Open AccessA Longitudinal Comparison Of Capital Budgeting Techniques Used By Major U.S. Firms: 1986 Versus 1976
Author(s) -
Lawrence J. Gitman,
Charles E. Maxwell
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.v3i3.6514
Subject(s) - capital budgeting , sophistication , capital (architecture) , economics , accounting , capital expenditure , cost of capital , business , finance , microeconomics , sociology , social science , profit (economics) , history , archaeology , project appraisal
Capital budgeting is one of the most important areas of financial decision-making. This research article reports the results of a survey of capital budgeting techniques and compares them with techniques reported in earlier studies. The research seeks to determine what changes may have occurred over the past 10 years and how well current teaching compares with current practice. The findings of the study indicates changes have occurred in three major areas, (1) preferences with respect to capital budgeting techniques, (2) basic types of firms in the economy, and (3) perceived levels of sophistication in capital budgeting over the past ten years. The results of the study suggest opportunities exist for further improving the capital budgeting process.