UN EXAMEN EMPÍRICO DE LAS PRÁCTICAS DE PRESUPUESTO DE CAPITAL EN EL PERÚ (Article published in Spanish)

Authors

  • Samuel Mongrut Montalvan Departamento de Contabilidad y Centro de Investigación de la Universidad del Pacífico (CIUP)
  • David Wong Cam Departamento de Contabilidad y Centro de Investigación de la Universidad del Pacífico (CIUP)

Keywords:

Capital budgeting, Net Present Value, Discount Rate

Abstract

Over the years a large number of studies have been conducted regarding capital budgetin practices in well-developed markets. There is, however, scarce evidence of these practices in emerging markets. This paper discusses evidence of capital budgeting practices followed by large companies operating in Peru. A survey conducted among 74 companies showed that, while 90% of the companies use Net Present Value (NPV) as their main assessment tool, only 11% use the real option method. This indicates that the companies reviewed in this study do not formally consider a flexible management approach to assessing their opportunities for investment. The survey also showed that there is a stronger preference for the Investment Recovery Period than for the Internal Rate of Return (IRR), which reflects a short-term investment horizon. This paper also addresses the fact that more than 40% of these companies employ a discount rate without a solid theoretical justification, which may be the result of a lack of practical guidance on this subject.

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Published

2005-06-30

Issue

Section

Research articles

How to Cite

UN EXAMEN EMPÍRICO DE LAS PRÁCTICAS DE PRESUPUESTO DE CAPITAL EN EL PERÚ (Article published in Spanish). (2005). Estudios Gerenciales, (95), 95-114. https://www2.icesi.edu.co/revistas/index.php/estudios_gerenciales/article/view/161