Literature regarding the effects of financial reporting practices firstly on the cost of equity capital we then summarize literature concerning the effect of financial reporting practices on investment decisions as documented in the literature. Literature review this chapter reviews available literature to document the state-of-the-art and state-of-the-practice implementation efforts in asset management and data collection the chapter covers general background on asset management, decision levels supported, required information, data collection, management and storage methods, and. A survey of the factors influencing investment decisions: the case of individual investors at the nse ambrose jagongo phd investment decisions are made by investors and investment managers investors commonly perform investment 20 literature review. 93 chapter 3 : literature review in capital budgeting studies 31 introduction: a number of researchers in finance and accounting have examined corporate capital budgeting practices many of these articles survey corporate managers and report the.
Capital structure and ownership structure: a review of literature by (jensen, 1989) this paper is review of literature on the various theories related to capital structure and ownership structure of firms value and corporate performance of firms investment decisions bankruptcy costs refer to. The relationship between capital budgeting techniques and financial performance of companies listed at the nairobi securities exchange by irungu esther nyambura. Investment decisions” has made a survey of literatures on the effects of behavioural biases on capital budgeting as per the study, a large body of psychology literature finds that people tend to be.
A literature review of corporate governance defines corporate governance as “allocation of ownership, capital structure, managerial incentive schemes, takeovers, board of directors, pressure from institutional investors, product market “governance determines how the firm’s top decision makers (executives) actually administer such. Psychological biases and the capital structure decisions: a literature review 125 rationality in particular, bf draws on the psychology and cognitive science. This literature review is a collection of current academic articles, books, and reports, representing both qualitative and quantitative in approach centered around topics related to responsible investment. Chapter 2 literature review 21 introduction this chapter critically reviews the existing literature in some areas of business that the two main decisions ﬁnancial managers make are investment decisions (capital budgeting or investment appraisal) and ﬁnancing decisions.
Review of literature barents group llc (1997) studied that india‟s household savings and foreign investors are key sources of this capital and can and will be increasingly attracted to more efficient, safe and transparent market. Literature review of the economic literature review of the economic effects of corporation tax – economic impact assessment of ireland [s orporation tax policy page | 5 2 capital investment and corporation tax tax rate, depreciation, capital investment incentives and sources of finance in changing the user cost of capital to the firm. Investment decision-making assumes that the strategic decision-making of corporate planners can not be de- inventory, labor, venture capital, advertising, legal, hysteretic effect and corporate behav-ior, environmental development and protection we have real options literature review.
Capital budgeting was born to address a novel problem: how to measure the value of capital and choose the right investments in other words, how to employ capital so as to maximize its value. According to els (2010, decisions in long-lived assets (van horne and p 151) the present value of future cash flow is wachowicz p 304) investment in long-term capital calculated today against the initial outlay and if assets needs handsome capital and if you wish to the present value future incoming money is un-do, it is irreversible. “capital investment decisions are those decisions that involve current outlay in return for a stream of benefit in future years” (drury, 2006) tobin’s q “tobin’s q is a measure of investors’ expectations concerning a firm’s future profit potential. Capital investment appraisal literature is based on the assumption that the objective of a firm’s manager is to maximize firm value, that is, the wealth of its shareholders therefore, capital investment appraisal and cost. Literature review a strategic approach to target capital investment on facility assets: literature review jorge l rincon,1 sarel lavy,2 josel fernandez-solis1 1texas a&m university 2texas a&m university, texas a&m university department of construction science, 3137 tamu, college station, tx 77843-3137, united states.
Chapter 2 : literature review 21 definition of mergers and acquisitions with the purpose to diversify capital investment hence diversifying risk, and also to achieve scale of economies 6 process theory – it views mergers as strategic decisions not as comprehensive rational choices but as outcomes of processes influenced by decision. Literature review for capital budgeting are there any similarities between a firm’s capital budgeting decisions and an individual’s investment decisions capital budgeting is the process of analyzing potential additions to fixed assets. Seeks to review the literature concerning property investment decision making in general and for reits in particular to identify whether the process is contended to be sequential and, if so, the nature and extent of the sequence. This is reason which gives importance to capital investment decision because the creation of shareholders wealth is the aim of an organization due to these reasons, it is important to investigate the capital literature review the process of acquiring a long term venture or to build a new plant for business is called capital budgeting.
Literature review 171 chapter – 4 literature review sr no content page no 41 introduction 172 liquidity and capital appreciation in order of importance newspapers and magazines shanmugham (1990) examined the factors affecting investment decision and found that the investors are high risk takers the investors possessed adequate. Making capital investment decisions chapter 9 making capital investment decisions solutions to questions and problems 1 the $7 million acquisition cost of the land six years ago is a sunk cost the $98 million current aftertax value of the land is an opportunity cost if the land is used rather than sold off. Investment decisions due to the distribution of the firm's internal resources among shareholders and reduced literature review studies of miller and modigliani (1961), showed that in a capital market, dividend policy is irrelevant to firm value according to this hypothesis, dividend changes play an important role in information.