scholarly journals A grounded theory exploration of appraisal Process of Capital Investment Decisions — Capex Appraisal Model (CAM)

2020 ◽  
Vol 11 (7) ◽  
pp. 2778-2804
Author(s):  
Umair Baig ◽  
Manzoor Ahmed Khalidi
Keyword(s):  
Grounded Theory ◽  
Capital Investment ◽  
Relevant Literature ◽  
Investment Decisions ◽  
Idea Generation ◽  
Theory Approach ◽  
Capital Investments ◽  
Monitoring And Control ◽  
Theoretical Contribution ◽  
Appraisal Process

The purpose of this study was to explore the appraisal process of capital investment decisions. The study adopted the grounded theory approach for the exploration of the objective. In the first stage, 48 in-depth interviews were conducted from finance executives of PSX listed companies. After transcription of all of the interviews, NVIVO software was used for analysis. Theoretical sampling was used in this study. Initially, 35 concepts and 19 categories were obtained from the initial coding of 48 cases. In the next stage, using focused coding, 19 initial categories into 09 categories were classified. These 09 categories represent each stage of the appraisal process of capital investment. These stages are Idea generation, Strategic planning, Analysis, Risk Evaluation, Selection, Mode of finance, Implementation, Monitoring and control, and Post-audit. The development of appraisal process stages is the novelty of this study and key theoretical contribution. Findings provide an in-depth understanding of the systematic way that industry appraises capital investments. This study opens grounds for new knowledge for academia, adds to relevant literature and reduces the gap between the corporate world and academia.

Linking Personal Values to Investment Decisions Among Individual Shareholders in a Developing Economy

2019 ◽  
pp. 24-45 ◽  
Author(s):  
Otuo Serebour Agyemang
Keyword(s):  
Grounded Theory ◽  
Behavioral Finance ◽  
Personal Values ◽  
Investment Decisions ◽  
Clear Distinction ◽  
Theory Approach ◽  
Developing Economy ◽  
Decision Sciences ◽  
The Individual ◽  
Grounded Theory Approach

This chapter examines the link between personal values and investment decisions among individual shareholders in a developing economy. It contributes to the knowledge on behavioral finance and decision sciences that individual shareholders' personal values have influence on their investment decisions and the choice of companies they invest in. It employs a grounded theory approach. The chapter highlights that individual shareholders hold value priorities and that honesty, a comfortable life and family security play a significant role in their lives and their investment decisions and the kind of companies they make investment in. In addition, to the individual shareholders, there is a clear distinction between a comfortable life and a prosperous life in the sense that they are not incentivized more by the latter but the former in their investment decisions.

Agreeing to disagree: structuring future capital investment provisions in joint ventures

2020 ◽  
Vol 13 (1) ◽  
pp. 12-22
Author(s):  
Edgar Elliott ◽  
Lois D’Costa ◽  
James Bamford
Keyword(s):  
Joint Ventures ◽  
Capital Investment ◽  
Joint Venture ◽  
Investment Decisions ◽  
Capital Investments ◽  
Agreeing To Disagree ◽  
Structural Work ◽  
Opt Out ◽  
Contractual Structures

Abstract Prior to entering into any joint venture agreement (JVA), dealmakers should be aware of the options available to resolve future investment disagreements. There are three broad capital investment structures commonly found in joint ventures: (i) standard passmark rules; (ii) non-consent/opt-out; and (iii) sole risk. Within each category, deal practitioners have numerous options to tailor capital investment structures. As much as possible, deal practitioners should contemplate the most likely areas of disagreement, and then tailor the capital investment structures appropriately to ensure that the joint ventures (JV) can manage capital investment decisions in an efficient, value-preserving way. While it is impossible to establish a formula to determine which specific contractual structures will best accommodate future capital investments in a given JV, companies should weigh various factors to inform their position. We reviewed 40 JVAs to understand various capital investment mechanics and how they differ based on the nature of the venture and owner context. Our research found an extremely diverse array of creative structural work-arounds to address different owner appetites to make future capital investments. The purpose of this article is to describe, illustrate and provide benchmarks on different mechanics and contractual terms found in joint venture agreements, and to offer guidance as to which future capital investment mechanics should be included in venture agreements.

Promotion Signaling and Human Capital Investments

2020 ◽  
Vol 12 (1) ◽  
pp. 125-155 ◽  
Author(s):  
Michael Waldman ◽  
Ori Zax
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Capital Investment ◽  
Investment Decisions ◽  
Human Capital Investment ◽  
Capital Investments ◽  
Human Capital Investments ◽  
Asymmetric Learning ◽  
Specific Human Capital ◽  
Investment Choices

In a world characterized by asymmetric learning, promotions can serve as signals of worker ability, and this, in turn, can result in inefficient promotion decisions. If the labor market is competitive, the result will be practices that reduce this distortion. We explore how this logic affects human capital investment decisions. We show that, if commitment is possible, investments will be biased toward the accumulation of firm-specific human capital. We also consider what happens when commitment is not possible and show a number of results including that, if investment choices are not publicly observable, choices are frequently efficient. (JEL D82, J24, J31, M12, M51)

