The WACC Fallacy: The Real Effects of Using a Unique Discount Rate
检验企业是否在资本预算中恰当调整风险，发现使用单一折现率导致对安全部门投资不足、对风险部门过度投资，并在并购中造成价值损失。
ABSTRACT In this paper, we test whether firms properly adjust for risk in their capital budgeting decisions. If managers use a single discount rate within firms, we expect that conglomerates underinvest (overinvest) in relatively safe (risky) divisions. We measure division relative risk as the difference between the division's asset beta and a firm‐wide beta. We establish a robust and significant positive relationship between division‐level investment and division relative risk. Next, we measure the value loss due to this behavior in the context of acquisitions. When the bidder's beta is lower than that of the target, announcement returns are significantly lower.