| Tekijä: | Ho, S. S. M. Pike, R. H. |
| Otsikko: | Adoption of probabilistic risk analysis in capital budgeting and corporate investment. |
| Lehti: | Journal of Business Finance and Accounting
1992 : APR, VOL. 19:3, p. 387-405 |
| Asiasana: | RISK ANALYSIS CAPITAL BUDGETING CORPORATE FINANCE CAPITAL INVESTMENT |
| Kieli: | eng |
| Tiivistelmä: | The value to firms of using probabilistick risk analysis (PRA) in capital investment decisions is frequently debated in literature. However, empirical evidence on the association between changes in risk handling approaches and investment performance is virtually non-existent. This paper reports findings from several tests conducted on firms that adopted PRA versus a control group of firms that employed less sophisticated techniques. After controlling for differences in industry effects, size and market risk, interrupted time-series tests of relative corporate investment were performed. The empirical results indicate that firms adopting probability risk analysis experienced no significant changes in capital expenditures. |
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