The capital budgeting evaluation practices (2004) of building contractors in Hong Kong

Lam, K. C.; Wang, Dan; Lam, Mike Chun-Kit

doi:10.1016/j.ijproman.2007.03.010

Cited by 22 publications

(30 citation statements)

References 13 publications

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“…Graham and Harvey, 2001;Ryan and Ryan, 2002;Baker et al, 2011), Asia and Pacific (e.g. Kester et al, 1999;Lam et al, 2007;Truong et al, 2008;Leon et al, 2008;Verma et al, 2009) and Western Europe (e.g. Arnold and Hatzopoulos, 2000;Sandahl and Sjögren, 2003;Brounen et al, 2004;Liljeblom and Vaihekoski, 2004;Hermes et al, 2007;Daunfeldt and Hartwig, 2011).…”

Section: Discussionmentioning

confidence: 99%

“…DCF methods are less common among companies from Western Europe and they are least commonly used in the countries of Central and Eastern Europe -CEE. (Andor et al, 2011) 20 35% N/A N/A 40% 30% Canada (Baker, et al, 2011) 214 N/A 75% 68% 67% 40% China (Hermes et al, 2007) 45 92% 49% 89% 84% N/A Croatia (Andor et al, 2011) 16 56% N/A N/A 69% 63% Czech Republic (Andor et al, 2011) 57 37% N/A N/A 53% 40% Finland (Liljeblom and Vaihekoski, 2004) 144 N/A 52% 44% 97% 21% France (Brounen et al, 2004) 61 55% 35% 44% 51% 16% Germany (Brounen et al, 2004) 132 60% 48% 42% 50% 32% Hong Kong (Lam et al, 2007) 46 N/A 72% 65% 85% 83% Hungary (Andor et al, 2011) 46 43% N/A N/A 63% 76% India (Verma et al, 2009) 30 N/A 63% 77% 80% 27% Indonesia (Leon et al, 2008) 108 N/A 64% 64% 86% 41% Latvia (Andor et al, 2011) 9 44% N/A N/A 33% 67% Lithuania (Andor et al, 2011) 14 43% N/A N/A 57% 50% Malaysia (Kester et al, 1999) 35 89% 71% 68% 70% 35% Netherlands (Hermes et al, 2007) 42 100% 89% 74% 79% 2% Poland (Szychta, 2001) 60 N/A 30% 25% 40% 35% Poland (Andor et al, 2011) 143 58% N/A N/A 81% 59% Romania (Andor et al, 2011) 57 58% N/A N/A 61% 68% Singapore (Kester et al, 1999) 54 82% 59% 70% 70% 44% Slovakia (Andor et al, 2011) 25 56% N/A N/A 64% 72% Slovenia (Andor et al, 2011) 13 46% N/A N/A 62% 77% Sweden (Daunfeldt and Hartwig, 2011) 88 N/A 61% 30% 54% 24% UK (Brounen et al, 2004) 68 68% 47% 53% 69% 38% USA (Ryan and Ryan, 2002) 205 N/A 85% 77% 53% 15% USA and Canada (Graham and Harvey, 2001) 392 97% 75% 76% 57% 20% * Total internal rate of return and net present value Source: own research. Table 1 shows that in some countries (e.g.…”

Section: Research Methodology and Methodsmentioning

confidence: 99%

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Czynniki determinujące wybór metod budżetowania kapitałowego w przedsiębiorstwach działających w Polsce

