A Comprehensive Review of Scientific Literature on Methods for Determining Discount Rates in Corporate Practices

Klára Szűcs Markovics (vgtklara@uni-miskolc.hu)
Additional contact information
Klára Szűcs Markovics: University of Miskolc

Theory Methodology Practice (TMP), 2012, vol. 8, issue 02, 81-87

Abstract: On the basis of the findings of research conducted in eighteen countries and in the Central and Eastern European region, this study seeks to understand how the discount rate is set when capital budgeting practices are involved. According to the reviewed academic literature, the weighted average cost of capital is the most popular method of determining discount rates in a number of countries. Besides this, decision makers often apply the single method of corporate required rate of return regardless of the character of specific decision aspects and market risks.

Keywords: capital budgeting; discount rates; required rate of return; weighted average cost of capita (search for similar items in EconPapers)
JEL-codes: M21 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://tmp.gtk.uni-miskolc.hu/volumes/2012/02/TMP_2012_02_12_Szucs_Markovics.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mic:tmpjrn:v:8:y:2012:i:02:p:81-87

Access Statistics for this article

Theory Methodology Practice (TMP) is currently edited by Zoltan Bartha

More articles in Theory Methodology Practice (TMP) from Faculty of Economics, University of Miskolc Contact information at EDIRC.
Bibliographic data for series maintained by (szvlates@uni-miskolc.hu).