Capital Investment Decisions (capital + investment_decision)

Distribution by Scientific Domains


Selected Abstracts


A Property Rights Perspective on Venture Capital Investment Decisions

JOURNAL OF MANAGEMENT STUDIES, Issue 7 2010
Dimo Dimov
abstract To understand how ownership differences influence specific types of strategic decisions, we examine the investment decisions of venture capital (VC) firms, for which a variety of property rights arrangements exist. We describe how VC firms are characterized by important differences in how and to whom various property rights are allocated. On this basis, we develop a series of hypotheses regarding differences in the range and types of investment opportunities pursued by private, corporate, and bank affiliated VC firms. Evaluating our hypotheses using data on investments carried out by 3557 firms, we find that these types of firm perform distinct roles in the ecology of VC financing. [source]


Environmental Costing in Capital Investment Decisions: Electricity Distributors and the Choice of Power Poles

AUSTRALIAN ACCOUNTING REVIEW, Issue 1 2008
Craig Deegan
Australian electricity distribution businesses use a vast number of poles in their networks. In making their purchase decisions, they can choose between types of pole. It might come from an old-growth forest or a plantation, or be made from cement, steel or fibreglass. This paper discusses how Australian electricity distribution businesses currently account (or fail to account) for the social and environmental implications of the production and use of power poles. The discussion highlights the many factors to be considered in a life-cycle costing exercise. The paper provides suggestions for future practice which have implications not only for electricity distribution businesses, but for industry generally. [source]


Project Appraisal and Capital Investment Decision Making in the Scottish Water Industry

FINANCIAL ACCOUNTABILITY & MANAGEMENT, Issue 1 2000
Paul Coleshill
Restructuring the Scottish water industry has changed the way in which both project appraisal and capital investment decisions are performed. This article examines the project appraisal and subsequent capital investment decision in the case of a reed bed sewage treatment scheme which is compared with a more traditional scheme. Although the capital profiles of the schemes are similar there are major differences in the revenue costs. In addition, there are potential public benefits to the reed bed scheme. A comparison is made of management mechanisms in the pre-1996 water industry with that of restructured water authorities. In the pre-1996 water industry, local authorities had a broad remit which encouraged them to value these factors, in effect an implicit social account. The creation of water authorities with narrow remits and specific performance measures, constructed a framework that does not support the integration of social accounts into the decision making process. The paper demonstrates that investment appraisal is a product of the institutional framework in which the decisions are made. As that framework changes, mechanisms and measures of accountability shift in parallel. [source]


Equilibrium Real Options Exercise Strategies with Multiple Players: The Case of Real Estate Markets

REAL ESTATE ECONOMICS, Issue 1 2006
Ko Wang
This article derives a closed-form solution for an equilibrium real options exercise model with stochastic revenues and costs for monopoly, duopoly, oligopoly and competitive markets. Our model also allows one option holder to have a greater production capacity than others. Under a monopolistic environment we find that the optimal option exercise strategy in real estate markets is dramatically opposite to that in a financial (warrant) market, indicating the importance of paying attention to the institutional details of the underlying market when analyzing option exercise strategies. Our model can be generalized to the pricing of convertible securities and capital investment decisions involving both stochastic revenues and costs under different types of market structures. [source]


Neighbourhood and Family Effects in Educational Progress

THE AUSTRALIAN ECONOMIC REVIEW, Issue 1 2000
Ben Jensen
Increasing inequality in Australian cities has created the need for a deeper understanding of the interaction between spatial segmentation and economic outcomes. This paper offers a preliminary economic analysis of Australian neighbourhood externalities in the context of increasing segmentation. Theoretically, neighbourhoods can affect youths' economic out-comes through their effects on school quality, information flows, job networks, and demonstration effects. We utilise a new survey of 171 year 12 students in ten Melbourne high schools to examine the impact of individual, family, and neighbourhood characteristics on the decision to attend post-secondary education. It is shown that there exist neighbourhood externalities that affect human capital investment decisions. Finally, we offer some tentative implications for public policy. [source]


Accounting for Investments in Human Capital: A Review

AUSTRALIAN ACCOUNTING REVIEW, Issue 3 2010
Anne Wyatt
This paper provides an overview of the human capital literature, focusing on the firm's incentives and disincentives to invest in human capital and subsequently to account for the investments. The evidence suggests human capital investment decisions are intrinsically linked to the success of a business and ultimately to the probability of survival. However, disclosure is largely a voluntary choice by managers as there are few formal disclosure requirements. The conclusion from the evidence shows that the benefits to stakeholders of disclosing information relating to human capital investment are likely to outweigh the costs and suggests a wide range of topics for future research. [source]


Do environmental social controls matter to Australian capital investment decision-making?

BUSINESS STRATEGY AND THE ENVIRONMENT, Issue 5 2008
Donald G. Ross
Abstract This paper looks at how environmental social controls (ESCs), namely mandatory disclosure, regulation, subsidies and stakeholder opinion, are perceived in terms of their relative importance by Australian capital investment managers. We find that regulation and stakeholder opinion are the most important ESCs. Subsidies generally have less influence, while mandatory disclosure has almost no impact on capital investment decisions. However, even the more important ESCs have much less than impact than mainstream financial and strategic factors. Policy makers seeking to influence capital investment managers will have to increase the power levels of the various ESCs if they are to change behaviour. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment. [source]