S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
HUI Research HUI Working Papers, HUI Research

No 57:
What Determines the Use of Capital Budgeting Methods? Evidence from Swedish listed companies

Sven-Olov Daunfeldt () and Fredrik Hartwig

Abstract: The choice of capital budgeting methods used by companies listed on the Stockholm Stock Exchange (SSE) is examined using multivariate regression analysis on questionnaire data from 2005 and 2008. Both recommended and non-recommended methods are found to be commonly used, with large companies using capital budgeting methods more frequently than small firms. The choice of capital budgeting methods is also influenced by leverage, growth opportunities, dividend pay-out ratios, the choice of target debt ratio, the degree of management ownership, foreign sales, industry, and individual characteristics of the CEO. The total use of capital budgeting methods is lower in Swedish companies compared to U.S. and continental European companies.

Keywords: Investment decisions; project valuation; capital budgeting techniques; Swedish listed companies.; (follow links to similar papers)

JEL-Codes: G31; (follow links to similar papers)

37 pages, February 16, 2012

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

MediaBinaryLoader.axd?Med ... rchive_ForceDownload=true    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Helena Nilsson ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:huiwps:0057 This page was generated on 2016-03-01 15:50:11