Scientists’ Entrepreneurial Cognitive Model for Science-Based Firms: A Case Study Based on Grounded Theory Approach

2020 ◽  
pp. 1-31
Author(s):  
Hong Chen ◽  
Jiasu Lei
Keyword(s):  
Grounded Theory ◽  
Early Stage ◽  
Dominant Role ◽  
Cognitive Model ◽  
Entrepreneurial Intention ◽  
Entrepreneurial Firms ◽  
Theory Approach ◽  
Theoretical Contribution ◽  
Independent Innovation ◽  
Entrepreneurial Cognition

With science-based research being promoted to a strategic level, accelerating technological transfer from universities/institutes became an urgent subject in academia, research focusing on the entrepreneurial cognition of scientists remains blank. Grounded theory was adopted to track and analyze the Science-Based Entrepreneurial Firms (SBEFs) from four universities/PRIs. The study finds that the entrepreneurial cognition of scientists plays a dominant role in activating entrepreneurial intention. Social network propels the entrepreneurial intention. Meanwhile, acquiring diverse capabilities embedded within entrepreneurial cognition will help scientists to discover entrepreneurial opportunity in an early stage and therefore builds up towards the entrepreneurial intention for becoming entrepreneurs. Such conclusions shed light on providing theoretical contribution for the policy making on the state independent innovation.

scholarly journals Distortionary Impacts of the 1982 and 1986 U.S. Tax Codes on Capital Investments: A Case Study of Investment in Orange Groves

1989 ◽  
Vol 21 (2) ◽  
pp. 107-115
Author(s):  
Charles B. Moss ◽  
Ronald P. Muraro ◽  
William G. Boggess
Keyword(s):  
Income Tax ◽  
Capital Investment ◽  
Tax Reform ◽  
Investment Decisions ◽  
The United States ◽  
Capital Investments ◽  
Fiscal Responsibility ◽  
Tax Rate ◽  
Tax Simplification

AbstractThe 1980s have been a period of dramatic change for the income tax code in the United States. Although numerous modifications were considered in policy deliberations, two key goals, the reduction of the importance of tax considerations in investment decisions and tax simplification, emerged from the discussion and guided drafting of the 1986 Tax Reform Act. This study examines the importance of tax considerations in investment decisions under the provisions of the Tax Reform Act of 1986 and its predecessor, the Tax Equity and Fiscal Responsibility Act of 1982. The study then compares the tax liability under these tax codes with a nondistortionary tax scheme. Results indicate that the Tax Reform Act of 1986 reduced the distortionary effects of the tax code on capital investment decisions. However, a large portion of the reduction can be attributed to the change in the average tax rate.

Employing a Grounded Theory Approach for MIS Research

2010 ◽  
pp. 34-56 ◽  
Author(s):  
Susan Gasson
Keyword(s):  
Grounded Theory ◽  
Information Systems ◽  
Management Information Systems ◽  
Theory Approach ◽  
Theoretical Contribution ◽  
Is Research ◽  
Coding Method ◽  
The Subject ◽  
Grounded Theory Approach ◽  
Interpretive Perspective

This chapter provides a brief introduction to the grounded theory (GT) approach to research, discussing how it has been used in information systems (IS) research, and how GT studies may be conducted to provide a significant theoretical contribution to the management information systems (MIS) field. The subject is of particular interest at a time when GT attracts frequent criticism for a lack of rigor. This chapter deals with what makes for a rigorous contribution to “grounded” theory in MIS. It addresses developments and controversies in the generation of grounded theories, examining the use of GT as a coding method vs. the use of GT as a method for generating theory. The discussion focuses mainly on the constructivist/interpretive perspective adopted in most qualitative data studies, as this is the way in which GT has been used most often in MIS. The chapter concludes with a roadmap for the use of GT in MIS research and a discussion of the contribution made by GT studies in MIS.

Solar Renewable Energy Credit Price Volatility and Investment Returns: Have Policies Stranded Capital Investment?

Commonwealth ◽  
2017 ◽  
Vol 19 (1) ◽  
Author(s):  
Somayeh Youssefi ◽  
Patrick L. Gurian
Keyword(s):  
Solar Energy ◽  
Capital Investment ◽  
Supply And Demand ◽  
Price Volatility ◽  
The United States ◽  
Investment Model ◽  
Capital Investments ◽  
Demand Model ◽  
Market Prices ◽  
Investment Returns

Pennsylvania is one of a number of U.S. states that provide incentives for the generation of electricity by solar energy through Solar Renewal Energy Credits (SRECs). This article develops a return on investment model for solar energy generation in the PJM (mid-­Atlantic) region of the United States. Model results indicate that SREC values of roughly $150 are needed for residential scale systems to break even over a 25-­year project period at 3% interest. Market prices for SRECs in Pennsylvania have been well below this range from late 2011 through the first half of 2016, indicating that previous capital investments in solar generation have been stranded as a result of steep declines in the value of SRECs. A simple conceptual supply and demand model is developed to explain the sharp decline in market prices for SRECs. Also discussed is a possible policy remedy that would add unsold SRECs in a given year to the SREC quota for the subsequent year.

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