This study examined the relationship between budgeted capital and health sector performance in South West Nigeria. The adopted statistical tools to analyse data that were sourced from approved budget estimates of six Western States. descriptive statistics showed on an average level, all selected expenditures contributed approximately 99.9% their budgetary allocations. Jarque-Bera test reveals a...

This paper develops a theory of capital allocation in opaque financial intermediaries. The model endogenizes risk management and capital structure decisions, and it provides a simple setting within which to address questions relating to capital budgeting, performance measurement, and employee compensation. It provides a theoretical foundation for understanding the appropriate use, and misuse, o...

Recently studies have suggested that growth opportunities possessed by a firm can be regarded as real options and applied contingent-claims analysis to evaluate them in conjunction with the firm's operating environment (see Stulz, 1982; Baldwin, Mason and Ruback, 1983; Kester, 1984 and 1986; Brennan and Schwartz, 1985; Mason and Merton, 1985; Majd and Pindyck, 1987; Pindyck, 1988; and Chung and...

This paper examines the empirical question of whether systematic equity risk of US firms as measured by beta from the capital asset pricing model reflects the risk of their pension plans. There are a number of reasons to suspect that it might not. Chief among them is the opaque set of accounting rules used to report pension assets, liabilities, and expenses. Pension plan assets and liabilities ...

practitioners needing estimates of a firm's equity cost of capital have long relied on the Capital Asset Pricing Model (CAPM). Recent evidence casts renewed doubt on the validity of the CAPM and beta. However, there is not much evidence to gauge the importance of the rejections of the CAPM in a practical decision-making context. This paper presents evidence on the sources of error in estimating...

Justifying Spam and E-mail Virus Security Investments: A Case Study Hemantha Herath and Tejaswini Herath Abstract: Our paper investigates the problem of justifying security investments concerning spam and email virus using real life data from a midsize North American university. We formulate the spam and email virus security problem as a capital budgeting problem using operating characteristic ...

Capital budgeting as a decision process is amongst the most important of all management decisions. The importance (consequents) of the subsequent outcome may bring a level of uncertainty to the judgement making process by the decision maker(s), in the form of doubt, hesitancy and procrastination. This study considers one such problem, namely the choice of type of fleet car to adopt by a small c...

This paper estimates the standard and tax-adjusted market risk premiums in New Zealand using historical data between 1931-2002 and a variant of the Siegel (1992) methodology. Similar to Siegel we present evidence that real bond yields in New Zealand were low over the period 1931-2002 and this may bias upwards an Ibbotsontype estimate of the market risk premium. Using an estimate for the histori...