Abstract
Having reviewed the technical cost-of-capital literature in the previous chapter, the aim of this chapter is to discuss previous research on the application of cost-of-capital determination techniques by practitioners and to compare findings from these studies. The findings that are discussed in this chapter will also be referred to in the following chapters in order to compare them with the empirical findings from this research.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Number of citations by May 2013, http://scholar.google.com/citations?user=cajqjGAAAAAJ&hl=en
- 2.
German stock market index.
References
Al Mutairi M, Tian G, Tan A (2009) Corporate finance practice in Kuwait: a survey to confront theory with practice. In: 22nd Australasian finance and banking conference 2009. Available from SSRN
Al Mutairi M, Tian G, Hasan H, Tan A (2012) Corporate governance and corporate finance practices in a Kuwait stock exchange market listed firm: a survey to confront theory with practice. Corp Gov 12(5):595–615
Arnold G, Hatzopoulos PD (2000) The theory-practice gap in capital budgeting: evidence from the United Kingdom. J Bus Financ Account 27(5/6):603–626
Baker HK, Dutta S, Saadi S (2011a) Corporate finance practices in Canada: where do we stand? Multinatl Financ J 15(3/4):157–192
Baker HK, Singleton JC, Veit ET (2011b) Survey research in corporate finance. Bridging the gap between theory and practice. Oxford University, Oxford
Bancel F, Mittoo UR (2011) Survey evidence on financing decisions and cost of capital. In: Baker HK, Martin GS (eds) Capital structure & corporate financing decisions. Theory, evidence, and practice. Essential perspectives. Wiley, Hoboken, NJ, pp 229–248
Bennouna K, Meredith GG, Marchant T (2010) Improved capital budgeting decision making: evidence from Canada. Manag Decis 48(2):225–247
Black C, Parry J, Anderson H, Bennett JA (2002) Are New Zealand chief financial officers the ‘country cousins’ of their American counterparts? Univ Auckl Bus Rev 4(1):1–11
Block S (2003) Divisional cost of capital: a study of its use by major U.S. firms. Eng Econ 48(4):345–362
Block S (2005) Are there differences in capital budgeting procedures between industries? An empirical study. Eng Econ 50(1):55–67
Brounen D, de Jong A, Koedijk K (2004) Corporate finance in Europe: confronting theory with practice. Financ Manag 33(4):71–101
Brunzell T, Liljeblom E, Vaihekoski M (2011) Determinants of capital budgeting methods and hurdle rates in Nordic firms. Account Finance 53(1):85–110
Chazi A, Terra PRS, Zanella FC (2010) Theory versus practice: perspectives of Middle Eastern financial managers. Eur Bus Rev 22(2):195–221
Chua J, Chang PC, Wu Z (2006) The full-information approach for estimating divisional betas: implementation issues and tests. J Appl Finance 16(1):53–61
Cohen G, Yagil J (2007) A multinational survey of corporate financial policies. J Appl Finance 17(1):57–69
Correia C, Cramer P (2008) An analysis of cost of capital, capital structure and capital budgeting practices: a survey of South African listed companies. Meditari Account Res 16(2):31–52
Dedi L, Orsag S (2008) Capital budgeting practices: a survey of Croatian firms. S East Eur J Econ Bus 2(1):59–67
Frank A (2007) On the value of survey-based research in finance. Alternation 14(1):243–261
Geginat J, Morath B, Wittmann R, Knüsel P (2006) Kapitalkosten als strategisches Entscheidungskriterium. Available at http://www.rolandberger.com/expertise/functional_issues/restructuring/2006-05-03-rbsc-pub-capital.html
Graham JR, Harvey CR (2001) The theory and practice of corporate finance: evidence from the field. J Financ Econ 60(2/3):187–243
Guserl R, Pernsteiner H (2011) Finanzmanagement. Grundlagen—Konzepte—Umsetzung. Lehrbuch. Gabler, Wiesbaden
Hermes N, Smid P, Yao L (2007) Capital budgeting practices: a comparative study of the Netherlands and China. Int Bus Rev 16(5):630–654
KPMG International (2010) Cost of capital and impairment test study 2009. Empirical survey of companies in Germany, the Netherlands, Austria, Switzerland and Spain. Available from: http://www.kpmg.de/WasWirTun/17368.htm
KPMG International (2012) Kapitalkostenstudie 2011/2012. Entwicklungen in volatilen Märkten. Available from http://www.kpmg.de
KPMG International (2013) Kapitalkostenstudie 2012/2013. Steuerung in der Unsicherheit. Available from http://www.kpmg.de
Lintner J (1956) Distribution of incomes of corporations among dividends, retained earnings, and taxes. Am Econ Rev 46(2):97–113
McLaney E, Pointon J, Thomas M, Tucker J (2004) Practitioners’ perspectives on the UK cost of capital. Eur J Finance 10(2):123–138
Petersen C, Plenborg T, Schøler F (2006) Issues in valuation of privately held firms. J Priv Equity 10(1):33–48
Pfister C (2003) Divisionale Kapitalkosten. Theorie und Anwendung. Bank- und finanzwirtschaftliche Forschungen, 349th edn. Haupt, Bern
Ryan PA, Ryan GP (2002) Capital budgeting practices of the fortune 1000: how have things changed? J Bus Manage 8(4):355–364
Saunders M, Lewis P, Thornhill A (2009) Research methods for business students. Financial Times Prentice Hall, Harlow
Schlegel D (2014) A comparison of global empirical results on company cost-of-capital practices. Int J Bus Glob 12(1):53–62
Serita T (2008) On survey data analysis in corporate finance. J Int Econ Stud 22:97–111
Steinle C, Krummaker S, Lehmann G (2007) Bestimmung von Kapitalkosten in diversifizierten Unternehmungen: Verfahrensvergleiche und Anwendungsempfehlungen. Z Control Manage 51(3):204–218
Truong G, Partington G, Peat M (2008) Cost-of-capital estimation and capital-budgeting practice in Australia. Aust J Manag 33(1):95–121
van der Stede WA, Young M, Chen CX (2008) Doing management accounting survey research. In: Chapman CS (ed) Handbook of management accounting research. Elsevier, Amsterdam
Weißenberger BE, Blome M (2005) Ermittlung wertorientierter Kennzahlen unter IFRS. University of Gießen Working Paper
Whetten DA (1989) What constitutes a theoretical contribution? Acad Manag Rev 14(4):490–495
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2015 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Schlegel, D. (2015). Previous Results on Cost-of-Capital Practices. In: Cost-of-Capital in Managerial Finance. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-15135-9_3
Download citation
DOI: https://doi.org/10.1007/978-3-319-15135-9_3
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-15134-2
Online ISBN: 978-3-319-15135-9
eBook Packages: Business and EconomicsEconomics and Finance (R0)