Medium-sized firms in Peru: a review of capital budgeting practices

Authors

  • Luis Miguel Vega Acuña Asistente de Cátedra, Facultad de Ciencias Económicas y Empresariales, Universidad de Piura, Piura, Perú.
  • Alvaro Tresierra Tanaka Decano, Facultad de Ciencias Económicas y Empresariales, Universidad de Piura, Piura, Perú. https://orcid.org/0000-0002-9439-1916

DOI:

https://doi.org/10.18046/j.estger.2019.150.2943

Keywords:

Capital budgeting, Discount rate, Net present value, Payback period, Cash flow

Abstract

The objective of this article is to know what are the techniques used by medium-sized companies to evaluate their investment projects, and in this way to determine if there is a gap between theory and practice. In addition, we sought to identify which characteristics of the company and its general manager influence the use of these techniques. For this, a survey was elaborated and applied to 126 medium-sized companies in the department of Piura (Peru). Based on this, it was found that a large part of the sample uses at least one technique where cash flows are discounted, which is supported by the theory; therefore, it is evident that the gap between theory and practice is not very wide.

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References

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Published

2019-03-12

Issue

Section

Research articles

How to Cite

Medium-sized firms in Peru: a review of capital budgeting practices. (2019). Estudios Gerenciales, 35(150), 59-69. https://doi.org/10.18046/j.estger.2019.150.2943