One of the debates in the capital budgeting model selection is between the free cash flow and DCF methods. In this paper an attempt is made to compare SVA against NPV model based on Monte Carlo simulations. Accordingly, NPV is found less sensitive to value driver variations and has got higher...

The survey findings indicate the existence of gap between theory and practice of capital budgeting. Standard appraisal methods have shown a wider project value discrepancy, which is beyond and above the contingency limit. In addition, the research has found the growing trend in the use of value...

Earnings less riskfree Interest Charge (ERIC) is a new residual income concept for Value Based Management (VBM), which takes the true risk and time preferences of shareholders into account. In this paper management based on ERIC is discussed from a theoretical and from a more practical point of...

Demand is growing for a better understanding of how assets are priced in countries outside of the U.S.While financial data are available for many firms world-wide, it is important to have a reliable andreplicable method of constructing high-quality systematic risk factors from these data. This...

The paper addresses the business value discussion of IT focussing on Business ProcessManagement (BPM), where BPM is understood as an integrated management concept withIT as a critical enabling technology. To answer the question if there could be any financialbenefit effects due to implementation...

The discipline of strategic management has the goal to better understand why companiessucceed based on a holistic, overarching perspective. However, until now the strategicmanagement literature has not provided a conceptually unifying framework that explicitlyintegrates the different dimensions...