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The sophistication of capital budgeting in Malaysian companies

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  • Kwong, Han Chun

Abstract

The sophistication of capital budgeting in 70 Malaysian companies is assessed in terms of a three-stage model of the capital budgeting process with reference to the following: the percentage of capital investments for which the techniques are used, explicit assessment of risk, the method of determining the cost of capital, the method of measuring cash flows, the formal profit contribution analysis, the extent of use of management science/operations research in capital budgeting, information systems support and the planning and control of capital expenditures. The assessment reveals a general tendency in the direction of increasing sophistication in the various phases of capital budgeting in Malaysian companies.

Suggested Citation

  • Kwong, Han Chun, 1986. "The sophistication of capital budgeting in Malaysian companies," Omega, Elsevier, vol. 14(2), pages 175-181.
  • Handle: RePEc:eee:jomega:v:14:y:1986:i:2:p:175-181
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    Cited by:

    1. Daunfeldt, Sven-Olov & Hartwig, Fredrik, 2012. "What Determines the Use of Capital Budgeting Methods? Evidence from Swedish listed companies," HUI Working Papers 57, HUI Research.

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