Open AccessFinancial Criteria, Capital Budgeting Techniques, And Risk Analysis Of Manufacturing Firms
Author(s) -
Patricia Chadwell-Hatfield,
Bernard Goitein,
Philip A. Horvath,
Allen L. Webster
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v13i1.5775
Subject(s) - capital budgeting , variance (accounting) , sample (material) , capital (architecture) , business , finance , economics , accounting , actuarial science , chemistry , archaeology , chromatography , project appraisal , history
This study examines the impact that capital budgeting considerations has on the average values of various performance measures for a sample of 118 U.S. manufacturing firms. This study also examines whether the variance of performance measures are affected by differing capital budgeting considerations. Results are analyzed with non-paramentric tests for mean and variance differences. The results of this study provide mixed support for conventional financial theory and a sound basis for further investigation into current capital budgeting practices.