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Kengatharan, Lingesiya. "Capital Budgeting Theory and Practice: A review and agenda for future research." American Journal of Economics and Business Management 1, no. 1 (February 2, 2018): 20–53. http://dx.doi.org/10.31150/ajebm.v1i1.5.
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The main purpose of this research was to delineate unearth lacunae in the extant capital budgeting theory and practice during the last two decades and ipso facto become springboard for future scholarships. It has analyses of various approaches, such as Web of science search and iCat search were used to locate research papers published during the last twenty years. Four criteria have been applied in selection of research papers: be an empirical study, published in English language, appeared in peer reviewed journal and full text research papers. These papers were collected from multiple databases including OneFile (GALE), SciVerse ScienceDirect (Elsevier), Informa - Taylor & Francis (CrossRef), Wiley (CrossRef), Business (JSTOR), Arts & Sciences (JSTOR), Proquest ,MEDLINE (NLM), and Wiley Online Library. Search parameters covered capital budgeting, capital budgeting decision, capital budgeting theory, capital budgeting practices, capital budgeting methods, capital budgeting models, capital budgeting tools, capital budgeting techniques, capital budgeting process and investment decision. Thematic text analyses have been explored to analyses them.
Keywords: Capital budgeting theory and practices, capital budgeting tools for incorporating risk, discount rate
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Champathed, Kereboon. "Capital Budgeting Practice of Thai Firms." Information Management and Business Review 7, no. 1 (February 28, 2015): 59–66. http://dx.doi.org/10.22610/imbr.v7i1.1139.
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This paper examines the capital budgeting practice of Thai firms and the relationships between capital budgeting techniques and the firm size, length of operation and type of firms. The results indicated that most Thai firms used capital budgeting techniques for the analysis of investment projects (74.1%) and more than half (51.7%) of total corporate capital investment expenditures were screened by capital budgeting techniques. Discounted-cash-flow techniques were used by the majority of the firms with Internal Rate of Return (IRR) the most used evaluate techniques. Moreover, risk is quantified on individual project basis in assessing risk in investment decisions. Shortening the desired payback period was used most among the risk analysis techniques and the most likely scenario received most attention in the financial justification in relation to risk.
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AlKulaib, Yaser A., Sulaiman A. Al-Jassar, and Khalid Al-Saad. "Theory And Practice In Capital Budgeting: Evidence From Kuwait." Journal of Applied Business Research (JABR) 32, no. 4 (June 30, 2016): 1273–86. http://dx.doi.org/10.19030/jabr.v32i4.9736.
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Capital budgeting is an important tool in corporate finance, which is supported with numerous methods. Previous researches in this field shows that simple methods of capital budgeting are preferred over complex methods. With an objective to adopt relevant modification in the academic sector this paper evaluates the preferred capital budgeting practices in Kuwait, one of the strongest economy in the world, through a structured questionnaire distributed among 100 firms. The study also reveals the significance of demographic factors on real life capital budgeting practices as well as it probes in to the significance of the subjects; introductory finance, financial management and risk management. The results of the study are consistent with the previous researches in this field, that majority of the respondents use the NPV. Furthermore, age, educational qualification, managerial levels, years of experience, company size, among others all have significant effects on most capital budgeting methods.
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Ho, Simon, and Richard Pike. "Computer Decision Support for Capital Budgeting: Some Empirical Findings of Practice." Journal of Information Technology 11, no. 2 (June 1996): 119–28. http://dx.doi.org/10.1177/026839629601100203.
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While recent surveys suggest that capital budgeting systems in business organizations continue to become more formalized and sophisticated, a constraint on the use of sophisticated capital budgeting techniques seems to be the degree of support provided by firms’ capital budgeting information systems (CABIS). This paper, based on a survey of 146 large firms, outlines the current status of CABIS and their usage pattern. It was found that although two-thirds of sample firms have specific computer application systems for capital budgeting, most CABIS are relatively unsophisticated and less than adequate in providing the information and decision support capabilities required to use sophisticated capital budgeting techniques effectively. In particular, the barrier and problems encountered in the use of probabilistic risk analysis were explored. Implications of these findings are discussed.
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Mukherjee, Tarun K., and Glenn V. Henderson. "The Capital Budgeting Process: Theory and Practice." Interfaces 17, no. 2 (April 1987): 78–90. http://dx.doi.org/10.1287/inte.17.2.78.
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Michelon, Paula de Souza, Rogério João Lunkes, and Antonio Cezar Bornia. "Use of capital budgeting practices: an integrative review." Enfoque: Reflexão Contábil 40, no. 3 (September 16, 2021): 139–57. http://dx.doi.org/10.4025/enfoque.v40i3.48838.
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This article aimed to highlight the relationships between these characteristics and the use ofcapital budgeting practices. For the selection of articles published on “capital budgeting” it wasused the Proknow-C tool. It was found that the theory-practice gap is both related with the organizationaland managerial characteristics from the practical point of view, but requires a reviewby academicians. Organizations should seek professionals with experience in capital projectsappraisal and who are familiar with and knowledgeable in the use of adequate practices for decision-making. This research contributes by indicating the research gaps that need to be explored by researchers and by trying to identify the difficulties found by managers that interfere in the capital budgeting results.
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Truong, Giang, Graham Partington, and Maurice Peat. "Cost-of-Capital Estimation and Capital-Budgeting Practice in Australia." Australian Journal of Management 33, no. 1 (June 2008): 95–121. http://dx.doi.org/10.1177/031289620803300106.
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Barjaktarović, Lidija, Renata Pindžo, and Snežana Konjikušić. "How the type of ownership affects capital budgeting practice in the Serbian agribusiness industry?" Ekonomika poljoprivrede 67, no. 4 (2020): 1141–54. http://dx.doi.org/10.5937/ekopolj2004141b.
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The subject of the research is capital budgeting practices in Serbian agribusiness companies. The research aim is to determine whether there are differences in decision-making regarding capital budgeting depending on the ownership structure in those industries. The research was conducted in the first half of 2019, on a sample of 76 companies (from 122 targeted/i.e. 62.33% respondent rate) operating in the Republic of Serbia. Descriptive statistics and the Kruskal-Wallis test were used in the data analysis. IBM SPSS 20.0 statistical package was used for data processing. Research results confirmed that capital budgeting practices in the Serbian agribusiness companies can be considered as developed. Furthermore, there is a difference in the capital budgeting practices in the Republic of Serbia depending on the ownership of the analyzed sampled companies.
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Gitman, Lawrence J., and Charles E. Maxwell. "A Longitudinal Comparison Of Capital Budgeting Techniques Used By Major U.S. Firms: 1986 Versus 1976." Journal of Applied Business Research (JABR) 3, no. 3 (October 31, 2011): 41. http://dx.doi.org/10.19030/jabr.v3i3.6514.
