Topics in Finance: Part VI - Capital Budgeting
Colorado College Working Paper No. 2011-11
10 Pages Posted: 23 Apr 2011
Date Written: April 20, 2011
This series on the theory of financial management offers insight into the roles of stockholder wealth maximization, the risk-return tradeoff, and agency conflicts as they apply to major topics in finance. The current article investigates capital budgeting. Much literature addresses this topic, with a number of articles challenging mainstream theories, some investigating agency problems, and a few empirically testing the relationships taught in most managerial finance classrooms.
Keywords: capital budgeting, risk-return, agency, financial management, finance
JEL Classification: G31, D23, M4, M1
Suggested Citation: Suggested Citation