Investment decisions and capital budgeting practices in German manufacturing companies Online publication date: Mon, 14-Dec-2015
by Dennis Schlegel; Franziska Frank; Bernd Britzelmaier
International Journal of Business and Globalisation (IJBG), Vol. 16, No. 1, 2016
Abstract: This paper aims to explore the methods and techniques that are used to make investment decisions in German manufacturing companies. It intends to investigate whether the behaviour of companies is in line with finance and management accounting theory. Based on a literature review taking into account specifics of German management accounting techniques, a survey instrument was developed. It includes questions on both investment appraisal methods and cost-of-capital. The questionnaire was administered in a web-based survey with a final sample size of 65 companies from the manufacturing sector in Germany. It is found that the net present value (NPV) technique is the most prominent method applied by the sample companies. Moreover, significant differences between companies of different sizes are identified. In smaller companies, single period methods such as cost comparison are more popular whereas larger companies tend to use multi-period methods.
Online publication date: Mon, 14-Dec-2015
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business and Globalisation (IJBG):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com