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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.
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Rossi, Matteo. "Capital budgeting in Europe: confronting theory with practice." International Journal of Managerial and Financial Accounting 6, no. 4 (2014): 341. http://dx.doi.org/10.1504/ijmfa.2014.066403.
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Musah, Alhassan, Erasmus Dodzi Gakpetor, and Portia Pomaa. "Financial Management Practices, Firm Growth and Profitability of Small and Medium Scale Enterprises (SMEs)." Information Management and Business Review 10, no. 3 (October 13, 2018): 25–37. http://dx.doi.org/10.22610/imbr.v10i3.2461.
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The study examined financial management practices using four components: working capital management practices, capital structure management, accounting information and financial reporting practice, and the use of capital budgeting techniques and fixed assets management. Performance of SMEs was examined from the context of profitability measured by Return on Assets and of growth. The study sampled 100 SMEs from Accra with data collected through the administration of a questionnaire. Data were analysed using descriptive statistics and Pearson correlation analysis. The results of the descriptive statistics revealed that working capital management practices had the highest mean score, followed by accounting information and financial reporting practices, capital structure management and finally, the use of capital budgeting techniques and fixed assets management, in that order. The Pearson correlation analysis showed a positive association between the four components of financial management practices and between SMEs profitability and growth. The results emphasize the need for SMEs to improve on their financial management practice to improve the profitability and growth of these firms. It is recommended that the use of capital budgeting techniques be improved, as this area of financial management, even though it impacts positively on the performance of SMEs had the least score. Most importantly, the managers of SMEs should use discounted cash flow techniques to evaluate investment and projects before committing the resources of the company. SMEs are encouraged to adopt IFRS for SMEs to enhance their financial reporting practices. This will also improve their decision making and access to capital which will allow these SMEs to expand.
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Gordon, Stephen Aro. "Determinants of Sustainable Capital Budgeting Practice: A Structural Equation Modelling Approach." 13th GLOBAL CONFERENCE ON BUSINESS AND SOCIAL SCIENCES 13, no. 1 (June 16, 2022): 1. http://dx.doi.org/10.35609/gcbssproceeding.2022.1(52).
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Across the globe, capital budgeting – the planning process of appraising an organisation‟s long term investments for funding – plays a pivotal role in economic growth by providing the platform for mobilising long-term funds for economic development. Capital budgeting practice refers to the aggregate tools/techniques for strategic investment decisions under risk and uncertainty conditions (Desai, 2019; Hillier et al., 2021). It involves a large cash outlay, expecting a future stream of benefits/income/return. Existing research suggests that financial and non-financial considerations influence managers‟ choices of CBTs across nations (Batri & Verma, 2017). One of the significant concerns of Oman‟s Ninth five-year development plan 2016-2020 is its focus on achieving a private sector-driven economy enabled by public-private partnership (PPP) projects and related growth strategies that will drive non-hydrocarbon and more excellent employment opportunities for the Omani nationals. To this end, the manufacturing sector is at the centre of Oman‟s Top 7 Sectors comprising other critical industries, including Construction, Wholesale and Retail Trade, Agriculture and Forestry, Real Estate and Business Activities, Private households with Employed Persons, and Hotels & Restaurants (MoCI, 2014). However, there has been very little academic research on capital budgeting with a focus on the manufacturing industry of Oman. Keywords: Advanced capital budgeting techniques (ACBTs), Confirmatory factor analysis (CFA), Oman, Real options valuation (ROV), Structural equation modelling (SEM).
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Rubelj, Ante. "CAPITAL BUDGETING AND MANAGEMENT OF INVESTMENT PROCESSES." Tourism and hospitality management 12, no. 1 (May 2006): 137–48. http://dx.doi.org/10.20867/thm.12.1.12.
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The goal of our paper is to show how a firm should set its capital budget. Here we discuss how this is done in practice. We give particular attention to how capital budgeting is organized and to the administrative problems that inevitably crop up.
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Lin, Jason, Susan Pradhan, and Paul Fellows. "Capital Budgeting in Nepal and the US." Journal of Finance Issues 7, no. 1 (December 31, 2009): 18–26. http://dx.doi.org/10.58886/jfi.v7i1.2560.
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Capital budgeting is one of the most significant topics in corporate finance. Companies use capital budgeting to make investment decisions that add to the firm’s value. It is important that they make the right investments to define strategic direction and sustain both product market and capital market flexibility. Hence it is imperative that they use the right capital budgeting technique (“CBT”). CBTs have evolved over time and most companies in the US now use techniques that coincide with the recommendations of the literature, mainly discounted cash flow techniques (“DCF”). Although DCF techniques might be considered the preferred approach in principle, we will see that it is not always so in practice. In this article we study CBTs used in Nepal and find that they differ from the preferred approaches.
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(Wie) Yusuf, Juita-Elena, and Arwiphawee (Sai) Srithongrung. "Capital management: advancing theory and practice." Journal of Public Budgeting, Accounting & Financial Management 29, no. 2 (March 1, 2017): 182–208. http://dx.doi.org/10.1108/jpbafm-29-02-2017-b002.
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This article highlights key aspects of capital management, including capital planning, capital budgeting, capital financing, decision making and capital spending outcomes. We provide a background discussion of public sector capital management, followed by a summary of the articles that comprise this symposium. Combined, these articles illustrate the complexity of and challenges to capital management at the state and local government levels. We discuss common themes that emerge from reading these articles as a collective symposium, including: (1) modest progress in applying and empirically testing theoretical frameworks; (2) the variety of actors and institutions; and (3) the deteriorating condition and poor performance of public infrastructure. We use the articles to illustrate gaps in the research and offer suggestions for future research on capital management theory and practice.
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Mubashar, Afeera, and Yasir Bin Tariq. "Capital budgeting decision-making practices: evidence from Pakistan." Journal of Advances in Management Research 16, no. 2 (April 23, 2019): 142–67. http://dx.doi.org/10.1108/jamr-07-2018-0055.
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Purpose The purpose of this paper is to examine the current trends of capital budgeting practices (analysis techniques, discount rate estimations and risk assessment methods) among Pakistani listed firms and analyze the responses conditional on firms’ demographics and executive characteristics. Design/methodology/approach An online questionnaire was sent via e-mail to top 200 non-financial firms (in terms of market capitalization) listed on Pakistan Stock Exchange. Findings With a response rate of 35 percent, it is concluded that the theory–practice gap is low as Pakistani listed firms are using discounted cash flow methods of capital budgeting and preferring net present value over internal rate of return. Similarly, weighted average cost of capital is estimated using target value weights, and capital asset pricing model (with extra risk factors) is used to determine the cost of equity capital. For risk assessment, sensitivity analysis and scenario analysis are the dominant approaches; however despite the theoretical superiority, the use of real options is very low. Overall, investment decision responses significantly differ across firm’s demographics and executive characteristics. Practical implications Pakistani business schools need to address the low usage of advanced methods such as modified internal rate of return and real options among Pakistani listed firms. Originality/value This is the first comprehensive study on the topic in Pakistan and have highlighted the areas of capital budgeting where Pakistani firms’ practices deviates from finance theory.
