Managerial discretion and the choice of capital budgeting techniques
(2022) In International Journal of Managerial and Financial Accounting 14(3). p.197-216- Abstract
The purpose of this study is to apply Hambrick and Finkelstein's (1987) framework of managerial discretion to the field of capital budgeting techniques (CBT). This study uses a qualitative method based on semi-structured interviews with 12 CFOs in Swedish high-growth small and medium-sized (SMEs) firms. The findings indicate that the choice of CBTs is largely enabled by individual forces and mainly disabled by environmental and organisational forces. The study contributes with managerial implications discussing how the choice of CBT is beneficial for communication, negotiating for resources, and maintaining good relationships with stakeholders. Being aware of how to use the choice of CBT as a communication tool could give firms a... (More)
The purpose of this study is to apply Hambrick and Finkelstein's (1987) framework of managerial discretion to the field of capital budgeting techniques (CBT). This study uses a qualitative method based on semi-structured interviews with 12 CFOs in Swedish high-growth small and medium-sized (SMEs) firms. The findings indicate that the choice of CBTs is largely enabled by individual forces and mainly disabled by environmental and organisational forces. The study contributes with managerial implications discussing how the choice of CBT is beneficial for communication, negotiating for resources, and maintaining good relationships with stakeholders. Being aware of how to use the choice of CBT as a communication tool could give firms a competitive advantage.
(Less)
- author
- Sarwary, Zahida LU and Uman, Timur
- organization
- publishing date
- 2022
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- capital budgeting techniques, CBT, First North, managerial discretion, qualitative method, small and medium-sized, SMEs, theory-practice gap
- in
- International Journal of Managerial and Financial Accounting
- volume
- 14
- issue
- 3
- pages
- 20 pages
- publisher
- Inderscience Publishers
- external identifiers
-
- scopus:85133720839
- ISSN
- 1753-6715
- DOI
- 10.1504/IJMFA.2022.123870
- language
- English
- LU publication?
- yes
- additional info
- Publisher Copyright: Copyright © 2022 Inderscience Enterprises Ltd.
- id
- ec97cf00-4a58-4854-965c-9e984a92527d
- date added to LUP
- 2022-08-30 17:00:26
- date last changed
- 2022-08-30 17:05:31
@article{ec97cf00-4a58-4854-965c-9e984a92527d,
abstract = {{<p>The purpose of this study is to apply Hambrick and Finkelstein's (1987) framework of managerial discretion to the field of capital budgeting techniques (CBT). This study uses a qualitative method based on semi-structured interviews with 12 CFOs in Swedish high-growth small and medium-sized (SMEs) firms. The findings indicate that the choice of CBTs is largely enabled by individual forces and mainly disabled by environmental and organisational forces. The study contributes with managerial implications discussing how the choice of CBT is beneficial for communication, negotiating for resources, and maintaining good relationships with stakeholders. Being aware of how to use the choice of CBT as a communication tool could give firms a competitive advantage.</p>}},
author = {{Sarwary, Zahida and Uman, Timur}},
issn = {{1753-6715}},
keywords = {{capital budgeting techniques; CBT; First North; managerial discretion; qualitative method; small and medium-sized; SMEs; theory-practice gap}},
language = {{eng}},
number = {{3}},
pages = {{197--216}},
publisher = {{Inderscience Publishers}},
series = {{International Journal of Managerial and Financial Accounting}},
title = {{Managerial discretion and the choice of capital budgeting techniques}},
url = {{http://dx.doi.org/10.1504/IJMFA.2022.123870}},
doi = {{10.1504/IJMFA.2022.123870}},
volume = {{14}},
year = {{2022}},
}