search query: @indexterm RISK MEASUREMENT / total: 141
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| Author: | Bufka, J. Schiereck, D. |
| Title: | Risikoadjustierung der Kapitalkosten über die BCG-methode: Überlegungen zur Weiterentwicklung pragmatischer Ansätze |
| Journal: | Zeitschrift für Betriebswirtschaft
1999 : VOL. 69:12, p. 1455-1461 |
| Index terms: | ESTIMATION RISK MEASUREMENT RISK ANALYSIS LARGE BUSINESSES |
| Language: | ger |
| Abstract: | This article deals with the direction further developments should follow to improve practical approaches to estimate the divisional cost of capital for multi-industry firms. Recent analysis shows some evidence that risk measures based on practical approaches are able to explain a larger part of capital market risk expressed by the CAPM beta and the rela- tion of book value to market value of equity. But there remain some major problems. These practical approaches use a different measure to evaluate corporate risk which results in a non-additivity between the weighted sum of divisional cost of capital comparing to the total cost of capital for the diversified company as a whole. We present some general ideas how the problem of non-additivity should be handled and show some detailed empirical data that might help to im- prove the risk adjustment on the divisional level. |
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