Capital Budgeting Practices: A Survey of Two Industries

This research examines the capital budgeting practices used by small and medium-sized firms (SMEs) in two Portuguese industries, footwear metalworking, aiming at answering following questions: How much knowledge do managers have about practices? What are most importance they attribute to applying them? The was conducted through an online survey with a response rate of 14.9%. results document that companies both industries familiar practices, despite differences between two. industry recognizes these indicators but makes little use them, many prefer using payback period (PBP). metalworking industry, on other hand, greater net present value being favored indicator PBP as supplementary. study contributes literature ways: first, focusing SMEs instead only large firms, second, exploring data from rather than multiple, heterogeneous industries.