Capital Budgeting Practices: A Survey of Croatian Firms

• Authors: Lidija Dedi , Silvije Orsag
• Languages of publication: EN

Abstracts

EN

This paper reports the results of a mail survey of capital budgeting practices among Croatian firms and compares the results with those from similar studies in the USA, UK, Sweden, and other European countries. It is based on a questionnaire sent to 200 firms selected from 400 of the best Croatian firms (special edition of Privredni vjesnik) and to 34 banks from a ranking of Croatian banks (special edition of Privredni vjesnik). The response rate was 25,21%. The goal of the empirical survey was to determine the present application of quantitative capital budgeting methods, cost of capital and cash flow estimation, risk analysis and application of a real options approach in capital budgeting practices in Croatian firms. This is the first empirical survey of Croatian capital budgeting practices that has been undertaken.

• Publisher: Sciendo
• Journal: South East European Journal of Economics and Business
• Year: 2007
• Volume: 2
• Issue: 1
• Pages: 59-67

Dates

published

2007-04-01

online

2008-03-04

Contributors

author

Lidija Dedi

• Faculty of Economics, University of Zagrebu, Kennedyev trg 6, 10000 Zagreb, Croatia

author

Silvije Orsag

• Faculty of Economics, University of Zagreb, Kennedyev trg 6, 10000 Zagreb, Croatia

References

• Drury, Colin and Mike Tayles UK Capital Budgeting Practices: Some Additional Survey Evidence, European Journal of Finance (2), (1996): 371-388.
• Farragher, Edward J., Robert T. Kleiman and Anandi P. Sahu Current Capital Investment Practices, Engineering Economist (44), 2, (1999): 137-150.
• Graham, John R. and Campbell R. Harvey, The Theory and Practice of Corporate Finance: Evidence from the Field, Journal of Financial Economics (60), 2-3, (2001): 187-243
• Lazaridis, Ioannis T. Capital Budgeting Practices: A Survey in the Firms in Cyprus, Journal of Small Business Management (42), 4, (2004): 427-433.
• Sandahl, Gert and Stefan Sjögren Capital Budgeting Methods among Sweden's Largest Groups of Companies. The State of the Art and Comparison with Earlier Studies, International Journal of production Economics (84), 1, (2003): 51-69.
• Shapiro, Alan C. Capital Budgeting and Investment Analysis, New Jersey: Prentice Hall, 2005. (1st ed.).

Identifiers

DOI

10.2478/v10033-007-0016-y