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Lima, Afonso Carneiro, José Augusto Giesbrecht da Silveira, Fátima Regina Ney Matos, and André Moura Xavier. "A qualitative analysis of capital budgeting in cotton ginning plants." Qualitative Research in Accounting & Management 14, no. 3 (August 7, 2017): 210–29. http://dx.doi.org/10.1108/qram-07-2016-0055.
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Purpose To analyze capital budgeting practice in a group of small cotton ginning firms in Brazil. The study aims at describing how investment decision-making in the agribusiness context may be influenced by heuristics and by the business setting. Design/methodology/approach This research adopted an exploratory and qualitative approach in gauging the practice of capital budgeting in Brazilian cotton ginning firms and discussing actual managerial decision-making. Data collection involved interviews with managers of ten different firms and a further content analysis was performed. Findings Results reveal a practical managerial approach aimed at ensuring satisfactory net operating results in the short run. Sophistication in capital budgeting is not considered as essential, as institutional and strategic environment influences directly affect impose high risks. Investment decision-making is highly influenced by managerial experience. Research limitations/implications Because of the chosen research approach, results may lack generalizability. However, in addressing a specific sector in a specific location, one can identify and craft strategies in response to managerial needs more effectively. Practical implications The paper clarifies how heuristics, managerial experience and the institutional context may influence investment decision-making in cotton ginning operations. It also suggests how actions aimed at evaluating risk and improving the screening of investment perspectives could contribute to improve investment decisions. Originality/value The paper provides an in-depth perspective in addressing the practice of capital budgeting in the context of a specific activity and describing key issues related to it.
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Hatfield, Patty, Donna Hill, and Philip Horvath. "Capital Budgeting In Practice: Issues Not Addressed In Finance Texts." Journal of Business Case Studies (JBCS) 3, no. 2 (April 1, 2007): 79–86. http://dx.doi.org/10.19030/jbcs.v3i2.4845.
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Correia, C. "Capital budgeting practices in South Africa: A review." South African Journal of Business Management 43, no. 2 (June 29, 2012): 11–29. http://dx.doi.org/10.4102/sajbm.v43i2.180.
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This paper reviews the capital budgeting survey literature in South Africa over the period 1972 to 2008. The survey evidence indicates a significant growth in Discounted Cash Flow (DCF) methods and a fall in the use of other methods. In particular, there has been growth in the use of Net Present Value (NPV). Yet, the Internal Rate of Return (IRR) technique remains the primary method used in practice despite some serious drawbacks. Larger companies are more likely to use DCF methods. There has been a significant growth in the use of sensitivity analysis and scenario analysis. However, there is little use of sophisticated risk analysis tools such as Monte Carlo simulation, and decision trees. Although financial theory predicates the use of risk adjusted discount rates, surveys indicate that the majority of companies use a single firm discount rate. Companies have increasingly used inflation-adjusted cash flows but the process of ranking mutually exclusive projects is not aligned with finance theory. There is limited use of the Modified Internal Rate of Return (MIRR) method and DCF dominant companies do not outperform non-DCF dominant companies. The most important phase of project evaluation is the project definition and cash flow estimation phase and yet research studies have focused mainly on the financial analysis and project selection phase.
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Ho, Simon, and Richard Pike. "Computer decision support for capital budgeting: some empirical findings of practice." Journal of Information Technology 11, no. 2 (June 1996): 119–28. http://dx.doi.org/10.1080/026839696345333.
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Dennis Biober Alferos. "The effects of financial management practices to the growth of small and medium enterprises in Zambales, Philippines." Magna Scientia Advanced Research and Reviews 8, no. 2 (July 30, 2023): 036–45. http://dx.doi.org/10.30574/msarr.2023.8.2.0092.
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This study is to determine the effect of financial management practices to the growth of SMEs. The respondents are 50 SMEs and selected through convenience random sampling. Survey questionnaire was used in data gathering. The findings show that majority of the respondents were females with mean age of 36.9 years old, bachelor degree holder with mean years in business of 8.78 years. The respondents are highly practicing the working capital management practices but they moderately practicing the capital structure and investment decision practices. The respondents strongly agree on the growth of SMEs’ sales volume but only agree on the growth of profit and expansion. There is a significant difference on the working capital management practices according to the respondent’s highest educational attainment, capital structure practices according to the type of business, and investment decision practices according to the highest educational attainment and nature of business. Therefore, it is highly recommended that, SMEs may continually practice the management of their working capital. SMEs should outweigh the cost-benefit relationship in structuring their capital sources. SMEs should strengthen the practice of their investment decisions through capital budgeting and fund allocation into long-term assets. SMEs may do expansion through new products/services offering and to cover wide range of customers. Lastly, SMEs should practice continually the financial management to attain business’ success.
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Wulandari, Eka Lusvita, and Lily Rahmawati Harahap. "ANALISIS PENGANGGARAN MODAL PADA PT ULTRAJAYA MILK INDUSTRY Tbk. TAHUN 2013-2017." Jemasi: Jurnal Ekonomi Manajemen dan Akuntansi 14, no. 2 (December 31, 2018): 101–10. http://dx.doi.org/10.35449/jemasi.v14i2.11.
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Capital budgeting in practice is intended to conduct an investment analysis of some available investment alternatives, and then determine or choose the most profitable investment. Inappropriateness in determining investment options will result in losses of either real losses or losses due to loss of opportunity to gain an opportunity cost that can actually be realized. The investment analysis will select the available investment opportunities, so that investment can be selected that will provide the greatest benefit of every dollar invested. Capital budgeting techniques can be analyzed by appraisal method of investment as follows: Average Rate of Return, Payback Period , Net Present Value, and Profitability Index.
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Wulandari, Eka Lusvita, and Lily Rahmawati Harahap. "ANALISIS PENGANGGARAN MODAL PADA PT ULTRAJAYA MILK INDUSTRY Tbk. TAHUN 2013-2017." Jemasi: Jurnal Ekonomi Manajemen dan Akuntansi 14, no. 2 (December 31, 2018): 1–10. http://dx.doi.org/10.35449/jemasi.v14i2.30.
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Capital budgeting in practice is intended to conduct an investment analysis of some available investment alternatives, and then determine or choose the most profitable investment. Inappropriateness in determining investment options will result in losses of either real losses or losses due to loss of opportunity to gain an opportunity cost that can actually be realized. The investment analysis will select the available investment opportunities, so that investment can be selected that will provide the greatest benefit of every dollar invested. Capital budgeting techniques can be analyzed by appraisal method of investment as follows: Average Rate of Return, Payback Period , Net Present Value, and Profitability Index.
