FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W2123708304> ?p ?o ?g. }

• W2123708304 endingPage "100" @default.
• W2123708304 startingPage "94" @default.
• W2123708304 abstract "Finding the appropriate discount rate, or cost of capital, for evaluating investment projects requires an accurate estimate of project risk. This can be challenging because project risk cannot be estimated directly using the CAPM, but must instead be inferred from a set of traded securities, typically the equity betas of comparable firms in the same industry. These equity betas are then unlevered to undo the effect of comparable companies' financial leverage and obtain estimates of “asset” betas, which are then used to estimate project risk. The authors show that asset betas estimated in this way are likely to overestimate project risk. The equity returns of companies are risky not only because of their existing projects but also because of their growth opportunities. Such growth opportunities often include embedded “real options,” such as the option to delay, expand, or abandon a project. Because such real options are similar to leveraged positions in the underlying project, a company's growth opportunities are typically riskier than its existing projects. Therefore, to properly assess project risk, analysts must also unlever the asset betas derived from comparable company stock returns for the leverage contributed by their growth options. The authors derive a simple method for unlevering asset betas for growth options leverage in order to properly assess project risk. They then show that standard methods for assessing project risk significantly overestimate project costs of capital—by as much as 2–3% in industries such as healthcare, pharmaceuticals, communications, medical equipment, and entertainment. Their method should also be applied to stock return volatility to derive project volatility, an important input for determining the value of a firm's growth opportunities and the appropriate time for investing in these opportunities." @default.
• W2123708304 created "2016-06-24" @default.
• W2123708304 creator A5002022320 @default.
• W2123708304 creator A5002247647 @default.
• W2123708304 creator A5004177716 @default.
• W2123708304 date "2012-09-01" @default.
• W2123708304 modified "2023-09-30" @default.
• W2123708304 title "Assessing Project Risk" @default.
• W2123708304 cites W2081775265 @default.
• W2123708304 cites W3121470524 @default.
• W2123708304 cites W3122553623 @default.
• W2123708304 cites W3123142163 @default.
• W2123708304 doi "https://doi.org/10.1111/j.1745-6622.2012.00393.x" @default.
• W2123708304 hasPublicationYear "2012" @default.
• W2123708304 type Work @default.
• W2123708304 sameAs 2123708304 @default.
• W2123708304 citedByCount "13" @default.
• W2123708304 countsByYear W21237083042014 @default.
• W2123708304 countsByYear W21237083042015 @default.
• W2123708304 countsByYear W21237083042016 @default.
• W2123708304 countsByYear W21237083042019 @default.
• W2123708304 countsByYear W21237083042021 @default.
• W2123708304 countsByYear W21237083042023 @default.
• W2123708304 crossrefType "journal-article" @default.
• W2123708304 hasAuthorship W2123708304A5002022320 @default.
• W2123708304 hasAuthorship W2123708304A5002247647 @default.
• W2123708304 hasAuthorship W2123708304A5004177716 @default.
• W2123708304 hasConcept C10138342 @default.
• W2123708304 hasConcept C111919701 @default.
• W2123708304 hasConcept C119857082 @default.
• W2123708304 hasConcept C127413603 @default.
• W2123708304 hasConcept C129361004 @default.
• W2123708304 hasConcept C144133560 @default.
• W2123708304 hasConcept C153083717 @default.
• W2123708304 hasConcept C15952604 @default.
• W2123708304 hasConcept C162118730 @default.
• W2123708304 hasConcept C162324750 @default.
• W2123708304 hasConcept C175444787 @default.
• W2123708304 hasConcept C17744445 @default.
• W2123708304 hasConcept C181236170 @default.
• W2123708304 hasConcept C187736073 @default.
• W2123708304 hasConcept C199539241 @default.
• W2123708304 hasConcept C199728807 @default.
• W2123708304 hasConcept C204036174 @default.
• W2123708304 hasConcept C21425071 @default.
• W2123708304 hasConcept C2780154230 @default.
• W2123708304 hasConcept C29122968 @default.
• W2123708304 hasConcept C37752577 @default.
• W2123708304 hasConcept C41008148 @default.
• W2123708304 hasConcept C57918260 @default.
• W2123708304 hasConcept C74510933 @default.
• W2123708304 hasConcept C74734477 @default.
• W2123708304 hasConcept C78519656 @default.
• W2123708304 hasConcept C80212096 @default.
• W2123708304 hasConcept C84566663 @default.
• W2123708304 hasConceptScore W2123708304C10138342 @default.
• W2123708304 hasConceptScore W2123708304C111919701 @default.
• W2123708304 hasConceptScore W2123708304C119857082 @default.
• W2123708304 hasConceptScore W2123708304C127413603 @default.
• W2123708304 hasConceptScore W2123708304C129361004 @default.
• W2123708304 hasConceptScore W2123708304C144133560 @default.
• W2123708304 hasConceptScore W2123708304C153083717 @default.
• W2123708304 hasConceptScore W2123708304C15952604 @default.
• W2123708304 hasConceptScore W2123708304C162118730 @default.
• W2123708304 hasConceptScore W2123708304C162324750 @default.
• W2123708304 hasConceptScore W2123708304C175444787 @default.
• W2123708304 hasConceptScore W2123708304C17744445 @default.
• W2123708304 hasConceptScore W2123708304C181236170 @default.
• W2123708304 hasConceptScore W2123708304C187736073 @default.
• W2123708304 hasConceptScore W2123708304C199539241 @default.
• W2123708304 hasConceptScore W2123708304C199728807 @default.
• W2123708304 hasConceptScore W2123708304C204036174 @default.
• W2123708304 hasConceptScore W2123708304C21425071 @default.
• W2123708304 hasConceptScore W2123708304C2780154230 @default.
• W2123708304 hasConceptScore W2123708304C29122968 @default.
• W2123708304 hasConceptScore W2123708304C37752577 @default.
• W2123708304 hasConceptScore W2123708304C41008148 @default.
• W2123708304 hasConceptScore W2123708304C57918260 @default.
• W2123708304 hasConceptScore W2123708304C74510933 @default.
• W2123708304 hasConceptScore W2123708304C74734477 @default.
• W2123708304 hasConceptScore W2123708304C78519656 @default.
• W2123708304 hasConceptScore W2123708304C80212096 @default.
• W2123708304 hasConceptScore W2123708304C84566663 @default.
• W2123708304 hasIssue "3" @default.
• W2123708304 hasLocation W21237083041 @default.
• W2123708304 hasOpenAccess W2123708304 @default.
• W2123708304 hasPrimaryLocation W21237083041 @default.
• W2123708304 hasRelatedWork W1999654375 @default.
• W2123708304 hasRelatedWork W2094979625 @default.
• W2123708304 hasRelatedWork W2123708304 @default.
• W2123708304 hasRelatedWork W2158374024 @default.
• W2123708304 hasRelatedWork W2258799107 @default.
• W2123708304 hasRelatedWork W2495971622 @default.
• W2123708304 hasRelatedWork W3039761507 @default.
• W2123708304 hasRelatedWork W3123023163 @default.
• W2123708304 hasRelatedWork W3159704427 @default.
• W2123708304 hasRelatedWork W3166373399 @default.
• W2123708304 hasVolume "24" @default.

• next