We survey 290 LATAM firms on capital budgeting, cost of capital and capital structure issues. We analyze the results and compare them to those of other studies. We interpret differences according to special features characterizing both emerging markets and SME. We observe that LATAM firms make...

We show that in business groups with efficient internal capital markets, resources may be channelled to either more- or less-profitable units. Depending on the amount of internal resources, a group may exit a market in response to increased competition, or channel funds to the subsidiary...

We allow the preference of a political majority to determine both the corporate governance structure and the division of profits between human and financial capital. In a democratic society where financial wealth is concentrated, a political majority may prefer to restrain governance by...

,

When a firm has minimal agency and informational asymmetry problems it should make efficient capital budgeting decisions. Many firms over-invest prior to CEO turnover, halt investments in the period surrounding the turnover, and then greatly increase their level of expenditures. Empirical...

We present results of an analysis and comparison of 46 studies (54 economic surveys) on capital budgeting methods for investment projects evaluation with emphasis on trends in application from 70s till present. We focus on three methods: net present value method, internal rate of return and...

Our purpose is to explore an alternative way to give new foundations to the theory of corporate finance and governance. The definition we give of corporate finance considers capital-budgeting as central. The shortcomings of the contract theory of the firm result in proposing new foundations to...

We allow the preference of a political majority to determine boththe corporate governance structure and the division of profits betweenhuman and financial capital. In a democratic society where financialwealth is concentrated, a political majority may prefer to restraingovernance by dispersed...

This paper analyzes the use of capital budgeting techniques of firms in the Caribbean in countries such as Barbados, Bahamas, Jamaica and Trinidad and Tobago using data obtained from a survey among publicly and non-publicly listed firms in the region. The main aims of the study are to analyze...

A firm using a discount rate defined at the corporate scale as a Weighted Average Cost of Capital (WACC) may have to value projects subject to a different tax rate from the one used to calculate its discount rate. Moreover, to determine the economic value of a project, the WACC and Arditti-Levy...