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Arnold, Glen C., and Panos D. Hatzopoulos. "The Theory-Practice Gap in Capital Budgeting: Evidence from the United Kingdom." Journal of Business Finance Accounting 27, no. 5&6 (June 2000): 603–26. http://dx.doi.org/10.1111/1468-5957.00327.
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Mittendorf, Brian. "Capital Budgeting when Managers Value both Honesty and Perquisites." Journal of Management Accounting Research 18, no. 1 (January 1, 2006): 77–95. http://dx.doi.org/10.2308/jmar.2006.18.1.77.
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It has long been recognized that padding of budgets is a concern that can complicate the practice of resource allocation. At the same time, experimental evidence suggests budget padding is somewhat restrained by a managerial preference for honesty. This paper models the confluence of these two incentives and considers the effect on optimal budgeting policies. In the model, budgetary transfers are established so as to reduce the manager's gain from padding which, in turn, forces the manager to think twice before seeking more funds. An effect of this optimal contract is that when facing a manager whose preference for honesty is uncertain, the firm encourages honesty but is resigned to the fact that padding may appear. Contrary to casual intuition, the extent of equilibrium budget padding is not necessarily monotonic in either the extent of information asymmetry or the prevalence of managers who value honesty.
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Bennouna, Karim, Geoffrey G. Meredith, and Teresa Marchant. "Improved capital budgeting decision making: evidence from Canada." Management Decision 48, no. 2 (March 9, 2010): 225–47. http://dx.doi.org/10.1108/00251741011022590.
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PurposeThe purpose of this article is to evaluate current techniques in capital budget decision making in Canada, including real options, and to integrate the results with similar previous studies.Design/methodology/approachA mail survey was conducted, which included 88 large firms in Canada.FindingsTrends towards sophisticated techniques have continued; however, even in large firms, 17 percent did not use discounted cash flow (DCF). Of those which did, the majority favoured net present value (NPV) and internal rate of return (IRR). Overall between one in ten to one in three were not correctly applying certain aspects of DCF. Only 8 percent used real options.Research limitations/implicationsOne limitation is that the survey does not indicate why managers continue using less advanced capital budgeting decision techniques. A second is that choice of population may bias results to large firms in Canada.Practical implicationsThe main area for management focus is real options. Other areas for improvement are administrative procedures, using the weighted average cost of capital (WACC), adjusting the WACC for different projects or divisions, employing target or market values for weights, and not including interest expenses in project cash flows. A small proportion of managers also need to start using DCF.Originality/valueThe evaluation shows there still remains a theory‐practice gap in the detailed elements of DCF capital budgeting decision techniques, and in real options. Further, it is valuable to take stock of a concept that has been developed over a number of years. What this paper offers is a fine‐grained analysis of investment decision making, a synthesis and integration of several studies on DCF where new comparisons are made, advice to managers and thus opportunities to improve investment decision making.
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Mkasiwa, Tausi Ally. "Budgetary practices in a Tanzanian University: Bourdieu's theory." Journal of Public Budgeting, Accounting & Financial Management 32, no. 3 (May 14, 2020): 399–420. http://dx.doi.org/10.1108/jpbafm-08-2019-0119.
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PurposeThis paper explores budgetary practices in a Tanzanian university after decentralization.MethodologyData were collected through interviews, document analysis, and observation. Moreover, Bourdieu's theory was used in open and axial coding procedures for data analysis.FindingsThe findings show that decentralized budgeting was a disillusionment. Administrators failed to transfer financial authority to resource recipients. Budgetary practices were shaped by the social structure/budget cycle (field), resources possessed by budgetary actors (capital) and the sincerity patterns of actors in budgetary practices (habitus). Most resource recipients had insincerity in budgeting habitus deploying subversive strategy, while the minority had sincerity in budgeting habitus, deploying submissive strategy. On the other hand, administrators had sincerity and insincerity in budgeting habitus, deploying conservative strategy.Practical implicationsIn order to enhance effective decentralization, resource recipients should be provided with adequate financial resources and budgeting skills. Furthermore, they should be trusted and recognized. Moreover, in order to shape budgeting strategies and practices towards achieving organizational objectives, managements should identify and work on internal, external and technical budgetary constraints. In addition, they should promote sincerity in budgeting habitus as habitus can be created, altered, and reproduced through knowledge.Originality/ValueThis is the first paper to investigate budgetary practices in a university setting, employing all Bourdieu's six theoretical concepts. It contributes to Bourdieu's theory by introducing a submissive strategy. In addition, it introduces “episteme” concept as the opposite of “doxa.” Moreover, the paper responds to the call by Deering and Sá (2018) to investigate what guides budgetary practices in a university setting. The paper has also demonstrated the role of approval organs and subordinates which were neglected in prior studies. It proposes a theory of budgetary practice in a University setting when budgeting is decentralized. It thus responds to the call to investigate and theorize the role of actors in calculative practices (such as budgeting) in a University setting (Argento et al., 2020; Aleksandrov, 2020; Grossi et al., 2020; Ozdil and Hoque, 2017).
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Subedi, Santosh. "Management Accounting Practices in Cooperatives in Nepal." JMC Research Journal 11, no. 1 (December 31, 2022): 1–13. http://dx.doi.org/10.3126/jmcrj.v11i1.59230.
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The present research was carried out on management accounting practices in cooperatives in Narayangarh city with the aim to examine the practices of management accounting in cooperatives. The study is based on mainly primary data which were gathered through direct interviews, questionnaires, and focus group discussions. Only eight cooperatives were chosen as samples for the research study using the judgmental method. The research was analyzed with inferential analysis including simple percentages and chi-square test. The research found out the practice of management accounting like capital budgeting, ratio analysis, activity-based budgeting, and break-even analysis is mostly used in cooperatives. Likewise, segregation of cost, cash flow statement analysis, zero-based budgeting, pricing decisions, and responsibility accounting are the least in practice in Nepalese cooperatives. The cause of non-practicing standard costing is not applicable to service industries like the financial sector. In Nepalese cooperatives, hiring an expert from outside to carry out different managerial activities is almost nil. It is concluded that Nepalese Cooperatives are in the initial state with respect to the application of modern managerial accounting tools and yet they are trying to adopt such tools and techniques more and more to cope with the future expected opportunities and challenges to face due to the globalization effect.
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Beaulieu, Philip R. "Contract-Based Cost Analytics." Journal of Emerging Technologies in Accounting 17, no. 1 (January 1, 2020): 11–19. http://dx.doi.org/10.2308/jeta-52718.
