HUI Working Papers, HUI Research
What Determines the Use of Capital Budgeting Methods? Evidence from Swedish listed companies
() 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
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
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 ().
Design by Joachim Ekebom