UN EXAMEN EMPÍRICO DE LAS PRÁCTICAS DE PRESUPUESTO DE CAPITAL EN EL PERÚ (Article published in Spanish)
Keywords:
Capital budgeting, Net Present Value, Discount RateAbstract
Over the years a large number of studies have been conducted regarding capital budgetin practices in well-developed markets. There is, however, scarce evidence of these practices in emerging markets. This paper discusses evidence of capital budgeting practices followed by large companies operating in Peru. A survey conducted among 74 companies showed that, while 90% of the companies use Net Present Value (NPV) as their main assessment tool, only 11% use the real option method. This indicates that the companies reviewed in this study do not formally consider a flexible management approach to assessing their opportunities for investment. The survey also showed that there is a stronger preference for the Investment Recovery Period than for the Internal Rate of Return (IRR), which reflects a short-term investment horizon. This paper also addresses the fact that more than 40% of these companies employ a discount rate without a solid theoretical justification, which may be the result of a lack of practical guidance on this subject.
Downloads
Downloads
Published
Issue
Section
License
Articles are the sole responsibility of their authors, and will not compromise Icesi’s University principles or policies nor those of the Editorial Board of the journal Estudios Gerenciales. Authors authorize and accept the transfer of all rights to the journal, both for its print and electronic publication. After an article is published, it may be reproduced without previous permission of the author or the journal but the author(s), year, title, volume, number and range of pages of the publication must be mentioned. In addition, Estudios Gerenciales must be mentioned as the source (please, refrain from using Revista Estudios Gerenciales).
