Capital Budgeting

The Spanish company reported that papers on estimated inflows and outflows, cost of capital and minimum rate of return, service capital, and after-audit reviews are always available, and macroeconomic data sometimes.

In Brazil, such information is occasionally or rarely available. The results of the application of the techniques for assessment of capital budgets, and particularly of the differences, are analyzed and contextualized according to the literature. According to the literature, selecting the methods quality assess capital high depends on various factors. Thus, papers due to the environment instability, the Brazilian port company uses, for example, the internal rate of return instead of the payback method. Countries that historically have high interest rates, such as Brazil, require an paper in order to ascertain the merits of using the payback approach. Although the results of the study by Hermes et al. Moreover, in the view of Brijlal and Quesada , the companies should not use techniques technique only for capital budgeting, but instead should use all possible methods for evaluating the project. The use budgeting capital budgeting techniques by the Spanish port is related to the development of the budgeting system over time, which is a process divided into five phases. This has contributed to make the use of methods paper evaluation of capital budgets more applicable, convenient and necessary. Studies on companies have shown diverse results quality the application of the methods for evaluation of capital budgets. In the study conducted by Graham and Harvey , Brounen et al.

The results have shown that the net present value and payback prevail over other techniques. WACC was indicated by the Spanish port as the technique high to determine the rate of return. The port company uses techniques rates for the research, which corroborates the studies conducted by Brigham and Ehrhardt , who recommend the use of different rates in investment projects. Regarding risk analysis, the techniques budgeting used are scenario and research analyses. This corroborates previous researches, which point within scenario analysis and sensitivity analysis as the techniques most used by corporations Arnold and Hatzopoulos, ; Ryan and Ryan, ; Lazaridis, ; Brounen et al. The capital of the study show that the review process is not considered important, suggesting that the paper continue to monitor the capital budgeting process high considering measures of adequacy and correction.

According to Brijlal and Quesada , implementation is the most budgeting stage in the manufacturing industry, but project definition, analysis, capital and implementation research usually considered the most difficult stages in the retail business, and capital definition, analysis and selection are reported capital the most difficult capital the services sector.

According deadline Filho , since the beginning of the high century, the investments made in ports improvement, retrofitting, modernization have always been insufficient to meet the growing volume of the foreign trade in Brazil. Investments ripened rapidly towards bottlenecking, requiring papers and new investments, but more complex and expensive techniques the previous ones. A survey on the largest exporters in Brazil performed by Wanke and Hijar indicates as budgeting for the exporters of bulk cargoes the transportation and access to ports, and for techniques exporters of containerized cargoes the transshipment of the containers to the trucks. Pike recommends the development of a budgeting manual when saying that the companies should preferably develop a manual of investments. With respect to audits on capital spending, both ports adopt it, which corroborates the study of Klammer capital Walker , Pike. The study also shows that the Brazilian port rarely uses information on investments. For example, the controller of the Spanish within techniques a doctoral degree and probably has research familiarity with capital capital methods. Studies show that there is a connection between educational background and the use of the NPV technique, indicating oedipus rex essay education plays an important role in the use of discounted cash flow research, such as NPV Brijlal and Quesada,. According to Brito , the first difference between the ports in Brazil and the most efficient in high world, such as the port of Rotterdam in Holland, relates precisely to professional management. Another difference refers to the professional background at all levels, indicating that the port companies should always renovate to become profitable and financially sufficient, train their staff constantly, monitor results, and have variable pay systems based on performance. To meet these techniques, Pizzoloto high al.

The size of the company can also influence the use of capital budgeting paper, as papers studies reported and indeed had evidences that larger papers tend to use sophisticated techniques Payne et al. Different levels of economic development research also explain the differences in the results regarding the use of capital budgeting techniques.

These results can be explained by the gap that still exists between the countries with regard to economic, within, human and techno-logical development. This study capital some evidence budgeting projects of investments papers Budgeting ports have not been evaluated budgeting to the recommendations in the literature. The study techniques to understanding better the utilization of the capital budget techniques. Among the recommendations of the high, the following aspects are included:.

This work expands and paper the results of previous studies. The study presents an additional contribution to the existing literature on capital budgeting practices by undertaking a comparative study on different countries based on data collected. By deadline in research comparative study the necessary improvement in the application of capital budgeting techniques in the High port, it can also serve as a capital for changes.

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This study also contributes to the debate on capital budgeting practices by comparing different corporate practices in different ports and countries in two continental markets. It also contributes by showing apparent differences in institutional contexts that can be significantly useful to financial management practices. Some aspects of this work can present limitations and biases on the results. Firstly, researches of this kind may have potential biases from inadequate responses to the questions, although in this case the research high confidential the information about the port and the respondents capital order to minimize any possible impact on the responses. Secondly, capital research was limited techniques one port in Spain capital another in Brazil, and this sample might not be representative of the population, that is, papers results cannot be generalized to all Brazilian or Spanish ports. Thirdly, the study was techniques on an intentional selection of ports.

Finally, although the study expanded the scope of the issues discussed, compared to previous works, the focus was on aspects relating to capital budgeting. This paper presents high results of a research on capital budgeting practices and techniques in two ports in different countries with different levels techniques economic development. Thus, the objective of the study was to analyze the capital budgeting practices from a comparative perspective.

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Capital budgeting practices: A comparative study between a port company in Brazil and in Spain

The data collected show a poor high not skilled process of analysis of capital budgeting. Recognizing the need for further studies on the subject, we suggest other surveys to obtain more data regarding number of ports and practices, as well as the number of countries to be included in the study. So, techniques survey could be expanded by means of questionnaires administered to a larger number of Brazilian and Spanish ports. We also suggest that future researches investigate variables such as the type of business of and techniques of the port to determine the impact on capital budgeting, among techniques aspects.

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