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Using Capital Budgeting Techniques In Rationalizing Capital Expenditure Decisions In Jordanian Industrial Public Shareholding Companies

Author

Listed:
  • Abdallah Atieh

    (Faculty of Business, Al-Zaytoonah University of Jordan, Amman – Jordan)

  • Malik Muneer Abu Afifa

    (Faculty of Business, Al-Zaytoonah University of Jordan, Amman – Jordan)

  • Shadya Al-Manaseer

    (Social Security Corporation, Amman – Jordan)

Abstract

This study aims to examine the effect of using capital budgeting techniques on rationalizing capital expenditure decisions, and to identify the obstacles which might limit this effect. The members of study sample are accountants who work in industrial companies which use capital budgeting techniques. Therefore, the unit of analysis is individuals, and the study uses a questionnaire method. The main result is that there is a statistically significant effect of using capital budgeting techniques on rationalizing capital expenditure decisions in industrial companies, especially when they apply those practices that consider the time value of money. Additionally, there are significant obstacles that limit the effect of using capital budgeting techniques on rationalize capital expenditure decisions, especially the subjective factor of decision-makers in accepting or rejecting investing projects, and incapability of predicting amounts and timing of projects’ cash flows.

Suggested Citation

  • Abdallah Atieh & Malik Muneer Abu Afifa & Shadya Al-Manaseer, 2020. "Using Capital Budgeting Techniques In Rationalizing Capital Expenditure Decisions In Jordanian Industrial Public Shareholding Companies," Economics and Management, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 17(2), pages 40-60.
    • Handle: RePEc:neo:journl:v:17:y:2020:i:2:p:40-60
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    More about this item

    Keywords

    capital budgeting techniques; capital expenditure decisions; industrial companies; emerging market;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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