This thesis analyzes the impact of capital budget on capital spending in the U.S. states. The analysis is based on the James Poterba's 1995 study of the impact of a capital budget on capital spending using 1962 U.S. state-level data. I first replicate Poterba's model using the 1992-1996 data set that I had constructed for this study. I then extend Poterba's model to include a set of variables that allows exploration of the specific effects of the regulatory environment on spending outcomes in each state. These are mainly categorical variables that classify states in accordance with their definition of capital expenditure, organization of capital planning process, project selection and cost estimating techniques and capital financing practices. These were constructed using the data of the 1997 NASBO survey after reviewing the suggestions of practitioners and policy makers, as well as those engaged in research in this field. The introduction of a set of budget rule/budget composition variables into the analysis is an important contribution of this study. I also introduce additional control variables such as those controlling for the age of infrastructure. This study supports the claim that government spending is determined by a host of causal factors that can be grouped into four broad categories, (1) demographic-economic factors, representing both demand for public capital and source of its financing, (2) political decision-making factors that reflect electorate/party in power preferences for spending, (3) capital stock variables that relate to the age of infrastructure and control for spending culture in a state, and (4) budget composition/spending rules. The main finding of this study is the confirmation of Poterba's finding with respect to the positive effect of capital budget on capital spending using a recent data set and longer time frame of analysis. Another major contribution of this study is a statistically significant effect of sixteen spending rule/ budget composition variables. The results of this study support the basic premise found in the literature that budget process affects capital spending. / Master of Public and International Affairs

The first research objective of this dissertation is an empirical study of the capital budgeting process to determine what capital budgeting evaluation techniques are used by firms in the Nelson Mandela Metropole. The second research objective of this dissertation is how the size of the firm impacts on the type of capital budgeting evaluation techniques used. The size of the firm is measured by magnitude of turnover, assets and the number of employees.

Digitized by Kansas Correctional Industries

by Albert Wu Kin Fu. / Summary in Chinese on endpapers. / Thesis (M.B.A.)--Chinese University of Hong Kong. / Bibliography: leaves 106-113.

Several writers in the field of capital budgeting have charged that present day literature on the subject fails to adequately address the post audit phase of capital expenditure programs. This study is essentially a survey of current literature designed to determine the validity of this charge. To accomplish this task, the study compares each author’s published views on selected post audit factors with other responses from the literature and analyzes collective agreements and differences. Armed with this information, an attempt is made to provide answers to three pertinent questions: l. Does general agreement exist among writers on what constitutes the basic elements of post auditing? 2. Within each of these basic elements, has the literature established a generally accepted set of operating principles to guide the practitioner? 3. In general, has the literature to date, individually or collectively, presented an approach to post auditing which is sufficiently structured to enable the practitioner to develop an effective post auditing program and to proceed with implementation?

No description available.

No description available.

No abstract available. / Thesis (M.Comm.)-University of Natal, Pietermaritzburg, 2000.

Thesis (M.Comm.)-University of KwaZulu-Natal, Pietermaritzburg, 2009. / The Capital Asset Pricing Model (CAPM), despite criticism and debate regarding its validity, remains the most widely employed model to estimate the cost of equity for use in capital budgeting decisions, both in the U.S. and in South Africa. The risk-free rate specified in the model is generally estimated with the use of a government security, but there is some concern as to the appropriateness of this practice in the South African market. An alternative approach was derived by Black (1972), known as the minimum-variance zero-beta portfolio returns; but the suitability of this parameter in the South African market has not yet been examined. The objective of this study therefore is to determine the best method to estimate the risk-free rate for applications of the CAPM in South Africa. A set of theoretical requirements that an asset must closely satisfy to be considered a suitable proxy for the risk-free rate are derived, with the most commonly employed proxies being compared to these criteria to ascertain their appropriateness. The zero-beta portfolio returns are computed, in conjunction with the rate that investors have historically viewed as the minimum required return, denoted by the intercept of the CAPM. Hypothesis tests of the equality of the two estimates of the risk-free rate and the minimum required return are conducted, as well as a comparison of the forecasting accuracy of the model using the different risk-free rate values. The results of the analysis indicate that the South African proxies diverge substantially from the criteria, and are likely to overstate the true-risk-free rate. In complete contrast to this, the hypothesis tests reveal that the proxies understate the intercept estimate, whilst the zero-beta portfolio returns closely approximate this value. This finding that the zero-beta portfolio returns, which are larger than the proxy yields, are more suitable appears counter-intuitive given the goal to identify the minimum return from investing. This result can possibly be explained by the fact that the CAPM intercept represents the average of the riskless lending and borrowing rates, whilst the proxy only denotes the former. The borrowing rate is likely to be higher than the lending rate; thus giving reason for the average being greater. However, the possibility also remains that the results observed may be a consequence of the incorrect specification of the market portfolio, that the tests employed are inapt, or that the model itself is inappropriate. The forecasting analysis confirms the greater accuracy associated with employing the zero-beta portfolio returns as the risk-free rate compared to the use of a proxy, but the improvement is small. Thus the choice for the practitioner is whether the increase in accuracy is justified by the difficulty and time involved with estimating the zero-beta portfolio returns.

For the purposes of this study I have adopted a case study approach, based on a Multinational company in the UK, with business units geographically spread throughout the world, including South Africa. I intend to provide a detailed analysis of all aspects of the Capital Budgeting process. The dissertation will cover the follow ing areas : • The capital appraisal techniques used to evaluate capital projects. • The determination of a cost of capital. • Adjustments to the cost of capital in a multinational context. The approach in this study will be to divide Capital Budgeting into the three specific areas as detailed above, discuss the theory associated with the subject, analyse empirical research on the topic and critically evaluate the findings of the practices at the Multinational chosen for this study. Due to confidentiality reasons I shall refer to the company as "PLC" for the purposes of this study. 1.3. Objectives of the Study The objective of the study is to evaluate the capital investment appraisal process of "PLC", in the light of theoretical and empirical literature on the subject, leading either to suggestions for improvement or acknowledging the merit of the current practice. It is expected that "PLC" utilises sophisticated methods for investment appraisal but does allow room for improvement. / Thesis (MBA)-University of Natal, Durban, 2001.