RT info:eu-repo/semantics/article
T1 Capital budgeting practices in Spain
A1 Andrés Alonso, Pablo de
A1 Fuente Herrero, Gabriel de la
A1 San Martin, Pablo
K1 Empresas-Finanzas
K1 Corporate investment
K1 NPV
K1 Capital budgeting
K1 IRR
K1 payback
K1 real options
K1 survey
K1 CFO
AB This paper seeks to shed further light on the capital budgeting techniques used bySpanish companies. Our paper posits that the gap between theory and practice might be relatedto the nature of sources of value and to the efficiency of mechanisms aligning managerial andshareholder incentives, rather than to resource restrictions or model misinterpretation. Weanalyze data from a survey conducted in 2011, the final sample comprising 140 non-financialSpanish firms. Our findings show a behaviour pattern similar to that reported in prior researchfor firms in other countries. Particularly noteworthy is that payback appears to be the mostwidely used tool, while real options are used relatively little. Our results confirm that size andindustry are related to the frequency of use of certain capital budgeting techniques. Further, wefind that the relevance of growth opportunities and flexibility is an important factor explainingthe use of real options.
PB Elsevier
SN 2340-9436
YR 2015
FD 2015
LK http://uvadoc.uva.es/handle/10324/27518
UL http://uvadoc.uva.es/handle/10324/27518
LA eng
NO BRQ Business Research Quarterly, Enero 2015, vol. 18, n. 1 p. 37-56
NO Producción Científica
DS UVaDOC
RD 22-nov-2024