Hall, J.H. (John Henry)Mutshutshu, Tendani2014-12-102014-12-102013Hall, JH & Mutshutshu, T 2013, 'Capital budgeting techniques employed by selected South African state-owned companies', Corporate Ownership and Control, vol. 10, no. 3, pp. 177-187.1727-9232 (print)1810-3057 (online)1810-0368 (cd)http://hdl.handle.net/2263/42895An analysis of the prior literature revealed few studies on the capital budgeting practices of state-owned companies (SOCs). The goal of this study was therefore to investigate the capital budgeting techniques employed by decision-makers in South African state-owned companies. The results indicated that the NPV and IRR techniques were used by 43% of respondents (the NPV was slightly more popular). WACC emerged as the preferred discount rate for capital budgeting purposes. In considering project risk, state-owned companies seem to prefer sensitivity analysis. It is thus recommended that academics emphasise the importance of NPV as a primary capital budgeting technique.enVirtus InterpressNet present value (NPV)Internal rate of return (IRR)Weighted average cost of capital (WACC)Capital budgeting techniquesState-owned companies (SOCs)Article