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Determinants of Choice of Appraisal Methods for Investment Appraisal by Firms in Ghana: A Study of Selected Firms, In Kumasi

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  • Boachie Danquah

    (School of Business, Valley View University, Ghana)

Abstract

The purpose of the study was to examine determinants of choice of appraisal methods for investment appraisal by firms in Ghana using some selected firms in Kumasi.The study specifically sought todetermine whether investment decisions are appraised and determine the reason for the choice of a particular method of appraisal.The study adopted a quantitative approach using a descriptive survey design, focusing on ten (10) selected companies in the Ashanti region of Ghana. The target population for the research comprised all employees of the finance departments of ten (10) selected companies in the region. A sample size of fifty (50) respondents, representing over 10% of the total population was used. Purposive and random sampling techniques were used to select these fifty (50) respondents from the companies of the population. The study showed that indeed investments decisions are appraised in Ghanaian companies. This was confirmed by 40 respondents representing 80% of the sampled population. The study further revealed that, Viability and Profitability of any Investment Project was the most popular reason for choosing a particular type of appraisal method. This was evidenced in the overwhelming confirmation it received as a viable reason for picking an appraisal method.

Suggested Citation

  • Boachie Danquah, 2022. "Determinants of Choice of Appraisal Methods for Investment Appraisal by Firms in Ghana: A Study of Selected Firms, In Kumasi," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(1), pages 699-703, January.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:1:p:699-703
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    References listed on IDEAS

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    4. Ferracuti, Elia & Stubben, Stephen R., 2019. "The role of financial reporting in resolving uncertainty about corporate investment opportunities," Journal of Accounting and Economics, Elsevier, vol. 68(2).
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