Investment Appraisal Techniques and Constraints on Capital Investment

Actual Problems of Economics, Vol. 2, No. 4, 2012

7 Pages Posted: 16 Aug 2012

See all articles by Ahmed Imran Hunjra

Ahmed Imran Hunjra

University of Waikato; Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Iram Batool Shaheen

affiliation not provided to SSRN

Ghulam Shabbir Khan Niazi

affiliation not provided to SSRN

Ijazur Rehman

affiliation not provided to SSRN

Date Written: August 16, 2012

Abstract

The objective of this study is to determine the level of application and perception of finance executives and analysts regarding the investment appraisal techniques in Pakistani corporate sec tor in the light of theory. This study also investigates major constraints on capital investment. In total 63 questionnaires were distributed in different cities of Pakistan (Islamabad, Rawalpindi, Lahore, Multan and Faisalabad) but only 37 properly filled questionnaires were processed; the potential respondents were finance executives and Chief Financial Officers (CFOs) of companies. The companies listed at KSE related to 10 leading sectors were the participants of this study. It is concluded that corporate managers have the awareness about the worth of investment appraisal techniques and consider these techniques important for long term profitability and survival of the company. It is also concluded that the availability of finance, lack of profitable investment opportunities and the attitude of senior management are the major constraints on capital investment.

Keywords: investment appraisal techniques, Pakistani corporate sector, long term profitability, investment opportunities

Suggested Citation

Hunjra, Ahmed Imran and Shaheen, Iram Batool and Niazi, Ghulam Shabbir Khan and Rehman, Ijazur, Investment Appraisal Techniques and Constraints on Capital Investment (August 16, 2012). Actual Problems of Economics, Vol. 2, No. 4, 2012. Available at SSRN: https://ssrn.com/abstract=2130353

Ahmed Imran Hunjra (Contact Author)

University of Waikato ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS) ( email )

Muree Road Rawalpindi
Shamsabad, Punjab 44000
Pakistan
00923457162527 (Phone)

Iram Batool Shaheen

affiliation not provided to SSRN ( email )

Ghulam Shabbir Khan Niazi

affiliation not provided to SSRN ( email )

Ijazur Rehman

affiliation not provided to SSRN

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