Managerial Finance: Volume 23 Issue 9

Capital Budgeting Techniques Among The Fortune 500: A Rationale Approach

Richard M. Burns, Joe Walker

In response to a call for more research on the “why” of capital budgeting practices, a survey was sent to the Fortune 500 firms to (1) look at the detailed reasons they used…

Capital Budgeting and the Stochastic Cost of Capital

Arjun Chatrath, Michael J. Seiler

Despite its shortcomings, the IRR method continues to be a widely employed evaluation technique in capital budgeting. This paper demonstrates the reasons for its continued…

The Use of NPV in Newly Industrialized and Developing Countries: a.k.a. “What Have We Ignored?”

George E. Pinches, Diane M. Lander

Interviews in South Korea, Taiwan, Singapore, and India indicate net present value (NPV) is not widely employed in making capital investment decisions in these newly…

Evaluating On‐going Projects and Divisions

J. Howard Finch, John G. Fulmer

There are techniques available for deciding on initial project viability. Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR) and other…

Underwriting Costs and Market Value Effects of Raising Bank Capital

James W. Wansley, Upinder S. Dhillon

This study examines the direct (out‐of‐pocket) flotation costs of new capital issues by bank holding companies between 1980 and 1986 and the total costs including any market…