IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v9y1979i3p100-102.html
   My bibliography  Save this article

A Critique of Capital Budgeting Questionnaires

Author

Listed:
  • Allen Rappaport

    (College of Business Administration, Wichita State University, Wichita, KS 67208)

Abstract

Rosenblatt and Jucker, in a paper published in this Journal [Rosenblatt, M. J., J. V. Jucker. 1979. Capital expenditure decision-making: Some tools and trends. Interfaces 9 (2).], report an “encouraging” and “unmistakable” trend of increased adoption of discounting techniques that is regarded as “significant” and “in the right direction.” The basis for their conclusion is a review of 13 studies and surveys published from 1966 through 1975. Unfortunately, a number of the studies mentioned have serious design deficiencies which result in overstating the proportion of firms using discounting techniques and the relative importance in the capital budgeting process.To illustrate the kinds of problems that abound throughout published capital budgeting surveys, four of the surveys cited by Rosenblatt and Jucker were examined. Five surveys, not cited by Rosenblatt and Jucker, were examined with generally the same consistent pattern of deficiencies as those jointly on their list of citations and covered in this note.

Suggested Citation

  • Allen Rappaport, 1979. "A Critique of Capital Budgeting Questionnaires," Interfaces, INFORMS, vol. 9(3), pages 100-102, May.
    • Handle: RePEc:inm:orinte:v:9:y:1979:i:3:p:100-102
    DOI: 10.1287/inte.9.3.100
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.9.3.100
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.9.3.100?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. W. Jan Brzeski & Austin J. Jaffe & Stellan Lundstrom, 1993. "Institutional Real Estate Investment Practices: Swedish and United States Experiences," Journal of Real Estate Research, American Real Estate Society, vol. 8(3), pages 293-324.
    2. Mark Freeman & Garry Hobbes, 1991. "Costly Information, Informed Investors and the Use of Sophisticated Capital Budgeting Techniques," Working Paper Series 1, Finance Discipline Group, UTS Business School, University of Technology, Sydney.
    3. Segelod, Esbjorn, 1998. "A note on the survey of project evaluation techniques in major corporations," International Journal of Production Economics, Elsevier, vol. 54(2), pages 207-213, January.
    4. Siziba, Simiso & Hall, John Henry, 2021. "The evolution of the application of capital budgeting techniques in enterprises," Global Finance Journal, Elsevier, vol. 47(C).
    5. Petr Marek, 2007. "Notes about Study on History of Theoretical Approaches to Investment Decision [Poznámky ke studiu historie teoretických přístupů k investičnímu rozhodování]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2007(4), pages 23-29.
    6. Brien, Mairead O, 1997. "Payback: A gulf between managerial accounting and financial theory in practice -- A view from accountants and finance officers in Ireland," The International Journal of Accounting, Elsevier, vol. 32(2), pages 173-186.

    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:inm:orinte:v:9:y:1979:i:3:p:100-102. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.