دانلود رایگان مقاله انگلیسی دینامیک کنترل پیش تصمیم در ارزیابی سرمایه گذاری های استراتژیک - الزویر 2018

Abstract

In this study we examine the dynamism of pre-decision controls in the appraisal of strategic investments, an area largely overlooked by the literature, even though it is of the utmost importance to understand the mechanisms companies use to ensure their optimal capital investments. More specifically, we investigate how changes in companies’ economic, strategic, and organisational conditions relate to an increased emphasis on pre-decision controls such as policies, procedures, and routines. The empirical data is based on 108 interviews from among the 150 largest Finnish manufacturing companies. The paper contributes to the scarce capital budgeting literature by extending the discussion of the adaptations of pre-decision controls to external and internal environmental changes. We add to the literature by showing that changes in management may play a decisive role in control adaptations. Furthermore, we provide strong support to maintain that increased financial pressure can be related to the tightened use of controls.

Conclusions

In this study we respond to Alkaraan and Northcott’s (2007) call to enhance the understanding of the choice and design of pre-decision controls in strategic investments. The study enhances our understanding of the adaptations in pre-decision controls by investigating their relationships to external and internal environmental changes in a larger sample than Slagmulder’s (1997) study. Accordingly, we are able to apply statistical methods to our data and find statistically significant associations. Our study contributes in many ways to the capital budgeting literature by shedding light on the adaptations of pre-decision controls in the appraisal of strategic investments; it is an area largely overlooked by the literature. Firstly, we are the first to show that changes in management may play a decisive role as a trigger for control adaptations in a capital budgeting setting. Secondly, we extend the literature by providing strong statistical support to maintain that increased financial pressure can be related to the tightened use of pre-decision controls. Thirdly, in comparison to Libby and Waterhouse (1996), we contribute to the literature by providing a more nuanced picture of the adaptations of various control mechanisms. We not only show whether any kind of change has occurred within capital budgeting but we also address adjustments in 20 different control mechanisms.