Capital budgeting: the Romanian university professors' points of view
Capital budgeting: the Romanian university professors' points of view

Summary/Abstract: This study aims at validating the points of view of the Romanian finance university professors regarding capital budgeting. The study is original and important in the same time, taking into consideration that their opinions, due to their vocation of educators, may represent the starting point for debates on the most suitable methods and techniques used in the practice of this field. It can be noticed that the dominant points of view converge to the recommendations of the main reference works in the domain of corporate finance. Hence, indicators like net present value, internal rate of return or profitability index are the most preferred. Among the techniques of risk quantification, the sensitivity analysis is considered as the most suitable, followed by the Monte Carlo method and the scenarios technique. As for the discount rate used for the investment projects analysis, the most numerous respondents recommend the weighted average cost of capital.Secondly, this study brings some insights on the profile of the university professors with competences in the field of capital budgeting. We can derive the conclusion that their education level is high, most of them having accomplished their university studies with a curricula adequate to the principles of a market economy. More than half of the respondents also have investments consultancy activities.

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