CAPITAL INVESTMENT APPRAISAL TECHNIQUES: A SURVEY OF CURRENT USAGE

Alan Sangster*

*Corresponding author for this work

Research output: Contribution to journalArticle

77 Citations (Scopus)

Abstract

This paper seeks to show that organisational change, fuelled by the expansion of information technology, may have contributed to the erosion of the previously established relationship between company size and the quantitative investment appraisal criteria selected. It finds that companies are using more methods together, that usage of the more sophisticated discounted cash flow techniques is higher, and that usage of the less theoretically sound accounting rate of return technique is lower, than previous studies would have suggested for companies of the size involved. It suggests that the size/method selection relationship may only be identifiable when the companies involved are all part of one study, or the studies compared are contemporaneous.

Original languageEnglish
Pages (from-to)307-332
Number of pages26
JournalJournal of business finance & accounting
Volume20
Issue number3
DOIs
Publication statusPublished - 1 Jan 1993

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