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ABSTRACT Big data analytics are changing product costing practice in its decision-facilitating role, and have made arbitrary overhead allocation unnecessary. Contracts-to-system applications, which extract cost data directly from contracts without resorting to conventional cost accounting, are key components of emerging practice, and are currently offered by all Big 4 accounting firms to audit and consulting clients. I call this practice contract-based cost analytics (CBCA) and illustrate it with a special order decision scenario. Benefits of CBCA are reductions in cost estimation assumptions, timeliness, intuitive appeal to non-accountants, improved access to unstructured data, improved negotiations regarding cost and sales, outsource-based budgeting, and support for capital budgeting decisions (in addition to short-term scenarios). The biggest obstacle to CBCA is accountants' familiarity with linear cost behavior assumptions.
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Kielanowicz, Żaneta, Joanna Piłacik, and Tomasz Wnuk-Pel. "Capital budgeting methods - The practices of Polish companies listed on the Warsaw Stock Exchange." Humanities & Social Sciences Reviews 10, no. 6 (December 25, 2022): 37–44. http://dx.doi.org/10.18510/hssr.2022.1066.
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Purpose of the study: In this study, the authors analyzed of the use of capital budgeting methods (CBM) by Polish companies listed on the Warsaw Stock Exchange (WSE). The study's main objective was to investigate the practice of capital budgeting in companies operating in Poland and listed on the WSE, especially to analyze the dispersion of capital budgeting methods and the factors influencing their selection.
Methodology: For achieve the research objectives, a survey method was chosen. The authors received 34 correctly completed questionnaires (from 252, the return rate was 13.5. Descriptive statistics and multiple regression analysis with the use of Statistica were used in the study.
Main Findings: The survey indicated that CBMs are relatively frequently applied in particular; IRR was used (often or always) by 64.7 per cent of companies and NPV by 60.6 per cent of companies. The analysis of company characteristics shows that the use of CBM is influenced by the origin of equity, managerial ownership, employment, and foreign sales (all independent variables are statistically significant).
Applications of the study: The authors believe that the study's results will be of interest to researchers in other countries and will fill a gap in the management accounting literature. The study's results may also be useful from a practical point of view.
Novelty/Originality of the study: The survey shows a large sample of companies, what CBMs are used by Polish companies and how often they are used. A broader set of explanatory variables was also used, which allows for a comprehensive description of campaign practices and makes it possible to analyze whether and which companies' practices are consistent with previous studies.
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Hatfield, Patricia, Donna Hill, and Philip Horvath. "Industrial Buying And The Divergence Of Capital Budgeting Theory And Practice: An Exploration." Journal of Applied Business Research (JABR) 15, no. 1 (August 31, 2011): 37. http://dx.doi.org/10.19030/jabr.v15i1.5688.
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<span>This exploratory paper suggests that a stage-gate industrial buying model may provide an explanation for the divergence of capital budgeting theory and practice. Not surprisingly, we find that qualitative and quantitative characteristics of projects are perceived to vary in complexity. More importantly, our results indicate that these characteristics vary in importance as they proceed to each subsequent stage, and that the idea of selling projects at each subsequent stage by packaging the projects; emphasizing those aspects deemed important or of appropriate complexity and de-emphasizing others. We relate these results to current theory and practice and suggest further investigation.</span>
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Rodrigs, Marcus, and Mushtaq Kamil. "Planning and controlling of intellectual capital: The role of beyond budgeting." Corporate Ownership and Control 18, no. 1, Special Issue (2020): 331–45. http://dx.doi.org/10.22495/cocv18i1siart8.
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The purpose of this study is to explore whether the adoption of Beyond Budgeting (BB) as a management accounting practice (MAP) contributes to developing intellectual capital (IC) and creating value in Iraqi companies. This requires an understanding of the views of the Iraqi managers about the nature of the information provided by this practice, which may be used to determine whether this information is relevant in the management of IC in the context of Iraq. This research aims also to explore the challenges of the adoption of the BB in planning and controlling IC in Iraq. The study adopts a qualitative approach and an interpretive paradigm. It also adopts a semi-structured interview method of collecting data from executive managers and management accountants of 20 companies in the four major economic sectors in Iraq. Of the sampled participants, 90% support the adoption of the philosophy of BB for planning and controlling of IC in their organisations. In addition, they confirm that the BB philosophy is based on new techniques that can eliminate the disadvantages of traditional budgeting. This study examines the contribution of the SM in supporting, establishing, and developing IC that is lacking in the literature. This study also examines the main problem that has not been studied in the Iraqi economy, which is whether the management and development IC will create new sources of value in Iraq instead of its dependence on oil as the main source of value for the country.
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Larionov, Arkadij N., Vyacheslav V. Solovev, and Alexander A. Morozov. "Development of a capital expenditure model in the context of construction digitalization." Vestnik MGSU, no. 1 (January 2023): 91–101. http://dx.doi.org/10.22227/1997-0935.2023.1.91-101.
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Introduction. The purpose of this research project is to study the development of construction digitalization methods and means. Substantial discrepancies between the state digitalization policy and the practice of mastering digital instruments in the course of construction and investment activities hinder the high-quality implementation of certain tasks. Of particular interest is the problem of calculating capital expenditures at various stages of implementation of an investment project.
Materials and methods. Methodological approaches to digitalization problems are based on the pricing subsystem extracted from the information model of a project. This subsystem is used to address the main pricing tasks pursued by the government authorities and construction industry contractors implementing their own digitalization options. Conflicting interests of different participants in construction and investment projects, as well as the variance in the informatisation strategy, implemented at the previous stages, substantially complicate the search for a solution that equally satisfies the state and the business community.
Results. The authors have identified the need to devise consistent state-level methodological approaches to developing information modelling architecture, taking into account the current practice of construction cost budgeting in the course of project management. Towards this end, the logical structure of the “Pricing” subsystem was developed using the information modelling technologies. Design companies, technical clients, project managers, and construction contractors must have equal rights to access and handle construction cost data.
Conclusions. The authors have found a discrepancy between state approaches to construction project budgeting and cost management practices at the stages of construction project implementation. No large-scale transition to information modelling is feasible without the adoption of unified methodological solutions in terms of cost calculations.
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Duggal, Rakesh, and Michael C. Budden. "Tax Code Change Impacts on the Practice of Corporate Finance." Research in Economics and Management 5, no. 3 (June 18, 2020): p21. http://dx.doi.org/10.22158/rem.v5n3p21.