Wnuk-Pel

2015

ZTR

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The paper aimed to explore the extent of the use of capital budgeting methods and also factors determining their selection in companies operating in Poland. The study fills the gap in the literature regarding capital budgeting practices by verifying two hypotheses: H1, stating that the diffusion of capital budgeting methods in companies operating in Poland is similar to other Central and East European (CEE) countries and lesser than in more developed countries, and H2, stating that the type of a company's activity, equity capital origin, company size and magnitude of capital expenditure budget is associated with capital budgeting method (CBM) selection. The research carried out enabled Hypothesis 1 to be verified partly positively, meaning that the majority of companies use: NPV, sensitivity analysis, scenario analysis and formalization of investment appraisal. The diffusion of CBM in Poland is therefore similar to other CEE countries and lesser than in more developed countries, e.g. the USA or UK. The study results also enabled Hypothesis 2 to be verified partly positively, meaning that: the large size of a company's capital expenditure budget and company size have a positive association with the use of 6 methods respectively, foreign ownership has a positive association with the use of 5 methods and the company's activity is associated with the use of 1 method. The study results also enabled Hypothesis 2 to be verified partly positively meaning that the use of two capital budgeting techniques based on discounted cash flows (together IRR and NVP) significantly increases when a company has foreign ownership and when the capital expenditure budget is large. Other tested independent variables (type of main activity and company size) show no significant association with the use of capital budgeting appraisal methods based on discounted cash flows.Keywords: management accounting, capital budgeting, Poland, survey, investment decisions. Streszczenie Czynniki determinujące wybór metod budżetowania kapitałowego w przedsiębiorstwach działających w PolsceCelem artykułu jest zbadanie stopnia wykorzystania metod budżetowania kapitałowego oraz czynników determinujących wybór tych metod w przedsiębiorstwach działających w Polsce. Badanie wypełnia zidentyfikowaną w literaturze lukę badawczą poprzez zweryfikowanie dwóch hipotez: H1, stwierdzającej, 218Tomasz Wnuk-Pel że dyfuzja metod budżetowania kapitałowego w przedsiębiorstwach działających w Polsce jest podobna jak w innych krajach Europy Środkowej i Wschodniej i mniejsza niż w krajach wyżej rozwiniętych, oraz H2, zgodnie z którą rodzaj działalności przedsiębiorstwa, pochodzenie kapitału własnego, wielkość przedsiębiorstwa oraz wielkość budżetu inwestycyjnego mają wpływ na wybór metod oceny opłacalności inwestycji. Przeprowadzone badanie pozwoliło na zweryfikowanie hipotezy 1 częściowo pozytywnie, ponieważ większość przedsiębiorstw działających w Polsce wykorzystuje NPV, analizę wrażliwości, analizę scenariuszy oraz formalizację oceny opłacalności inwestycji. Dyfuz...

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Section: Discussionmentioning

confidence: 99%

Section: Research Methodology and Methodsmentioning

confidence: 99%

Czynniki determinujące wybór metod budżetowania kapitałowego w przedsiębiorstwach działających w Polsce

Wnuk-Pel

2015

ZTR

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“…Zanini, M.Q.S., Souza, P. Lunkes, R.J. Práticas de orçamento de capital: um estudo em empresas hoteleiras de São Paulo, Rio de Janeiro e Salvador De maneira geral, percebe-se que os estudos anteriores apresentam diferentes resultados quanto à utilização dos métodos de avaliação do orçamento de investimentos, mas o Período de Payback aparece nos estudos como o mais utilizado nos Estados Unidos (Schall, Sundem & Junior Geijsbeek, 1978;White, Miles & Munilla, 1997), no Reino Unido (Pike, 1982(Pike, , 1985(Pike, , 1988Peel & Bridge, 1998;Brounen, De Jong & Koedijk, 2004), na Malásia (Kwong, 1986), no Japão (Peel & Bridge, 1989), na Alemanha (Peel & Bridge, 1989;Brounen, De Jong & Koedijk, 2004), na Suécia (Sandahl & Sjögren, 2003;Holmén & Pramborg, 2009), na França e na Holanda (Brounen, De Jong & Koedijk, 2004) e em Hong Kong (Lam, Wang & Lam, 2007).…”

