Importance And Behavior Of Capital Project Benefits Factors In Practice: Early Evidence
<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">We extend the capital budgeting literature by identifying capital project benefits factors and relating each factor’s importance to firm and individual decision-maker factors.<span style="mso-spacerun: yes;"> </span>We find significant and consistent changes in importance of project benefits factors associated with decision-maker firm-individual factors.<span style="mso-spacerun: yes;"> </span>Project benefits such as value, scale, profitability, strategic fit, competitiveness, communications and implimentability importance can be explained by decision-makers' firm size or type, line/staff distinctions, power, experience, and behavioral training.</span></span></p>