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Public Law No. 115-97 (initially introduced in the house as the Tax Cuts and Jobs Act or TCJA) passed by Congress in 2017 has significantly revised the Internal Revenue Code of 1986. Since taxes play an important role in financial decision-making, the TCJA will impact decisions in many areas of corporate finance, including capital structure and capital budgeting. By using S&P 500 data, this paper attempts to broadly estimate these impacts. The lower corporate tax rate under the new law reduces the corporate incentive to borrow to benefit from the interest expense tax shield. The lower tax rate also reduces the depreciation tax shield and marginally raises the average cost of capital. However, an S&P 500 firm on average will receive an estimated $239 million per year in tax-related benefits, based on 2017 financial data. This annual benefit will decrease after five years as the 100% expensing of investments is gradually withdrawn after 2023.
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EVANS, DORLA A., and SHAWN M. FORBES. "DECISION MAKING AND DISPLAY METHODS: THE CASE OF PRESCRIPTION AND PRACTICE IN CAPITAL BUDGETING." Engineering Economist 39, no. 1 (January 1993): 87–92. http://dx.doi.org/10.1080/00137919308903114.
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Abbati de Assis, Camilla, Antonio Suarez, Jeffrey P. Prestemon, Jeffrey Stonebraker, Carlos Carrillo, Sudipta Dasmohapatra, Hasan Jameel, and Ronalds Gonzalez. "Risk analysis, practice, and considerations in capital budgeting: Evidence from the field for the bio-based industry." BioResources 16, no. 1 (November 4, 2020): 19–45. http://dx.doi.org/10.15376/biores.16.1.19-45.
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This study aims to examine how organizations in the bio-based industry perceive risks and perform risk analysis within the capital investment decision-making process. More specifically, this study aims to assess sources of uncertainty commonly considered, identify tools and methods used for risk assessment, and understand how risk analysis is considered in capital budgeting. Eighty-six respondents were electronically surveyed on practices for capital investment risk analysis, including C-suite and upper management from different organization sizes and segments in the bio-based industry. It was found that some forms of risk analysis are utilized either in project assessment and/or for decision making by most respondents; however, qualitative and deterministic assessment practices dominate over probabilistic methods. In addition, risk assessment is most commonly performed in the later stages of a project, with less than 50% of adoption at the earlier stages. Overall, the main sources of uncertainties considered when performing risk assessment are financial, market and sales, and technology, with competition being considered mostly by upper management levels. Additionally, consistent with previous studies in other industry sectors, Internal Rate of Return, Return on Investment, and Net Present Value are the preferred financial indicators used to evaluate capital investments.
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Wnuk-Pel, Tomasz. "The Practice and Factors Determining the Selection of Capital Budgeting Methods – Evidence from the Field." Procedia - Social and Behavioral Sciences 156 (November 2014): 612–16. http://dx.doi.org/10.1016/j.sbspro.2014.11.250.
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PYLYPENKO, О. "Accounting and Analytical Aspects of the Budgeting Organization at the Ukrainian Enterprises." Scientific Bulletin of the National Academy of Statistics, Accounting and Audit, no. 3-4 (December 31, 2022): 28–35. http://dx.doi.org/10.31767/nasoa.3-4-2022.03.
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The economic crisis in the management system causes the impossibility of economic growth and necessitates the study of opportunities to improve accounting and analytical support of budgeting to promote economic development of the Ukrainian enterprise. The aim of the study is to determine the areas of accounting and analytical support for the organization of budgeting in enterprises in modern business conditions, which are focused on the provisions of IFRS.
Taking into account the typical problems of the budgeting process at the present stage allowed to determine the need for further development of this management technology based on accounting. It is taken into account that in the practice of management of Ukrainian enterprises there is different experience in implementing the budgeting system and a set of practical problems that hinder its effectiveness. This allowed to determine the list of additional requirements for accounting and analytical support of budgeting, in particular through the introduction of clear regulations and adjustment of budgeting methods, because the readiness for unpredictable developments significantly affects the future of the enterprise. The need for proper accounting and analytical support of budgeting based on the formation of appropriate requirements for computerization of the accounting process, automatic generation of information on the results of budget reviews and changes in budgets, data on the feasibility of meeting short-term goals (profits) or long-term innovation objectives reporting with relevant analytical indicators for budgeting, formation of data on client and intellectual capital in the company’s reporting, organization of document flow and limited access to budget indicators and results of their implementation, choice of methods of analysis of budget execution and achieved indicators, proper distribution of responsibilities of accounting staff and analysts.
The formulated scheme of accounting and analytical support of budgeting on the basis of the accounting policy of the enterprise takes into account all the necessary elements of budgeting for analytical data processing and determination of budget indicators.
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Reina Gutiérrez, Walther, Jenny Moscoso Escobar, and Carolina Montoya González. "Adjustment by size effect on the cost of equity: Pending practice in capital budget in Colombia." Cuadernos de Administración 36, no. 67 (September 16, 2020): 126–42. http://dx.doi.org/10.25100/cdea.v36i67.7896.
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This research identifies and analyzes the implications of capital budgeting techniques implemented by large, medium and small companies, related to the use and calculation of the discount rate - emphasizing in the cost of equity, adjusting it with a size premium and the calculation method of the latter- differentiating between the procedure of family and non-family businesses and the types of projects. Additionally, the same procedure is used for the viability indicators of the projects given their relevance in capital budget. For this, a descriptive analysis accompanied by contingency tables is made to a group of 182 Colombian companies. The results show that (i) only 14% of SMEs that evaluate their projects (93) adjust the discount rate with a size premium, (ii) procedures to define capital budget are more informal in family companies, (iii) expansion and replacement projects are more evaluated by family businesses, while mergers and acquisitions are more evaluated by non-family businesses, and (iv) there is little transfer of knowledge from the academy to the company.
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Kujafwska, Agnueszka K., Grzefgorz Kowski, and Kove Koklevik. "Scale, Dynamics, and Constraints of Participatory Budgeting Cities." International Journal of Science and Society 1, no. 3 (December 18, 2019): 161–91. http://dx.doi.org/10.54783/ijsoc.v1i3.39.
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Participatory Budgeting (PB) is not Mittel für die Stadtwohner, but does not have direct access to them, as well as the Mittel's accessibility only, as well as any other postage. Specifically, it focuses on the scale, dynamics, and limitations of PB in all Polynesian cities with provincial capital status. First, literature on PB was synthesized. Second, documentary research has been mobilized to provide source material with empirically-based insights to promote understanding of PB practice in the chosen context. The results show great differences in financial terms, group and results of PB in Poland. There are no issues with Studying and Sachzwänge auf Entwicklung von PB can be found below: (1) Refer to the Rechtsgrundlage for PB in the Polish Rechtssystem; (2) Assessment of the transparency of the project selection process, including the lack of defining the assessment criteria object; and (3) too much influence from the authorities on the selection of the projects to be implemented. There are no more pictures of this book on the improvement of the functioning of the PB in Poland outlined.
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Leoni, Giulia. "Rudimentary capital budgeting for a utopian Italian colony in Australia: Accounting as an advocating device." Accounting History 26, no. 3 (March 30, 2021): 386–408. http://dx.doi.org/10.1177/1032373220981422.
