Analysis of capital budgeting practices of companies in Saudi Arabia

Abstract

The past research on capital budgeting and investment appraisal practices has largely concentrated on developed countries with a limited research focused on developing countries. Despite the impressive growth and increased relevance of the choice of corporate management when it comes to investment appraisal techniques, there is limited research undertaken on developed countries in general and Saudi Arabia in particular. The aim of this research is to analyse the capital budgeting practices of companies in Saudi Arabia. This aim was fulfilled by using the literature review to formulate three hypotheses, which have been addressed by focusing on four research questions.