Use of Capital Investment Appraisal Practices and Effectiveness of Investment Decisions: A Study on Listed Manufacturing Companies in Sri Lanka

Kengatharan, Lingesiya; Clamenthu, Pirashanth Diluxan

doi:10.5296/ajfa.v9i2.12229

Cited by 2 publications

(2 citation statements)

References 8 publications

(10 reference statements)

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“…In the context of Romania, CSR has grown in interest in recent years, noting that the companies involved in these projects invest a considerable amount (Grabara et al, 2016). At the same time, there is a relationship between capital investment and decisions taken, which is crucial when carrying out CSR initiatives (Kengatharan & Clamenthu, 2017).…”

Section: Recent Issues In Economic Developmentmentioning

confidence: 99%

CSR-related competitiveness and legitimacy in MSMEs

Gallardo‐Vázquez¹,

Lizcano-Álvarez²

2020

Economics &Amp; Sociology

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Corporate social responsibility (CSR) has emerged as an important strategy in business contexts. This study's main objective was to identify and characterize the basic elements of CSR in micro, small, and medium enterprises (MSMEs) that can contribute to improving these companies' competitiveness and legitimacy. The research was based on the premises defining CSR's scope laid out by the Spanish Association of Accounting and Business Administration and the conceptual framework for corporate responsibility proposed by the European Commission's Directorate-General Enterprise and Industry. A 2004 compilation of good practices in small and medium-sized enterprises in Europe provided the foundation for a systematic analysis isolating elements common to the two cited organizations' frameworks. This is a descriptive study, on a sample of 23 companies belonging to the Autonomous Community of Extremadura, in Spain, involved in the practice of CSR and very sensitized to implement this strategy. Based on this list of features, a theoretical framework of CSR was constructed in order to identify the most significant elements and distinguish those of greatest importance to MSMEs' competitiveness and legitimacy. The originality of this study combined public and private CSR frameworks to categorize the distinctive elements of CSR in MSMEs.

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Section: Recent Issues In Economic Developmentmentioning

confidence: 99%

CSR-related competitiveness and legitimacy in MSMEs

Gallardo‐Vázquez¹,

Lizcano-Álvarez²

2020

Economics &Amp; Sociology

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“…SMEs internal characteristics in relation to their growth, performance and investment decisions have been adequately researched (Kazimoto, 2014;Farsi & Toghraee, 2014;Bouazza, Ardjouman & Abada, 2015;Quartey, Turkson, Abor & Iddrisu, 2017;Appiah, Possumah, Ahmat, & Sanusi, 2018). For instance, Kengatharan and Clamenthu (2017) determined the relationship between capital investment practices and investment decisions of manufacturing companies. The study found significant and positive relationships between present value, internal rate of return and investment decisions.…”

Section: Internal Firm Characteristics and Investment Decisionsmentioning

confidence: 99%

Small and medium enterprise’s internal resources and investment decisions in Ghana: The resource-based approach

Appiah

Possumah

Ahmat

et al. 2019

Economics &Amp; Sociology

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We report new evidence on Small and Medium Enterprises' (SMEs') internal resources, i.e investment capital, business stability, customer size, type of ownership, legal status, industrial structure and location on investment decisions in the Ghanaian oil and gas sector between 2016 and 2017. Overall, we find that SMEs of larger business size, with large investment capital, large fixed assets, more business stability, structured business ownership, large customer size, registered status, operations in urban locations and reinvested annual profits-are more likely to invest in Ghanaian oil and gas sector. Per contra, the results reveal that industrial structure has no influence on SMEs' investment decisions. Additionally, our findings are most robust to SMEs that choose to invest in the oil and gas value chain which is consistent with the resource-based theory. This empirical study has been conducted through a survey. Data has been collected using a stratified sampling technique and structured questionnaires with 245 SMEs across diverse industries. The survey data has been analyzed using binominal logit regression and Chisquare test. The results are expected to be of substantial importance for investment decisions in the domestic business environment. We strongly recommend the replication of this study in other emerging oil and gas economies.

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Use of Capital Investment Appraisal Practices and Effectiveness of Investment Decisions: A Study on Listed Manufacturing Companies in Sri Lanka

Cited by 2 publications

References 8 publications

CSR-related competitiveness and legitimacy in MSMEs

CSR-related competitiveness and legitimacy in MSMEs

Small and medium enterprise’s internal resources and investment decisions in Ghana: The resource-based approach

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