Capital budgeting practices in Spain

This paper seeks to shed further light on the capital budgeting techniques used by Spanish companies. Our paper posits that the gap between theory and practice might be related to the nature of sources of value and to the efficiency of mechanisms aligning managerial and shareholder incentives, rathe...

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Detalles Bibliográficos
Autores: Andrés Alonso, Pablo de, Fuente Herrero, Gabriel de la, San Martín, Pablo
Tipo de recurso: artículo
Fecha de publicación:2015
País:España
Institución:Universidad Autónoma de Madrid
Repositorio:Biblos-e Archivo. Repositorio Institucional de la UAM
Idioma:inglés
OAI Identifier:oai:repositorio.uam.es:10486/710773
Acceso en línea:http://hdl.handle.net/10486/710773
https://dx.doi.org/10.1016/j.brq.2014.08.002
Access Level:acceso abierto
Palabra clave:Corporate investment
NPV
IRR
Payback
Real options
Survey
Economía
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spelling Capital budgeting practices in SpainAndrés Alonso, Pablo deFuente Herrero, Gabriel de laSan Martín, PabloCorporate investmentNPVIRRPaybackReal optionsSurveyEconomíaThis paper seeks to shed further light on the capital budgeting techniques used by Spanish companies. Our paper posits that the gap between theory and practice might be related to the nature of sources of value and to the efficiency of mechanisms aligning managerial and shareholder incentives, rather than to resource restrictions or model misinterpretation. We analyze data from a survey conducted in 2011, the final sample comprising 140 non-financial Spanish firms. Our findings show a behaviour pattern similar to that reported in prior research for firms in other countries. Particularly noteworthy is that payback appears to be the most widely used tool, while real options are used relatively little. Our results confirm that size and industry are related to the frequency of use of certain capital budgeting techniques. Further, we find that the relevance of growth opportunities and flexibility is an important factor explaining the use of real optionsThis work has benefited from financial support from the Spanish Ministry of Science and Innovation (grant ref. ECO2011-29144-C03-01) and the Program of Advanced Human Capital Formation, Ministry of Education, Government of ChileElsevier EspañaDepartamento de Financiación e Investigación ComercialFacultad de Ciencias Económicas y Empresariales20152015-01-01research articlehttp://purl.org/coar/resource_type/c_2df8fbb1VoRhttp://purl.org/coar/version/c_970fb48d4fbd8a85info:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10486/710773https://dx.doi.org/10.1016/j.brq.2014.08.002reponame:Biblos-e Archivo. Repositorio Institucional de la UAMinstname:Universidad Autónoma de MadridInglésengopen accesshttp://purl.org/coar/access_right/c_abf2info:eu-repo/semantics/openAccessoai:repositorio.uam.es:10486/7107732026-06-23T12:46:27Z
dc.title.none.fl_str_mv Capital budgeting practices in Spain
title Capital budgeting practices in Spain
spellingShingle Capital budgeting practices in Spain
Andrés Alonso, Pablo de
Corporate investment
NPV
IRR
Payback
Real options
Survey
Economía
title_short Capital budgeting practices in Spain
title_full Capital budgeting practices in Spain
title_fullStr Capital budgeting practices in Spain
title_full_unstemmed Capital budgeting practices in Spain
title_sort Capital budgeting practices in Spain
dc.creator.none.fl_str_mv Andrés Alonso, Pablo de
Fuente Herrero, Gabriel de la
San Martín, Pablo
author Andrés Alonso, Pablo de
author_facet Andrés Alonso, Pablo de
Fuente Herrero, Gabriel de la
San Martín, Pablo
author_role author
author2 Fuente Herrero, Gabriel de la
San Martín, Pablo
author2_role author
author
dc.contributor.none.fl_str_mv Departamento de Financiación e Investigación Comercial
Facultad de Ciencias Económicas y Empresariales
dc.subject.none.fl_str_mv Corporate investment
NPV
IRR
Payback
Real options
Survey
Economía
topic Corporate investment
NPV
IRR
Payback
Real options
Survey
Economía
description This paper seeks to shed further light on the capital budgeting techniques used by Spanish companies. Our paper posits that the gap between theory and practice might be related to the nature of sources of value and to the efficiency of mechanisms aligning managerial and shareholder incentives, rather than to resource restrictions or model misinterpretation. We analyze data from a survey conducted in 2011, the final sample comprising 140 non-financial Spanish firms. Our findings show a behaviour pattern similar to that reported in prior research for firms in other countries. Particularly noteworthy is that payback appears to be the most widely used tool, while real options are used relatively little. Our results confirm that size and industry are related to the frequency of use of certain capital budgeting techniques. Further, we find that the relevance of growth opportunities and flexibility is an important factor explaining the use of real options
publishDate 2015
dc.date.none.fl_str_mv 2015
2015-01-01
dc.type.none.fl_str_mv research article
http://purl.org/coar/resource_type/c_2df8fbb1
VoR
http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv http://hdl.handle.net/10486/710773
https://dx.doi.org/10.1016/j.brq.2014.08.002
url http://hdl.handle.net/10486/710773
https://dx.doi.org/10.1016/j.brq.2014.08.002
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier España
publisher.none.fl_str_mv Elsevier España
dc.source.none.fl_str_mv reponame:Biblos-e Archivo. Repositorio Institucional de la UAM
instname:Universidad Autónoma de Madrid
instname_str Universidad Autónoma de Madrid
reponame_str Biblos-e Archivo. Repositorio Institucional de la UAM
collection Biblos-e Archivo. Repositorio Institucional de la UAM
repository.name.fl_str_mv
repository.mail.fl_str_mv
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