IDEAS home Printed from https://ideas.repec.org/a/rnd/arimbr/v7y2015i1id407.html

Capital Budgeting Practice of Thai Firms

Author

Listed:
  • Kereboon Champathed
  • Chuvej Chansa-ngavej

Abstract

This paper examines the capital budgeting practice of Thai firms and the relationships between capital budgeting techniques and the firm size, length of operation and type of firms. The results indicated that most Thai firms used capital budgeting techniques for the analysis of investment projects (74.1%) and more than half (51.7%) of total corporate capital investment expenditures were screened by capital budgeting techniques. Discounted-cash-flow techniques were used by the majority of the firms with Internal Rate of Return (IRR) the most used evaluate techniques. Moreover, risk is quantified on individual project basis in assessing risk in investment decisions. Shortening the desired payback period was used most among the risk analysis techniques and the most likely scenario received most attention in the financial justification in relation to risk.

Suggested Citation

  • Kereboon Champathed & Chuvej Chansa-ngavej, 2015. "Capital Budgeting Practice of Thai Firms," Information Management and Business Review, AMH International, vol. 7(1), pages 59-66, February.
    • Handle: RePEc:rnd:arimbr:v:7:y:2015:i:1:id:407
    DOI: 10.22610/imbr.v7i1.1139
    as

    Download full text from publisher

    File URL: https://amhinternational.com/imbr/article/view/407-capital-budgeting-practice-of-thai-firms
    File Function: Abstract page
    Download Restriction: no
    File URL: https://amhinternational.com/imbr/article/download/407-capital-budgeting-practice-of-thai-firms/d6ba531f-6e2b-48e7-9658-fe8db238fb2a
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.22610/imbr.v7i1.1139?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
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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:rnd:arimbr:v:7:y:2015:i:1:id:407. 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: AMH International (email available below). General contact details of provider: https://amhinternational.com/imbr .

    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.