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Do Sophisticated Capital Budgeting Approaches Improve Investment Decision-Making Effectiveness ?
Richard Pike
Open publisher page 45 citations
Abstract
The paper examines changes in selected capital budgeting practices over eleven years in 100 large corporations and whether these changes improve Investment decision-making. Significant increases in the use of sophisticated techniques were found, together with a significant positive association between the application of these practices and managers' assessments of capital budgeting effectiveness. Reasons for these findings are discussed.