Economics at your fingertips  

Capital Budgeting in a Multidivisional Firm

Anil Arya (), Jonathan Glover and Richard A. Young

Corporate Finance & Organizations from Ohio State University

Abstract: The purpose of this paper is to study capital budgeting in a setting where emphasis is on control over project selection. We construct a model of a multidivisional firm in which there are no constraints on investment and all projects have a positive net present value. Nevertheless, we show that it is optimal for the center to use relative project ranking in determining which projects are to be funded.

References: Add references at CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) (application/msword)
Our link check indicates that this URL is bad, the error code is: 404 Not Found ( [301 Moved Permanently]--> [301 Moved Permanently]-->

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:

Access Statistics for this paper

More papers in Corporate Finance & Organizations from Ohio State University Contact information at EDIRC.
Series data maintained by Thomas Krichel ().

Page updated 2017-11-08
Handle: RePEc:wop:ohstfi:_005