Determinants of investment decisions in a crisis: perspective of Croatian small firms

The aim of the paper is to determine the investment activity of small firms in Croatia during the crisis year 2012 and further analyse the effect of selected factors on capital investment decisions. For this purpose, an on-line survey of small businesses was conducted. The research sample consisted...

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Bibliographic Details
Published in:Management (Split, Croatia) Croatia), 2015, Vol.20 (2), p.115-133
Main Authors: Peric, Marko, Ðurkin, Jelena
Format: Article
Language:English
Subjects:
Business Economy / Management
Capital investments
Cash flow
crisis
Croatia
Decision making
Economic crisis
Economic development
Fixed assets
GDP
Gross Domestic Product
ICT Information and Communications Technologies
Interest rates
Investment
managers
Present Times (2010 - today)
Recessions
Small & medium sized enterprises-SME
small enterprises
Studies
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Summary:The aim of the paper is to determine the investment activity of small firms in Croatia during the crisis year 2012 and further analyse the effect of selected factors on capital investment decisions. For this purpose, an on-line survey of small businesses was conducted. The research sample consisted of small firms in Primorsko-Goranska County that earned the highest revenue in 2011, because it was assumed they would have greater investment potential in 2012. Research results show that almost half of the firms invested in new fixed assets in 2012. Their investment decisions were primarily motivated by mere "survival" purpose, since the investment activities were mostly oriented toward the replacement of worn-out assets.
ISSN:1331-0194
1846-3363