Estimation of the Expected Market Risk Premium for Corporate Valuations: Methodologies and Empirical Evidence for Equity Markets in Key Countries ... Wirtschaftswissenschaft, Band 4) - Hardcover

Gsell, Hannes

Hardcover

ISBN 10: 3631614012 ISBN 13: 9783631614013

Verlag: Peter Lang GmbH, Internationaler Verlag der Wissenschaften, 2011

Inhaltsangabe

The expected market risk premium (MRP) is a crucial parameter for corporate valuations using risk-adjusted discount rates. Despite its importance, there is no consensus on its correct estimation. This book provides a conceptual review of several estimation methods focused on implied cost of capital but also including historical averages and return decomposition. In addition, these methods are applied in a comprehensive empirical study for six key equity markets (Canada, France, Germany, Japan, UK, and USA). While professionals predominantly rely on historical averages, the empirical results demonstrate that the expected MRP is volatile over time and related to the market price level particularly during the recent financial crisis. The findings suggest to reject the usage of unconditional historical averages and to apply conditional estimates according to the «Stichtagsprinzip» instead.

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Über die Autorin bzw. den Autor

Hannes Gsell, born 1979 in Schwäbisch Hall, completed his studies in business administration at WHU Otto Beisheim School of Management in 2004. Thereafter, he joined an international investment bank. He completed his doctoral studies at Ulm University in 2010.

Details zur Ausgabe

• Verlag: Peter Lang GmbH, Internationaler Verlag der Wissenschaften
• Erscheinungsdatum: 2011
• Sprache: Englisch
• ISBN 10: 3631614012
• ISBN 13: 9783631614013
• Einband: Gebundene Ausgabe
• Auflage: 1
• Anzahl der Seiten: 474
• Kontakt zum Hersteller: GPSR Kontakt; r.boehm-korff@peterlang.com; ; Gontardstraße 11; Berlin; 10178; Deutschland