Capital Budgeting: the Romanian Credit Analysts’ Points of View
Ingrid Dragota (),
Victor Dragotă (),
Daniel Traian Pele (),
Nicoleta Vintilă () and
Andreea Semenescu ()
The Review of Finance and Banking, 2011, vol. 03, issue 1, 039-045
This study aims to disclose the methods and instruments used by the credit analysts in the most important Romanian banks regarding capital budgeting. It can be noticed that the dominant standpoint converges to the recommendations of the main reference works in corporate finance. Hence, indicators like profitability index, net present value or internal rate of return are preferred by the most part of the credit analysts. Among the techniques of risk quantification, the sensitivity analysis is the most commonly used method by Romanian creditors. About the discount rate used in investment valuation, the main part of the respondents recommends the rate of return for similar projects in the sector.
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Persistent link: https://EconPapers.repec.org/RePEc:rfb:journl:v:03:y:2011:i:1:p:009-045
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The Review of Finance and Banking is currently edited by Victor Dragota; Bogdan Negrea
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