Surveys of capital budgeting practices in the UK and USA reveal a trend towards the increased use of more sophisticated investment appraisals requiring the application of discounted cash flow (DCF) techniques. Several writers, however, have claimed that companies are underinvesting because they...

Managers may be motivated to invest abroad for a variety of reasons. They may feel “compelled” to make such investments because of lack of opportunities in the domestic market, or because competitors have set up manufacture abroad, thereby making exports less competitive. Alternatively, it...

Economic recessions have severely stretched the financial resources of many businesses. One result has been to focus attention on the management of working capital in companies that have often had to remain solvent by shrinking.