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Accounting historiography has often paid attention to individuals for their pivotal roles in the development of accounting practice and thought; however, little is known about individuals using accounting outside the traditional professional domain. This study explores the use of accounting calculations by a non-professional accountant, the intellectual Melchiorre Peccenini, who advocated his utopian project of an Italian colony in Australia in a book published in Melbourne. By analysing his life and context, as well as his writings and use of calculations, the article reveals how accounting was embedded in the intellectual discourse of an individual and became an advocating device. With its results, this investigation contributes to the accounting biography tradition by extending its boundaries to include ordinary individuals who can provide new insights into accounting as a multi-purpose device.
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Udoh, Salem. "REVIEW OF FINANCIAL MANAGEMENT IN PRIVATE FIRMS: UNLOCKING THE CASH MANAGEMENT MODEL." International Journal of Entrepreneurial Knowledge 10, no. 2 (December 22, 2022): 95–106. http://dx.doi.org/10.37335/ijek.v10i2.172.
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Financial management is a complex body of knowledge that is still evolving without any successful template for its practice, especially in private firms. This paper reviews research on actual financial management in private firms to see if cash management models critical to working capital management are incorporated. The approach is to review all the models in extant literature used for cash management, itself a component of working capital. However, search results show that only Pugmire (1952) outlines the activities involved in actual financial management practice for local schools in the United States. He identified the generalizable constituents of the financial management process, including budgeting, accounting, auditing, records and reports, and cost analysis. The choice of cash as the review focus is because it is the essence of financial management in private firms: determining and sourcing capital as cash and utilizing it by allocation process to generate more cash and maximize the firm's value to stakeholders. Therefore, this paper contributes to financial management literature by extending Pugmire's (1952) template for public schools with cash management models in extant literature that can also be adapted for private firms, with potential for further research.
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Cozmiuc, Diana, and Ioan Petrișor. "VALUE BASED MANAGEMENT IN THE NEW ECONOMY." Business Excellence and Management 10, no. 3 (September 15, 2020): 61–79. http://dx.doi.org/10.24818/beman/2020.10.3-05.
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The main objective of this paper is to investigate the updates brought by the New Economy, especially new business models brought by digitalization, on value-based management. This objective is to see if classic value-based management and the updates brought by the New Economy conflict or are somehow harmonized or complementary. Another objective is to illustrate the updates brought by digitalization as case object on Siemens as case subject. The paper is focused on value-based management particularities for digitalization products, services, solutions. The context of the paper is digitalization technology and its impact on business and society, digital transformation. The phenomenon is new to society in all and therefore both literature review and case studies are highly relevant. The article is a case study on a top European corporation, both leader in digitalization and excellent value-based management practitioner. The case study is exploratory and descriptive, searching for the connections between digitalization and value. It relies on secondary evidence about Siemens. The questions are how New Economy value patterns work in practice and how do they relate to classic value indicators, net present value of discounted cash flow or its equivalent Economic Value Added. The paper finds a connection between innovation lifecycle and investment approval or capital budgeting. The beginning of the project lifecycle involves investment in intangible assets, business models, an open network structure and is funded by venture capital. As the idea matures close to customer contract negotiation stages, the network structure turns into a project budgeted via program management and equity and debt. The findings show how so-called new capital budgeting methods, venture capital, are reconciled with classic value-based management using equity and debt and Economic Value-Added investment appraisal. Both funding methods have their logic and place in idea lifecycle at Siemens. The paper finds a match between the lean start-up method and early stages of digital offering lifecycle, and a complementarity between venture capital funding methods and equity and debt capital funding methods given by the innovation lifecycle.
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Venkatesh, Sundar. "High rise in Ho Chi Minh City." Emerald Emerging Markets Case Studies 2, no. 8 (October 17, 2012): 1–7. http://dx.doi.org/10.1108/20450621211312947.
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Subject area The case covers capital budgeting practice in a real estate company in Vietnam. Study level/applicability The case is ideally suited for participants in MBA, Executive MBA, and Masters in Finance programmes. It can be taught near the end of a course on corporate finance/financial management. It can also be taught as an advanced topic in financial management courses. Case overview A real estate company in Vietnam has prepared a capital budget for, what it claims is, a 600 billion VND project. The weighted average cost of capital used by the company is 10.64 percent. An analyst in a consulting company is asked to thoroughly review the capital budget of what appears to be a project that is too good to be true. Lending rates in Vietnam at this time were around 15 percent. Expected learning outcomes Participants will learn how to correctly apply the principles of computing: net after tax cash flows from a project; and weighted average cost of capital, particularly in the context of real estate companies. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
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Hussein, Amani. "Adoption, Importance and Barriers to the Implementation of Contemporary Management Accounting Practices: Evidence from Egypt." Accounting and Finance Research 7, no. 1 (December 20, 2017): 192. http://dx.doi.org/10.5430/afr.v7n1p192.
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Nowadays, complexity in the business environment, and advanced technology intensified the challenges for more management accounting information to meet global competition. Therefore, contemporary management accounting practices have emerged which focused on financial and non-financial information to support managers’ decision making. The research aimed at examining the adoption, importance and barriers to the implementation of CMAPs. To achieve the research aim a list of forty MAPs, 171 questionnaires and factor analysis were used. In terms of MAPs adoption the results indicated 9 factors :fundamental TMAPs; control; WCM; performance evaluation non-financial; budgeting for planning cash flows ;contemporary decision support; traditional decision support; planning and capital budget practice. In terms of importance there are 10 factors; benchmarking practices; costing and decision support; fundamental TMAPs; traditional performance evaluation; control; contemporary performance evaluation; budget for planning day to day; WCM –MRP practice, product life cycle practice and performance evaluation – customer satisfaction. The main conclusion was the relative adoption of TMAPs are higher than CMAPs however, the Egyptian companies are realizing the importance of large number of CMAPs. Moreover, the research examined barriers that could limit the implementation of CMAPs and revealed that the highest barriers were; it takes longer time to change the societal values and practices, high degree of uncertainty avoidance and high cost to implement these advanced practices respectively.
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Oesterreich, Thuy Duong, and Frank Teuteberg. "Integrating system dynamics and VoFI for the dynamic visualization of financial implications arising from IT and IS investments." Journal of Modelling in Management 15, no. 1 (September 12, 2019): 232–56. http://dx.doi.org/10.1108/jm2-01-2019-0002.
