Brazilian companiesÂ’ investment decisions concerning long-term assets: How do they adhere to the theoretical model?



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Fábio Frezatti
Diógenes de Souza Bido
Ana Paula Capuano da Cruz
Marcelo Francini Girão Barroso
Maria José de Camargo Machado

Abstract

This study sought to determine how large Brazilian organizations treat long-term investments. The theoretical construct took into account literature from the fields of strategy and finance, both of which offer hypotheses that use methods and mechanisms in order to evaluate investments. Using an online questionnaire, a survey including 82 companies was developed. Utilizing structural equation modeling, partial adherence to the theoretical model was found. It was found that the mechanisms of investment analysis are positively associated with concern about the perceived risk analysis. In addition, it was discovered that projects approved through strategic planning have relatively more structured monitoring; and also that a greater need for defining funding and opportunity costs is positively associated with a projects inclusion in strategic planning.

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How to Cite
Frezatti, F., Bido, D. de S., Cruz, A. P. C. da, Barroso, M. F. G., & Machado, M. J. de C. (1). Brazilian companiesÂ’ investment decisions concerning long-term assets: How do they adhere to the theoretical model?. Journal of Contemporary Administration, 16(1), 01-22. https://doi.org/10.1590/S1415-65552012000100002
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