Determination of the risk premium for the environment of the Czech Republic based on a comparison of the established rating from rating agencies and the model from Damodaran

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F75081431%3A_____%2F22%3A00002476" target="_blank" >RIV/75081431:_____/22:00002476 - isvavai.cz</a>

Result on the web

<a href="https://littera-scripta.com/wp-content/uploads/2022/04/2_2021%2006%20Prochazkova%20Bogdanovic%20Klementova.pdf" target="_blank" >https://littera-scripta.com/wp-content/uploads/2022/04/2_2021%2006%20Prochazkova%20Bogdanovic%20Klementova.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Determination of the risk premium for the environment of the Czech Republic based on a comparison of the established rating from rating agencies and the model from Damodaran

Original language description

This paper describes the general methods of the risk premium calculation and compares them with Damodaran approaches and the rating assigned by specialized agencies. The determination of the risk premium represents the amount of money that an investor obtains when taking the risk of an investment in a particular market. The simplest option for obtaining a risk premium appears to be the risk premium assigned by the credit rating agencies. However, there is currently a plethora of such agencies in the market and the investor must ensure that they will take the right decision. In the analysis of different methodologies in the methodological part of the paper, the most appropriate model for determining the risk premium for the Czech environment is identified. In the discussion of the results, the weaknesses of each method are described in more detail to identify the recommended method for the Czech Republic. In the conclusion of this conference paper, a modification of the risk premium calculation is proposed to obtain more accurate results.

Czech name

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Czech description

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Type

J_ost - Miscellaneous article in a specialist periodical

CEP classification

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OECD FORD branch

50200 - Economics and Business

Project

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Continuities

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Littera Scripta

ISSN

1805-9112

e-ISSN

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Volume of the periodical

15

Issue of the periodical within the volume

1

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

11

Pages from-to

82-92

UT code for WoS article

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EID of the result in the Scopus database

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