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Purpose Despite the advantages that the VoFI approach offers compared with traditional capital budgeting methods, its application for the appraisal of information technology (IT) and information systems (IS) investments in both research and practice is not widespread to date. Given the static nature of the generic VoFI table, the method reaches its limits in its financial plan form because it is unable to investigate the dynamic behaviour of complex investment calculations. To date, there has been no attempt to address these shortcomings to advance the use of VoFI as a useful and valid capital budgeting method in finance and accounting. Therefore, the purpose of this study is to address this research gap and aim at developing a ‘dynamic’ VoFI model that integrates all input variables and target measures of a VoFI table and visualises the causal relationships among these variables. Design/methodology/approach The ‘dynamic’ VoFI model is developed through System Dynamics (SD) modelling to enhance the strength of the VoFI concept as an instrument for visualising the financial implications of investments in IT and IS at the corporate level. Case study research is used as a research method to study the behaviour of the developed model. The validity of the model is demonstrated by conducting simulation runs in Vensim software. In addition, probabilistic sensitivity analyses are performed to account for the impact of uncertainty on the main model variables. Findings The results demonstrate the usefulness of SD modelling for extending the generic VoFI concept by integrating risk analyses and providing a new strategy of data analysis and data presentation different from the typical financial plan form. Furthermore, the dynamic VoFI model enables the visualisation of interdependencies among the various variables incorporated in the VoFI financial plan, which significantly enhances the conceptual understanding of the investment and its financial consequences. Originality/value The integration of the VoFI concept into an SD model helps researchers and practitioners to enhance their conceptual understanding of this method. This thus increases its acceptance and popularity as a practical capital budgeting method, especially for the financial assessment of IT and IS investments. The VoFI model proposed in this paper should also enable analysts and decision makers to become more conscious of the interdependencies between the assumptions made for an appraisal and the quantitative results.
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Sweeney, Robert J. "Reinvestment Bias When Analyzing Mutually Exclusive Assets." Journal of Applied Business Research (JABR) 2, no. 3 (November 1, 2011): 71. http://dx.doi.org/10.19030/jabr.v2i3.6572.
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Capital budgeting decisions generally involve the commitment of resources in the current period to secure positive cash flows over time that generate a rate of return in excess of the cost of the funds invested. The most common techniques used to perform this analysis are the Net Present Value (NPV) and the Internal Rate of Return (IRR).Conceptually, these two techniques are substitutable; i.e. the resulting decision from a NPV analysis is identical to the decision from an IRR analysis. In practice, however, the NPV and the IRR can, on occasion, produce conflicting decisions. Specifically, when analyzing mutually exclusive assets the Net Present Value can support one asset while the Internal Rate of Return supports the other. The purpose of this paper is twofold; first, to highlight structural deficiencies in the conventional application of the NPV and the IRR, and second, to demonstrate a procedure to correct for these structural errors.
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Yuwono, Wisnu. "PRAKTEK MANAJEMEN KEUANGAN: SEBUAH ANALISIS SURVEI PADA UMKM DI KOTA BATAM PROVINSI KEPULAUAN RIAU." Jurnal Ecoment Global 5, no. 2 (August 30, 2020): 117–30. http://dx.doi.org/10.35908/jeg.v5i2.1011.
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This study aims to identify the practical implementation of financial management and to identify the economic impact of the financial management practices on the performance of SMEs in Batam, eventually obtained the proposals of appropriate policy recommendations relating to aspects of the implementation of financial management practices. This research is descriptive analysis with case study approach in Batam, using primary data through stratified random sampling of 150 samples of SMEs. Data analysis using scoring techniques of data through SPSS version 21. The results showed that: 1) financial management practices in SMEs in Batam relatively less strong with an average value of 2,876 (scale of 5); 2) There is no significant difference between SMEs who practice financial management above average with below average against the economic impact of companies measured by the approach ROA (return on assets), but when seen from the increase in assets, 60% of SMEs conducting financial management practices above average asset value has increased; 3) The policy recommendations specifically addressed to the Office of PMP-KUKM including: a) through mentoring activities are regularly conducted every year by the Department of PMP-KUKM, b) procurement of appropriate technology system of financial accounting information for SMEs, c) motivation expansion investment for SMEs and d) to apply a minimum service standards in the field of financial management for SMEs.Keywords: SMEs, working capital, investments, financing, financial statements, accounting information systems, budgeting.
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Ille, Casiana-Teodora. "DOES SIZE MATTER IN ORGANIZING CORPORATE SOCIAL RESPONSIBILITY (CSR) IN ROMANIAN FIRMS?" Oradea Journal of Business and Economics 7, no. 2 (September 2022): 87–95. http://dx.doi.org/10.47535/1991ojbe159.
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The concept and practice of CSR have displayed chameleonic features through time and nowadays the level of involvement, planification, organization and evaluation of CSR incentives differ from region to region and between companies. There is still need to shed light and construct a unitary view on the subject both in theory and practice. Companies’ role in society has expanded with the shifts of power in the globalization process and their social impact can be seen more than ever. Business entities now need to explain how their actions affect the economy, the environment, and society overall due to the release of Corporate Social Responsibility (CSR) Reports and as well as the increase in academic interest in the topic, fact that puts them in the spotlight both regionally and internationally. Although the notion of CSR is still relatively new in Romania and was only introduced at the beginning of the 1990s, it has been a prominent topic in literature and practice during the past few decades. Nevertheless, Romanian CSR practice is not well supported by empirical evidence. Companies can have a significant impact on the progress of a developing country. Therefore, through this research we aim at determining the state-of-art of CSR incentives in Romanian companies, the level of involvement, organization, budgeting, strategies and evaluation in connection with firm size and capital ownership. This empirical study consists of research that is part of a broader quantitative analysis of CSR focusing on the Romanian context. In this study we provide insights regarding the involvement and organization of CSR incentives of companies with the purpose of testing the existence of a relationship in connection with firm size taking into consideration the number of employees, capital ownership and firm age.
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Kobyl’nikov, V. P. "TERRITORIAL PUBLIC SELF-GOVERNMENT: RESOURCE FOR DEVELOPMENT." Bulletin of Udmurt University. Series Economics and Law 29, no. 4 (July 25, 2019): 441–47. http://dx.doi.org/10.35634/2412-9593-2019-29-4-441-447.
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The article is devoted to territorial public self-government as a mechanism of public participation in solving local issues and socio-economic development of municipalities. The study reveals a lack of relevant information on the number of organizations of territorial public self-government in the country. This does not allow to take into account their potential during planning the development of territories. The author analyzed the activities of organizations of territorial public self-government in the Vologda region, summarized the practice of initiative budgeting in Vologda and Cherepovets. The researcher attempted to explain the influence of organizations of territorial public self-government on socio-economic processes and the creation of social capital. In this connection, a list of indicators for assessing activities of organizations of territorial public self-government has been proposed. It is necessary to improve the efficiency of work with organizations of territorial public self-government in the region including through the creation of a coordination structure, resource centers and a pool of consultants. There is a need for further research on this topic.