Financial performance implications of capital budgeting practices in the manufacturing sector

dc.contributor.advisorPieterse, Theaen
dc.contributor.emailichelp@gibs.co.zaen
dc.contributor.postgraduateMgobhozi, Mzamo Rodneyen
dc.date.accessioned2013-09-06T14:49:38Z
dc.date.available2013-04-30en
dc.date.available2013-09-06T14:49:38Z
dc.date.created2013-04-25en
dc.date.issued2012en
dc.date.submitted2013-03-16en
dc.descriptionDissertation (MBA)--University of Pretoria, 2012.en
dc.description.abstractCapital budgeting is one of the most crucial organisational tools for executing operational, business and corporate strategy. Manufacturing companies derive their profits from fixed assets that also deteriorate over time. This requires them to invest large amounts of capital to both maintain and expand their asset base. A number of studies both historic and recent produce conflicting results on the relationship between capital budgeting practices and financial performance.This study sets out to identify the current capital budgeting practices in the manufacturing/capital intensive companies operating in the South African environment, and determine the relationship between the financial performance and capital budgeting practices. The implications of the type of capital expenditure (i.e. maintenance and expansionary) are also discussed.The study was completed using primary and secondary data. Primary data consisted of capital budgeting practices data in some of the private and state-owned enterprises that was source using a survey questionnaire. The secondary data was sourced from financial statements on the McGregor BFA® database.The major finding of this research study was that, given the sufficient sub-sector analysis, there is a positive relationship between capital budgeting practices and financial performance. There were no specific individual practices that yielded significantly returns.en
dc.description.availabilityunrestricteden
dc.description.departmentGordon Institute of Business Science (GIBS)en
dc.identifier.citationMgobhozi, MR 2012, Financial performance implications of capital budgeting practices in the manufacturing sector, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://hdl.handle.net/2263/23257 >en
dc.identifier.otherF13/4/356/zwen
dc.identifier.upetdurlhttp://upetd.up.ac.za/thesis/available/etd-03162013-092854/en
dc.identifier.urihttp://hdl.handle.net/2263/23257
dc.language.isoen
dc.publisherUniversity of Pretoriaen_ZA
dc.rights© 2013 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.en
dc.subjectUCTDen_US
dc.subjectSub-sectoren
dc.subjectCapital budgetingen
dc.subjectState-owned enterprise (SOE)en
dc.subjectCapital intensivenessen
dc.subjectMaintenanceen
dc.subjectCapital expenditureen
dc.titleFinancial performance implications of capital budgeting practices in the manufacturing sectoren
dc.typeDissertationen

Files

Original bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
Mgobhozi_Financial_2012.pdf
Size:
2.04 MB
Format:
Adobe Portable Document Format
Description: