Content Details | NUML Online Research Repository

Title Determinants of Capital Investment Criteria with Moderating Effect of Firm’s Age: Evidence from Companies listed on Pakistan Stock Exchange

Author(s) Mirza Nasir Jahan Mehdi

Abstract The matter of capital investment decision making has always been a key issue for the corporate and project managers. The criteria with which capital projects are evaluated, have always been the focal point for the corporate managers who are involved in the capital investment decision making to decide about the feasibility of capital projects. This study aims to review and investigate the managerial perceptions regarding their preferences for the application of capital investment selection criteria. This study is also aimed to study the relationship between conspicuous determinants involved in capital investment decision making process and capital investment selection criteria. This study also intends to conduct moderation analysis to check the extent of relationship between predictors (determinants) and capital investment selection criteria. This study is targeted to collect data from 1000 corporate managers of 250 sample companies listed on Pakistan Stock Exchange (PSX) through the questionnaires. The first model, RMM depicts the acceptance of seven alternative hypotheses out of ten with respect to the Multi-variant analysis, suggesting the favorable impact of seven determinates on Risk Management Methods (RMM). In essence, moderation results of this model are significant because firm age as a moderator, strongly moderates the relationship between all determinants and RMM. In the same way, second model CAM, indicates the significant effect of seven determinates on CAM (Conventional Appraisal Methods). The moderation results in CAM model due to firm age are favorable. In the third model SAM (Strategic Appraisal Methods), six alternative hypotheses are accepted. In case of moderation, again firm age has good moderation. By and large, it has been concluded, that all the results and findings of this capital investment decision making study are in agreement with the results and findings of previous studies in terms of impact of selected determinates on the capital investment decision making criteria and the effect of respective moderators on the relationship between them. The delimitations can be captured to broaden the scope and horizon of this study. To conclude, this study proceeds from general theoretical justification of past researchers to the specific direction by doing the practical and applied research and analyzing the collected data in order to meet objectives of the study after testing the stated hypotheses of all the three models.

Type Thesis/Dissertation PhD

Faculty Management Sciences

Department Management Sciences

Language English

Publication Date 2019-12-26

Subject Finance

Publisher NUML

Contributor(s)

Format APA

Identifier

Source

Relation

Coverage

Rights