The Investment Process and Decision Making: the Organisational Perspective

Colin White and Miao Fan

Chapter 7 in Risk and Foreign Direct Investment, 2006, pp 104-124 from Palgrave Macmillan

Abstract: Abstract The present chapter takes an organisational perspective, focusing on the structure of an enterprise. The analysis concentrates on the nature of the enterprise as a network of stakeholder groups who are affected by, and have an influence on, the investment decision. This chapter explores the way in which the joint stock limited liability company privileges the one stakeholder group, the shareholders, and how various risk environments have influenced the development of the organisational framework and the relevant law, notably in the areas of limited liability and bankruptcy. It goes on to show how the way in which key decisions are made reflects relations between different stakeholder groups. These relations determine the distribution of both value and risk. Further sections consider key stakeholder relations, notably those between owners and managers, and between creditors and owners. The organisation of the enterprise and its capital structure provides the context in which investment decisions are made. The capital structure of an enterprise can influence the way in which risk affects the investment decision. The chapter concludes by considering the general nature of the decision-making process.

Keywords: Foreign Direct Investment; Stakeholder Group; Investment Decision; Capital Structure; Investment Project (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62483-2_7

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230624832

DOI: 10.1057/9780230624832_7

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().