Trends in application of capital budgeting methods for investment projects evaluation
We present results of an analysis and comparison of 46 studies (54 economic surveys) on capital budgeting methods for investment projects evaluation with emphasis on trends in application from 70s till present. We focus on three methods: net present value method, internal rate of return and payback period for purpose of confirmation/rejecting of a proposition that there exists a "gap" between theoretical recommendations and practice of financial managers in investment projects evaluation. We came to the conclusion of the existence of disproportionate perception between theoretical recommendations and practical application of selected methods. The conclusion confirmed the necessity of the discussion between scientists and financial managers in issue of the investment project evaluation.
Volume (Year): 2009 (2009)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: |
Phone: (02) 24 09 51 11
Fax: (02) 24 22 06 57
Web page: http://www.vse.cz/
More information through EDIRC
|Order Information:|| Postal: Redakce Ekonomika a management, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3|
Web: http://www.vse.cz/eam/ Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Giang Truong & Graham Partington & Maurice Peat, 2008. "Cost-of-Capital Estimation and Capital-Budgeting Practice in Australia," Australian Journal of Management, Australian School of Business, vol. 33(1), pages 95-121, June.
- Dedi Lidija & Orsag Silvije, 2007. "Capital Budgeting Practices: A Survey of Croatian Firms," South East European Journal of Economics and Business, De Gruyter Open, vol. 2(1), pages 59-67, April.
- Brounen, D. & de Jong, A. & Koedijk, C.G., 2004. "Corporate Finance In Europe Confronting Theory With Practice," ERIM Report Series Research in Management ERS-2004-002-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Sandahl, Gert & Sjogren, Stefan, 2003. "Capital budgeting methods among Sweden's largest groups of companies. The state of the art and a comparison with earlier studies," International Journal of Production Economics, Elsevier, vol. 84(1), pages 51-69, April.
- Dirk Brounen & Abe de Jong & Kees Koedijk, 2004. "Corporate Finance in Europe: Confronting Theory with Practice," Financial Management, Financial Management Association, vol. 33(4), Winter.
- Graham, John R. & Harvey, Campbell R., 2001. "The theory and practice of corporate finance: evidence from the field," Journal of Financial Economics, Elsevier, vol. 60(2-3), pages 187-243, May.
- Smid, P. & Yao, L. & Hermes, N., 2006.
"Capital Budgetting Practices: A comparative Study of the Netherlands and China,"
06E02, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Hermes, Niels & Smid, Peter & Yao, Lu, 2007. "Capital budgeting practices: A comparative study of the Netherlands and China," International Business Review, Elsevier, vol. 16(5), pages 630-654, October.
- Petry, Glenn H. & Sprow, James, 1993. "The theory and practice of finance in the 1990s," The Quarterly Review of Economics and Finance, Elsevier, vol. 33(4), pages 359-381.
- Stanley, Marjorie T & Block, Stanley B, 1984. "A Survey of Multinational Capital Budgeting," The Financial Review, Eastern Finance Association, vol. 19(1), pages 36-54, March.
- Schall, Lawrence D & Sundem, Gary L & Geijsbeek, William R, Jr, 1978. "Survey and Analysis of Capital Budgeting Methods," Journal of Finance, American Finance Association, vol. 33(1), pages 281-87, March.
- Marie E Wicks Kelly & George C Philippatos, 1982. "Comparative Analysis of the Foreign Investment Evaluation Practices by U.S.-Based Manufacturing Multinational Companies," Journal of International Business Studies, Palgrave Macmillan, vol. 13(3), pages 19-42, September.
- Klammer, Thomas, 1972. "Empirical Evidence of the Adoption of Sophisticated Capital Budgeting Techniques," The Journal of Business, University of Chicago Press, vol. 45(3), pages 387-97, July.
When requesting a correction, please mention this item's handle: RePEc:prg:jnleam:v:2009:y:2009:i:1:id:59. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vaclav Subrta)
If references are entirely missing, you can add them using this form.