The paper aims at elucidating and solving the methodological problems around the estimation of the cost of capital in the project finance settings. By convention, capital budgeting analysts evaluate project finance ventures using the free cash flow for equity (FCFE) method, whereby cash flows,...

This paper explores the multifaceted nature of risk in financial decision-making by integrating traditional finance models with insights from behavioural finance. It assesses the application of models such as the Capital Asset Pricing Model (CAPM), Weighted Average Cost of Capital (WACC), and...

Financial management practices play a crucial role in shaping the performance and growth of enterprises. Financial management involves arranging both short-term and long-term funding needs, ensuring the smooth functioning of enterprises. This research aimed to examine the relationship between...

We examine how division managers' human capital affects internal capital allocation using a hand-collected data set of divisional managers at S&P 1,500 firms. Based on a novel measure of division-manager ability, we show that more able division managers receive substantially larger capital...

We investigate the decision rules for corporate investment by designing a company value frontier. This company value frontier allows for balancing the financial value and social and environmental impacts. This article develops novel value concepts-ranging from shareholder value to shareholder...

This study uses a survey approach to investigate how managers associated with thirty (30) firm characteristics subgroups apply thirty-seven (37) investment decision techniques in practice in a frontier market covering: capital budgeting, cost of equity, cost of capital, and adjustments for other...

During the neoliberal era, fiscal policy was side-lined: from a political economy perspective, it was seen as biased toward deficit and debt accumulation, while from a macroeconomic perspective, its potential role as a business cycle stabiliser was shifted to monetary policy, in line with the...

This paper confirms the positive empirical relationship between CAPM-implied target asset betas and bidder announcement returns originally documented by Dessaint et al. (Rev Financ Stud 34(1):1–66, 2021) for U.S. takeover bids. We successfully replicate the main regression results...

During the neoliberal era, fiscal policy was side-lined: from a political economy perspective, it was seen as biased toward deficit and debt accumulation, while from a macroeconomic perspective, its potential role as a business cycle stabiliser was shifted to monetary policy, in line with the...

This paper explores the multifaceted nature of risk in financial decision-making by integrating traditional finance models with insights from behavioural finance. It assesses the application of models such as the Capital Asset Pricing Model (CAPM), Weighted Average Cost of Capital (WACC), and...

Diese Studie untersucht, wie sich die Backhaul-Kosten im Glasfaserausbau in Abhängigkeit vom räumlichen Footprint unterschiedlicher Netzbetreibertypen unterscheiden. Ausgangspunkt ist die Annahme, dass neben der Besiedlungsdichte auch die Anzahl, Größe und räumliche Verteilung der...

Zusammenfassung Fiskalpolitik gilt aus politökonomischer Sicht als defizit- und schuldenanfällig. Deshalb kamen Fiskalregeln wie der Europäische Stabilitäts- und Wachstumspakt und die deutsche Schuldenbremse auf. Nach einer Reihe von Krisen gerieten Fiskalregeln jedoch unter heftige Kritik;...

Fiskalpolitik gilt aus politökonomischer Sicht als defizit- und schuldenanfällig. Deshalb kamen Fiskalregeln wie der Europäische Stabilitäts- und Wachstumspakt und die deutsche Schuldenbremse auf. Nach einer Reihe von Krisen gerieten Fiskalregeln jedoch unter heftige Kritik; ihnen gegenüber...

Budgets are a compass and guiding light for businesses. Therefore, management and owners of small and medium enterprises (SMEs) must carry out suitable and precise capital budgeting activities and methods to ensure business longevity and progression. There is a high risk of SMEs failing soon...

We examine how division managers' human capital affects internal capital allocation using a hand-collected data set of divisional managers at S&P 1,500 firms. Based on a novel measure of division-manager ability, we show that more able division managers receive substantially larger capital...

Financial management practices play a crucial role in shaping the performance and growth of enterprises. Financial management involves arranging both short-term and long-term funding needs, ensuring the smooth functioning of enterprises. This research aimed to examine the relationship between...

Modern-day firms, both small and medium enterprises (SMEs) and large listed firms (LLFs) practice distinct investment appraisal approaches known as conventional and sophisticated capital budgeting techniques. Despite these prominent developments, the extant literature is yet to empirically...

Modern-day firms, both small and medium enterprises (SMEs) and large listed firms (LLFs) practice distinct investment appraisal approaches known as conventional and sophisticated capital budgeting techniques. Despite these prominent developments, the extant literature is yet to empirically...

The success of agricultural Small and Medium Enterprises (agri-SMEs), among other factors, heavily relies on their ability to manage finances effectively. This study examined the extent to which agricultural SMEs in Tanzania practice financial management activities. The study employed a...

Because of risk aversion, any sensible investment valuation system should value less Projects that contribute more to the aggregate risk, i.e., that have a larger income elasticity of net benefits. In theory, this is done by adjusting discount rates to consumption betas. But in reality, for...

This study uses a survey approach to investigate how managers associated with thirty (30) firm characteristics subgroups apply thirty-seven (37) investment decision techniques in practice in a frontier market covering: capital budgeting, cost of equity, cost of capital, and adjustments for other...

This paper sheds light on the question of whether a rules-based or general principles-based decision aid is preferable in the context of increased information load by experimentally investigating how different types of decision aids interact with increases in information load in a structured...

This paper sheds light on the question of whether a rules-based or general principles-based decision aid is preferable in the context of increased information load by experimentally investigating how different types of decision aids interact with increases in information load in a structured...

Textbook theory assumes that firm managers maximize the net present value of future cash flows. But when you ask them, the people running large public corporations say that they are maximizing something else entirely: earnings per share (EPS). Perhaps this is a mistake. No matter. We take...

This paper proposes a model aiming at decomposing the Net Final Value of a project under certainty. It makes use of a systemic outlook: the investor's net worth is regarded as a dynamic system whose structure changes over time. On this basis, a profitability index is presented, here named...