Modern specialised literature and business practice differentiate an increasing number of methods for evaluating investment projects, but the majority of authors adopted the general division onto non-discount (classical, traditional) methods, discount methods, and methods for preliminary project evaluation. Evaluation results are the basis for making positive or negative investment decisions.Th...

This article describes a methodology for evaluating information technology investments using the real options approach. IT investment projects are categorized into development and acquisition projects depending upon the time it takes to start benefiting from the IT asset once the decision to invest has been taken. A couple of models that account for uncertainty both in the costs and benefits as...

The main purpose of this study is to empirically compare of intellectual capital (IC) and its efficiency between advanced and low technology manufacturing companies using a sample of 135 Malaysian listed manufacturing companies during the 2006-2012 period. The manufacturing companies are classified into different sectors based on their products and services (Standard Industrial Classification (...

Standard cost-benefit analyses and asset pricing theories are based on the assumption that investment projects have marginal impacts on the consumption flows of stakeholders, so that social values and prices are not affected. This may not be true for large projects, such as those related to climate change or to the implementation of infrastructure projects in developing countries. In this paper...

Although it may seem natural to argue that foreign direct investment (FDI) can convey great advantages to host countries, this paper shows that the benefits of FDI vary greatly across sectors by examining the effect of foreign direct investment on growth in the primary, manufacturing, and services sectors. An empirical analysis using cross-country data for the period 1981-1999 suggests that tot...

We examine the investment behavior of a panel of German manufacturing ...rms for the time period from 1992 to 2000. Our methodology is structural and has several steps: First, we identify the pro...tability shocks that move investment demand at the ...rm level. Then, we specify an array of adjustment costs and capital market imperfections possibly in‡uencing optimal ...rm investment response to...

Dr Mukesh Kumar is a lecturer in Industrial Engineering and Operations Management, Institute for Manufacturing, University of Cambridge. His main research and practice interests are in the areas of sustainability, risk and resilience in emerging and developed industrial systems. He has developed risk management processes for global manufacturing investment decisions and supply networks. Before ...

The new portfolio optimization engine, OptFolioTM, simultaneously addresses financial return goals, catastrophic loss avoidance, and performance probability. The innovations embedded in OptFolio enable users to confidently design effective plans for achieving financial goals, employing accurate analysis based on real data. Traditional analysis and prediction methods are based on mean variance a...

Managerial flexibilities have to be taken into account in ex-ante decision-making on IT investment projects (ITIPs). In many papers of the IS literature, standard financial option pricing models are used to value such managerial flexibilities. Based on a review of the related literature, the paper critically discusses the assumptions of the most frequently used financial option pricing model, n...

This paper applies current theory concerning the impact of irreversibility of investment, in order to test for the impact of uncertainty on investment expenditure for a middle income country. The contribution of the paper is unique in two respects. First, it employs dynamic heterogeneous panel estimation techniques not previously applied to investment functions. Second, it explicitly tests for ...