The use of investment decision techniques and tools in practice in a frontier market: Evidence from Ghana

Addico, Nene Lartey; Amewu, Godfred; Owusu‐Ansah, Anthony

doi:10.1002/mde.3484

Cited by 3 publications

(3 citation statements)

References 30 publications

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“…The authors are aware of the importance of financial aspects and recognize that non-financial aspects should be used as a means when precise information is not available or as a partial substitute for financial analysis. The literature analyzed (Abdel-Kader & Dugdale, 2001;Addico et al, 2022;Sureka et al, 2022) considered that the ideal would be to complement and integrate non-financial considerations as an alternative when the firm cannot adequately implement the traditional analysis in the valuation of investment projects.…”

Section: Discussionmentioning

confidence: 99%

“…Finance theory holds that economic returns are the basis for capital budgeting decisions. Capital projects showing more positive and higher returns should be prioritized or selected ov er those with lower or negative returns (Addico, Amewu, & Owusu-Ansah, 2022;Fehrenbacher et al, 2020;Warren & Jack, 2018). The result of capital decisions involves significant financial outlays committed over many years, significantly affecting the long-term performance of an organization (Fehrenbacher et al, 2020;Siziba & Hall, 2021;Tresierra-Tanaka & Vega-Acuña, 2019).…”

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confidence: 99%

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Investment decisions in the context of SMEs: A non-financial factor approach

Garcia-Vidal,

Sanchez-Rodriguez,

Perez-Campdesuner

et al. 2024

IJAEFA

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This study empirically examines the non-financial factors approach to making investment decisions and supports this significant activity in the context of SMEs, based on 16 investment projects and a proposal for a new way to manage non-financial factors. For small and medium-sized enterprises, focusing on non-financial factors in investment decision-making might identify fewer tangible advantages than in financial analysis, but there is not enough information on such factors. That is why the objective of this research is to propose a way to make investment decisions by paying attention to non-financial indicators. This study produces three basic findings. First, nonfinancial measures are widely used in capital budgeting, but nonfinancial measures appear to serve as a partial substitute when there is a lack of information or knowledge to develop other techniques, mainly in the context of SMEs. Second, a proposal method to analyze non-financial factors facilitates a decision to accept or reject an investment project. Third, entrepreneurs very often make blind decisions regarding the investments they should make, either due to a lack of time, information, or knowledge to do so. The way of analyzing the potential impact of investment projects generates the opportunity to position them based on two dimensions that emerge from the combination of the nonfinancial factors used. Additionally, the present study succeeds in presenting and evaluating 16 investment projects, pointing to those that can have a better impact on businesses.

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Section: Discussionmentioning

confidence: 99%

mentioning

confidence: 99%

Investment decisions in the context of SMEs: A non-financial factor approach

Garcia-Vidal,

Sanchez-Rodriguez,

Perez-Campdesuner

et al. 2024

IJAEFA

View full text Add to dashboard Cite

show abstract

“…In addition, the traditional method of return on investment (ROI) has been adjusted in different ways by several authors [59][60][61][62][63]. Another metric designed is the training investment value (TIV) [22,64], or the return on talent [65][66][67][68][69][70].…”

Section: Human Capital and Human Capital Managementmentioning

confidence: 99%

The Investments in Human Capital within the Human Capital Management and the Impact on the Enterprise’s Performance

et al. 2023

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Human capital (HC) is a key factor for enterprises’ performance and competitiveness. The aim of this study was to identify how enterprises in Slovakia perceive the impact of the investments in HC on business performance within the context of the implementation of human capital management (HCM). The content analysis was applied to analyze the different authors’ opinions on the substance of HC. These opinions were compared, and the knowledge obtained was synthesized. The article’s originality stems from the evaluation of the results from a unique questionnaire survey conducted with a specific focus on IT companies. This follows the presumption that these companies approach the application of HCM in an exemplary way, while being considered knowledge intensive. To collect the primary data, a questionnaire survey was performed in 113 Slovak IT enterprises and its results were analyzed using statistical tests of independence. The main findings include the corroboration of a positive effect of investments in the employees’ education and the implementation of HCM on the enterprises’ performance. Despite this, more than a third of the enterprises did not evaluate the effectiveness of investment in HC, and more than half of enterprises did not have the HCM concept implemented. Several solutions are recommended with respect to the HR managers’ training.

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Impact of market classifications on the innovative use of financing and dividend techniques: a global review of survey papers

Addico,

Amewu,

Owusu-Ansah

et al. 2024

QRFM

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Purpose This study aims to investigate the belief that the innovative/skilled use of financing and dividend policy decision techniques depends on the firm’s host market classifications (frontier, emerging and developed markets). Design/methodology/approach Using survey studies with similar questions, the authors reviewed, tallied and compared firm characteristic subgroup mean values of 2.4 and above (≥ 60% usage rate) per technique per market classification for the financing decisions analysis. In the dividend policy analysis, the authors tabulated existing rank results per market classification. Findings Managers in Malaysia significantly issue stock based on whether the firm's recent profits have been sufficient to fund their activities; this technique is of low value to US and Ghanaian managers. Managers in Ghana significantly limit their debt so their customers/suppliers are not worried about the firm going out of business; this technique has low value for Malaysian and US managers. Managers in Malaysia significantly issue debt when it gives investors a better impression of their firm prospects than issuing stock; this technique is not valuable to Ghanaian and US managers. On dividends, Ghanaian and sanctioned Iranian managers significantly consider cash availability before a dividend decision; this has low value to emerging and developed market managers. Practical implications These findings suggest that managers must customise their sets of valuable financing and dividend techniques to reflect the business risks and hurdles per their firm’s host market classification – as markets may determine a technique’s usefulness. Also, the innovative/skilful use of financing and dividend techniques decreases as managers move from developed to frontier markets, possibly due to degrading market conditions. Originality/value A global comparative study of survey literature covering frontier, emerging and developed markets is rare in the literature.

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The use of investment decision techniques and tools in practice in a frontier market: Evidence from Ghana

Cited by 3 publications

References 30 publications

Investment decisions in the context of SMEs: A non-financial factor approach

Investment decisions in the context of SMEs: A non-financial factor approach

The Investments in Human Capital within the Human Capital Management and the Impact on the Enterprise’s Performance

Impact of market classifications on the innovative use of financing and dividend techniques: a global review of survey papers

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