Strategic Investment Decisions: Theory and Practice in Estonia
نویسنده
چکیده
To study the practice of investment decision-making in Estonia, first a written survey of 40 companies was carried out. More than half of respondents were found to use sophisticated (DCF-based) capital budgeting methods, which is a lower usage rate than that of large companies in western countries. This could be attributed to the short history of Estonian free market economy and the lack of appropriate business education, as well as to the small size of the Estonian economy and companies. To further study the decision-making process, in-depth interviews were conducted in six companies. It was found that issues other than financial analysis played a great role in investment decision-making.
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