Section: Métodosunclassified

“…Dentro dessa temática, diversos autores têm feito pesquisas em países desenvolvidos que proporcionam uma visão internacional sobre as práticas de orçamento de capital (Schall, Sundem & Junior Geijsbeek, 1978;Pike, 1982;Pike, 1985;Kwong, 1986;Pike & Sharp, 1989;White, Miles & Munilla, 1997;Pike, 1988;Peel & Bridge, 1998;Peel & Bridge, 1999;Arnold & Hatzopoulos, 2000;Graham & Harvey, 2001;Ryan & Ryan, 2002;Sandahl & Sjogren, 2003;Block, 2003;Brounen, De Jong & Koedijk, 2004;Lazaridis, 2004;Toit & Pienaar, 2005;Hermes, Smid & Yao, 2007;Lam, Wang & Lam, 2007;Truong, Partington & Peat, 2008;Correia & Cramer, 2008;Holmén & Pramborg, 2009;Brijlal & Quesada, 2009;Holmén & Pramborg, 2009;Chazi, Terra & Zanella, 2010;Bennouna, Meredith & Marchant, 2010;Khamees, Al-Fayoumi & Al-Thuneibat, 2010;Hall & Millard, 2011;Viviers & Cohen, 2011;Maquieira, Preve & Allende, 2012), contudo, há poucos estudos envolvendo empresas hoteleiras.…”

unclassified

Práticas de orçamento de capital: um estudo em empresas hoteleiras de São Paulo, Rio de Janeiro e Salvador

Zanini

Souza

Lunkes

2013

RBTUR

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O orçamento é considerado um processo importante para a gestão e comunicação da companhia, para auxiliar a identificação de gargalos em potenciais, definir metas e objetivos e avaliar futuras performances. Sendo assim, tem-se como objetivo identificar e analisar as práticas de orçamento de capital adotadas pelas empresas hoteleiras das cidades São Paulo, Rio de Janeiro e Salvador. Os dados foram coletados por meio da aplicação de questionários nas três cidades, constituindo uma população de 12 hotéis associados à ABIH (Associação Brasileira da Indústria de Hotéis). Os resultados mostram que o Índice de Rentabilidade é considerado dominante na avaliação do orçamento pelas empresas hoteleiras brasileiras, assim como o Custo do Capital Próprio na definição da taxa mínima de retorno aceitável, a qual é geralmente igual para todos os investimentos. No tocante às etapas mais críticas do processo de análise de investimento, são consideradas pelos gestores à definição do projeto e a previsão do fluxo de caixa. Quanto ao grau de previsibilidade do ambiente hoteleiro, o comportamento dos fornecedores é avaliado como parcialmente imprevisível, o mercado financeiro como eventualmente previsível e o governo avaliado como totalmente imprevisível. E, adicionalmente a isso, obteve-se que os dados macroeconômicos e a expectativa de vida útil são informações obtidas com pouca ou nenhuma frequência pelo sistema de informação dos hotéis.

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“…The evaluation involves forecasting cash flow considering all capital requirements and revenues [1]. An economic evaluation should include the following analytical steps: 1) project planning; 2) construction cost estimating; 3) projection of all expenditures and revenues; and 4) cash flow analysis and economic evaluation for alternates [2].…”

Section: Introductionmentioning

confidence: 99%

An Economic Evaluation System for Building Construction Projects in the Conceputal Phase

Kim¹,

Seo

2011

28th International Symposium on Automation and Robotics in Construction (ISARC 2011)

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ABSTRACT:The conceptual phase of capital projects is of strategic importance -an economic evaluation at this early stage is critical to the owners' decision-making with limited information. The current study developed a comprehensive but practical system that can be used in such an early phase for economic evaluation of capital building construction projects.The system integrates four analytical steps: project planning, construction costs estimation, projection of incomes and expenditures, and economic evaluation. Due to the integration, the system effectively manages the information flow from the planning to the evaluation, in which any changes from the initial plan are fully accounted for multiple alternates. In the system, users predict construction cost using a combined estimating method with historical project data and assembly costs.The system performs the tabulation of all incomes and expenditures based on the automated calculation as well as users' inputs and then the economic evaluation based on project cash flow, which is generated using an automated scheduling method. System performance has been tested in terms of its accuracy and efficiency through case study.

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The capital budgeting evaluation practices (2004) of building contractors in Hong Kong

Cited by 22 publications

References 13 publications

Czynniki determinujące wybór metod budżetowania kapitałowego w przedsiębiorstwach działających w Polsce

Czynniki determinujące wybór metod budżetowania kapitałowego w przedsiębiorstwach działających w Polsce

Práticas de orçamento de capital: um estudo em empresas hoteleiras de São Paulo, Rio de Janeiro e Salvador

An Economic Evaluation System for Building Construction Projects in the Conceputal Phase

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