Multi-Factor Asset Pricing Models in the Visegrad Countries
Borys, Magdalena Morgese Borys - In: Czech Journal of Economics and Finance (Finance a uver) 61 (2011) 2, pp. 118-139
There is no consensus in the literature as to which model should be used to estimate stock returns and the cost of capital in the emerging markets. The Capital Asset Pricing Model (CAPM), which is most often used for this purpose in the developed markets, has a poor empirical record and is...
Persistent link: https://www.econbiz.de/10009147423
Cover Image
The WACC Fallacy: The Real Effects of Using a Unique Discount Rate
Krüger, Philipp; Landier, Augustin; Thesmar, David - Toulouse School of Economics (TSE) - 2011
We document investment distortions induced by the use of a single discount rate within firms. According to textbook capital budgeting, firms should value any project using a discount rate determined by the risk characteristics of the project. If they use a unique company-wide discount rate, they...
Persistent link: https://www.econbiz.de/10009369329
Cover Image
Accounting and economic measures: an integrated theory of capital budgeting
Magni, Carlo Alberto - MASTER CONSULTORES - 2009
Accounting measures are traditionally considered not significant from an economic point of view. In particular, accounting rates of return are often regarded economically meaningless or, at the very best, poor surrogates for the IRR, which is held to be "the" economic yield. Likewise, residual...
Persistent link: https://www.econbiz.de/10010762964
Cover Image
Purely Internal Rate of Return and Investment Decisions: A Cash-Flow Perspective
Magni, Carlo Alberto - MASTER CONSULTORES - 2010
The recent notion of Average Internal Rate of Return (AIRR) [Magni 2010, The Engineering Economist, 55(2), 150-180] completely solves the long-standing problem of the internal rate of return (IRR). While the AIRR is a return measure, this paper presents a cash-flow measure, namely the ratio of...
Persistent link: https://www.econbiz.de/10010763060