This paper is an exploratory research on the application of capital budgeting techniques in Indian companies. This paper tries to explore the relationship between capital budgeting decisions and the firm’s size. Firm’s size has been defined as asset size, project size and turnover of the firm. This paper is based on the primary data. OLS (Observed least square Model) is used to evaluate the degree of relationship between asset size, project size and turnover of the firm with the frequency of capital budgeting techniques (FOT) and type of capital budgeting techniques (TOT) used by the companies. Using a sample size of 75 companies, the result shows that there is a positive relationship between frequency of capital budgeting techniques and application of discounted cash flow techniques with the firm’s asset size, project size and turnover of the firm. Our paper provides new insights about the frequency of the capital budgeting techniques used in the firms along with the type of technique used by the companies.
Published in | International Journal of Economic Behavior and Organization (Volume 4, Issue 6) |
DOI | 10.11648/j.ijebo.20160406.11 |
Page(s) | 45-52 |
Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
Copyright |
Copyright © The Author(s), 2017. Published by Science Publishing Group |
Capital Budgeting, Asset Size, Project Size, Turnover of the Firm, Regression Analysis
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APA Style
Divya Gupta. (2017). Capital Budgeting Decisions and the Firm’s Size. International Journal of Economic Behavior and Organization, 4(6), 45-52. https://doi.org/10.11648/j.ijebo.20160406.11
ACS Style
Divya Gupta. Capital Budgeting Decisions and the Firm’s Size. Int. J. Econ. Behav. Organ. 2017, 4(6), 45-52. doi: 10.11648/j.ijebo.20160406.11
@article{10.11648/j.ijebo.20160406.11, author = {Divya Gupta}, title = {Capital Budgeting Decisions and the Firm’s Size}, journal = {International Journal of Economic Behavior and Organization}, volume = {4}, number = {6}, pages = {45-52}, doi = {10.11648/j.ijebo.20160406.11}, url = {https://doi.org/10.11648/j.ijebo.20160406.11}, eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20160406.11}, abstract = {This paper is an exploratory research on the application of capital budgeting techniques in Indian companies. This paper tries to explore the relationship between capital budgeting decisions and the firm’s size. Firm’s size has been defined as asset size, project size and turnover of the firm. This paper is based on the primary data. OLS (Observed least square Model) is used to evaluate the degree of relationship between asset size, project size and turnover of the firm with the frequency of capital budgeting techniques (FOT) and type of capital budgeting techniques (TOT) used by the companies. Using a sample size of 75 companies, the result shows that there is a positive relationship between frequency of capital budgeting techniques and application of discounted cash flow techniques with the firm’s asset size, project size and turnover of the firm. Our paper provides new insights about the frequency of the capital budgeting techniques used in the firms along with the type of technique used by the companies.}, year = {2017} }
TY - JOUR T1 - Capital Budgeting Decisions and the Firm’s Size AU - Divya Gupta Y1 - 2017/02/09 PY - 2017 N1 - https://doi.org/10.11648/j.ijebo.20160406.11 DO - 10.11648/j.ijebo.20160406.11 T2 - International Journal of Economic Behavior and Organization JF - International Journal of Economic Behavior and Organization JO - International Journal of Economic Behavior and Organization SP - 45 EP - 52 PB - Science Publishing Group SN - 2328-7616 UR - https://doi.org/10.11648/j.ijebo.20160406.11 AB - This paper is an exploratory research on the application of capital budgeting techniques in Indian companies. This paper tries to explore the relationship between capital budgeting decisions and the firm’s size. Firm’s size has been defined as asset size, project size and turnover of the firm. This paper is based on the primary data. OLS (Observed least square Model) is used to evaluate the degree of relationship between asset size, project size and turnover of the firm with the frequency of capital budgeting techniques (FOT) and type of capital budgeting techniques (TOT) used by the companies. Using a sample size of 75 companies, the result shows that there is a positive relationship between frequency of capital budgeting techniques and application of discounted cash flow techniques with the firm’s asset size, project size and turnover of the firm. Our paper provides new insights about the frequency of the capital budgeting techniques used in the firms along with the type of technique used by the companies. VL - 4 IS - 6 ER -