Investment Decision-Making Practices in Colombia: A Survey

Interfaces, Vol. 16, No. 4, pp. 60-65, July 1986

6 Pages Posted: 26 Jul 2000 Last revised: 19 Feb 2008

See all articles by Ignacio Velez-Pareja

Ignacio Velez-Pareja

Grupo Consultor CAV Capital Advisory & Valuation

Gabriel Nieto

Central Bank of Colombia

Abstract

Operations Research and Capital Budgeting techniques were introduced in Colombia in the late 50's. In a survey conducted during 1980, about one-half of the large firms in Bogota, Colombia use discounted methods for investment decisions, as compared to about two-third of the firms in the United States. These figures are comparable with the ones found in U.S.A. in the mid 70's. Forty two firms out of the top 100 largest firm in the country answered the survey. These methods are all the more important in the Colombian economy which has a considerably higher rate of inflation and a monetary policy designed for credit restrictions.

Note: This is a description of the article and not the actual abstract.

Keywords: Capital budgeting techniques, NPV, IRR, risk analysis

JEL Classification: G31, G38, L6, L7, L8, L9, N86, N80

Suggested Citation

Velez-Pareja, Ignacio and Nieto, Gabriel, Investment Decision-Making Practices in Colombia: A Survey. Interfaces, Vol. 16, No. 4, pp. 60-65, July 1986. Available at SSRN: https://ssrn.com/abstract=234640

Ignacio Velez-Pareja (Contact Author)

Grupo Consultor CAV Capital Advisory & Valuation ( email )

Ave Miramar # 18-93 Apt 6A
Cartagena
Colombia
+573112333074 (Phone)

HOME PAGE: http://cashflow88.com/decisiones/decisiones.html

Gabriel Nieto

Central Bank of Colombia

Carrera 7 #14-78
3551 de Bogotá
Columbia

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