IDEAS home Printed from https://ideas.repec.org/a/abg/anprac/v16y2012i1912.html
   My bibliography  Save this article

Brazilian companies investment decisions concerning long-term assets: How do they adhere to the theoretical model?

Author

Listed:
  • Fábio Frezatti
  • Diógenes de Souza Bido
  • Ana Paula Capuano da Cruz
  • Marcelo Francini Girão Barroso
  • Maria José de Camargo Machado

Abstract

This study sought to determine how large Brazilian organizations treat long-term investments. The theoretical construct took into account literature from the fields of strategy and finance, both of which offer hypotheses that use methods and mechanisms in order to evaluate investments. Using an online questionnaire, a survey including 82 companies was developed. Utilizing structural equation modeling, partial adherence to the theoretical model was found. It was found that the mechanisms of investment analysis are positively associated with concern about the perceived risk analysis. In addition, it was discovered that projects approved through strategic planning have relatively more structured monitoring; and also that a greater need for defining funding and opportunity costs is positively associated with a projects inclusion in strategic planning.

Suggested Citation

  • Fábio Frezatti & Diógenes de Souza Bido & Ana Paula Capuano da Cruz & Marcelo Francini Girão Barroso & Maria José de Camargo Machado, 2012. "Brazilian companies investment decisions concerning long-term assets: How do they adhere to the theoretical model?," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 16(1), pages 01-22.
    • Handle: RePEc:abg:anprac:v:16:y:2012:i:1:912
    as

    Download full text from publisher

    File URL: https://rac.anpad.org.br/index.php/rac/article/view/912/909
    Download Restriction: no
    File URL: https://rac.anpad.org.br/index.php/rac/article/download/912/909
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:abg:anprac:v:16:y:2012:i:1:912. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Information Technology of ANPAD (email available below). General contact details of provider: http://anpad.org.br .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.