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Article: The Association Between the Use of Sophisticated Capital Budgeting Practices and Corporate Performance.(Statistical Data Included)
- Article from:
- Engineering Economist
- Article date:
- December 22, 2001
- Author:
CopyrightCOPYRIGHT 2001 Institute of Industrial Engineers, Inc. (IIE). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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ABSTRACT
Since the early l950s, the academic community has tried to convince corporate managers that there are sophisticated techniques that can improve the capital budgeting decision-making process. Over the years, many studies have documented a trend toward increasing business use of such sophisticated capital budgeting techniques. However, there is no clear evidence whether better performing companies are more likely to employ sophisticated capital budgeting processes than are lower performing companies.
This study is an attempt to measure the relationship between capital budgeting sophistication and business performance. It advances upon earlier ...